Thangamayil Jewellery's Q2 FY27 shows 40% revenue growth with flat profit, revealing how gold price volatility and import duty reshape jewellery retail margins.
India’s jewellery market, valued at roughly USD 90 billion, rewards trust above all. Thangamayil’s September quarter shows how a regional specialist keeps growing when gold itself refuses to sit still.
Organised players hold about 37-42% of this market, and that share is expected to climb towards 45-50% by FY30 as hallmarking and brand trust pull buyers away from neighbourhood sellers.
Titan leads with roughly 45% of the organised segment, followed by Kalyan, Malabar, Joyalukkas and Senco.
Thangamayil, from Madurai, competes by being deeply rooted in Tamil Nadu rather than everywhere.
The previous quarter was exceptional: revenue of INR 2,662 crore grew 71% and net profit of INR 85 crore rose 86%, powered by same-store sales growth of 44%.
That momentum stands on a strong base, including an INR 510 crore rights issue of which about 96% has already been utilised, giving expansion real financial muscle.
September quarter revenue rose 40% to INR 2,388 crore, while net profit grew just 2% to INR 59 crore. First-half revenue reached INR 5,054 crore, up 55%.
The insight lies beneath the headline.
Gold ornament volumes slipped 1%, so growth came from higher gold prices, not from customers buying more grams.
Margins tell the same story.
EBITDA margin eased to about 5% from 6%, and gross margin slipped to roughly 10%, as bullion swings squeezed the spread.
Customers hesitated for good reasons: import duty rose from 6% to 15%, the rupee weakened, West Asia stayed unsettled and expatriate remittances into Tamil Nadu softened.
Yet the engine keeps running.
Same-store sales grew 36% in the half, revenue per square foot rose 34%, and over 66 showrooms now anchor Tamil Nadu, with Chennai expanding.
Management expects demand to recover in the second half as geopolitics stabilise and confidence returns, and a trusted, locally loved jeweller is well placed to benefit.
Editor’s Note
Revenue is vanity in gold retail; volume is sanity.
Thangamayil’s quarter reminds us that growth riding on metal prices must eventually be earned again through footfalls, conversions and weight sold.
Regional jewellers hold a quiet advantage: community trust compounds even when margins dip.
Lightweight designs, gold exchange and savings schemes can convert cautious buyers without chasing discounts.
Pauses are not exits.
Buyers who wait today return tomorrow, and the jeweller who stayed close earns their loyalty for generations. Brighter festive and wedding months can reward that patience handsomely.
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