Thangamayil Jewellery Limited reported a robust financial performance for the year ended March 31, 2026, with net profit surging 196% year-on-year to ₹35,165 lakhs. This growth was driven by a 73% increase in retail sales, which reached ₹8,159 Crs for the full year. Total income from operations for FY26 stood at ₹8,51,375 lakhs, compared to ₹4,91,630 lakhs in FY25. The Board of Directors has recommended a final dividend of ₹18.00 per equity share (180%), subject to shareholder approval at the Annual General Meeting scheduled for July 29, 2026, at Madurai. The statutory auditors, M/s. B.Thiagarajan & Co, issued an unmodified audit report on the financial results.

Q4 Financial Performance

The company delivered strong results in the fourth quarter, with total income from operations rising to ₹2,83,917 lakhs from ₹1,38,073 lakhs in the corresponding period of the previous year. Retail sales for Q4 grew 107% year-on-year to ₹2,730 Crs versus ₹1,316 Crs. EBITDA for the quarter increased significantly to ₹214 Crs, with the EBITDA margin expanding to 7.84% from 4.33% a year ago. Standalone net profit for Q4 stood at ₹14,266 lakhs, compared to ₹3,140 lakhs in Q4 FY25. Gross profit margin on retail sales improved to 11.39% from 9.57% on a year-on-year basis.

Full-Year Financial Highlights

For the full year FY26, Thangamayil Jewellery reported net sales of ₹8,49,933 lakhs, up from ₹4,91,058 lakhs in FY25. Net profit after tax rose to ₹35,165 lakhs from ₹11,871 lakhs in the previous year, while basic and diluted EPS improved to ₹113.14 from ₹42.00. Key profitability ratios also improved materially, with the net profit ratio (after tax) rising to 4.14% from 2.42%, average return on equity increasing to 27.93% from 21.54%, and average return on capital employed improving to 26.21% from 21.69%.

Operational and Strategic Updates

Operational metrics showed significant improvement during the year. Same Store Sales (SSS) growth reached 38.18% for the 12 months ended March 31, 2026, compared to 18.10% for the previous year. The company expanded its retail footprint to 66 outlets from 60 in the prior year. Gold volume sales grew to 6,554 kgs from 5,836 kgs, while diamond volume sales increased to 17,923 carats from 13,546 carats. Inventory turnover stood at 3.45 times (annualised), and the interest coverage ratio improved to 8.52 times from 5.47 times. The debt-equity ratio improved to 0.43 times from 0.55 times, and the net debt/EBITDA ratio declined sharply to 1.04 times from 2.69 times. The company noted a strategic shift towards lightweight jewellery and exchange gold offers—with exchange gold sales currently ranging from 50% to 60% of current sales—to navigate elevated gold prices.

Impact of Import Duty Increase

The Government of India, on May 13, 2026, increased the import duty on gold and silver from 6% to 15% with immediate effect. This steep rise in import duty may have an impact on demand for gold and silver jewellery in the coming months. However, the company noted that this increase in duty on actual realisation on existing inventory may result in inventory gains of approximately ₹60 Crs at current market prices prevailing for gold and silver products. Additionally, inventory profit earned on a FIFO basis on the unhedged silver portion amounted to ₹78 Crs (net of taxes), while gold inventory profit on FIFO basis moderated at ₹36 Crs (net of taxes), given enhanced hedging at 95% of gold inventory. Combined, gold and silver inventory realisation contributed ₹114 Crs, representing 12% of reported gross profit.

Dividend and AGM Details

The Board has recommended a final dividend of ₹18.00 per equity share of face value ₹10 each for FY26, as confirmed through an intimation filed under Regulation 42 of SEBI (LODR) Regulations, 2015. The total dividend payout for FY26 amounts to ₹5,595 lakhs, compared to ₹3,885 lakhs in the previous year. The payment date will be announced once shareholders approve the dividend at the Annual General Meeting.

About the Company

Thangamayil Jewellery Limited is a ₹8,500 Crores turnover company engaged in the manufacturing and retailing of gold ornaments, silver articles, and diamond products. The company operates through a network of 66 retail outlets spread across Tamil Nadu and has a customer base of over 45 lakh customers.

Thangamayil Jewellery Limited has notified the stock exchanges of an upcoming Board of Directors meeting, scheduled for Friday, May 15, 2026. The intimation has been filed pursuant to Regulation 29(1)(a) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Meeting Agenda

The Board meeting has been convened to address key financial and shareholder-related matters for the concluded fiscal year. The following items are on the agenda:

Regulatory Compliance

The intimation was submitted to both BSE Limited and the National Stock Exchange of India Limited on May 7, 2026, and was signed by K. Narayanan, Company Secretary and Compliance Officer of Thangamayil Jewellery Limited. The filing underscores the company's adherence to its disclosure obligations under applicable SEBI regulations.

Shareholders and market participants are advised to note the scheduled date as the company prepares to disclose its audited financial performance for the quarter and full financial year ended March 31, 2026, along with any dividend recommendation on equity shares.