Thangamayil Jewellery Limited , a prominent player in the Indian jewellery market, has announced a significant dividend payout along with robust first-quarter results. The company's performance reflects its resilience and growth strategy in a challenging market environment.

Dividend Announcement

At the 25th Annual General Meeting held on July 28, 2025, Thangamayil Jewellery's shareholders approved a final dividend of Rs. 12.50 per equity share. This dividend represents 125% of the face value of Rs. 10 per equity share and is scheduled to be paid on or before August 20, 2025. The substantial dividend payout underscores the company's commitment to delivering value to its shareholders.

Q1 Financial Highlights

The company's unaudited financial results for the quarter ended June 30, 2025, reveal a strong performance:

• EBITDA margin maintained at 5.78% of retail sales.
• EPS reported on an enhanced capital base post rights issue.

Operational Performance

• Retail Network Expansion: Increased retail outlets to 64, up from 58 in the previous year, including new stores in and around Chennai.
• Product Mix:
  • Gold jewellery sales grew by 27% to Rs. 1,375.00 crore.
  • Non-gold sales (including silver and diamonds) surged by 34% to Rs. 130.00 crore.
• Volume Trends:
  • Gold ornament volume decreased by 4%.
  • Silver product volume increased by 11%.
  • Diamond product volume grew by 22%.

Market Challenges and Strategy

Thangamayil Jewellery faced headwinds due to a steep 28% increase in gold prices during the quarter, which impacted volume sales. However, the company maintained its gross profit margin at around 11%, demonstrating effective cost management and pricing strategies.

The company's expansion into Chennai with five new retail outlets is part of its growth strategy. Two additional outlets in Gowrivakkam and Urapakkam were opened in July 2025, with plans for a sixth outlet in Avadi, Chennai suburbs, by September 2025.

Financial Position

• Liquidity: Reported liquid funds of Rs. 400.00 crore, including undrawn bank facilities and rights issue balance, a significant increase from Rs. 119.00 crore in the previous year.
• Inventory Management: Inventory hedging improved to 94% from 88% year-over-year, indicating better risk management practices.

Outlook

While the steep increase in gold prices has moderated volume growth, Thangamayil Jewellery remains optimistic about future quarters. The company expects volume improvements if gold prices stabilize or decrease. The expansion into Chennai and surrounding areas is anticipated to drive growth and market presence in the coming periods.

Thangamayil Jewellery's performance in Q1, coupled with its strategic expansion and shareholder-friendly dividend policy, positions the company well for sustained growth in the competitive Indian jewellery market.

Thangamayil Jewellery Limited , a prominent player in the Indian jewelry market, has announced a significant dividend payout and reported robust financial results for the first quarter of the fiscal year 2025-26.

Dividend Announcement

At the company's 25th Annual General Meeting held on July 28, 2025, shareholders approved a final dividend of Rs. 12.50 per equity share. This dividend represents 125% of the face value of Rs. 10 per equity share and is scheduled to be paid on or before August 20, 2025.

Q1 Financial Highlights

Thangamayil Jewellery has released its unaudited financial results for the quarter ended June 30, 2025, showcasing strong growth despite challenging market conditions:

Revenue and Sales

• Total Income: Rs. 1,557.86 crore, a 27% year-over-year increase from Rs. 1,222.07 crore in the same quarter last year.
• Retail Sales: Rs. 1,505 crore, marking a 28% growth compared to Rs. 1,178 crore in the previous year.

Profitability

• Gross Profit: Increased to Rs. 167 crore from Rs. 129 crore in the corresponding quarter last year, maintaining a gross profit margin of 11.10% on retail sales.
• EBITDA: Rs. 87 crore, with an EBITDA margin of 5.78% on retail sales.
• Net Profit: Rs. 45.71 crore for the quarter.
• Earnings Per Share (EPS): Rs. 14.71 on an enhanced capital base of Rs. 31.08 crore post-rights issue.

Operational Performance

• Retail presence expanded to 64 outlets, up from 58 in the previous year.
• Same Store Sales (SSS) growth of 6.83% for the quarter.
• Non-gold sales, including silver and diamond products, showed strong growth of 34% year-over-year.

Market Challenges and Outlook

Despite the overall positive performance, Thangamayil Jewellery faced some challenges:

• Gold volume sales decreased by 4% due to a steep 28% increase in gold prices during the quarter.
• The company expects volume to improve in subsequent quarters if gold prices stabilize or decrease.

Expansion Plans

Thangamayil Jewellery is actively expanding its presence in Chennai:

• Five new retail outlets have commenced operations in and around Chennai.
• Two additional outlets in Gowrivakkam and Urapakkam were opened in July 2025.
• A sixth outlet is planned to open in Avadi, Chennai suburbs, in September 2025.

Management Commentary

Balarama Govinda Das, Chairman and Managing Director, commented on the results: "Despite the challenges posed by rising gold prices, we have maintained strong growth in our retail sales and gross profit. Our expansion into Chennai is progressing well, and we are confident that these new outlets will contribute significantly to our future growth."

Thangamayil Jewellery Limited continues to strengthen its position in the southern Indian jewelry market, with a focus on expanding its retail footprint and maintaining profitability in a dynamic market environment.