Thangamayil Jewellery Limited delivered exceptional financial performance in Q3FY26, with profit after tax surging 119% year-on-year to ₹104.78 crores compared to ₹48.19 crores in Q3FY25. The Tamil Nadu-based jewellery retailer's strong results were driven by robust demand across all product categories and successful expansion initiatives.

Strong Revenue Growth Across Segments

The company's total revenue from operations jumped 112% to ₹2,401.21 crores in Q3FY26 from ₹1,131.64 crores in the corresponding quarter of the previous year. This impressive growth was supported by significant volume increases across all key product segments.

Quarterly Financial Performance

The company's profitability metrics showed substantial improvement during the quarter. Profit before tax increased 113% to ₹143.14 crores from ₹67.45 crores in Q3FY25. EBITDA grew 105% to ₹170 crores, though EBITDA margin remained relatively stable at 7.08% compared to 7.35% in the previous year.

Nine-Month Performance Highlights

For the nine-month period ended December 31, 2025, Thangamayil Jewellery achieved remarkable growth across all key metrics. Total revenue reached ₹5,661.13 crores, representing a 60% increase from ₹3,530.07 crores in the corresponding period of FY25. Profit after tax for the nine-month period grew 140% to ₹208.99 crores from ₹87.31 crores.

Expansion and Operational Developments

The company successfully expanded its retail footprint during the nine-month period, opening 10 new outlets to bring the total active retail network to 66 stores across Tamil Nadu. The Chennai Metro operational outlets contributed 17% to total sales, with the company targeting 20% contribution for the full year.

The customer advance base, including Digi Gold schemes, increased significantly by 108% from 6.41 lakhs to 13.32 lakhs customers as of December 31, 2025. Same store sales growth accelerated to 61% in Q3FY26 compared to 23% in Q3FY25.

Risk Management and Strategic Initiatives

Thangamayil Jewellery maintained its disciplined approach to inventory hedging, with 95% of gold inventory and 34% of silver inventory hedged as of December 31, 2025. The company reported comfortable liquidity of ₹311 crores, including eligible drawing power from banks.

Due to surging demand for silver jewellery as an alternative option, the company launched a "Digi Silver Scheme" effective January 2026, complementing its existing "Digi Gold" program. The company also noted a positive shift in urban versus rural revenue contribution, moving from 28.78% to 40.90% during the nine-month period.

Impact of New Labour Codes

The company recognized a one-time exceptional item of ₹2.38 crores in Q3FY26 related to the implementation of New Labour Codes effective November 21, 2025. This represents increased provision for employee benefits under the consolidated labour legislation framework introduced by the Government of India.

Thangamayil Jewellery shares have experienced a significant rally, rising as much as 8% to an intraday high of ₹4,138.00 on Thursday, January 8. This marked the third consecutive session of gains, with the stock accumulating nearly 28% growth over the same period, reflecting sustained buying interest from investors.

Industry Peer Performance Drives Optimism

The sharp gains appear to be driven by optimism stemming from strong Q3 business updates reported by industry peers, raising expectations of similar performance from Thangamayil Jewellery. The jewellery sector has demonstrated robust growth across multiple players during the festive season.

Titan Company's Stellar Performance

Titan Company's overall consumer businesses posted approximately 40% year-on-year growth, driven by strong festive demand and continued premiumisation trends. The jewellery division delivered a standout performance, recording approximately 41% year-on-year growth in Q3 FY26, supported by vibrant festive and wedding demand. Higher average selling prices, aided by elevated gold prices, compensated for largely flat buyer growth, while Tanishq's gold exchange offers helped sustain demand beyond the festive season.

Senco Gold's Impressive Growth Trajectory

Senco Gold reported remarkable performance with sales and revenue increasing 51% in the third quarter compared to the previous year. This growth comes against the backdrop of 6.50% and 28% growth in the previous two quarters, respectively. Key highlights of Senco's performance include:

• Nine-month FY26 growth of 31% compared to the same period last year
• Trailing twelve-month revenue reaching ₹8,000.00 crore
• Retail business growth of 49% in Q3
• Same store sales growth of 39%

Kalyan Jewellers' Strong Quarter

Kalyan Jewellers reported 42% year-on-year revenue growth in Q3 FY2026, primarily driven by robust festive demand. The growth was supported by strong demand during and after the Diwali festival, despite fluctuations in gold prices. Both plain gold and studded jewellery segments experienced broad-based growth, with same-store sales increasing by approximately 27%.

Thangamayil's Q2 Turnaround Performance

The company demonstrated a strong turnaround in its September quarter results, posting impressive financial metrics that likely contribute to current investor confidence.

The company's revenue from operations jumped 45% year-on-year, driven by robust festive demand and strong retail traction. The operating performance showed sharp improvement, with EBITDA rising substantially from the previous year's negative base, marking a strong recovery in operational efficiency.