Thangamayil Jewellery Ltd expects to cross ₹7,500 crore in revenue for FY26, driven by strong momentum across gold, silver and diamond segments. The Tamil Nadu-based retail jewellery chain has revised its full-year revenue guidance upward from the earlier target of ₹7,000 crore, according to SM Lakshmanan, VP-Finance & Accounts.

Strong Financial Performance in Nine Months

The company delivered robust performance during the first nine months of FY25-26, achieving significant growth across key metrics:

The improved EBITDA margin of 6.27% compared to 4.90% in the previous year's nine months was primarily driven by Chennai showrooms scaling up and increased non-gold revenue contribution.

Expansion Strategy and Store Network Growth

Thangamayil Jewellery opened 10 new showrooms during the first nine months of the current financial year, bringing the total store count to 66. The expansion was strategically focused on key markets:

The company plans to launch its second phase of expansion in and around Chennai from the first quarter of FY27. While specific store numbers for the upcoming expansion will be shared by Q4, management confirmed that the expansion plans remain on track.

Revenue Mix and Regional Performance

Chennai showrooms have emerged as a significant revenue contributor, with their composition reaching 17% for the nine months and expected to cross 20% on a full-year basis. The non-gold revenue segment showed particularly strong growth at 65% year-on-year, compared to earlier levels of 20-40%.

Hedging Strategy and Risk Management

The company maintains a conservative approach to inventory hedging:

Management indicated plans to potentially increase silver hedging levels from the current 35%, historically maintaining hedging levels between 65-75% and elevated to 85-95% as policy. The company's focus remains on operating profitability given the high gold hedging ratio.

Market Performance

The company, with a current market capitalisation of ₹11,656.22 crore, has seen its shares gain more than 124% over the last year. The strong financial performance and expansion plans have contributed to investor confidence in the jewellery retailer's growth trajectory.

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.