Shares of Thangamayil Jewellery fell 5% on Monday, extending their one-week decline to 32%, after the company said it saw no visible improvement in sales during the first 28 days of Q2 FY27.
The company stated on Friday that the business slowdown was primarily due to a steep increase in import duty from 6% to 15% from May 13, 2026, along with significant depreciation in the rupee. These factors led customers to postpone purchases in anticipation of a future decline in gold prices in U.S. dollar terms.
Geopolitical uncertainties about the U.S.-Iran war also weighed on demand. The company said the resulting slowdown in gold purchases by expatriates, driven by lower inward remittances in the areas where it operates, further contributed to the sluggish offtake on a quarter-on-quarter basis.
Thangamayil Jewellery said that it saw no visible improvement in sales during the first 28 days of the second quarter of FY27. The company attributed this to continued war uncertainty and customer expectations of a moderate decline in international gold prices, which led to further postponement of purchases.
The jeweller reported same-store sales (SSS) growth of 44.4% for the quarter ended June 30, 2026, compared with 72.3% in the preceding quarter. The company said gold volumes were relatively lower during the quarter despite international gold prices being more benign compared to the previous quarter, when prices had remained elevated.
The company had gained the attention of some of India’s best-performing PMS fund managers in June, and featured among the five largest holdings of four of the top 10 equity portfolio management service strategies that disclosed their portfolios.
Equirus Wealth’s Long Horizon Fund made the most aggressive wager, allocating over 22% of its portfolio to the stock, according to data cited by PMS Bazaar. The conviction coincided with performance, as the smallcap strategy topped the June rankings with a return of over 14%, well ahead of the 10.5% return delivered by the tenth-ranked portfolio.
The stock was also the largest holding of Clockvine Capital Advisors’ Growth Fund, with a 12.4% weight. The strategy returned 11.41% in June, placing it fourth.
East Green Advisors’ Agile Strategy, ranked fifth with an 11.35% return, held 5.5% in the jeweller. SBI Funds Management’s Aeon Alpha PMS had a 6.15% allocation and ranked tenth with a 10.5% return.
The Tamil Nadu jeweller reported a net profit of Rs 85 crore for the first quarter of FY27, marking an 86% growth from Rs 45.7 crore posted in the corresponding quarter of the previous year.
The company’s revenue from operations jumped 71.2% in the June quarter to Rs 2,666.4 crore from Rs 1,558 crore reported in the same period last year.
EBITDA (earnings before interest, tax, depreciation and amortisation) rose 66.2% to Rs 144.6 crore from Rs 87 crore. Margins for the quarter under review stood at 5.4%, as compared to 5.6% in the corresponding period of the previous year.
Thangamayil Jewellery shares have doubled so far in 2026, but the previous week witnessed a 32% decline in the stock. The company’s shares fell 5% on Monday, to trade at Rs 4,972.15 apiece.
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