Revenue jumps 71.18%, but Thangamayil’s margin slips to 5.29%
Sequential revenue fell 6.19% and costs declined more slowly, ending a four-quarter operating-margin climb.
Filed 29 Jul 2026, 11:11 IST · Thangamayil Jewellery Ltd (THANGAMAYL)
Key takeaways
- Standalone revenue rose 71.18% year on year, but expenses grew faster at 71.44%, leaving operating margin down 0.14 percentage points.
- Operating margin fell 2.23 percentage points sequentially to 5.29% as revenue declined 6.19% while expenses fell only 3.93%.
- Net profit rose 86.15% year on year, helped by a tax-rate reduction of 3.50 percentage points, while other income contributed only 3.4% of pre-tax profit.
Price around the results
Standalone growth weakens sequentially after a strong year-on-year quarter
Thangamayil Jewellery’s standalone revenue grew 71.18% year on year, while operating profit increased 66.67%, showing that higher sales did not translate fully into operating leverage. Sequentially, revenue fell 6.19% and operating profit declined 34.07%, taking net profit down 40.35%. The year-on-year net-profit increase of 86.15% was therefore paired with a clear loss of quarterly momentum.
Slower cost reduction drove the margin reset
Year on year, expenses grew 71.44%, slightly faster than revenue, narrowing operating margin by 0.14 percentage points. Sequentially, expenses fell 3.93% against a 6.19% revenue decline, which reduced operating margin by 2.23 percentage points. Interest expense fell 13.28% sequentially, but the tax rate rose 4.61 percentage points; year on year, the 3.50 percentage-point lower tax rate supported net profit growth. Other income was 3.4% of pre-tax profit, so it was not a major driver of earnings.
Margin falls below peers after four quarters of expansion
Operating margin had risen from 4.14% in Q4FY25 to 7.52% in Q4FY26, but fell to 5.29% in Q1FY27, marking the first reversal after four consecutive quarterly increases. The margin was 9.32 percentage points below the 14.61% median for the 29 Consumer Discretionary peers that had reported, placing Thangamayil third from the bottom.
Immediate stock reaction is still pending
There is no immediate market reaction to this result yet. After the company’s previous eight results, the stock rose three times and fell five times, with a median absolute move of 1.80%, indicating a mixed historical response.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,662 cr | ₹2,838 cr | -6.19% | +71.18% |
| Other income | ₹4 cr | ₹1 cr | +309.38% | +54.72% |
| Expenses | ₹2,522 cr | ₹2,625 cr | -3.93% | +71.44% |
| Operating profit | ₹141 cr | ₹213 cr | -34.07% | +66.67% |
| Operating margin (%) | 5.29% | 7.52% | — | — |
| Interest | ₹18 cr | ₹20 cr | -13.28% | +17.78% |
| Depreciation | ₹11 cr | ₹12 cr | -2.71% | +68.18% |
| Profit before tax | ₹115 cr | ₹182 cr | -36.62% | +77.32% |
| Tax | ₹30 cr | ₹40 cr | -23.14% | +56.54% |
| Net profit | ₹85 cr | ₹143 cr | -40.35% | +86.15% |
| EPS (₹) | ₹27.38 | ₹45.89 | -40.34% | +86.13% |
Operating margin of 5.29% compares with a Consumer Discretionary sector median of 14.61% across 29 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 5.29% after the 2.23 percentage-point sequential decline.
- Whether expenses grow more slowly than revenue after the year-on-year comparison of 71.44% versus 71.18%.
- Whether the tax rate moves below 26.32% without a further decline in operating margin.