Thangamayil margin slips again as costs outpace revenue growth
Revenue rose +39.67% year on year, but expenses grew +41.61% and interest rose +37.22%, leaving net profit up only +1.61%.
Filed 04 Nov 2026, 14:10 IST · Thangamayil Jewellery Ltd (THANGAMAYL)
Key takeaways
- Standalone operating margin fell 1.31 percentage points year on year to 4.52% as expenses grew +41.61%, faster than revenue at +39.67%.
- Net profit increased only +1.61% year on year despite revenue growth of +39.67%, as interest expense rose +37.22%.
- Operating margin declined 0.77 percentage points sequentially to 4.52%, extending the slide from 7.52% in Q4FY26 through 5.29% in Q1FY27.
Price around the results
Revenue growth fails to translate into operating leverage
In the standalone quarter, revenue grew +39.67% year on year, but expenses grew faster at +41.61%, cutting operating margin by 1.31 percentage points and limiting operating profit growth to +8.32%. Sequentially, revenue fell -10.58% while expenses declined only -9.85%, narrowing operating margin by 0.77 percentage points. Net profit consequently fell -30.13% quarter on quarter, compared with the +1.61% year-on-year increase.
Higher interest costs added pressure below operations
Interest expense rose +37.22% year on year and +25.66% sequentially, further separating profit before tax from operating profit. Other income accounted for 8.49% of profit before tax, so it provided only a limited supplement to reported earnings. The sequential tax-rate decline of 0.87 percentage points softened the pressure on net profit, while the year-on-year tax rate edged up 0.09 percentage points.
Margin is now below both its recent peak and sector peers
Operating margin has declined for a second consecutive quarter, from 7.52% in Q4FY26 to 5.29% in Q1FY27 and 4.52% in Q2FY27. The current margin was 7.39 percentage points below the 11.91% median for 223 Consumer Discretionary peers that had reported the quarter. Thangamayil ranked 39th from the bottom on this comparison.
Past result-day moves have skewed negative
After its last eight results, the stock rose three times and fell five times. The median absolute move was 3.51%, indicating that result-day reactions have generally been meaningful, with a negative bias across the available history.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,381 cr | ₹2,662 cr | -10.58% | +39.67% |
| Other income | ₹7 cr | ₹4 cr | +72.26% | +7.46% |
| Expenses | ₹2,273 cr | ₹2,522 cr | -9.85% | +41.61% |
| Operating profit | ₹108 cr | ₹141 cr | -23.52% | +8.32% |
| Operating margin (%) | 4.52% | 5.29% | — | — |
| Interest | ₹22 cr | ₹18 cr | +25.66% | +37.22% |
| Depreciation | ₹12 cr | ₹11 cr | +8.20% | +12.21% |
| Profit before tax | ₹80 cr | ₹115 cr | -30.95% | +1.73% |
| Tax | ₹20 cr | ₹30 cr | -33.22% | +2.11% |
| Net profit | ₹59 cr | ₹85 cr | -30.13% | +1.61% |
| EPS (₹) | ₹19.13 | ₹27.38 | -30.13% | +1.65% |
Operating margin of 4.52% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin stabilises above 4.52% after two consecutive quarterly declines.
- Whether expenses grow more slowly than revenue after the year-on-year gap of +41.61% versus +39.67%.
- Whether interest growth moderates from +37.22% year on year and +25.66% sequentially.