Q4 margin rose as revenue more than doubled, but the stock slipped 0.62%
Expenses grew slower than revenue, lifting operating margin to 7.52%, while a lower tax rate aided the sequential profit increase.
Filed 15 May 2026, 13:33 IST · Thangamayil Jewellery Ltd (THANGAMAYL)
Key takeaways
- Standalone revenue more than doubled year on year, rising 105.59%, while operating margin expanded 3.38 percentage points.
- Net profit grew 354.33% year on year to Rs 142.66 cr despite interest costs rising 83.45%.
- The stock fell 0.62% on the results day, a smaller move than its 1.8% median absolute reaction after the last eight results.
Price around the results
Revenue growth translated into operating leverage
Thangamayil Jewellery reported standalone revenue growth of 105.59% year on year in Q4FY26, while expenses rose 98.34%. The slower cost growth lifted operating margin by 3.38 percentage points to 7.52%, and operating profit increased 273.54%. Sequentially, revenue rose 18.2% and operating profit rose 27.43%, extending the operating improvement.
Margin recovery continued, but financing costs rose
Operating margin has recovered from 4.14% in Q4FY25 to 5.43%, 5.83%, 6.98% and 7.52% over the subsequent four quarters. Interest costs increased 83.45% year on year and 27.1% sequentially, while depreciation rose 58.89% year on year. Other income contributed only 0.53% of pre-tax profit, so reported earnings were not materially supported by non-operating income.
Lower sequential tax rate supported profit growth
Pre-tax profit rose 27.29% sequentially, while net profit increased 36.15%. The tax rate fell 5.09 percentage points sequentially to 21.71%, adding to the conversion of pre-tax profit into net profit. Year on year, however, the tax rate increased 2.58 percentage points, so the tax line did not flatter the annual profit comparison.
Margin remains below the reported peer median
Among 93 Consumer Discretionary peers that had reported the same quarter, the median operating margin was 14.81%. Thangamayil Jewellery's 7.52% margin was 7.29 percentage points below that median and placed it 14th from the bottom. The stock's 0.62% results-day decline was milder than its 1.8% median absolute move across the last eight result reactions; after five sessions, the recorded move was +5.55%.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,838 cr | ₹2,401 cr | +18.20% | +105.59% |
| Other income | ₹1 cr | ₹2 cr | -56.95% | +317.39% |
| Expenses | ₹2,625 cr | ₹2,234 cr | +17.51% | +98.34% |
| Operating profit | ₹213 cr | ₹168 cr | +27.43% | +273.54% |
| Operating margin (%) | 7.52% | 6.98% | — | — |
| Interest | ₹20 cr | ₹16 cr | +27.10% | +83.45% |
| Depreciation | ₹12 cr | ₹11 cr | +11.86% | +58.89% |
| Profit before tax | ₹182 cr | ₹143 cr | +27.29% | +369.25% |
| Tax | ₹40 cr | ₹38 cr | +3.10% | +432.30% |
| Net profit | ₹143 cr | ₹105 cr | +36.15% | +354.33% |
| EPS (₹) | ₹45.89 | ₹33.71 | +36.13% | +350.79% |
Operating margin of 7.52% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.62% | -0.42% |
| Next session | -1.92% | — |
| 5 sessions | +5.55% | +5.43% |
| 15 sessions | +51.85% | — |
| 30 sessions | +76.92% | — |
Volume on the results session was 5.81× its 20-day average.
What to watch
- Whether operating margin holds above 7.52% after four consecutive quarters of recovery.
- Whether expenses continue to grow slower than revenue, following year-on-year growth of 98.34% versus 105.59%.
- Whether the tax rate remains near 21.71% after falling 5.09 percentage points sequentially.