Shares of Thangamayil Jewellery Ltd extended their sharp decline for a fourth consecutive session on Monday, August 3, 2026, falling 5 percent to hit a low of Rs 5,233.80. This latest drop brings the total decline to 30.74 percent over just four trading sessions, even as the company announced strong financial results for the June quarter (Q1 FY27).
Q1 FY27 Performance and Sequential Decline
For the first quarter of fiscal year 2027, Thangamayil Jewellery reported a consolidated net profit of Rs 85.09 crore, marking an 86.15 percent year-on-year (YoY) increase from Rs 45.71 crore in the same period last year. Revenue from operations also saw a significant jump, rising 71.16 percent YoY to Rs 2,666.38 crore from Rs 1,557.86 crore.
However, the company's sequential performance indicated pressure. Net profit declined 40.35 percent quarter-on-quarter (QoQ) from Rs 142.66 crore, and revenue fell 6.09 percent from Rs 2,839.17 crore reported in the March quarter.
Factors Behind Demand Concerns and Outlook
Thangamayil Jewellery attributed the weaker sequential performance to several factors. A sharp increase in gold import duty from 6 percent to 15 percent, effective May 13, 2026, significantly impacted operations. Rupee depreciation and customer expectations of lower international gold prices also led many buyers to defer purchases. Additionally, the company cited uncertainty from the West Asia conflict, which affected gold purchases funded by expatriate remittances in its key operating regions.
The company noted that sales remained subdued during the first 28 days of the second quarter as customers continued to postpone purchases amid geopolitical uncertainty and hopes for softer gold prices. Despite these challenges, Thangamayil expects deferred demand to return once the situation stabilizes and remains hopeful of a recovery in the second half of FY27. Same Store Sales (SSS) growth stood at 44.40 percent for the June quarter.
Analyst Perspectives on Thangamayil Jewellery Stock
Market experts offer mixed views on the stock's near-term trajectory.
Ravi Singh, Chief Research Officer at Master Capital Services, stated, "Thangamayil Jewellery delivered a strong operational performance in Q1 FY27, but management's cautious outlook weighed heavily on investor sentiment. The stock has turned into a falling knife, plunging over 30 percent in the last five trading sessions with no signs of meaningful buying interest. It is now approaching the Rs 4,300–4,200 zone, where it needs to consolidate and form a stable base before any sustainable recovery can be expected."
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, commented that the correction follows a steep rally. "It is suitable for investors with a high-risk appetite. From a medium- to long-term perspective, one can consider a buying-on-dips strategy," Bathini advised.
AR Ramachandran, a Sebi-registered research analyst at Tips2trades, maintained a bearish technical outlook. "Thangamayil Jewellery is bearish on daily charts with strong resistance at Rs 5,226. A daily close below the support level of Rs 4,752 could trigger a decline towards Rs 4,132 in the near term," he warned.