Thangamayil Jewellery Ltd Reports Outstanding Quarterly Performance, Upgrades to Strong Buy

Quarterly Financial Highlights Demonstrate Robust Growth

In the quarter ended December 2025, Thangamayil Jewellery Ltd reported net sales of ₹2,405.83 crores, the highest quarterly figure in its history. This represents a marked acceleration compared to previous quarters and reflects strong consumer demand and effective inventory management. The company’s PBDIT (Profit Before Depreciation, Interest and Taxes) also reached a record ₹172.11 crores, signalling improved operational efficiency and cost control.

Profit Before Tax less Other Income (PBT less OI) surged to ₹145.52 crores, while the net profit after tax (PAT) climbed to ₹106.52 crores, both all-time highs for the company. Earnings per share (EPS) stood at ₹33.71, a significant increase that highlights the company’s ability to convert sales growth into shareholder value.

Financial Trend Upgrade Reflects Outstanding Performance

The company’s financial trend score has improved from a very positive 24 to an outstanding 31 over the past three months, signalling a clear upward trajectory in its financial health and operational metrics. This upgrade is supported by the absence of any key negative triggers, reinforcing confidence in the company’s business model and growth prospects.

Thangamayil Jewellery’s market capitalisation grade remains at 3, reflecting its mid-cap status, but the recent surge in share price and earnings has attracted increased investor interest. The stock closed at ₹3,892.55 on 22 January 2026, up 4.79% from the previous close of ₹3,714.70, and trading near its 52-week high of ₹4,138.15.

Comparative Performance Against Sensex and Sector Peers

Thangamayil Jewellery Ltd’s stock has outperformed the broader market significantly over multiple time horizons. Year-to-date, the stock has gained 20.99%, while the Sensex has declined by 3.89%. Over the past year, the stock’s return has been an impressive 132.87%, dwarfing the Sensex’s 8.01% gain. The company’s long-term performance is even more striking, with a 10-year return of 3,994.88% compared to the Sensex’s 241.83%.

This exceptional outperformance highlights the company’s strong fundamentals and investor confidence in its growth trajectory. The Gems, Jewellery and Watches sector has seen mixed results recently, but Thangamayil Jewellery’s ability to deliver consistent revenue growth and margin expansion sets it apart from many peers.

Margin Expansion and Operational Efficiency Drive Profitability

Alongside revenue growth, Thangamayil Jewellery has demonstrated margin expansion, a key factor in its improved profitability. The PBDIT margin has increased, reflecting better cost management and operational leverage. This margin improvement is critical in a sector often challenged by fluctuating raw material prices and competitive pressures.

The company’s focus on premium product segments and efficient supply chain management has contributed to this margin expansion. Additionally, the absence of any significant negative triggers or one-off expenses in the quarter has allowed the company to maintain a clean earnings profile, further boosting investor confidence.

Outlook and Investment Rating Upgrade

Following the outstanding quarterly results and improved financial trend, the company’s Mojo Grade has been upgraded from Buy to Strong Buy as of 18 November 2025. The Mojo Score now stands at a robust 84.0, reflecting strong fundamentals, positive earnings momentum, and favourable market sentiment.

Analysts note that the company’s strategic initiatives, including expansion into new markets and product innovation, position it well for sustained growth. The upgrade signals a growing consensus that Thangamayil Jewellery Ltd is poised to deliver superior returns relative to its sector and the broader market.

Risks and Considerations

While the recent performance is impressive, investors should remain mindful of sector-specific risks such as volatility in gold and diamond prices, regulatory changes, and consumer sentiment shifts. The company’s ability to sustain margin expansion amid fluctuating input costs will be a key factor to monitor in upcoming quarters.

Moreover, the jewellery sector is highly competitive, with established players and new entrants vying for market share. Thangamayil Jewellery’s continued focus on brand differentiation and customer experience will be essential to maintain its growth momentum.

Conclusion

Thangamayil Jewellery Ltd’s December 2025 quarter marks a milestone in its financial journey, with record-breaking sales, profits, and earnings per share. The upgrade to a Strong Buy rating and the outstanding financial trend score reflect the company’s robust fundamentals and promising outlook. Its significant outperformance relative to the Sensex and peers underscores its potential as a compelling investment opportunity in the Gems, Jewellery and Watches sector.

Investors seeking exposure to a well-managed, growth-oriented jewellery company may find Thangamayil Jewellery Ltd an attractive proposition, supported by strong operational execution and favourable market dynamics.

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