Thangamayil Jewellery Shares Plunge 32% in One Week After Weak Q2 FY27 Sales Update
Key Takeaways
- •Thangamayil Jewellery shares declined 32% over one week, including a 5% drop in the latest session, following management's cautious sales commentary for Q2 FY27.
- •The company reported no visible sales improvement during the first 28 days of the July–September 2025 quarter, with both footfalls and conversions remaining subdued.
- •Higher gold import duties raised in the Union Budget 2025 and rupee depreciation increased landed costs for jewellers, compounding margin and demand pressures.
- •Customers have been postponing jewellery purchases in anticipation of a correction in gold prices, which have recently reached record highs.
- •The weak performance coincides with Onam and precedes the Navratri–Diwali festive window, periods that typically drive significant revenue for Indian jewellers.
Thangamayil Jewellery shares fell 5% in their latest session, extending a one-week decline to 32%, after the company disclosed that it saw no visible improvement in sales during the first 28 days of Q2 FY27.
The jeweller attributed the weak sales momentum to multiple factors: higher import duty on gold, rupee depreciation, geopolitical uncertainty, and continued customer reluctance amid expectations that gold prices may decline further.
Thangamayil Jewellery, a Madurai-based jewellery retailer listed on Indian stock exchanges, sells gold, silver, and diamond jewellery through its network of showrooms primarily in Tamil Nadu. The company operates as a regional player in South India's competitive jewellery market, where larger listed peers such as Titan (Tanishq) and Kalyan Jewellers also vie for market share. The company's stock had been under pressure as investors reacted to the downbeat near-term sales commentary.
The company's update highlighted that footfalls and conversions remained subdued during the initial weeks of the July–September 2025 quarter. This period includes Onam, typically a key sales driver in southern markets, and precedes the Navratri–Diwali festive window. According to the company, customers have been deferring purchases in anticipation of a correction in gold prices, which have traded elevated in recent months and reached record highs.
India's gold import duty was raised in the Union Budget 2025, reversing a cut implemented earlier, which increased landed costs for jewellers. A depreciating rupee against the US dollar further inflated the cost of imported gold, compounding margin and demand pressures across the jewellery sector.
The decline in Thangamayil's share price reflects broader concerns about near-term demand in India's jewellery industry, where festive and wedding season sales typically drive a significant portion of annual revenue. The company had also reported its Q1 FY27 results, though the stock's sharp slide was primarily triggered by the management's cautious commentary on the current quarter's sales trajectory.
Source: Economic Times Markets