Shares of Thangamayil Jewellery Ltd. continued their spectacular rally for the fourth straight session on Thursday, January 8, defying a sharp downturn in the broader Indian equity markets. The stock surged another 8.2% to hit a fresh all-time high of ₹4,149 before paring gains to trade flat at ₹3,837 by 12:15 PM.
Four-Day Rally Driven by Sector Momentum
The impressive run has resulted in a cumulative gain of 28.5% over just four trading days, highlighting robust investor appetite for jewellery stocks. Analysts attribute this surge not to a standalone move but to a powerful combination of sector-wide tailwinds and rising expectations for a strong December quarter performance.
"The recent sharp appreciation in Thangamayil Jewellery appears to be driven by a convergence of sector-wide momentum and rising expectations around a strong Q3 performance, rather than a standalone price-led move," explained Harshal Dasani, Business Head at INVAsset PMS.
Jewellery Sector Sets Stage for Blockbuster Q3
The bullish sentiment was significantly bolstered by encouraging Q3FY26 business updates from major industry players, setting a positive precedent for Thangamayil's upcoming results.
Senco Gold reported a stellar 51% year-on-year revenue growth, driven by festive demand. The company, in a regulatory filing, revealed its trailing twelve-month (TTM) revenue has already touched ₹8000 crore and guided for over 25% growth in FY26.
Titan Company's jewellery division witnessed a 41% growth, buoyed by the festive season. The growth was propelled by a substantial increase in the average selling price (ASP), which offset relatively flat buyer growth.
Kalyan Jewellers described its Q3 as "very encouraging," posting a 42% YoY jump in consolidated revenue. The company noted robust demand continued even after Diwali, despite gold price volatility. Its same-store sales grew nearly 27%, and international revenue climbed 36%.
Strong Fundamentals and Seasonal Boost
The December quarter is structurally the strongest for organised jewellery retailers, fueled by festive demand, the peak wedding season, and higher store footfalls. This year's demand environment has been particularly supportive.
"Markets are also factoring in the benefits of operating leverage. Higher festive volumes typically improve inventory rotation and support margin stability, even in an elevated gold price environment. For retailers with disciplined working-capital management and strong local brand equity, this phase often results in outsized earnings visibility," added Dasani.
Thangamayil's Stellar Financial Turnaround
The company's own fundamentals provide a solid foundation for the rally. For the September quarter (Q2 FY25), Thangamayil reported a remarkable turnaround, posting a net profit of ₹58.15 crore compared to a net loss of ₹17.45 crore in the same period last year, which was impacted by an inventory hit.
Total sales grew 45% YoY to ₹1,705 crore. Retail sales increased 45% to ₹1,636 crore, while wholesale sales rose 47% to ₹69 crore. Operating performance saw a dramatic improvement, with EBITDA at ₹106 crore versus a loss of ₹7 crore last year—a 1,614% increase. The EBITDA margin expanded by 710 basis points to 6.48%.
For the first half of FY26 (H1), the company's net profit jumped 167% to ₹104 crore, while operational revenue increased 36% to ₹3,260 crore.
A History of Stellar Returns
Thangamayil Jewellery has been a multibagger for its long-term investors. The stock surged 69% in 2025, extending its annual winning streak to three consecutive years. Over the past six years, it has closed higher in five.
The most significant yearly gain was 173% in 2023, followed by 130% in 2021. On a consolidated basis, the stock has delivered astronomical returns of 638% over three years and 1,181% over five years, cementing its position as a top performer in the retail jewellery space.
