Thangamayil Jewellery Ltd (TJML) has temporarily deferred its plans to open new metro-based retail outlets in view of the continuing rise in precious metal prices.
However, civil and interior works at the identified outlets are progressing as planned. The second phase of expansion will commence once precious metal prices stabilise. The Board believes that this temporary postponement will not have any impact on TJML’s financial performance in the fourth quarter of FY26.
Currently, TJML operates 66 outlets across Tamil Nadu and had planned to add around 10 more stores during FY26.
The sharp rise in gold and silver prices may adversely affect volume offtake, although it is expected to have a positive impact on realisations in Q4 FY26.
Amid surging demand for silver as an alternative jewellery option, TJML launched a ‘Digi Silver’ scheme in January 2026, in addition to the ‘Digi Gold’ scheme already in operation.
Meanwhile, TJML reported a 119% year-on-year increase in standalone profit after tax to ₹105 crore for the December quarter, driven by higher gold and silver prices.
During the quarter, net sales rose 112% to ₹2,401 crore from ₹1,132 crore in the corresponding period last year.
Profit after tax included an exceptional item of ₹2.38 crore, recognised as the impact of the new Labour Codes effective November 21, 2025.
In the current environment of sharply rising gold and silver prices, the company continues to adhere closely to its de-risking strategy, with nearly full hedging of gold inventory and one-third hedging in silver.
Despite tighter liquidity management, the Board has decided to protect the company’s net worth from potential price reversals to ensure long-term operating profitability. It also noted that actual liquidity remains more than adequate to continue operations as planned.