Thangamayil Q2 FY27: PAT flat at ₹59 Cr as margin slips 165bps despite 40% revenue growth

Standalone revenue for Q2 FY27 rose 40% YoY to ₹2,387.6 Cr (company-reported Total Sales ₹2,381 Cr), but net profit was flat YoY at ₹59.45 Cr (EPS ₹19.13 vs ₹18.82), with PBT up just 3%. Sequentially, revenue fell 11% and EPS dropped 30% from Q1 FY27's ₹27.38, in line with the cautious demand guidance management gave alongside Q1 results in July 2026, when it flagged that customers were deferring gold purchases amid the May 2026 duty hike (6% to 15%), rupee weakness and West Asia-war-driven bullion price volatility. A verified Street consensus specific to this quarter could not be located; no formal numeric guidance was on record beyond that qualitative caution, and the sharp deceleration from Q1's +71% revenue/+86% PAT growth bears it out — guidance was effectively met rather than beaten or missed. Gross profit margin compressed 165 bps YoY to 9.60% of retail sales and EBITDA margin fell 153 bps to 4.95%, even though reported gross profit of ₹221 Cr (+20% YoY) included ₹28.54 Cr of inventory revaluation gains on rising gold/silver prices — 12.9% of the quarter's gross profit. Strip that holding gain and the underlying retail-spread compression is sharper than the headline numbers suggest. The growth itself is almost entirely price-led, not volume-led: gold jewellery value sales rose 41% YoY while gold-ornament volumes fell 1% and silver volumes fell 28%; diamond volumes were the one bright spot, up 27%. Funding the inventory build pushed current borrowings to ₹1,366 Cr from ₹774 Cr at FY26-end, cutting interest cover to 5.14x from 6.52x YoY. The company's own highlights flag a sharp bullion correction after quarter-end — gold fell from $4,690/oz in late September to $3,909/oz, and silver from $71.15 to $49.50, by October 30 — a swing worth tracking into Q3 inventory valuation. H1 FY27 revenue of ₹5,043 Cr (+55% YoY) and EPS of ₹46.51 (+39%) were aided by same-store sales growth of 35.93% (vs 10.31% in H1 FY26) and four new Chennai stores opened in the half, with four more planned by March 2027 — expansion that supports topline even as per-store economics soften. Management reiterates that pent-up demand may return in the second half of FY26-27, conditional on duty, currency and geopolitical headwinds easing; that recovery has not yet shown up in this quarter's numbers.