2 Jewellery Stocks That Delivered Returns of Up to 85% in Q1 FY27; Are They Still Worth Watching?

Synopsis: A handful of jewellery counters have quietly turned into multibaggers this year, riding record gold prices and surging festive demand. Two names in particular have stood out among smallcap peers with sharp price moves. Here’s a closer look at their recent run and underlying numbers.

The jewellery retail space has seen an unusual burst of investor interest over the past few months. Rising gold prices, strong wedding and festive season buying, and improving margins across the sector have pushed several smallcap counters sharply higher. Two stocks from this space delivered standout gains between April and July, prompting many to ask whether the rally still has legs.

Thangamayil Jewellery

Thangamayil Jewellery’s stock moved from around ₹3,500 in early April to about ₹6,420 by the end of June, a gain of roughly 85% in just about three months. The company’s FY26 numbers explain part of the enthusiasm. Consolidated revenue for FY26 came in at ₹8,499 crore, up sharply from ₹4,911 crore in FY25. EBITDA more than doubled to ₹577 crore from ₹225 crore, while PAT jumped to ₹352 crore against ₹119 crore a year earlier. EPS for the year stood at ₹113.14, up from ₹42.00 in FY25.

The quarterly trend was equally strong. Q4 FY26 sales came in at ₹2,839 crore with an operating profit of ₹214 crore and net profit of ₹143 crore, translating to a quarterly EPS of ₹45.90. This compares with net profit of just ₹31 crore in Q4 FY25.

Balance sheet metrics have also improved. Networth rose to ₹1,416 crore in FY26 from ₹1,102 crore in FY25. The debt-equity ratio (excluding customer advances) eased to 0.43 from 0.55, and net debt to EBITDA improved to 1.04 times from 2.69 times. Return on equity for FY26 stood at 27.93%, while return on capital employed came in at 26.21%, both showing steady improvement over the five-year trend. With amarket cap of Rs.20,570 Crores, the shares of Thangamayil Jewellery Ltd. closed at Rs.6,617 in Wednesday’s trading session.

Sky Gold and Diamond

Sky Gold and Diamond’s stock rose from about ₹320 in early April to roughly ₹520 by end July, a gain of close to 62% over the same period. On the financial front, consolidated revenue from operations for FY26 stood at ₹6,295 crore, up 77.4% year-on-year from ₹3,548 crore in FY25. Gross profit for the year rose to ₹532 crore from ₹251 crore, with gross margin improving to 8.5% from 7.1%. EBITDA grew 121.2% year-on-year to ₹434 crore, with EBITDA margin expanding to 6.9% from 5.5%.

Profit for the year came in at ₹282 crore, up 112.4% from ₹133 crore in FY25, with PAT margin improving to 4.5% from 3.7%. On a quarterly basis, Q4 FY26 revenue stood at ₹1,912 crore against ₹1,058 crore in Q4 FY25, a growth of 80.6%, while net profit for the quarter rose 137.4% year-on-year to ₹91 crore.

The balance sheet expanded meaningfully during the year. Total assets grew to ₹2,195 crore as of March 2026 from ₹1,357 crore a year earlier, with total equity rising to ₹1,206 crore from ₹684 crore. Goodwill on the books jumped to ₹251 crore from ₹42 crore, reflecting an acquisition during the year. Inventories rose to ₹786 crore from ₹397 crore, while current borrowings increased to ₹800 crore from ₹589 crore, keeping an eye on working capital needs as the business scales. With amarket cap of Rs.9,767 Crores, the shares of Sky Gold and Diamond Ltd. closed at Rs.629.8 in Wednesday’s trading session.

Are They Still Worth Watching?

Both companies have posted strong topline and profit growth for FY26, aided by favourable gold prices and robust demand across their respective markets. Thangamayil’s improving debt position and steady return ratios stand out, while Sky Gold and Diamond’s rapid revenue scale-up and margin expansion reflect an aggressive growth phase, though its rising borrowings and inventory levels are worth tracking.

With both stocks having already delivered sharp gains over the past few months, valuations have moved up as well. Whether the momentum continues will likely depend on how gold prices trend going forward, how festive and wedding season demand plays out, and how efficiently these companies manage working capital as they scale. As always, investors should do their own research and consider their risk appetite before making any investment decisions in these counters.

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