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Thakral Corp's Q1 2026 financial results tells a story of growing core operations, proactive capital management, and market expansion. |
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(S$'000) |
1Q2026 |
1Q2025 |
Change (%) |
|
Revenue |
109,521 |
75,962 |
44.2 |
|
Operating profit |
5,364 |
3,298 |
62.6 |
|
Adjusted attributable profit1 |
3,349 |
1,599 |
109.4 |
|
1Adjusted to exclude the net fair valuation loss on quoted investments and share of associate's profit of GemLife for 1Q2025. |
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Note the distinction between the reported and adjusted metrics.
The Group recorded a net unrealized fair value loss of S$31.5 million in Q1 2026.
This was primarily tied to broader share market weaknesses that temporarily impacted the share prices of two of Thakral's core listed investments: GemLife Communities Group and The Beauty Tech Group.
However, management noted that both securities have recovered heading into Q2 2026, and the underlying fundamentals of both businesses remain strong.
| Lifestyle Engine: Supercharging Growth Across Asia |
The star of Q1 2026 was Thakral's Lifestyle segment which demonstrated operating leverage.
Supported by resilient consumer demand, segment revenue jumped 47.3% to S$109.0 million, while segment EBIT spiked an impressive 92.7% to S$6.6 million.
This growth was highly concentrated in two geographical markets:
- Greater China: Revenue from the Group's portfolio of premium beauty and fragrance brands surged by 54.5% year-on-year to S$27.6 million.
This was fueled by demand across Thakral's extensive network of over 65 mono-brand stores and its strategic e-commerce and retail partnerships. - South Asia: Driven by the rapid expansion of DJI's product range, revenue in this region jumped 52.5% to S$62.7 million.
Thakral is capitalizing heavily on its exclusive distributorship with DJI, with plans to establish 20 to 30 DJI stores across India and other South Asian countries over the next two to three years.
| Flying high |
 "It is no longer a luxury to have a digital action camera and a gimbal. It is now a necessity. So that's where we're seeing a change in our demand and the sustainability of that demand going forward as well." -- CEO Inderbethal Singh, on the 53% revenue growth in South Asia, mostly attributable to DJI drones and accessories. |
Additionally, the company is rapidly scaling its Nespresso operations in India.
Beyond launching physical boutiques in premium locations like Ambience Mall in Gurugram and Jio World Drive in Mumbai, Thakral has secured a major partnership with Blinkit—India's leading quick-commerce platform boasting over 30 million weekly active users.
With these initiatives, the Nespresso India business remains on track to achieve profitability in FY2027.
Strategic Expansion and Robust Capital Management
Beyond retail, Thakral has been making significant moves to de-risk and expand its investment portfolio.
A major highlight was the establishment of a S$150 million Medium Term Note (MTN) program, under which S$70 million of fixed-rate notes due in 2029 have already been issued.
This new funding has been instrumental in advancing the Group's ambitious real estate initiatives.
On May 28, 2026, Thakral completed a S$93.9 million acquisition of an additional 81.64% stake in TIL Investments.
This move increased Thakral's effective stake in a massive 2.5 million square feet mixed-use, healthcare-led development project in Gurugram, India, to 95.28%.
Positioned in one of India's fastest-growing ultra-luxury residential markets, this development represents a massive long-term growth driver.
• TIL Investments owns a 21-acre land parcel in Gurugram.
• Thakral Corp has acquired a 81.64% stake in TIL for S$93.9 million from TGL, raising its stake from 13.64%.
• TGL is a private trust and the No.1 shareholder of Thakral Corp.
The CEO’s Perspective
Reflecting on the strong quarter, CEO and Executive Director Inderbethal Singh Thakral emphasized the long-term vision of the company:
"Our Lifestyle segment continues to deliver broad-based growth across South Asia and Greater China, and we expect this momentum through FY2026. The unrealised fair value movements on GemLife and TBTG reflect short-term share price movements; both businesses are performing well, and we intend to hold them for the long term. We have also completed the TIL acquisition, raising our effective stake in the Gurugram mixed-use healthcare-led development project to 95.28%, which gives us strategic control to advance one of our key growth platforms in India."
Investor: The main hurdle for institutional investors wanting to buy into the stock is its illiquidity. Since the company's capital requirements have increased for the India project, dividends and share buybacks may be more constrained. Considering that a share placement might not be ideal given current valuations, what solutions is the Board considering to increase liquidity? For instance, has Management considered a bonus issue or a scrip dividend to help the stock meet the SGX Next50 daily turnover requirement of $100,000? Chairman's Response: The company has already come a long way, with the share price appreciating from around 60-70 cents to nearly $2, which shows that investors are recognizing the stock's underlying value. While the Board asks itself whether it should execute a bonus issue or share placement to increase share capital, Management prefers a conservative, step-by-step approach. The priority is not to use short-term measures to artificially double the share price, as that carries long-term implications (such as the burden of servicing double the dividends). Instead, the goal is to show resilient performance, steadily increase the dividend payout, and get more institutional investors on board organically. Establishing the company on a stronger footing for the next three to five years is the main priority right now. CEO's Response: On the topic of a scrip dividend, the counter-argument is that it often leaves many investors with fractional shares that get immediately thrown back into the market. This creates an overhang on the stock. If the company needed funds, it would be much better to place 5 million shares directly with an equity fund. Regarding a bonus issue or a share split, the company cannot do this in an interim update; it must be done alongside a formal financial announcement. It is a strategy the Board has discussed and will confirm when the time is right. Ultimately, Management believes that liquidity will resolve itself as value is unlocked. Many early investors took large positions when the stock was around 60 cents. Once the company reaches (a certain level), many of them will likely take profits, which will generate trading volume and liquidity. |
→ Thakral's Powerpoint deck is here.
See also:NORDIC GROUP’s 1Q Update: Share Sales, M&A, and Growth in Every Segment
