Senco Gold achieved a historic Q3 FY26, crossing ₹3,000 crores in revenue, marking a 50% YoY growth. Profitability surged dramatically, with EBITDA rising 406% YoY to ₹404.6 crores, leading to an Adjusted EBITDA margin of 13.2%. This performance was driven by higher own-store sales contribution and improved product mix, including lightweight and diamond jewelry, even amid volatile gold prices.
Historic Q3 FY26 Financial Highlights
Senco Gold Limited announced a historic performance for the quarter ending December 31, 2025 (Q3 FY26). The company reported crossing ₹3,000 crores in revenue, reflecting a substantial 50% Year-on-Year (YoY) growth. Profitability saw a dramatic surge, with EBITDA rising 406% YoY to ₹404.6 crores, and Profit After Tax (PAT) soaring to ₹264 crores (up 689% YoY). The Adjusted EBITDA margin for the quarter stood at an impressive 13.2%.
For the 9-month period, consolidated revenue grew by 30%, while Adjusted EBITDA grew by 133%.
Key Drivers Behind Margin Improvement
Management attributed the margin improvement to several key factors. Firstly, the share of revenue from company-owned stores increased to 65% (up from 33% for franchisees), which carries higher margins. Secondly, the product mix improved, notably a 38% value growth in diamond studded jewelry. Furthermore, the introduction of high-margin items like lightweight jewelry, where effective making charges are higher, contributed significantly. The rise in gold prices also positively impacted the absolute value of making charges collected.
Product Strategy Amid High Gold Prices
In response to gold prices reaching over ₹1,50,000 per 10 grams, Senco Gold focused on fitting consumer budgets. This strategy involved introducing 9-carat, 14-carat, and lightweight jewelry. The company launched over 6,000 new gold designs and 3,000 diamond designs during the quarter to cater to diverse needs, including gifting and everyday wear. The Average Ticket Value (ATV) for the year is noted to be around ₹93,000.
Notably, the exchange of Old Gold (exchange ratio) has increased significantly to 45%-50% (up from 25%-30% historically), helping sustain sales volume despite rising commodity costs.
Store Network and Expansion Outlook
The current store network stands at 196 stores, with plans to exceed 200 stores by the end of the current fiscal year. The company remains committed to its “Hyperlocal” strategy catering to regional tastes. Looking ahead, management plans to open 18 to 20 new stores next year, favoring a mix that includes more franchisee showrooms.
Risk Management and Hedging Policy
Due to high gold price volatility, the hedging ratio was maintained at a prudent 55% to 60%, down from historical levels of 80%-90%. This level is maintained due to current pressure on liquidity and margin calls. However, management confirmed that the ratio could revert to 80%-90% once price stability is achieved. The management also highlighted receiving a credit rating of A1 from CareEdge, which is expected to reduce the blended Return on Investment (ROI) by 30 to 40 basis points next year.
Future Guidance
Management provided a conservative revenue growth guidance of 25%+ for Q4. For the next fiscal year, FY27, the company targets 20%+ revenue growth and a sustainable EBITDA margin range of 7.5% to 7.8%.
The strategic acquisition of Melorra was emphasized as a key move to capture the Gen Z and millennial market segment with design-centric offerings.
Source: BSE
