Senco Gold Limited announced robust financial results for the first quarter of FY27, reporting consolidated revenue of over ₹3,000 crores, a 67% increase year-on-year. Retail sales grew by 50%, with same-store sales up by 39%. The company maintained its full-year EBITDA margin guidance of 7.5%-7.8% and expects revenue to exceed ₹10,000 crores for FY27.
Strong Q1 Performance
Senco Gold Limited has reported a remarkable performance for the first quarter of the financial year 2027 (Q1 FY27). Consolidated revenue crossed ₹3,000 crores, marking a substantial 67% increase compared to the same period last year. Retail sales demonstrated strong growth, up by 50% year-on-year, while same-store sales growth stood at approximately 39%.
Key Financial Highlights
The company’s EBITDA for the quarter was ₹213 crores, representing a margin of 7.0%. Consolidated Profit After Tax (PAT) stood at ₹101 crores, with a margin of 3.3%. Average Selling Price (ASP) saw an increase of 40% year-on-year, and Average Transaction Value (ATV) grew by 38%. The average gold price increased by 61% year-on-year and 1% quarter-on-quarter.
Demand and Product Mix
April was a strong month, contributing about 55% of the quarterly sales, aided by festive occasions like Poila Boishakh and Akshaya Tritiya. May and June saw moderated sales due to elections and other factors. The company noted a shift in demand towards lightweight, design-led, and lower-ticket jewellery, leading to an expansion in its 9-carat and 14-carat offerings. Diamond jewellery sales grew by 43% in value and 18% in volume. Old gold exchange accounted for a significant 43% of total sales quantity.
Network Expansion and Product Innovation
Senco Gold added 3 company-owned stores, 4 franchise stores, and 1 Sennes showroom during the quarter. The company plans to open another 12-15 stores in the remaining year, with a focus on East and North India. A new men’s jewellery collection, ‘Aham’, combining titanium with gold and diamonds, was also launched.
Margins and Hedging Strategy
The company reiterated its sustainable operational EBITDA guidance of 7.5%-7.8%. Q1 FY26’s reported margin included inventory gains, with adjusted PAT around ₹70-75 crores. The customs-duty gain for Q1 FY27 is estimated at ₹12-15 crores, with further benefits expected. Margins were impacted by gold price decline, discounting, and the old gold exchange scheme, but were partly offset by customs duty. Other expenses increased due to renovations and marketing initiatives. Hedging remains at approximately 50%, with plans to increase it as market conditions stabilize.
Outlook and Long-Term Vision
July and August are showing a year-on-year growth of around 25%. Q2 will be a planning and inventory-building quarter. The company maintains its FY27 guidance of 20%+ value growth, targeting revenue above ₹10,000 crores. The long-term vision includes growing revenue to over ₹20,000 crores and expanding the store network to 300+ stores in the next 4-5 years. The target EBITDA margin is around 8%, with a PAT margin of 4.5%-5%.
Source: BSE
