Senco Gold Limited reported a robust Q4 FY26, with revenue crossing INR1,997 crore and EBITDA reaching INR274 crore. FY25-26 was a record-breaking year with sales of INR8,430 crore, a 33% YoY growth. The company highlighted strong performance driven by gold price appreciation, customer trust, new store openings, and product innovation. Senco Gold also announced a final dividend of 20%.
Q4 FY26 Financial Highlights
Senco Gold Limited announced strong financial results for the fourth quarter and full fiscal year ended March 31, 2026. The company reported a Q4 FY26 revenue of INR1,997 crore, with an EBITDA of INR274 crore and a Profit After Tax (PAT) of INR157 crore. For the full fiscal year 2025-26, Senco Gold achieved a record revenue of INR8,430 crore, marking a significant 33% year-on-year growth.
Key Growth Drivers and Strategy
The company attributed its strong revenue growth to several factors. These include a substantial increase in gold prices by almost 60% from the beginning of the year, strong customer faith and trust, the opening of new stores, and a continuous focus on innovative jewellery designs. Senco Gold also emphasized its strategy of driving efficiencies and optimizing stocks to ensure products remain within customer budgets, even amidst price volatility.
The management highlighted the volatile gold and silver prices during Q4, with international prices surging and retracting significantly. The company maintained a steady mind and a hedging ratio of 40% to 50% to balance various risks.
Product and Expansion Initiatives
Senco Gold has been focusing on 9-carat and 14-carat jewellery, making it more affordable for a wider customer base, including the younger generation. The company is actively expanding its geographical reach, opening new company-owned and franchised stores in Rajasthan, Central Maharashtra, and Western UP. A key focus for future growth includes Tier 2, 3, and 4 towns and cities, with a pan-India expansion plan targeting North and Central India.
The introduction of a lightweight design portfolio, with over 1.5 lakh designs created during the year, has been instrumental in retaining existing customers. The company also successfully reactivated dormant customers through various schemes and offers.
Dividend and Sustainability Focus
Senco Gold Limited’s Board has proposed a final dividend of 20%, in addition to the interim dividend of 15% previously announced. The company is actively promoting the exchange of old gold, aligning with the Prime Minister’s appeal to rationalize gold imports and promote recycling. Old gold exchange now accounts for approximately 44% of total revenue for FY26, and 50% for Q4 FY26, contributing to sustainability and reducing imports.
Future Outlook and Guidance
Looking ahead, Senco Gold anticipates a growth of 18% to 20% for the full year, with an EBITDA margin of approximately 7.5% and a PAT margin of 4% to 4.5%. The company plans to open 18-20 stores in FY27, with a focus on the franchise model to ensure scalability and penetration into smaller towns. Data analysis and stock optimization remain key priorities to ensure the right products are available at the right time and place.
Segmental Performance and Insights
In Q4 FY26, the old gold exchange program contributed significantly, driving an increase in diamond volume growth by 9% and value growth by 32%. The company has also seen a 30% YoY growth in its Average Ticket Value (ATV).
Regarding the inventory, Senco Gold has increased its inventory by 61% YoY, mainly due to the rise in gold prices and the addition of new showrooms. The company is managing inventory days, targeting a range of 150 to 160 days.
The Sennes brand, focusing on lab-grown diamonds and lifestyle products, is performing well, with 12 exclusive stores and achieving EBITDA positivity in its second year. The company is investing in building brand awareness for Sennes and expanding its product range beyond jewellery.
Market Trends and Challenges
The company acknowledges the impact of gold price volatility on consumer behavior and is adapting by focusing on lightweight jewellery and lower-caratage options to maintain affordability. A recent slowdown in demand was noted following the Prime Minister’s appeal on gold recycling and an inauspicious period (Adhik Maas), but management remains optimistic for the wedding season in June-July.
Senco Gold is also addressing competitive pressures by focusing on customer acquisition, value-for-money offerings, and a balance between growth and profitability. The company’s sustainable ROE/ROCE target is north of 16-17%, excluding inventory gains.
Source: BSE
