Senco Gold Limited: Business Update: Q4 & FY 26

Key Highlights (Standalone Basis):

Revenue Growth: Senco achieved a wedding season-led growth of ~46% YoY in Q4 FY26, leading to a ~35% YoY growth for FY26 as compared to 21% YoY growth in FY 25. The Q4 topline growth includes SSSG of ~34%. The wedding season in the quarter was spread across the whole quarter, and to cater for this, we launched new designs, collections and attractive offers. Valentine's Day and International Women's Day drove strong growth in footfall, particularly in our gifting and lightweight segments.

Showroom Expansion: We launched 7 new showrooms (2- Franchisee, 1- COCO and 4- Sennes) in Q4, reaching a milestone of 201 total showrooms(Net of closure of 2 stores). The current network now comprises 102 COCO and 85 FRN (FOFO-76 & FOCO-9) stores, 12 Sennes stores and 2 in Dubai.

Gold Price Volatility: Gold prices have been highly volatile in Q4 FY26, rising 20% QoQ to a peak level of USD 5595/Oz and, given the war and global uncertainty, again fell almost 20% to USD 4500/Oz in midMarch and currently settling around the USD 4700/Oz level, with a daily price variation of 2-5%. The average gold price surged by 79% YoY since Q4 FY 25 from ₹84,782/10gm to ₹1,51,783/10gm in Q4 FY26; and QoQ growth of ~20% against ₹1,26,638/10gm in Q3 FY26. Despite this highly volatile environment, customers have continued to purchase jewellery, and we have tried to plan our inventory based on changing consumer demand and maintaining our gross margin and profitability, managing the risk effectively.

Product Mix Optimisation & 9k Jewellery Focus: We have accelerated our focus on Lightweight Jewellery and Everyday Wear. A key highlight of this quarter has been the customer response to our 9k collection, christened Cloud 9, which will further promote jewellery demand amid rising prices. This allows us to maintain affordability and volume growth even in a high-price environment. We have launched a pioneering virtual experience in the jewellery industry in India called " Shape of You", which will help customers select jewellery based on their face shapes, a leading AI-based innovation. The focus has been to use data and keep optimising stocks for driving efficiency.

Credit Rating Upgrade: CareEdge has assigned us a credit rating for our Working Capital facilities at CARE A+; Stable (Long Term) / CARE A1(Short term), which is 1-notch above the previous rating by ICRA.

Q1 and FY27 Outlook

We are geared up for the upcoming auspicious occasion of Akshaya Tritiya, Poila Boishak, Baishakhi, Rath Yatra & Raja Parba in Odisha and the summer wedding season in Q1 FY27 with curated collections and hyper-local jewellery.

We have a strong pipeline for store expansion in H1 FY 27 across the franchise and company-owned categories, and plan to launch 20-25 stores in FY 27, with a focus on opening more franchise stores.

We aim to achieve a minimum of 20-25% value growth while maintaining our EBITDA margin target of 7.5%-7.8% as specified in our earlier updates.

We also remain focused on our Phy-gital Model-seamlessly integrating our Omni-channel (Online, Offline, B2B) presence with tech-driven initiatives like Digi Gold, Magic Mirror, and Sencoverse.

Source : Equity Bulls

Keywords

SencoGold BusinessUpdate Q4 FY26