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Gold's Surge Fuels Senco's 39% Sales Leap
13 Feb
Summary
- Senco Gold saw 39% same-store sales growth in Q3 FY26.
- Volume declined 3% year-on-year despite strong sales.
- Company targets 18-20% annual growth, FY26 revenue of ₹8,000 crore.
Senco Gold & Diamonds achieved a remarkable 39% same-store sales growth in the third quarter of FY26. This surge was significantly driven by elevated festive and wedding demand, alongside a substantial increase in gold prices, which rose approximately 65% over the past year. Despite these strong topline figures, Q3 volumes saw a 3% year-on-year decrease, with nine-month volumes down 10%.
To maintain customer engagement amidst rising gold costs, Senco focused on offering jewelry tailored to various budgets. The company typically targets an annual growth rate of 18-20%, combining same-store sales growth with new store openings. For FY26, Senco anticipates closing the financial year with revenues around ₹8,000 crore.
EBITDA margins expanded to 13.2% in Q3, partly due to a hedging strategy and favorable gold price movements. The core business EBITDA remained robust at approximately 10%. Senco has revised its full-year sustainable EBITDA margin guidance upward to 7.5-7.8%.
The company is also diversifying its offerings. It acquired a stake in Melorra, a contemporary jewelry brand, to cater to younger consumers. Furthermore, Senco launched Sennes, a lifestyle brand focused on lab-grown diamonds (LGD), positioning it as a contribution to India's manufacturing and design ecosystem.
