Shares of Senco Gold, one of India's leading pan-India jewellery retailers, plunged 14.5% in Wednesday's trade on August 12, falling to a four-week low of ₹343 apiece, as lower margins weighed on investor sentiment despite healthy topline growth.
The company, post market hours on Tuesday, reported a 67% year-on-year rise in revenue to ₹3,056 crore, while revenue increased 53% sequentially. Retail sales rose 50% YoY to ₹2,651.5 crore in Q1 FY27, while same-store sales growth (SSSG) stood at 39%.
Gold demand during the quarter was impacted by a sharp rise in average gold prices, as well as the increase in customs duty from 6% to 15%. However, the company said various marketing initiatives, including old-gold exchange schemes and consumer outreach, helped it maintain momentum.
Old-jewellery exchange, which accounted for 43% of sales, continued to play a critical role in sustaining demand momentum during the period of uncertainty and seasonal weakness.
"The ‘0% deduction’ old-gold exchange campaign supported 43% of total sales quantity, enabling customers to upgrade their jewellery while moderating the impact of elevated gold prices. This partly impacted the gross margin," the company said in its regulatory filing.
Meanwhile, diamond jewellery sales grew 43% YoY, while volumes increased 18%, supported by stronger demand in the sub- ₹50,000 price range in the Everlite collection.
At the operating level, EBITDA grew 16% YoY to ₹213 crore, while the EBITDA margin stood at 7%, down 310 basis points from 10.1% in the same period last year, impacted by heavy discounts. Net profit declined 3% YoY to ₹101 crore, with the PAT margin at 3.3%.
Looking ahead, the company expects the September quarter to remain soft but sees demand picking up in the subsequent quarter, driven by the monsoon and the festive season, including gold-booking schemes.
"We remain focused on achieving 20%+ value growth in FY27 while strengthening Brand Senco across the country and pursuing disciplined, profitable pan-India expansion with a focus on East and North India," said Suvankar Sen, managing director & CEO, Senco Gold Ltd.
Sanjay Banka, Group CFO & Head of Investor Relations, said, “We remain committed to FY27 value growth of 20%+ and an EBITDA margin of 7.5%-7.8% while working towards a sustainable PAT margin of 4.0%-4.5%, with a sharp focus on Return on Capital Employed (RoCE).”
The company's shares staged a strong rebound in April, rising 12.3%, with the momentum continuing into the following months as the stock gained cumulatively by 45% through July close.
The recovery came after the stock remained under prolonged selling pressure between September 2025 and March 2026, during which it declined 24.6%. However, the recent rally helped the stock recover all of those losses.
Despite the rebound, the stock is still down 40.5% from its record high of ₹772 apiece. It ended 2025 with a steep decline of 41%, while in the current calendar year, the stock is marginally higher by 9%.
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Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments.
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He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom.
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During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles.
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He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements.
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His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.