Senco Gold Q1 Update: Revenue jumps 60%, opens 8 showrooms; same-store sales grow 38%

Jewellery maker Senco Gold Ltd on Friday (July 3) reported a 60% year-on-year increase in standalone revenue for the first quarter of FY27, while same-store sales growth (SSSG) stood at 38%. The jewellery retailer also opened eight new showrooms during the quarter, taking its total network to 208 stores, net of one closure.

Retail revenue grew 48% year-on-year, while diamond jewellery sales by value increased 40%. Diamond jewellery volume rose 15% during the quarter. On a sequential basis, total revenue increased 53%, retail revenue rose 51%, SSSG grew 34%, diamond jewellery value growth stood at 47%, and diamond volume growth increased 56%.

Gold prices rose 62% year-on-year and 1% sequentially during the quarter. The company said gold prices remained elevated on a yearly basis while declining quarter-on-quarter due to geopolitical situations. Indian gold prices incorporated the impact of the customs duty increase to 9%.

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Senco Gold said the benefit of the customs duty increase is expected to accrue over the first and second quarters, net of the impact of the current 50% hedging level. However, heavy discounting of gold prices during the quarter is expected to put pressure on Q1 margins alongside the customs duty increase.

The company said revenue and same-store sales growth were supported by a favourable festive calendar, including Akshaya Tritiya, Poila Baisakh, Baishaki, Bihu and the beginning of the summer wedding season. It added that performance remained firm despite Adhik Maas and the increase in customs duty from 6% to 15%. Trailing twelve-month sales reached around ₹9,660 crore.

Senco Gold said diamond jewellery growth was driven by volume expansion, an improved product mix, lower-priced products below ₹50,000 in the Everlite segment and new design launches.

Old gold exchange accounted for around 43% of total sales in Q1 FY27. The company also launched a "0% deduction" campaign.

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During the quarter, Senco Gold opened eight new showrooms comprising three company-owned, company-operated (COCO) stores, four franchise stores and one Sennes outlet. It said it remains on track to open 12-15 additional showrooms over the next three quarters, with a focus on franchise-led expansion.

For Q2 FY27, the company expects a seasonally softer quarter, with consumer demand driven by the monsoon and gold bookings ahead of the festive season in Q3. It said its priorities will be inventory optimisation, lightweight and 9K collections, and margin protection.

Shares of Senco Gold Ltd ended at ₹326.45, down by ₹5.25, or 1.58%, on the BSE.

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