The Senco Gold Company recorded impressive financial results in the first quarter of FY27 with an increase of 60% in its revenue compared to the previous year. The company expanded its showroom network by opening eight new units during the quarter, while growing diamond jewellery sales despite key issues like increased customs duty on gold. The top-line growth is marked and clearly reflects consumer acceptance and indicates rapid growth in retail uptake of high-value gold and studded jewellery pieces in the domestic market.

Revenue growth in Q1 FY27 and diamond jewellery performance

Revenue growth for Senco Gold in Q1 FY27 has been attributed to its strong retail expansion, evidenced by healthy revenue growth of 60% year on year and 53% quarter on quarter. Revenues from the retail business increased by 48% year on year and 51% quarter on quarter, whereas same-store sales growth increased by 38% year on year and 34% quarter on quarter.

The company attributed this growth to a favorable festive calendar, including Diwali, Akshaya Tritiya, Poila Baisakh, Baishaki and Bihu week, as well as the onset of the summer matrimonial season. These helped to stimulate demand for jewellery products, including gold and diamond. Despite challenges such as Adhik Maas and the increase in customs duty on gold from 6% to 15%, Senco Gold’s sales remained resilient.

Sales rose 40% year-on-year and 47% quarter-on-quarter by value, and volumes moved up 15% year-on-year and 56% quarter-on-quarter. The company attributed this growth to rising volumes, better product mix, more sales of products in the below ₹50,000 segment of its Everlite business, and new product launches. This diversification allowed more customers to be reached.

Old gold exchange campaign and strategic expansion

Old gold exchange accounted for 43% of total sales during the quarter. In support of this trend, Senco Gold created a ‘0% deduction’ campaign to encourage consumers to sell their old gold for new gold. This effort was critical to sales and helped keep customers engaged.

Senco Gold further expanded its retail presence, establishing eight new retail stores in Q1 FY27. These featured three stores owned by the company, four franchise stores, and one Sennes “showroom.” The company, realising the loss of one outlet, had a total retail network of 208 showrooms. Senco Gold wants to open up another 12 to 15 showrooms in the next three quarters, focusing more on the franchise model for growth.

The company said prices for gold are seen as high as a year ago, but down from the previous month because of geopolitical events. While the higher customs duty is expected to benefit the company over Q1 and Q2, aggressive discounting and a current hedging level of 50% are likely to put pressure on margins in the near term. Senco Gold highlighted that it focuses on margin protection, lightweight jewellery collections, and optimisation of inventories to maintain profitability.

Senco Gold partially attributes the softness of Q2 FY27 to the reasonability of the current monsoon period and believes that advance gold bookings would drive expected demand during the festive season of Q3. The company’s overall confidence in sustaining its growth trajectory is unchanged, with strong expectations for continued product innovation and strategic expansion.

Conclusion

The Senco Gold Q1 FY27 report underscored the company’s growth momentum, marked by 60% revenue growth, increased sales of diamond jewellery, and growth in its retail footprint. The company’s concentration on festive demand, old gold exchange programs, and showroom expansion has set the stage for continued success even in the face of obstacles like increased customs duty and profit pressure. Senco Gold is determined to further cement its position as the leading jewellery retail chain in India as it looks forward to the festive season ahead.