Synopsis: The share of this company declined despite strong Q4 FY26 profit growth as investors reacted to margin guidance cuts, weak volumes, and rising inventory concerns.
The share of this company, which is the largest organized jewellery retailer in Eastern India and one of the most trusted brands in the country, is operating over 190 stores nationwide, came into focus after announcing Q4 numbers.
With a market capitalization of Rs 5,604 crore, Senco Gold Ltd’s share on Wednesday made a day low of Rs 330.80 per share, down by 5.3 percent from its previous day’s close price of Rs 349.65 per share. The share of the company gave a negative return of 6 percent over the last year.
Results Overview
QoQ View: The revenue from operations decreased by 35.0 percent to Rs 1,997 crore in Q4 FY26 from Rs 3,071 crore in Q3 FY26, and EBIDT decreased by 32.3 percent to Rs 274 crore in Q4 FY26 from Rs 405 crore in Q3 FY26. This was accompanied by a net profit decrease of 40.5 percent to Rs 157 crore in Q4 FY26 from Rs 264 crore in Q3 FY26, resulting in an EPS decline of 40.6 percent to Rs 9.58 per share from Rs 16.13 per share in Q3 FY26.
YoY View: The revenue from operations grew by 45 percent to Rs 1,997 crore in Q4 FY26 from Rs 1,378 crore in Q4 FY25 , and EBIDT grew by 116 percent to Rs 274 crore in Q4 FY26 from Rs 127 crore in Q4 FY25, with EBITDA margin expanded to 13.7 percent, driven by strong wedding demand, higher gold prices, and robust same-store sales growth of around 35 percent.
This was accompanied by a net profit growth of 151 percent to Rs 157 crore in Q4 FY26 from Rs 62.4 crore in Q4 FY25, resulting in an EPS growth of 151 percent to Rs 9.58 per share in Q4 FY26 from Rs 3.81 per share in Q4 FY25.
Fiscal year comparison: revenue from operations rising by 34 percent to Rs 8,374 crore from Rs 6,259 crore in FY25. Operating margin also improved sharply to 12 percent in FY26 from 6 percent in the previous year, reflecting better operational efficiency, and the EBITDA margin improved to 11.5 percent from 5.8 percent, supported by better product mix and higher realisations.
Profit before tax surged by 244 percent to Rs 770 crore in FY26 compared to Rs 224 crore in FY25, while profit after tax increased by 252 percent to Rs 581 crore from Rs 165 crore. Earnings per share also grew significantly by 251 percent to Rs 35.47 in FY26 from Rs 10.10 in FY25.
Business Expansion and Demand Drivers: The company expanded its showroom network to 201 stores during FY26, supporting wider geographic reach. Growth was driven by strong customer demand, with Old Gold Exchange contributing nearly 50 percent of Q4 revenue. Rising gold prices, along with higher silver and diamond volumes, boosted average transaction value and overall business momentum.
Factors that might be fueling the selling pressure today
- Lower FY27 EBITDA Margin Guidance: Senco Gold Limited reported strong EBITDA margins of 13.7 percent in Q4 FY26 and 11.5 percent for FY26. However, management guided for a lower sustainable EBITDA margin of 7.5 percent to 7.8 percent for FY27 as bullion-related gains from gold and silver price movements are expected to normalize.
- Decline in Gold Volumes: The company witnessed around a 6 percent YoY decline in gold volumes during FY26, indicating pressure on underlying demand due to elevated gold prices. While value growth remained strong, volume softness reflects affordability challenges for consumers in the core jewellery segment.
- Rising Inventory and Changing Consumer Mix: Inventory increased sharply by 61 percent YoY to Rs 5,296 crore, leading to inventory days rising to 186 days and raising concerns over working capital efficiency. At the same time, management highlighted a shift in demand towards lightweight and lower-carat jewellery such as 9K and 14K products, driven by affordability concerns at record gold prices.
- Sequential QoQ Slowdown: Q4 FY26 PAT stood at Rs 156.9 crore, showing moderation compared to the stronger festive-driven Q3 performance. This sequential slowdown indicates easing momentum on a quarter-on-quarter basis despite strong year-on-year growth.
About the Company
Senco Gold & Diamonds is a leading pan-India jewellery retailer with an 87+ year legacy and the Market Leader in Eastern India. As of March 2026, its showroom network includes 201 showrooms across India and Dubai, operated through both company-owned and franchisee models. The company offers a vast, design-led portfolio of gold (over 2,18,000 designs) and diamond (over 1,22,000 designs) jewellery, developed in-house with local artisans.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
