Senco Gold Limited: Business Update: Q1 FY26

Key Highlights:

- FY26 began on a strong footing, with Q1 delivering robust growth momentum driven by a favourable festive calendar. Akshay Tritiya and Key regional festivals such as Poila Baishakh (West Bengal), Baisakhi (Punjab), Bihu (Assam), Ramnavmi served as strong consumption lever fuelling footfall resulting in ~ 28% total revenue growth, 24% YoY retail revenue growth and 19% same-store sales growth (SSSG- at secondary sales level). We achieved invoice growth of 10% and SKU sold growth of 10% reflecting both higher value purchases and effective customer engagement strategies across our retail network

- Diamond jewellery sales (stud ratio) maintained strong momentum of Q4 registering ~35% volume growth. Gold Coin/ Bullion sales constitute a very small portion of our total sales at 4.5% (FY 25-3%).

- We continued our showroom expansion and launched 9 new showrooms (4 COCO and 5 FOFO/FOCO), and taking the jewellery store portfolio to 179. (on exclusion of 4 Sennes Showrooms). We also launched 1 Sennes showroom taking the Sennes portfolio to 7 (3 in Wholly Owned subsidiary and 4 in SGL)

- In Q1 FY26, the domestic gold price surged to ₹86,900-₹1,01,000 per 10 grams, representing on average price increase on YoY basis at ~ 32% and QoQ basis at 5%. This sharp price was driven by a confluence of global factors, persistent macroeconomic uncertainty, strong central bank gold purchases globally and a weakening U.S. dollar. While such elevated pricing typically creates short-term pressure on jewellery consumption volumes, consumer behaviour remained resilient in value terms. From Senco's vantage point as a leading jewellery retailer, we observed a modest softness in volume growth, particularly in the mass and bridal segments. Retail demand in value terms remained strong supported by the widespread adoption of old gold exchange, which contributed to ~ 40% of our total sales.

Showroom Expansion:

- 4 new COCO locations include Andheri Metro (MH), Rourkela (Odisha), Sonarpur (WB) and Bilaspur(MPCG). 5 FOFO/FOCO locations include Nagpur (MH), Meerut (UP); and Dhupguri, Singur, Balichak (all 3 in WB). Nagpur entry through franchisee model marks a significant milestone in the successful journey of our franchisee model indicating a broader Pan India interest.

- We also launched a Sennes showroom at Patna (Bihar) taking the total Sennes stores to 7. The Sennes brand has also expanded its footprint to 61 SIS formats (operating within Senco showrooms) and 25 SIS formats at other leading brands with target to achieve 100 mark soon.

Business Highlights:

Marketing Campaigns : In Q1 FY25-26, we launched the second edition of Brand Campaign Khushiyon Ki Reet - Aapka Shukriya, a salute to karigari with new Vivaah designs, launched Bangle Utsav 2025 campaign during Poila Boishakh and Akshay Tritiya featuring 300+ bangles, bracelets, charms, bala and more, and introduced The Golden Curve campaign, a curated festival of lightweight necklaces in gold, diamond, polki, and antique. The campaign "Swarna Yatra" paid homage to divine artistry with Lord Jagannath-inspired motifs. Everlite rolled out the Infinity Collection symbolizing a mother's infinite love and unwavering support under the Mother's Day campaign and recently launched the Nayiraah Collection celebrating life's milestones. Gossip marked the Poila Baishak campaign with its new beginnings collection across all categories.

New Design launches: During Q1, we launched fresh ~6100 gold jewellery designs and ~5300 diamond jewellery designs (On an average 125 designs per day).

Gold Jewellery ASP & ATV: Rise in gold prices by ~5% QoQ had a natural impact on customers sentiment leading to reduction in average weight of by ~6.5% in line and increase in ASP and ATV of gold jewellery by ~22% respectively.

Awards & Recognitions: We have been awarded 2nd time in a row the "Best Hedger award" by MCX. Additionally, our Director, Mrs. Joita Sen, was honoured with the "Visionary Woman Entrepreneur" award at the Times Business Awards 2025. This accolade celebrates her exceptional leadership, contribution to the Indian jewellery industry, and her role in driving innovation, design excellence, and brand equity at the national level.

Q2 and FY26 Outlook

Having already launched 9 showrooms, we are on course to achieve annual target of 20 showroom. We are having a good pipeline of franchisee stores under FOFO as well as FOCO model. In addition, we are also looking at Franchisee route for expansion of Sennes, Gossip and Everlite brands. Sennes being a new and modern brand will also continue its growth journey.

Q2 usually has no festivals or wedding demand and is driven by Monsoon led demand and usually lower than Q1. With an early onset of monsoon (1st time in last 16 years) and above average rainfall prediction of 106% and stable macroeconomic environment, we are now preparing for Q2 with focus on inventory optimisation, festive collections, and accelerating diamond and lightweight jewellery lines. Price volatility in gold and upcoming festivals like Raksha Bandhan and Onam will shape consumer demand in Q2. We see growing consumer demand for 14K and 18K jewellery, while the industry is working towards 9K jewellery.

Source : Equity Bulls

Keywords

SencoGold Q1FY26 BusinessUpdate