Senco Gold sees limited risk to FY27 growth despite higher gold import duty

Rising duties on gold may squeeze import volumes, but SencoGold's Managing Director and CEO Suvankar Sen said the company does not see much risk to its 20-25% value growth guidance for 2026-27 (FY27).

The duty hike has already pushed up gold prices by nearly 8-9%, supporting revenue growth even if consumers buy lower quantities.

Volumes, however, may come under pressure as higher prices mean lower fresh jewellery purchases. Consumers are increasingly likely to exchange old jewellery rather than buy entirely new gold, a trend that has already strengthened over the past decade, he said.

The government on May 12 raised the basic customs duty on imports of gold, silver and other precious metals to 10% from 6%, and imposed an additional 5% Agriculture Infrastructure and Development Cess, taking the effective duty rate to 15%.

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Old gold exchange now accounts for nearly 50-55% of the market compared with just 20-25% during the 2013-15 period of elevated duties. Consumers are also moving toward lighter jewellery and lower-carat products such as 9-carat and 14-carat gold, reducing dependence on fresh imports.



Sen expects import volumes to drop by 10-15% due to the additional duties.

Also, higher duties could encourage illegal gold inflows and benefit unorganised players unless enforcement is tightened. Sen said organised jewellers would urge the government to ensure that “illegal routes are stopped very strongly” to prevent unfair competition.

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