Senco Gold shares in focus after Q2 revenue growth lags industry, guidance maintained

Shares of Senco Gold will be in focus on Thursday, November 13, after the company announced its earnings for the September quarter (Q2FY26).

The jewellery retailer reported muted revenue growth, with sales rising only 2.4% year-on-year to ₹1,536.1 crore, compared to ₹1,500.4 crore in the same quarter last year.

However, profitability showed a sharp improvement on a low base.

EBITDA jumped 105.5% YoY to ₹106.46 crore, while margins nearly doubled to 6.9% from 3.5% a year ago. Profit after tax (PAT) surged over 300% to ₹48.7 crore, compared to ₹12.1 crore last year.

The company attributed last year’s weak base to the impact of a customs duty cut, which had weighed on EBITDA then.

Despite significant headwinds, including the Shraddh period, a traditionally soft time for jewellery demand, along with heavy rains and floods in the eastern region, Senco Gold managed to maintain a studded jewellery ratio of 12%.

Looking ahead, the company reiterated its guidance of achieving 18-20% topline growth for FY26.

It remains on track to open 6-8 new showrooms during the remainder of the fiscal year, with a focus on enhancing return ratios (ROE and ROCE) from current levels.

On the festive front, Senco Gold reported a strong start to the October quarter, buoyed by Diwali and Dhanteras sales.

The company recorded a 56% increase in October sales, supported by 4% volume growth in gold and 8% in silver.

Including October, Senco’s seven-month same-store sales growth (SSSG) stands at 19%, while overall revenue growth for the period has reached 25%.

Its retail footprint has now crossed 195 showrooms, underscoring continued network expansion.

Shares of Senco Gold Ltd. settled 0.69% higher at ₹327.90. The stock has declined over 40% so far in 2025.