Senco Gold Reports 31% Revenue Growth in Q2, Shares Rise 6%

Senco Gold's shares climbed 6 percent to Rs 339.80 during trading on Thursday following the company’s announcement of a strong business performance for the quarter and half-year ending September 30, 2026. The jewellery retailer reported solid growth, driven by sustained consumer demand despite volatility in gold prices.

The company highlighted that demand in the second quarter of fiscal 2027 was supported by the festive season, a structural preference for jewellery, and increased consumer interest in lightweight designs. Even with gold prices remaining high and fluctuating, Senco Gold maintained resilience in its operations.

At the retail level, revenue rose 29 percent year-on-year in Q2, while same-store sales growth (SSSG) reached 19 percent. The SSSG figure reflects strong customer loyalty and a solid existing client base. For the first half of fiscal 2027, total revenue increased by 48 percent compared to the previous year, with retail revenue up 40 percent and SSSG climbing 30 percent. The company also recorded its highest-ever topline revenue of over Rs 5,000 crore in the first half, and trailing 12-month sales exceeded Rs 10,000 crore.

Detailed Q2 Performance

On a standalone basis, total revenue—including corporate, e-commerce, and export sales—increased 31 percent year-on-year during the quarter. Diamond jewellery sales grew 31 percent in value and volume rose 7 percent. The stud ratio, an indicator of diamond content, improved to 12.2 percent from 11.6 percent in the first half. During the quarter, Senco Gold expanded its retail footprint by launching six new showrooms, evenly split between company-operated and franchise stores. This raised total additions for the half-year to 14, bringing the total showroom count to 215.

The company plans to open another 10 to 12 stores in the second half of fiscal 2027, with a pipeline consisting of both company-owned and franchise outlets. This expansion aims to capitalize on growing demand and reinforce its market presence.

E-commerce Drives Sales Growth

Sales growth was bolstered by a favorable festive calendar, which included events such as Ratha Yatra, Rakhi, Janmashtami, Onam, Ganesh Chaturthi, and Independence Day. The shifting of Pitru Paksha’s impact mainly to the third quarter also benefited Q2 sales, as only four days of the period fell in the quarter compared to 15 days the year before.

Notably, e-commerce and digital sales channels surged 53 percent year-on-year, demonstrating the importance of online platforms for Senco Gold’s growth strategy. Meanwhile, sales of coins and bullion remained steady but modest, accounting for less than 7 percent of total sales.

Gold Prices and Market Conditions

Gold prices stayed elevated and somewhat volatile in Q2, with the average price rising approximately 28 percent year-on-year. Domestic 24-karat gold prices increased by about 1.4 percent during the quarter, moving from Rs 1.44 lakh to Rs 1.46 lakh per 10 grams. International prices also rose around 3 percent, from $4,031 to roughly $4,153 per ounce.

Outlook for Q3 and Beyond

Looking ahead, Senco Gold anticipates that the third quarter will benefit from strong seasonal demand, particularly driven by weddings and major festivals such as Dhanteras, Diwali, Durga Puja, Karwa Chauth, Chhath Puja, and Christmas. The company expects rural demand to improve following the monsoon season, which along with the wedding calendar, should create a favorable environment for jewellery consumption in the latter half of the fiscal year.

The company acknowledged that elevated gold prices continue to challenge affordability and working capital but also offer an opportunity for organised players with established brands, effective sourcing, and attractive exchange programs to increase market share. Senco Gold plans to focus on lightweight and 9-karat collections, enhance inventory turnover, reduce stock holding periods, and manage replenishment and liquidation of slow-moving items more efficiently.

As the jewellery market evolves, companies like Senco Gold aim to leverage their retail network, product innovation, and digital presence to meet changing consumer preferences while navigating price fluctuations in the precious metals market.