Senco Gold Q1 FY27 Update: 8 New Showrooms, 208-Store Network, 43 Per Cent Old Gold Exchange Contribution

On Friday, shares of Senco Gold Ltd closed at Rs 327 per share, down 1.45 per cent from its previous closing price of Rs 331.80 per share. The stock's 52-week high is Rs 404.85 per share, while its 52-week low is Rs 276 per share. During the session, the stock touched an Intraday high of Rs 339.60, representing a gain of approximately 2.61 per cent over its previous closing price.

Senco Gold Ltd reported a robust business performance for the first quarter of FY27, driven by healthy revenue growth, strong same-store sales growth (SSSG), continued showroom expansion, and higher contribution from old gold exchange despite elevated gold prices and a higher customs duty.

The company said gold prices remained elevated on a year-on-year basis, although they declined sequentially due to geopolitical developments. Domestic gold prices reflected the impact of the customs duty increase to 15 per cent from 6 per cent. Senco Gold expects the benefit of the duty hike to accrue over Q1 and Q2, although the current hedging level of around 50 per cent and heavy discounting during the quarter are likely to put pressure on Q1 margins.

Revenue growth and same-store sales growth remained strong during the quarter, supported by a favourable festive calendar that included Akshaya Tritiya, Poila Baisakh, Baishaki, Bihu, and the beginning of the summer wedding season. The company maintained strong business momentum despite the impact of Adhik Maas and the increase in customs duty. Its trailing twelve-month (TTM) sales reached approximately Rs 9,660 crore.

The diamond jewellery segment also recorded healthy growth, driven by higher volumes, an improved product mix, increased demand for products priced below Rs 50,000 under the Everlite range, and the launch of new jewellery designs.

Old gold exchange continued to remain a significant contributor to business, accounting for around 43 per cent of total sales during Q1 FY27. The company also introduced a "0 per cent deduction" campaign to align with the appeal made by the Honourable Prime Minister, encouraging customers to exchange old gold.

On the expansion front, Senco Gold opened 8 new showrooms during the quarter, including 3 company-owned company-operated (COCO) stores, 4 franchise stores, and 1 Sennes outlet. After accounting for the closure of one store, the company's retail network expanded to 208 showrooms. Management remains on track to open another 12 to 15 showrooms over the next three quarters, with a stronger focus on franchise-led expansion.

Looking ahead, the company expects Q2 FY27 to be seasonally softer. However, consumer demand is expected to be supported by the monsoon season and advance gold bookings for the upcoming festive season in Q3. Management said it will continue to focus on inventory optimisation, expanding lightweight and 9K jewellery collections, and protecting margins.

The company has a market cap of over Rs 10,700 crore. The stock price has fallen 4.57 per cent in the last 1 year.

From its 52-week low of Rs 276 per share, the stock has delivered a return of approximately 18.48 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.

What do you think about Senco Gold's Q1 FY27 business performance and expansion strategy? Share your views in the comments below.