Senco Gold Shines Bright: Q2 & H1 FY26 Performance Overview

Senco Gold Limited, a venerable name in the Indian jewellery sector with an 85-year legacy, has unveiled its consolidated financial results for the second quarter and first half of fiscal year 2026, ending September 30, 2025. Despite navigating a period marked by record-high gold prices, significant regional headwinds including heavy rainfalls in Eastern India, and consumer cautiousness due to GST changes, the company demonstrated remarkable resilience and strategic agility. Consolidated revenue for H1 FY26 grew by a robust 16% year-on-year to Rs 3,362.3 crore. More impressively, adjusted EBITDA for H1 surged by 52% year-on-year to Rs 290.1 crore, while Profit After Tax (PAT) witnessed an 80% year-on-year increase to Rs 153.4 crore, showcasing a strong rebound in profitability.

Navigating Market Dynamics with Strategic Focus

The second quarter presented a challenging environment, with consolidated revenue growth at a modest 2% year-on-year. However, the company's strategic planning and customer-centric approach paid off significantly in October 2025, which recorded the highest-ever monthly retail sales of over Rs 1,700 crore. This festive surge, driven by Dhanteras and Diwali, registered a robust 56% year-on-year growth over October 2024, including a 60% value growth in gold and 32% in diamond. The year-to-date (YTD) retail value growth reached 25%, with Same Store Sales Growth (SSSG) at 19% for the 7 months ending October 2025.

Management highlighted that while value growth remained strong, volume growth was minimal due to the elevated gold prices. Consumers adapted by opting for lighter-weight jewellery and shifting towards 9-karat and 14-karat diamond pieces to fit their budgets. This trend underscored the effectiveness of Senco's diverse product portfolio and its ability to innovate with budget-friendly designs.

Expansion, Innovation, and Financial Discipline

Senco Gold's expansion strategy remains robust, with 6 new showrooms launched in Q2, bringing the total to 192 showrooms across India and Dubai. The company plans to open another 6-8 showrooms in the remainder of FY26, primarily focusing on Tier 2, 3, and 4 cities in East and North India through its asset-light franchisee model. This approach ensures efficient capital deployment and broader market penetration.

Innovation in product design and customer engagement is a core pillar of Senco's strategy. The company launched multiple festive campaigns and creative brand initiatives, aiming to delight customers and strengthen brand positioning. The stud ratio, representing diamond-studded jewellery sales, increased to 12%, driven by a 31% growth in diamond jewellery demand, contributing positively to the product mix and margins.

On the financial front, the company maintained a comfortable Debt-to-Equity ratio of 0.75. Inventory levels increased to Rs 4,309.2 crore by Q2 end, primarily for Dhanteras and upcoming wedding seasons. This was funded by enhanced bank borrowing. Management emphasized its commitment to optimizing inventory, improving inventory turns, and maintaining financial discipline to enhance Return on Equity (ROE) and Return on Capital Employed (ROCE).

Digital Leadership and Future Outlook

Senco Gold is also making significant strides in its digital transformation. The launch of My Digi Gold and My Digi Silver platforms allows customers to invest in precious metals digitally, catering to millennials and Gen Z. These platforms enhance the company's omnichannel presence and customer loyalty, making precious metal ownership accessible and convenient.

Looking ahead, Senco Gold maintains a confident outlook. The management reiterated its guidance for 18-20% topline growth for FY26, with full-year growth likely to cross 22% given the strong H1 performance. The sustainable EBITDA margin guidance remains in the range of 7.2% to 7.4% for the full year. The company also aspires to increase the stud ratio to 13-13.5% by FY27, reflecting its focus on higher-margin diamond jewellery. With a strong pipeline of wedding dates in Q3 and Q4, Senco Gold is well-positioned to capitalize on festive demand and continue its growth trajectory, blending timeless craftsmanship with modern retail strategies.