Senco Gold’s September profit included major derivatives gain

Senco Gold Limited reported consolidated pre-tax profit of Rs 120.580 crore for the quarter ended 30 September 2026, of which a Rs 103.092 crore net gain on derivative transactions accounted for about 85.5%. The gain, recorded in other income, was substantially higher than the Rs 2 crore gain reported a year earlier.

How much of Senco Gold’s September profit came from derivatives?

Senco Gold recorded a Rs 103.092 crore net gain on derivatives in the three months ended 30 September 2026, against consolidated pre-tax profit of Rs 120.580 crore. The company reported the derivatives outcome within other income, which totalled Rs 122.118 crore for the quarter.

The disclosed gain represented about 85.5% of reported pre-tax profit and about 84.4% of other income. Removing only the disclosed derivative gain arithmetically would leave Rs 17.488 crore of pre-tax profit; this is an analytical calculation, not a company-reported adjusted-profit measure, and it does not adjust for other income or expenses.

The year-on-year change in derivatives was Rs 101.092 crore, while pre-tax profit increased by Rs 61.526 crore from the September 2025 quarter. The filing does not separately identify the commercial transactions, instruments or operating factors that produced the derivatives result.

What were Senco Gold’s reported September-quarter earnings?

Senco Gold reported consolidated profit after tax of Rs 86.668 crore for the September 2026 quarter, compared with Rs 44.763 crore a year earlier and Rs 101.143 crore in the June 2026 quarter. Revenue from operations was Rs 2,058.728 crore, up from Rs 1,536.115 crore a year earlier but below Rs 3,056.027 crore in June.

Revenue increased by Rs 522.613 crore year on year, while pre-tax profit rose by Rs 61.526 crore. On a sequential basis, revenue fell by Rs 997.299 crore and pre-tax profit declined by Rs 18.360 crore, despite the quarter’s derivative gain.

The derivatives outcome moved from a Rs 87.846 crore net loss in the June 2026 quarter to a Rs 103.092 crore gain in the September quarter, a Rs 190.938 crore swing. The filing says a net derivatives loss is classified in other expenses, whereas a net gain is classified in other income.

September-quarter cost of materials consumed was Rs 1,392.907 crore, down from Rs 1,969.484 crore in June, while purchases of stock-in-trade rose to Rs 671.123 crore from Rs 558.223 crore. Changes in inventories were a Rs 257.103 crore credit in September, compared with a Rs 35.080 crore charge in June.

Why did derivatives have such a large effect on Senco Gold’s earnings?

Derivatives had a large reported effect because Senco Gold includes the net gains and losses from its derivative transactions in other income or other expenses before pre-tax profit. The Rs 103.092 crore September gain followed a Rs 87.846 crore June loss, making quarterly earnings sensitive to the classification disclosed in the results.

For the six months ended 30 September 2026, the net derivative gain was Rs 15.246 crore, because the June loss largely offset the September gain. That compared with a Rs 9.495 crore net gain in the six months ended 30 September 2025.

Six-month consolidated pre-tax profit was Rs 259.520 crore, up from Rs 199.652 crore in the comparable prior-year period, and profit after tax rose to Rs 187.811 crore from Rs 153.437 crore. The six-month gain in reported pre-tax profit was therefore Rs 59.868 crore, while the disclosed net derivatives gain increased by Rs 5.751 crore.

Senco Gold identifies jewellery business as its single operating segment under Indian Accounting Standard 108, Operating Segments. The announcement therefore provides no segment-level profit or margin disclosure that could separate a management-reported jewellery operating result from the derivatives impact.

What do Senco Gold’s cash flow and balance sheet show?

Senco Gold used Rs 430.780 crore in operating activities during the six months ended 30 September 2026, compared with Rs 333.913 crore used in the prior-year six-month period. The cash flow statement began with Rs 259.520 crore of pre-tax profit and included a Rs 191.757 crore increase in inventories and a Rs 165.666 crore increase in trade receivables.

The statement also recorded a Rs 341.325 crore decrease in gold metal loans, compared with a Rs 81.967 crore decrease in the prior-year period. Net cash generated from financing activities was Rs 438.877 crore, including Rs 497.133 crore of net proceeds from current borrowings and Rs 111.128 crore of proceeds from non-current borrowings.

Cash and cash equivalents were Rs 41.553 crore at 30 September 2026, compared with Rs 37.586 crore at 31 March 2026. At the same September date, inventories were Rs 5,487.845 crore, up from Rs 5,296.088 crore at the March year-end.

Current borrowings rose to Rs 2,080.501 crore at 30 September 2026 from Rs 1,569.054 crore at 31 March 2026, while gold metal loans fell to Rs 484.373 crore from Rs 776.210 crore. Equity attributable to owners increased to Rs 2,683.725 crore from Rs 2,513.684 crore over the same period.

What other September-result disclosures matter for Senco Gold?

Senco Gold’s board approved the consolidated results on 13 November 2026 after audit committee review, and Walker Chandiok & Co LLP performed a limited review. The auditor said nothing had come to its attention indicating that the statement lacked required disclosure or contained a material misstatement, while noting that a review is narrower in scope than an audit.

The group includes three wholly owned subsidiaries and the auditor relied on other auditors’ reports for two of them. Those two subsidiaries had total assets of Rs 384.919 crore at 30 September 2026 and a combined net loss after tax of Rs 6.311 crore for the September quarter.

After 30 September 2026 and before the results were approved, Senco Gold issued and allotted commercial papers totalling Rs 20 crore, which mature on 30 March 2027 and are listed on the National Stock Exchange of India Limited. The company also allotted 62,310 shares during the quarter, and 94,287 shares during the six months, under its employee stock option scheme.

Conclusion

Senco Gold’s reported September-quarter earnings included a material non-operating disclosure: the Rs 103.092 crore net derivatives gain was close to the Rs 120.580 crore pre-tax profit. Revenue still rose Rs 522.613 crore year on year to Rs 2,058.728 crore, but the comparison of reported profit requires recognition that the comparable-quarter derivatives gain was only Rs 2 crore.

The next disclosed event to watch is the 30 March 2027 maturity of the Rs 20 crore commercial papers issued after the quarter end. Subsequent results will also show whether derivative gains or losses recur after the first-half net gain of Rs 15.246 crore, alongside movements in Rs 2,080.501 crore of current borrowings and operating cash use of Rs 430.780 crore.