Senco Gold Sparkles in Q1 FY26: Strong Revenue & Ambitious Expansion! ✨
Hey there, finance enthusiasts!
Senco Gold Limited (NSE: SENCO), one of India’s prominent jewellery retailers, just dropped its business update for the first quarter of fiscal year 2026 (Q1 FY26), and it looks like they’re off to a glittering start! The company reported some impressive growth figures for the quarter ended June 30, 2025, showing resilience and strategic expansion.
A Golden Quarter Indeed! 🚀
Senco Gold kicked off FY26 on a strong note, riding high on a favorable festive calendar. Major Indian festivals like Akshay Tritiya, Poila Baishakh, Baisakhi, Bihu, and Ramnavmi acted as significant catalysts, fueling strong consumer demand. This translated into:
- Total Revenue Growth: A sparkling ~28% increase.
- YoY Retail Revenue Growth: Up by 24%.
- Same-Store Sales Growth (SSSG): A solid 19% at the secondary sales level.
- Invoice Growth & SKU Sold Growth: Both saw a 10% increase, reflecting both higher-value purchases and effective customer engagement.
Diamond jewellery sales, particularly in the ‘stud ratio’, maintained the strong momentum from Q4 FY25, achieving a robust ~35% volume growth. Interestingly, gold coin and bullion sales remain a small part of their portfolio, accounting for just 4.5% of total sales in FY25-3.
Expanding the Sparkle Across India ✨
Senco Gold is clearly on an expansion spree! In Q1 FY26, they launched 9 new showrooms – 4 company-owned company-operated (COCO) and 5 franchisee-owned franchisee-operated/company-operated (FOFO/FOCO) stores. This brings their total jewellery store portfolio to 179 (excluding Sennes showrooms). They also added 1 new Sennes showroom, taking the total Sennes portfolio to 7, catering to a modern and younger demographic.
New COCO locations include Andheri Metro (Maharashtra), Rourkela (Odisha), Sonarpur (West Bengal), and Bilaspur (Madhya Pradesh/Chhattisgarh). For FOFO/FOCO, new locations include Nagpur (Maharashtra), Meerut (Uttar Pradesh), and Dhupguri, Singur, Balichak (all in West Bengal). The entry into Nagpur via the franchisee model marks a significant milestone, showcasing broader Pan-India interest in their franchise model.
Furthermore, the Sennes brand is expanding its presence through 61 Shop-in-Shop (SIS) formats within Senco showrooms and an additional 25 SIS formats at other leading brands, with a target to reach 100 soon.
Navigating the Gold Price Swings 📈
The quarter wasn’t without its challenges. The domestic gold price surged from ₹86,900 to ₹1,01,000 per 10 grams, representing an average YoY increase of ~32% and a QoQ increase of 5%. This sharp jump, driven by global factors and central bank gold purchases, did cause a modest softness in volume growth, especially in the mass and bridal segments. However, Senco Gold cleverly navigated this by leveraging the widespread adoption of old gold exchange, which contributed to an impressive ~40% of their total sales in value terms. This shows how crucial customer flexibility and value retention are in a volatile market. Despite the price rise, the average weight of gold jewellery decreased by ~6.5%, while Average Selling Price (ASP) and Average Transaction Value (ATV) increased by ~22%.
Beyond the Numbers: Innovation and Recognition 🏆
Senco Gold also kept the marketing wheels turning with exciting campaigns like “Khushiyon Ki Reet - Aapka Shukriya” and “Bangle Utsav 2025” featuring over 300 bangle designs. They launched “The Golden Curve” for lightweight necklaces and “Swarna Yatra” with Lord Jagannath-inspired motifs. New designs were plentiful, with ~6100 gold and ~5300 diamond jewellery designs launched during the quarter!
The company’s risk management prowess was recognized as they received the “Best Hedger award” from MCX for the second time in a row. Adding to the accolades, Mrs. Joita Sen, their Director, was honored with the “Visionary Woman Entrepreneur" award at the Times Business Awards 2025, highlighting her leadership and contribution to the Indian jewellery industry.
What’s Next? The Q2 & FY26 Outlook 🔮
Looking ahead, Senco Gold is on track to meet its annual target of 20 new showrooms. While Q2 typically sees lower demand due to the monsoon season and fewer festivals, the company is preparing with a focus on inventory optimization, festive collections, and accelerating diamond and lightweight jewellery lines. With an early onset of monsoon and a prediction of above-average rainfall, their strategies will be key. They also foresee growing consumer demand for 14K and 18K jewellery, with the industry actively working towards 9K jewellery.
It seems Senco Gold is not just selling jewellery; they are crafting a strong growth story with strategic expansion, smart market navigation, and a keen eye on consumer preferences. Keep an eye on this one!
(Note: Senco Gold is certified as a Great Place To Work Great Place To Work and recognized as India’s 2nd Most Trusted Jewellery Brand by TRA report TRA Advisory.)
source: Corporate Announcement
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