Senco Gold shares soar 6% as Q1 business update highlights 60% revenue growth

Senco Gold shares surged as much as 6.3% in Monday’s trading session, hitting an intraday high of Rs 346.55 on the NSE, after the jewellery retailer reported a robust Q1 FY27 business update. Strong revenue growth, healthy same-store sales and continued retail expansion boosted investor sentiment, reinforcing the company’s growth momentum from FY26.

According to the company’s Q1 FY27 business update, total revenue grew 60% year-on-year, supported by strong consumer demand across key categories. Retail revenue rose 48% YoY, while same-store sales growth (SSSG) stood at an impressive 38%, reflecting sustained demand across existing stores.

Trailing twelve-month (TTM) sales also approached Rs 9,660 crore, underscoring the company’s continued growth trajectory.

Diamond jewellery remained a key growth driver during the quarter. The segment registered 40% YoY growth in value, while diamond volume jumped 56% sequentially, aided by higher volumes, an improved product mix, affordable collections priced below Rs 50,000 under the Everlite range, and new product launches.

The company said domestic gold prices remained significantly higher on a year-on-year basis, although they softened sequentially amid evolving geopolitical developments. Gold prices also reflected the impact of the increase in customs duty to 15% from 6%.

While the duty hike is expected to benefit revenues over Q1 and Q2, Senco noted that aggressive gold price discounting during the quarter and its 50% hedging position are likely to put pressure on Q1 margins, delaying the full benefit of the higher customs duty.

The old gold exchange programme continued to witness healthy customer participation, accounting for around 43% of total sales volume in Q1 FY27. During the quarter, the company also rolled out a “0% deduction” campaign to encourage exchange transactions.

Retail expansion gathers pace

Senco Gold expanded its footprint by opening eight new showrooms during the quarter, comprising three company-owned stores, four franchise outlets and one Sennes store. After accounting for one store closure, the company’s retail network stood at 208 showrooms.Management remains on track to open 12-15 additional stores over the next three quarters, with a greater focus on the franchise-led expansion model.

Management outlook

Looking ahead, the company expects Q2 FY27 to be seasonally softer. However, it remains optimistic that demand will improve with the monsoon season and festive buying, including advance gold bookings ahead of Q3 festivities.

Management said its priorities will remain inventory optimisation, expanding lightweight and 9K jewellery collections, and protecting margins.

Technical view

From a technical perspective, the stock continues to exhibit a positive medium-term trend. It is currently trading above seven of its eight simple moving averages (SMAs), indicating underlying strength. Meanwhile, the 14-day Relative Strength Index (RSI) stands at 43.7, suggesting the stock is neither overbought nor oversold.

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