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Strong topline growth continues with healthy SSSG

Senco Gold (SENCO) released its pre-quarterly update for 4QFY26. Here are the key takeaways:

Gold price trends

* Gold prices have been highly volatile in 4QFY26, rising 20% QoQ to a peak of USD5,595/Oz. However, amid war and global uncertainties, prices fell again by almost 20% to USD4,500/Oz in mid-March, currently settling near the USD 4,700/Oz level, with a daily price variation of 2-5%.

* The average gold price has surged by 79% YoY since 4QFY25 from INR84,782/10gm to INR151,783/10gm in 4QFY26, with QoQ growth of ~20% against INR126,638/10gm in 3QFY26.

* Despite the highly volatile environment, customers have continued to purchase jewelry. SENCO has accordingly planned its inventory in line with changing consumer demand while maintaining its gross margins and profitability, thereby effectively managing risks.

Financial and operational performance

* SENCO achieved wedding season-led growth of ~46% YoY in 4QFY26, leading to a ~35% YoY growth in FY26 compared to 21% YoY growth in FY25.

* The 4Q topline growth includes SSSG of ~34%.

* The wedding season during the quarter was spread throughout the period, and to cater to this demand, SENCO launched new designs, collections, and attractive offers. Valentine's Day and International Women's Day drove strong growth in footfall, particularly in the gifting and lightweight segments.

* SENCO accelerated its focus on lightweight jewelry and everyday wear. A key highlight of the quarter was the strong customer response to its 9k collection, christened Cloud 9, which is expected to further support jewelry demand amid rising prices. This strategy enables the company to maintain affordability and drive volume growth even in a high-price environment.

* The company has launched a pioneering virtual experience in India’s jewelry industry called ‘Shape of You’, an AI-based innovation that helps customers select jewelry based on their face shape. The company continues to leverage data and optimize stocks in order to drive efficiency.

Store expansion and network growth

* SENCO launched 7 new showrooms (2 - Franchisee, 1 – COCO, and 4 - Sennes) in 4Q, reaching a milestone of 201 total showrooms (net of 2 store closures).

* The current network now comprises 102 COCO and 85 FRN (FOFO-76 & FOCO-9) stores, 12 Sennes stores, and 2 stores in Dubai.

Outlook

* SENCO is geared up for the upcoming auspicious occasions of Akshaya Tritiya, Poila Boishak, Baishakhi, Rath Yatra, and Raja Parba in Odisha, as well as the summer wedding season in 1QFY27, with curated collections and hyper-local jewelry.

* It has a strong pipeline for store expansion in 1HFY27 across the franchise and company-owned categories, and plans to launch 20-25 stores in FY27, with a focus on opening more franchise stores.

* SENCO aims to achieve a minimum of 20-25% value growth while maintaining its EBITDA margin target of 7.5%-7.8%, as guided earlier.

* It also remains focused on Phy-gital Model, seamlessly integrating the omnichannel (Online, Offline, B2B) presence with tech-driven initiatives like Digi Gold, Magic Mirror, and Sencoverse.

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