Senco Gold share price hits 5% upper circuit on strong Q4 business update

Stock market today: Shares of Senco Gold, one of the leading pan-India jewelry retailers, were locked at the 5% upper circuit limit for the second consecutive day on Wednesday, April 9, reaching a 5-week high of ₹318.25 apiece, following the release of the company’s business update for Q4FY25 and for the full fiscal year. 

In the fourth quarter of the last fiscal year, the company reported total revenue growth of 19.1% and retail growth of 23%. For the entire fiscal year, revenue grew 19.4% year-on-year. Same-store sales growth (SSSG) stood at 18.4% in Q4 and 14.6% for FY25.

The company witnessed strong demand from Tier 3 and Tier 4 towns, despite a steady rise in gold prices, outpacing growth in metro and Tier 2 cities.

Gold prices remained firm during Q4, while overall consumer sentiment toward gold as a store of value remained upbeat. Gold prices rose 11% quarter-on-quarter and 33% year-on-year, with a 19% increase over the last six months, touching a lifetime high of US$3,150 per ounce.

Continued gold buying by central banks throughout the year kept demand elevated, contributing to the rise in prices. 

Meanwhile, the company continued its expansion in the March quarter, launching four new showrooms under the franchisee and COCO models. Over FY25, it added a net of 15 showrooms, including six franchisee outlets, bringing the total showroom count to 175, comprising 72 franchisees and one showroom in Dubai, as per company's regulatory filing.

The company said that the impact of the customs duty reduction in Q2 and Q3, along with other business factors, affected margins by 80–90 basis points, resulting in a 6.2% adjusted EBITDA margin. However, it stated that improved performance in Q4, driven by strong diamond jewelry sales, is expected to lead to better business margins.

"The full impact of the customs duty cut has already been taken up to Q3FY25, and we don’t foresee any other factor impacting gross margin during Q4FY25," the company said.

Maintains healthy outlook for FY26

The company is confident of a very strong start to FY26, driven by robust demand during Poila Baisakh, Akshaya Tritiya, and the continued momentum in the wedding season—all expected to significantly boost Q1 FY26 sales.

Senco aims to open 5–7 new stores (in line with its plan to launch 20–22 new stores, both owned and franchisee-operated, during FY26) to further strengthen its market presence. It also plans to expand its customer reach through the Shop-in-Shop (SIS) model, targeting 70 new SIS outlets, which would take the total count to approximately 100 SIS stores by March 2026.

In addition, 5–7 new SENNES stores are also in the pipeline via its wholly owned subsidiary Sennes Fashion Limited, which caters to lifestyle products such as lab-grown diamonds, leather accessories, and perfumes.

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