Mumbai — Shares of Senco Gold fell as much as 10% Wednesday after the jewelry retailer reported a slight decline in quarterly profit and weaker margins despite a sharp increase in revenue.
The company’s consolidated net profit declined to Rs 101 crore in the first quarter of fiscal 2027 from Rs 105 crore in the same period a year earlier, according to a stock exchange filing.
Revenue from operations jumped 67% year over year to Rs 3,056 crore, compared with Rs 1,826 crore in the first quarter of fiscal 2026.
Consolidated EBITDA increased 16.2% to Rs 213 crore from Rs 184 crore. However, the EBITDA margin narrowed to 7% from 10% a year earlier as elevated and volatile gold prices pressured profitability.
Senco Gold reported same-store sales growth of 39% during the quarter, while retail sales rose 50% to Rs 2,651.5 crore. The company said its stud ratio stood at 11%.
Despite the margin pressure, Senco Gold said it continues to target value growth of more than 20% in fiscal 2027 and an EBITDA margin of 7.5% to 7.8%. The company expects the second quarter to be seasonally softer.
Managing Director and CEO Suvankar Sen said the company began the fiscal year on a strong note even as average gold prices rose about 61% from a year earlier and remained volatile.
Demand remained strong across lightweight, daily-wear, gifting and design-focused jewelry, according to the company. Diamond jewelry sales by value increased 43% year over year, while volumes rose 18%.
Senco Gold added eight showrooms during the quarter and plans to open another 12 to 15 stores during the remainder of the financial year, with a greater emphasis on franchise locations and expansion in Tier 2 and Tier 3 cities. (Source: IANS)
