Senco Gold Maintains Positive Outlook for FY26 Despite High Gold Prices

Senco Gold, a prominent jewellery retailer in India, has expressed confidence in its financial outlook for the fiscal year 2026 (FY26). Despite record-high gold prices, the company expects steady demand and margin performance, supported by festive buying and a growing focus on diamond jewellery. The management shared these insights during a recent interview with CNBC-TV18.

FY26 Margin and Revenue Guidance

The company’s Managing Director and CEO, Suvankar Sen, stated that Senco Gold aims to maintain EBITDA margins in the range of 6.8–7.2% for FY26. This compares to an adjusted margin of 6.5–6.8% achieved in FY25. The margin improvement is attributed to a recovery in diamond sales and the easing of import duty-related impacts during the fourth quarter of FY25.

Sen said, “We were confident that in Q4, with the pickup in diamond sales and the removal of the duty impact, we would see recovery, and we did.” The company is holding on to its Q1FY26 guidance of 18–20% revenue growth, led by festive buying during Pohela Boishakh and Akshaya Tritiya. “Until now, we are clocking those numbers,” he confirmed.

Growth in Diamond Jewellery

Diamond jewellery continues to show robust growth within Senco Gold’s product mix. In Q4 FY25, diamond sales grew by 39% and now contribute approximately 11% of the company’s overall revenue. With consumer interest shifting towards diamond-studded pieces, particularly in 14-carat and 18-carat gold, the company is targeting a 25–30% increase in diamond sales in FY26.

Sen expects sustained momentum in diamond sales in the festive quarters of Q3 and Q4, while acknowledging that Q2 could be a softer quarter. A good monsoon will be key to supporting demand in the second half of the year.

Changing Consumer Preferences

High gold prices have resulted in evolving consumer preferences. While volumes are down 4–5%, average ticket sizes are up 15% year-on-year to ₹72,000. Customers are opting for lightweight, daily-wear pieces with a stylish look.

Sen said, “Gold may feel too light, but diamonds look trendy and stylish, that’s where the shift is happening.” This has contributed to the rising share of diamonds in Senco Gold’s product portfolio.

Shift from Unorganised to Organised Market

Senco Gold continues to gain market share from unorganised jewellery players. Old gold exchange volumes have climbed to 39%, with 60% of that coming from non-Senco gold. Customers are increasingly treating gold coins and bars as investment assets, while diamonds, especially small-sized ones, are being bought for adornment rather than value appreciation.

Senco Gold Share Price Performance

On May 30, 2025, Senco Gold share price opened at ₹397.10, up from the previous close of ₹380.70. At the end of the trading session, the stock was trading at ₹381.20 on the NSE. The stock’s 52-week high of ₹772.00 was recorded on October 7, 2024, while its 52-week low of ₹227.40 was reached on March 17, 2025.

Conclusion

Senco Gold projects stable revenue and margins for FY26, supported by festive demand and growth in diamond jewellery. The company is benefiting from changing consumer preferences and continues to expand its share in the organised jewellery sector amid high gold prices.

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