Senco Gold shares surged nearly 12% in intraday trade on Thursday, 8 October, opening at ₹343.10 against the previous close of ₹321.55 and jumping to an intraday high of ₹359, marking the third consecutive session of gains. The stock has demonstrated strong momentum, hitting a 52-week high of ₹430 on 27 July after recovering from a 52-week low of ₹275.70 on 30 March. Year-to-date, the stock is up 7% compared to a 16% fall in the equity benchmark Sensex, reflecting investor confidence in the company's robust Q2 performance and positive outlook.
Senco Gold reported exceptional Q2 FY27 results with total revenue growing 31% year-on-year, while retail revenue rose 29% and same-store sales growth (SSSG) stood at 19%. The company achieved its highest-ever topline of over ₹5,000 crore in H1 FY27 and crossed the ₹10,000 crore sales mark on a trailing 12-month (TTM) basis. For the first half of FY27, total revenue grew 48% year-on-year, retail revenue increased 40%, and SSSG stood at 30%. The strong performance was supported by festive demand, jewellery consumption and increasing preference for lightweight jewellery, with the company benefiting from a favourable festive calendar covering Ratha Yatra, Rakhi, Janmashtami, Onam, Ganesh Chaturthi and Independence Day, along with mixed monsoon conditions.
Diamond jewellery revenue grew 31% year-on-year in Q2 FY27, with volume growth at 7% and the stud ratio improving to 12.2% in Q2 from 11% in Q1. For H1 FY27, diamond jewellery revenue grew 37% with volume increasing 12%, and the stud ratio at 11.6%. The company's studded jewellery demonstrated strong performance with growth in the early-30% range, significantly outpacing plain gold jewellery, as reported by Moneycontrol. This product mix matters strategically because studded jewellery allows greater value addition than plain gold jewellery, potentially supporting profitability even if headline jewellery growth comes in slightly below expectations. The shift in the impact of Pitri Paksha to Q3 also supported Q2 sales, with only four days falling in Q2 compared with 15 days last year.
Gold prices remained elevated and volatile during Q2 FY27 and were around 28% higher year-on-year, while domestic 24K gold prices rose around 1.4% from ₹1.44 lakh per 10 grams at the beginning of Q2 to ₹1.46 lakh per 10 grams at the quarter-end. International gold prices increased around 3% from $4,031 per ounce to around $4,153 per ounce. The company said Q2 performance remained resilient despite gold price movements between ₹1.40 lakh and ₹1.50 lakh per 10 grams. E-commerce and digital channel sales grew 53% year-on-year during Q2 FY27, while coin and bullion sales remained in the single digits and below 7%. The old gold exchange accelerated to above 50% in Q2 following special campaigns and schemes, with the higher exchange level significantly improving affordability and demand conversion, although it may put slight pressure on margins.
Senco Gold launched six showrooms during Q2, comprising three company-owned and company-operated (COCO) stores and three franchisee stores, taking H1 additions to 14 and the total network to 215 showrooms. The company said it expects to launch another 10–12 showrooms in H2, supported by a pipeline of both COCO and franchisee stores. Gold coin sales declined in the high-single digits from a strong base, which hurts reported revenue growth but may actually improve the quality of the sales mix. The average ticket size increased at a double-digit rate while the number of jewellery buyers increased only in the mid-single digits, suggesting that revenue growth came from customers spending more per purchase rather than attracting similar increases in buyers. The company is managing growth through a combination of value, design and customer affordability rather than relying only on gold-price-led revenue growth.
Senco Gold expects Q3 FY27 to see strong seasonal demand, supported by underlying affinity for gold fuelled by wedding demand, as well as a festive calendar, including Dhanteras, Diwali, Durga Puja, Karwa Chauth, Chhath Puja, and Christmas. The company cited around 1.35 crore weddings in calendar year 2026 as a structural backdrop for wedding-led jewellery consumption and said wedding and festive demand are expected to support H2 demand. With the monsoon season behind it, the company expects improving rural sentiment, the festive season and the upcoming wedding calendar to provide a more supportive demand environment in H2. The underlying wedding and festive demand is providing resilience, with elevated gold prices creating affordability and working-capital challenges, but they also provide an opportunity for organised players with strong brands, sourcing capabilities, exchange programmes and disciplined inventory management to gain market share. The company's focus remains on driving lightweight and 9K collections, improving inventory turns and reducing inventory days, replenishment discipline and faster conversion of non-moving inventory.
