According to reports from The Economic Times, Senco Gold has set ambitious growth targets for FY27, projecting 20-25% revenue growth while implementing a more conservative profit margin approach. The company's MD & CEO Suvankar Sen is drawing a firm line under FY26's exceptional performance, guiding investors toward a 4-4.5% PAT margin as the structural baseline for FY27 and beyond. Sen emphasized that while the company achieved a 6.8% PAT margin in FY26, driven by sharp gold price rallies and inventory gains from government import duty hikes, this level is not sustainable as a long-term guide. "It is good to have a conservative approach of 4% to 4.5%. Yes, there will be certain years when gold prices will come up — but 6.8% is something we are happy to have, not something to guide on," Sen stated.
As reported by The Economic Times, Senco Gold is strategically focusing on expanding its studded and diamond jewellery segment, which currently accounts for 10-11% of revenue but is targeted to reach 14-15% within two to three years. The company has achieved significant growth in absolute terms, with diamond jewellery sales doubling over four years to around ₹830 crore, representing 20-25% annual growth. Sen noted that the shift toward 9-karat and 14-karat options is helping bring diamond jewellery within reach of more price-sensitive consumers, supporting the expansion strategy.
According to The Economic Times, Senco Gold maintains an inventory of approximately ₹5,500 crore, which appears substantial but is largely protected through hedging strategies. The company has 50-60% of forward sales hedged, covering roughly five to six months of inventory, providing protection against near-term gold price volatility. Sen indicated that if gold prices fall further and the downward trend firms up, hedging can be scaled to 75-80%. He noted that the vast majority of inventory risk is the gold itself, which remains liquid and can be remelted and redesigned into faster-moving products, with only 5-6% manufacturing cost embedded in unsold pieces being truly at risk.
As reported by The Economic Times, Senco Gold is maintaining its focus on eastern India, the brand's home turf, while expanding into northern and central India where cultural affinity is strong and diamond jewellery adoption is higher. The company plans to open 20+ new stores annually and is targeting these regions for growth. However, the south India expansion remains on the back burner due to intense competition and structurally lower margins in that market. Sen acknowledged that the company has been stuck in the 10-11% diamond jewellery band for years, partly due to surging gold prices making plain gold jewellery more attractive to buyers.
