Senco's Stellar Q3 Topline Growth Driven by Gold Price Rally; Likely to Close FY with ₹8,000 Cr Revenue: MD

Why It Matters

The results show Senco can translate volatile gold price spikes into profitable growth while diversifying its portfolio, positioning the firm for sustained expansion in a price‑sensitive market.

Key Takeaways

• Gold price up 65% fuels revenue surge
• Q3 volumes down 3% YoY despite higher prices
• EBITDA margin 13.2%; hedging adds 2.5‑3%
• Revenue target ₹8,000 cr FY26, 25% growth
• Melorra and Sennes launch diversify consumer segments

Pulse Analysis

The Indian jewelry sector has been reshaped by an unprecedented gold price rally, with Senco Gold & Diamonds capitalising on a 65% price increase to deliver a 39% same‑store sales jump in Q3. While the surge lifted revenue, volume metrics slipped, underscoring the delicate balance between price‑driven topline growth and consumer demand elasticity. Senco’s proactive hedging strategy, covering 55‑60% of inventory, insulated margins, adding roughly 2.5‑3% to its EBITDA and pushing the Q3 margin to 13.2%.

Beyond the price dynamics, Senco is sharpening its operational efficiency. The firm raised its sustainable EBITDA margin guidance to 7.5‑7.8% for FY26, reflecting tighter cost control and a favourable product mix, especially from higher‑margin diamond jewelry that grew 34% in the quarter. Combined with a 4‑5% contribution from new store openings, management targets an 18‑20% annual growth trajectory, aiming to close FY26 with roughly ₹8,000 cr in revenue, up 25% from the previous year.

Strategic diversification underpins Senco’s long‑term outlook. The acquisition of a stake in contemporary brand Melorra and the launch of the lab‑grown diamond label Sennes broaden the company’s appeal to younger, design‑focused shoppers and align with global sustainability trends. By integrating lighter, affordable pieces and expanding into accessories, Senco positions itself as a “house of design,” mitigating reliance on pure gold sales. This multi‑segment approach, coupled with disciplined hedging and margin management, equips the firm to navigate future gold price volatility while pursuing its ambitious FY26 revenue goal.

Senco's stellar Q3 topline growth driven by gold price rally; likely to close FY with ₹8,000 cr revenue: MD

By Nandini Sanyal, ETMarkets.com · Last Updated: Feb 13 2026, 04:37 PM IST

Gold price rally fuels revenue growth

Speaking to ET Now, Suvankar Sen, MD & CEO of Senco Gold & Diamonds, said the extraordinary surge in gold prices over the past year was the main driver of the strong topline growth. Gold prices rose about 65 % in the last 9‑12 months, with a 20‑23 % jump in Q3 (Sept 30 – Dec 31).

“What we have seen in Q3, the high growth numbers in topline or SSSG is driven largely by the great increase in the price of gold,” Sen explained.

However, volume growth was weaker: Q3 volumes fell 3 % YoY and nine‑month volumes declined 10 %. Senco kept customers engaged by offering jewelry that matched consumer budgets and preferences, helping sustain momentum despite higher gold prices.

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Realistic growth expectations

Sen cautioned that a 39 % SSSG is not sustainable in the long run.

“A realistic SSSG whenever we do a business model and forecasting, we keep it at anything between 12 %‑15 %,” he said.

Combined with 4‑5 % growth from new store openings, the company targets an overall annual growth rate of 18‑20 %.

The FY 26 topline guidance remains 20‑25 %. With FY 25 revenue at ₹6,400 cr, Senco aims to finish FY 26 at roughly ₹8,000 cr (≈ 25 % YoY increase).

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Strong margin performance with strategic hedging

EBITDA margins expanded to 13.2 % in Q3. About 2.5‑3 % of this boost came from hedging, which covered 55‑60 % of inventory.

“For Q3, a good 9.5 %‑10.5 % is what we see as actual EBITDA,” Sen noted, with the remainder due to favorable gold price movements.

The underlying (base‑business) EBITDA—derived from making charges, diamond sales, and other regular income—stood at around 10 %.

For the full year, Senco has raised its sustainable EBITDA margin guidance to 7.5‑7.8 % (up from 7.2‑7.5 % at the start of FY 26), reflecting better operational efficiency and product‑mix dynamics.

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Diamond jewelry and channel mix drive profitability

Diamond jewelry sales grew 34 % in Q3, a segment that carries higher margins than gold jewelry. Own‑store sales outpaced franchisee sales, giving the company a larger share of the overall business and further boosting margins.

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Strategic diversification: Melorra and lab‑grown diamonds

Senco recently acquired a stake in Melorra, a new‑age brand focused on lightweight, contemporary designs.

“We are an 88‑year‑old legacy company… When we have to look at catering to the new generation… we need to have these new‑age brands that would cater to the changing lifestyle,” Sen said.

The average transaction value at Senco is ₹90,000‑95,000 (≈ 5‑6 g of gold). The Melorra partnership is intended to attract younger consumers seeking lighter, design‑forward pieces.

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Sennes: Betting on lab‑grown diamonds

Senco has launched Sennes, a lifestyle brand centred on lab‑grown diamonds (LGD). Sen positioned the initiative as both a business opportunity and a contribution to India’s manufacturing ecosystem.

“Lab‑grown diamonds is a made‑in‑India product. It is something that will help the nation overall as we put in more funds and put in more branding and make it a desirable object for the consumer,” he noted.

Sennes will also expand into perfumes and leather bags, reinforcing Senco’s vision of being a “house of design.” The LGD strategy aligns with global trends, offering design‑forward options at more accessible prices.

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Key Highlights

• Q3 SSSG: 39 % (driven by festive demand and gold price rally)

• EBITDA margin: 13.2 % in Q3; sustainable guidance raised to 7.5‑7.8 % for FY 26

• Revenue target: ₹8,000 cr for FY 26 (up from ₹6,400 cr in FY 25)

• Strategic investments: Stake in Melorra and launch of lab‑grown diamond brand Sennes

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Navigating challenging market conditions

The performance is notable given record‑high gold prices that have suppressed volume demand across the industry. Senco’s ability to keep customers engaged through product innovation and price‑point optimisation demonstrates operational resilience.

The 55‑60 % hedging strategy proved effective, allowing the company to benefit from price appreciation while managing inventory risk—contrasting with the previous year’s Q3, which saw losses due to duty cuts and adverse price moves.

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Outlook and growth strategy

Approaching the final quarter of FY 26, Senco remains focused on an 18‑20 % sustainable annual growth trajectory, balancing same‑store sales growth with new‑store additions. The revised EBITDA margin guidance signals confidence in maintaining efficiency even if gold prices stabilise or moderate.

By strengthening core gold and diamond operations while diversifying into contemporary brands and lab‑grown diamonds, Senco aims to capture multiple consumer segments across age groups and price points. With festive demand still strong and wedding‑season tailwinds expected to continue, the company appears well‑positioned to achieve its ₹8,000 cr revenue target for the current financial year.