Synopsis

Senco Gold has significantly expanded its retail presence, adding eight new showrooms in the first quarter of FY27, bringing its total to 208 outlets. The company reported a robust 60% year-on-year revenue growth, driven by strong festive demand and a 38% rise in same-store sales. Despite challenges like higher gold prices and increased customs duty, Senco's diamond jewellery segment showed impressive growth, with plans to further expand through franchising.

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A customer looks at gold jewellery for purchase inside a Senco Gold & Diamonds jewellery showroom in Kolkata

Kolkata: Senco Gold Ltd expanded its retail footprint by opening eight showrooms during the April-June quarter, taking its network to 208 outlets, the company said in its business update for the Q1FY'27.

The jewellery retailer said it remains on track to add another 12-15 stores over the remaining three quarters of the current financial year.

The company opened three company-owned and company-operated (COCO) stores, four franchise outlets and one Sennes showroom during the quarter, even as it closed one outlet, resulting in a net addition of seven stores. The company indicated that future expansion will focus more heavily on the franchise model.

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Senco said its standalone revenue grew around 60 per cent year-on-year in the first quarter of FY27, while retail revenue increased 48 per cent and same-store sales growth stood at 38 per cent, supported by festive demand during Akshaya Tritiya, Poila Baisakh, Baisakhi, Bihu and the summer wedding season, the jeweller said.

The company said the quarter's performance came despite elevated gold prices and an increase in customs duty from 6 per cent to 15 per cent.

It cautioned, however, that aggressive market discounting and the customs duty impact would pressure margins this quarter.

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Diamond jewellery remained a growth driver, with value growth around 40 per cent and volume growth of 15 per cent, aided by new designs, an improved product mix and higher sales of jewellery priced below Rs 50,000 under its Everlite range.

Old gold exchange accounted for around 43 per cent of total sales during the quarter.

Looking ahead, Senco expects seasonally softer demand in the second quarter, with consumer purchases likely driven by the monsoon and advance gold bookings before the festive season. The company will continue to focus on inventory optimisation, lightweight and 9K jewellery collections, and margin protection.