Senco Gold Ltd

Financial Performance

• Q1 FY27 revenue crossed INR 3,000 crores in the quarter.
• Consolidated revenue rose 67% YoY; retail up 50%; SSSG ~39%.
• EBITDA INR 213 crores; margin 7.0%.
• PAT INR 101 crores; PAT margin 3.3%.
• ASP +40% YoY; ATV +38% YoY; gold price +61% YoY, +1% QoQ.

Operations & Product Trends

• April sales INR 1,500-1,600 crores; May–June ~INR 500-600 crores monthly.
• Old gold exchange accounted for 43% of sales quantity.
• Diamond jewellery: +43% in value; +18% in volume.
• Launched 9-carat/14-carat, lighter-weight lines; introduced Aham men’s collection.
• Footfalls challenged; promotions helped convert old gold to diamond jewellery.

Store Network & Capex

• Net adds: 3 COCO stores, 4 franchise, 1 Sennes showroom.
• Plan 12–15 more stores this year; majority franchise; East & North focus.

Margins & Hedging

• Sustainable EBITDA margin guided 7.5%-7.8% for FY27.
• Q1 margin 7%; prior-year Q1 margin 10.1% due to inventory gains.
• Hedging ~50%; potential move to 75–80%; not 100%.
• Customs-duty gain INR 12–15 crores in Q1; expected to accrue 2–3 quarters.

Inventory & Cash Flow

• Inventory days around 152.
• Cash flow from operations to be disclosed with H1 results; may appear negative due to GML accounting.

Outlook & Guidance

• July–August growth ~25% YoY; 8–10% above May–June run-rate.
• FY27 revenue above INR 10,000 crores; FY26 baseline INR 8,430 crores.
• Long-term: INR 20,000 crores+ revenue; 300+ stores in 4–5 years.
• EBITDA margin target 8%; PAT margin 4.5–5%; ROE/ROCE ~20%.

Q&A Highlights

• Guidance for FY27: 20%+ growth; upside to 25%; revisit after Q3.
• Hedging around 50%; may move toward 75–80%; 100% not planned.
• Customs-duty gain INR 12–15 crores in Q1; to accrue 2–3 quarters.
• Inventory days 152; GML constraints earlier; cash flow to be shown in H1.

Dividend TDS details

• Final dividend of Re 1 per share (20% of Rs 5 face value) for FY 2025-26.
• Record date fixed at 24 August 2026.
• TDS on dividend will be deducted at source per ITA 2025.
• Resident individuals: NIL TDS up to Rs 10,000; otherwise 10% with PAN, 20% without PAN.
• Non-residents: TDS 20% plus surcharge/cess or DTAA rate if beneficial.
• Document submission deadline: 30 August 2026.
• Non-residents may claim DTAA rates with TRC, Form 41, and related documents; company discretion.
• DTAA benefits not guaranteed; rates depend on document completeness and company review.
• Dividend payments to be made electronically; update bank details with DP or RTA; keep KYC current.
• Tax deduction is final; no company liability for excess tax; refunds via tax return.

Meeting Details

• Date and time: 12 August 2026 at 11:00 IST.
• Type/Mode: Analysts/Investors earnings conference call; virtual audio format.
• Purpose: Discuss unaudited standalone and consolidated results for quarter ended 30 June 2026.
• Board action: Results approved by the Board on 11 August 2026.
• Recording: Audio recording of the call will be available.

Financial highlights

• Consolidated revenue Rs 3,056 Cr, up 67% YoY.
• EBITDA Rs 213 Cr, margin 7.0%.
• PAT Rs 101 Cr, margin 3.3%.
• Standalone sales Rs 3,006.7 Cr; SSSG 39%.

Operations & expansion

• Showrooms net added 8 in Q1; total 209 showroom network.
• FY27 showroom openings guided at 12–15.
• Old-gold exchange supports 43% of sales quantity.
• Diamond jewelry up 43% YoY; Everlite launched.

Outlook & guidance

• FY27 target 20%+ value growth; EBITDA 7.5–7.8%.
• PAT margin guided to 4.0–4.5%.
• Q2 expected softer; inventory optimization and new design launches planned.
• Focused on pan-India expansion, especially East and North India.

Financial highlights

• Consolidated revenue Rs 3,056 Cr, up 67% YoY.
• EBITDA Rs 213.1 Cr; margin 7.0%.
• PAT Rs 101.1 Cr; margin 3.3%.
• Standalone revenue Rs 3,006.7 Cr; growth 65% YoY; SSSG 39%.

Operational momentum

• Diamond jewelry sales up 43% YoY; volumes +18%.
• Old-gold exchange contributed 43% of total sales quantity.
• Net showroom additions 8; total showrooms 209 as of 30 Jun 2026.
• Gold price: average Rs 15,280/gram; YoY +61%.

Guidance & outlook

• FY27 guidance: 20%+ value growth; EBITDA margin 7.5%-7.8%; PAT margin 4%-4.5%.
• Open 12-15 showrooms in FY27; focus on East and North India.

Business Overview

• Core business: leading Indian jewellery retailer with omnichannel presence.
• Portfolio includes Senco Gold & Diamonds, Everlite, Gossip, Aham, Sennes.
• Franchise-led FOFO/FOCO models drive pan-India expansion.
• East and Tier II/III markets prioritized for growth.

Key Operational Highlights

• Q1 net showroom openings: 8; total showrooms 209 as of 30-Jun-2026.
• Standalone revenue grew 65% YoY to Rs 3,006.7 Cr; SSSG 39%.
• Consolidated revenue rose 67% YoY; EBITDA margin 7.0%; PAT Rs 1,011 Cr.
• Old gold exchange campaign supported 43% of total sales quantity.
• Average gold price up ~61% YoY; margin pressured, offset by mix.
• 8-15 showrooms added; 12-15 planned in FY27.
• Diamond jewellery growth 43% YoY; sub-Rs 50k range supported.
• Gold price volatility and custom duty impact noted; Q2 seasonality expected.

Financial Performance

• Consolidated revenue Rs 30,560.3 Mn; YoY 67%; QoQ 53%.
• Gross margin 16%; EBITDA margin 7.0%.
• Adjusted EBITDA Rs 2,131.4 Mn; margin 7.0%.
• EBIT Rs 2,068.8 Cr; margin 6.8%.
• PBT Rs 1,389.4 Cr; tax Rs 378.0 Cr; PAT Rs 1,011.4 Cr.
• Inventory days improved to 152 days.

Capital Structure & Liquidity

• GML borrowings Rs 7,762.1 Mn; working capital borrowings Rs 15,690.5 Mn.
• Total equity Rs 25,136.8 Mn; total assets Rs 70,615.1 Mn.
• Promoter holding 64.50%; top shareholders include Bandhan Small Cap Fund, ICICI Prudential Life.

Strategic Priorities & Outlook

• FY27 target: 20%+ value growth; EBITDA margin 7.5-7.8%; PAT margin 4.0-4.5%.
• Franchise-led expansion; FOFO/FOCO; 42% showrooms FOFO.
• East-focused growth; expand into non-East and Tier III/IV.
• Digital platforms: MyDigiGold 1.53 lakh registrations; MyDigiSilver 75,830.
• Sennes LGD: 13 EBOs, 3 MBOs; 61 SIS outlets.
• Hub-and-spoke model; asset-light expansion; Bharat-scale.

Risks & Mitigation

• Gold price volatility; hedged via GML and inventory hedging.
• Custom duty hikes; Q3 benefit net of price fall hedging.
• Labour code impact recognized in Q1.

Governance & Leadership

• MD & CEO: Suvankar Sen; Group CFO & Head IR: Sanjay Banka.
• Promoter stake 64.50%; top holders include Bandhan Small Cap Fund and ICICI Prudential Life.

Financial results approved

• Unaudited standalone Q1 FY27 results for quarter ended 30 June 2026 approved; revenue ₹30,066.57m.
• Profit after tax ₹1,142.49m; basic EPS ₹6.97.
• Jewellery identified as a single operating segment per Ind AS 108.
• Auditors completed limited review; no material misstatement identified.
• ESOP allotment: 31,977 equity shares of ₹5 issued.
• Board approved standalone results; consolidated results not disclosed in this release.
• Board meeting held on 11 August 2026, 16:40–18:00.

Notes and governance disclosures

• Notes indicate jewellery is single operating segment per Ind AS 108.
• The results presented are standalone; consolidated results not disclosed here.