Senco Gold share price hits 5% upper circuit after Q1FY26 update
The jewellery stock opened at ₹ 361.10 apiece on Monday, July 7, as compared to previous close of ₹ 349.90 apiece. Senco Gold share price has gained over 79 per cent since its listing in July 2023.
In its Q1 business update, the company announced a 24 per cent year-on-year rise in retail revenue, with overall revenue climbing 28 per cent YoY. The growth was mainly fueled by strong consumer demand during regional festivals and the company's ongoing focus on expanding its retail presence.
As part of its robust growth plan, Senco Gold opened nine new showrooms in Q1FY26, bringing its total number of jewellery outlets to 179.
During the quarter, domestic gold prices saw a notable surge, averaging between ₹ 86,900 and ₹ 1,01,000 per 10 grams. This represents a 32% year-on-year increase and a 5% rise from the previous quarter.
The sharp increase in gold prices was driven by global economic uncertainties, substantial central bank purchases, and various international market dynamics.
Looking forward, Senco Gold is on track to achieve its goal of opening 20 new showrooms by the end of FY26. To further boost the expansion of its lifestyle and fashion jewellery brands — Sennes, Gossip, and Everlite — the company is considering the franchise model. This move aims to widen Senco's market presence and attract a broader customer base across both urban and semi-urban areas.
' We continued our showroom expansion and launched 9 new showrooms (4 COCO and 5 FOFO/FOCO), and taking the jewellery store portfolio to 179. (on exclusion of 4 Sennes Showrooms). We also launched 1 Sennes showroom taking the Sennes portfolio to 7 (3 in Wholly Owned subsidiary and 4 in SGL),' the company said in an exchange filing dated July 4.
The jewellery company further said, ' Having already launched 9 showrooms, we are on course to achieve annual target of 20 showroom. We are having a good pipeline of franchisee stores under FOFO as well as FOCO model. In addition, we are also looking at Franchisee route for expansion of Sennes, Gossip and Everlite brands. Sennes being a new and modern brand will also continue its growth journey.'
The company added that Q2 usually has no festivals or wedding demand and is driven by Monsoon led demand and usually lower than Q1. With an early onset of monsoon (1st time in last 16 years) and above average rainfall prediction of 106% and stable macroeconomic environment, we are now preparing for Q2 with focus on inventory optimisation, festive collections, and accelerating diamond and lightweight jewellery lines.
' Price volatility in gold and upcoming festivals like Raksha Bandhan and Onam will shape consumer demand in Q2. We see growing consumer demand for 14K and 18K jewellery, while the industry is working towards 9K jewellery,' it said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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