Senco Gold Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Senco Gold Ltd filed with BSE on 02 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Senco Gold reported Q4 FY26 revenue of INR1,997 crores with EBITDA of INR274 crores and PAT of INR157 crores, while FY26 full-year revenue reached INR8,430 crores, a 33% year-on-year increase. Management attributed the growth to rising gold prices, new store openings, an expanding old gold exchange program, and demand for lightweight and lower-caratage jewellery. The board proposed a final dividend of 20% in addition to an earlier interim dividend of 15%, and management described a slowdown in the last 7-10 days of May following a government announcement on gold imports.
Numbers mentioned
Revenue: INR1,997 crores (Q4 FY26)
p. 3
“We're very pleased to report a strong Q4, crossing INR1,997 crores in revenue with EBITDA of INR274 crores and with a PAT of INR157 crores for the Q4 FY26.”
Suvankar Sen, page 3 of the filed PDF · View the filing
Revenue: INR8,430 crores (FY26)
p. 3
“we have recorded a sale of INR8,430 crores, which is almost a 33% year-on-year growth, a great acceleration over last year.”
Suvankar Sen, page 3 of the filed PDF · View the filing
Revenue growth: 45% Y-o-Y (Q4 FY26)
p. 6
“in Q4, we achieved revenue growth of 45% Y-o-Y, EBITDA growth of 116% Y-o-Y and PAT growth of 151% Y-o-Y.”
Sanjay Banka, page 6 of the filed PDF · View the filing
Total inventory: INR5,296 crores (FY26)
p. 6
“our total inventory increased 61% Y-o-Y to INR5,296 crores.”
Sanjay Banka, page 6 of the filed PDF · View the filing
EBITDA margin: 13.7% for the quarter and 11.5% for the whole year (Q4 FY26 / FY26)
p. 6
“While we have reported EBITDA at 13.7% for the quarter and 11.5% for the whole year, we are still giving the guidance of 7.5% to 7.8% for the future.”
Sanjay Banka, page 6 of the filed PDF · View the filing
Inventory days: 186 days (FY26)
p. 6
“Inventory days have increased to 186 days.”
Sanjay Banka, page 6 of the filed PDF · View the filing
ROE and ROCE: 25% and 22% (FY26)
p. 6
“this stellar performance for the year has led to substantial improvement in ROE and ROCE to 25% and 22%”
Sanjay Banka, page 6 of the filed PDF · View the filing
Old gold exchange proportion: ~44% of revenue for FY26 and ~50% for Q4 FY26 (FY26 / Q4 FY26)
p. 5
“we have seen that old gold exchange as a proportion of our overall transactions has gone up to ~44% of total revenue for FY 26 and ~50% for Q4 FY26.”
Suvankar Sen, page 5 of the filed PDF · View the filing
Diamond volume growth: 9% (FY26)
p. 5
“we have been able to have our diamond volume growth also increase by 9% by ensuring that the consumers can also exchange their old gold to buy diamonds.”
Suvankar Sen, page 5 of the filed PDF · View the filing
Diamond jewellery sales value growth: 32% (FY26)
p. 5
“We've seen a 32% value growth in the diamond jewellery sales also.”
Suvankar Sen, page 5 of the filed PDF · View the filing
Average ticket value growth: ~30% YoY (FY26)
p. 12
“our ATV, if you look at it, our average ticket size has grown by almost 30%YoY.”
Suvankar Sen, page 12 of the filed PDF · View the filing
April growth: close to 40% to 50% (April 2026)
p. 5
“I must tell all of you that in the month of April, we saw very strong and robust growth compared to last year's April, of close to 40% to 50%.”
Suvankar Sen, page 5 of the filed PDF · View the filing
Akshaya Tritiya growth: 67% growth (April 2026)
p. 6
“In April, during the Akshaya Tritiya and Poila Boishakh, we grew by 67%, and we achieved very high sales.”
Sanjay Banka, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 18% to 20% · FY27
stated firmly by Suvankar Sen
p. 5
“But our focus of 18% to 20% growth for the whole year, and working on an EBITDA of about 7.5% on average and a PAT between 4% to 4.5%, that will be the kind of guidance with which we will continue to look at the future.”
Suvankar Sen, page 5 of the filed PDF · View the filing
EBITDA margin — 7.5% to 7.8% · FY27
stated firmly by Sanjay Banka
p. 6
“we are still giving the guidance of 7.5% to 7.8% for the future.”
Sanjay Banka, page 6 of the filed PDF · View the filing
PAT margin — 4% to 4.5% · FY27
stated firmly by Sanjay Banka
p. 7
“we remain very optimistic and confident about our target of a minimum 20% growth, 7.5% EBITDA and 4.5% PAT.”
Sanjay Banka, page 7 of the filed PDF · View the filing
Store openings — 18 to 20 stores · FY27
stated firmly by Suvankar Sen
p. 5
“18 to 20 stores is what we would like to open.”
Suvankar Sen, page 5 of the filed PDF · View the filing
Inventory days — 165 to 180 days
stated firmly by Sanjay Banka
p. 21
“we will explore all possible options to ensure that inventory days are in the range of 165 days to 180 days.”
Sanjay Banka, page 21 of the filed PDF · View the filing
Marketing expense — 1.8% to 2.2% of revenue
stated firmly by Suvankar Sen
p. 15
“I think that the marketing expense is 1.8% to 2.2%, we will continue at that kind of thing that we will invest for the future.”
Suvankar Sen, page 15 of the filed PDF · View the filing
ROE and ROCE — north of 16%, 17%, reaching 20% · 2-3 years
stated as an aspiration by Sanjay Banka
p. 21
“we have earlier guided it should be -- we will try to reach to 20% over 2- 3 years.”
Sanjay Banka, page 21 of the filed PDF · View the filing
Old gold exchange mix — 50% to 55%
stated as an aspiration by Suvankar Sen
p. 7
“There are possibilities of increasing it further, maybe from 50% to 55%.”
Suvankar Sen, page 7 of the filed PDF · View the filing
GML portion — 50% plus
stated as an aspiration by Sanjay Banka
p. 15
“we intend to increase the GML portion to 50% plus.”
Sanjay Banka, page 15 of the filed PDF · View the filing
Customs duty gain flow-through — Q1 and Q2 FY27
stated conditionally by Sanjay Banka
p. 18
“So, the gain will get reflected in quarter 1 and quarter 2, and we'll disclose what gain has come due to the customs duty impact.”
Sanjay Banka, page 18 of the filed PDF · View the filing
Free cash flow — next 1 or 2 years
stated conditionally by Sanjay Banka
p. 21
“we are not able to give guidance on this that will become positive in the next 1 or 2 years.”
Sanjay Banka, page 21 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said old gold exchange could increase from 50% toward 55%, with minimal impact on margins since melting losses are no longer charged.
Answered by Suvankar Sen
Asked by Siddarth: What is the guided mix and margin impact of the old gold exchange program going forward?
p. 7
“I do not see that there will be such a direct impact on margins for now.”
Suvankar Sen, page 7 of the filed PDF · View the filing
Management said they take a conservative approach to guidance, noting past years where actual growth exceeded initial guidance.
Answered by Suvankar Sen
Asked by Viraj: Why is FY27 revenue growth guidance only 20-25% given the much higher growth already seen in April?
p. 8
“we've always taken a conservative approach. Even in the last financial year, we've been guiding the investors on around 20% to 25% growth. And by the end of the year, we have achieved a growth of 35%.”
Suvankar Sen, page 8 of the filed PDF · View the filing
Management said footfalls declined in the last 7-10 days due to the announcement and the inauspicious Adhik Maas period, but expects recovery with the wedding season.
Answered by Suvankar Sen
Asked by Viraj: What has been the trend in demand since the Prime Minister's announcement?
p. 9
“in the last 7 to 10 days, the footfalls at the stores have come down.”
Suvankar Sen, page 9 of the filed PDF · View the filing
Management said intensifying competition from organised and unorganised players limits margin expansion to about 10-15 bps.
Answered by Sanjay Banka
Asked by Viraj: Why isn't the company seeing operating leverage on margins despite higher same-store growth?
p. 10
“we are not looking at any substantial, I would say, substantial improvement in margin year-on-year despite operating leverage at full play.”
Sanjay Banka, page 10 of the filed PDF · View the filing
Management said Sennes has 12 stores and became EBITDA positive at the business level in its second year.
Answered by Sanjay Banka
Asked by Kaushik Poddar: How is the Sennes lab-grown diamond brand performing?
p. 13
“within the second year itself, Sennes' business as a whole is EBITDA positive.”
Sanjay Banka, page 13 of the filed PDF · View the filing
Management attributed the gap primarily to Titan's higher share of diamond-studded jewellery.
Answered by Suvankar Sen
Asked by Kaushik Poddar: Why does Senco operate at lower margins (7.5-7.8%) compared to industry leader Titan (10-12%)?
p. 14
“one of the biggest reasons for it is that their share of diamond-studded jewellery.”
Suvankar Sen, page 14 of the filed PDF · View the filing
Management said price rise contributed about 2.5-3% to margin and that guidance remains conservative due to dynamic market and competitive conditions.
Answered by Sanjay Banka
Asked by Pallavi Deshpande: How much did hedging gains contribute to the margin over 12 months, and why is guidance conservative relative to reported margins?
p. 14
“at least in the range of 2.5% to 3% is due to the price rise again.”
Sanjay Banka, page 14 of the filed PDF · View the filing
Management estimated a rough gain of about 9% on gold inventory value of INR4,500 crores, to be realised over Q1 and Q2 FY27.
Answered by Sanjay Banka
Asked by Raj Sarraf: What is the expected inventory gain from the customs duty hike from 6% to 15%?
p. 17
“this 9% gain, very simple, 6% to 15% is 9%. 9% on the gold value of INR4,500 crores, you can assume INR450 crores or INR400 crores”
Sanjay Banka, page 17 of the filed PDF · View the filing
Management targets bringing inventory days down to 150-180 days from the current elevated level.
Answered by Suvankar Sen
Asked by Arvind Dureja: What is the steady-state target for inventory turns/days given the recent buildup?
p. 20
“anything around 150 to 160 days is a great inventory days and inventory turns that will look good and is good for the business.”
Suvankar Sen, page 20 of the filed PDF · View the filing
Management said the confidence comes from growth in diamond sales and making charges on lightweight, lower-purity jewellery.
Answered by Suvankar Sen
Asked by Arvind Dureja: What gives confidence that the 4% to 4.5% PAT margin target is sustainable without inventory gains?
p. 21
“I'm confident that with the gold prices going up, there will be an increase in sales of 9 carat 14-carat jewellery.”
Suvankar Sen, page 21 of the filed PDF · View the filing
Management said they cannot give guidance that free cash flow will turn positive in the near term.
Answered by Sanjay Banka
Asked by Arvind Dureja: Can the company guide toward positive free cash flow given inventory buildup and rising gold prices?
p. 21
“we are not able to give guidance on this that will become positive in the next 1 or 2 years.”
Sanjay Banka, page 21 of the filed PDF · View the filing
Risks flagged
Extreme volatility in gold and silver prices during the quarter
p. 3
“There was a time in January when the international prices surged to an all-time high of $5,600. And again, within a few days, it retracted back to $4,400- $4,500.”
Suvankar Sen, page 3 of the filed PDF · View the filing
Slowdown in demand following the Prime Minister's appeal on gold imports and old gold recycling
p. 9
“consumers have taken our Honourable Prime Minister's announcement seriously, and they are actually looking at a more wait-and-watch situation.”
Suvankar Sen, page 9 of the filed PDF · View the filing
Inability to fully hedge customs duty exposure via MCX due to rising margin requirements
p. 18
“I don't think that it will be possible to cover the entire hedging position through MCX because now the MCX margin has increased to almost 25%- 26%, which is becoming a challenge.”
Sanjay Banka, page 18 of the filed PDF · View the filing
Risk of a reversal in customs duty leading to inventory losses if not adequately hedged
p. 18
“if the hedging is not done. Now, hedging can only be done through the MCX.”
Sanjay Banka, page 18 of the filed PDF · View the filing
Intensifying competition from organised and unorganised players limiting margin improvement
p. 10
“if you look at the competition, both the organised and unorganised. The organised players of South and West are entering into West; we are entering into West. Then some local players don't do hedging, right?”
Sanjay Banka, page 10 of the filed PDF · View the filing
Increase in borrowing costs due to GML positions being squared off amid sharp gold price rise
p. 15
“it is one of the reasons for the increase in borrowing costs for Q4 and maybe in Q1 also.”
Sanjay Banka, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.