Mumbai, Aug 12 — Shares of Senco Gold tumbled as much as 10 per cent on Wednesday after the jewellery retailer reported its June quarter results, with investors focusing on pressure on profitability despite a sharp rise in revenue.
The company’s consolidated net profit declined marginally to Rs 101 crore in Q1 FY27 from Rs 105 crore in the corresponding quarter a year ago, according to its stock exchange filing. However, consolidated revenue from operations surged 67 per cent year-on-year to Rs 3,056 crore, compared with Rs 1,826 crore in Q1 FY26.
Consolidated EBITDA rose 16.2 per cent year-on-year to Rs 213 crore from Rs 184 crore.
However, EBITDA margin contracted to 7 per cent from 10 per cent a year earlier, as elevated and volatile gold prices weighed on profitability.
Senco Gold reported same-store sales growth of 39 per cent year-on-year during the quarter, while retail sales increased 50 per cent to Rs 2,651.5 crore. The company said the stud ratio stood at 11 per cent.
Despite the margin pressure, the company remains focused on achieving more than 20 per cent value growth in FY27 and an EBITDA margin of 7.5 per cent -7.8 per cent. It expects the second quarter to be seasonally softer.
Suvankar Sen, Managing Director and CEO of Senco Gold, said the company had started FY27 on a strong note despite average gold prices rising around 61 per cent year-on-year and remaining volatile.
He said demand remained strong across lightweight, fancy, daily-wear, gifting and design-led jewellery. Diamond jewellery value sales increased 43 per cent year-on-year, while volumes rose 18 per cent during the quarter.
The retailer added eight showrooms in Q1 FY27 and plans to open another 12-15 stores during the remainder of the financial year. The expansion will have a greater focus on franchise-led stores and Tier-2 and Tier-3 cities.