Senco Gold Ltd (NSE:SENCO) Q3 2026 Earnings Call Highlights: Record Revenue and Strategic …

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Mon, February 16, 2026 at 10:01 AM GMT+9 3 min read

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Release Date: February 13, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Senco Gold Ltd (NSE:SENCO) achieved a historical quarter with revenue surpassing INR 3,000 crore, an EBITDA of INR 400 crore, and a PAT of INR 264 crore.

The company experienced a 50% year-over-year revenue growth, with a significant increase in EBITDA by 406% from the previous year.

Senco Gold Ltd (NSE:SENCO) has successfully launched over 6,000 new gold designs and more than 3,000 diamond designs, catering to various consumer needs.

The company's hyperlocal strategy and use of technology for data analysis have been pivotal in understanding consumer behavior and enhancing sales.

The growth in tier two and tier three markets has been robust, with plans to expand the store network to over 200 stores by the end of the quarter.

Negative Points

The company faces challenges due to high gold prices, which have risen by 65% over the year, impacting consumer purchasing behavior.

There is a noted decrease in footfall by 10-15%, with a 10% drop in volume sales for the year, indicating potential consumer hesitation.

Working capital requirements have increased, leading to higher inventory values and borrowing needs.

The company has had to adjust its hedging strategy due to gold price volatility, maintaining a hedging ratio of 55-60% compared to previous higher levels.

Despite strong financial performance, the company remains cautious with a conservative sales growth guidance of 25% for the next quarter, reflecting market uncertainties.

Q & A Highlights

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Q: Given the current momentum, why is the 25% sales growth guidance for Q4 considered low? Are you expecting a drop in ASPs or volumes? A: (Unidentified_3, CEO) We do not foresee a material drop in ASPs. The guidance is conservative, considering factors like exam seasons and consumer behavior around Akshaya Tritiya. The 25% might increase to 30-35% as we approach the end of the quarter, but we prefer to maintain a conservative outlook.

Q: Can you explain the margin improvement from 7.1% to 7.5%? Is it due to product mix or other factors? A: (Unidentified_4, CFO) The margin improvement is due to a better product mix, including higher margins on diamond jewelry and lightweight jewelry. The rise in gold prices also increases making charges, contributing to improved margins. Additionally, higher sales volumes in Q3, while fixed costs remain stable, enhance margins.

Story continues  

Q: What is the current level of inventory hedging, and what are the plans for FY26 and FY27? A: (Unidentified_3, CEO) Our hedging percentage is currently 55-60%, down from 80% in previous years due to high gold price volatility. We focus on prudent hedging to manage inventory and liquidity efficiently. The old gold exchange has increased, reducing price risks, and we are also focusing on customer advances as a hedging tool.

Q: How do you plan to optimize inventory going into the next fiscal year? A: (Unidentified_3, CEO) We are using AI tools and data analysis to monitor product sales and non-conversion reasons. Our focus is on maintaining the right product mix and recycling slow-moving inventory. We aim to keep inventory days stable despite rising gold prices by ensuring efficient inventory management.

Q: With rising gold prices, what impact are you seeing on consumer behavior and footfalls? A: (Unidentified_3, CEO) Consumers are opting for lower-weight jewelry to fit their budgets, and old gold exchanges have increased. While footfalls have decreased by 10-15%, those who visit are purchasing more, driven by higher prices. We are addressing this by offering 9-karat and lightweight jewelry to cater to budget-conscious consumers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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