SENCONSEQ4 FY26May 27, 2026

Senco Gold Limited

11,690words
99turns
11analyst exchanges
3executives
Management on call
Suvankar Sen
Managing Director And Chief Executive Officer -
Sanjay Banka
Group Chief Financial Officer & Head IR - Senco
Vikrant Kashyap
Asian Markets Securities
Key numbers — 40 extracted
INR1,997 crore
tor conference call of the new financial year. 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. And w
INR274 crore
ear. 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. And we are very happy to let all of you know
INR157 crore
t 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. And we are very happy to let all of you know that FY25-26 has been a record-bre
INR8,430 crore
g year for Senco Gold and Diamonds from a revenue perspective, where we have recorded a sale of INR8,430 crores, which is almost a 33% year-on-year growth, a great acceleration over last year. There are 2-3 f
33%
s from a revenue perspective, where we have recorded a sale of INR8,430 crores, which is almost a 33% year-on-year growth, a great acceleration over last year. There are 2-3 factors that have led to
60%
at performance in terms of growth in revenue. One is that the gold prices have moved up by almost 60% from the beginning of the year. Despite the increase in gold price, the faith and trust that the
INR 1.51
ncertain time overall. And if you look at it from an INR point of view, the prices averaged about INR 1.51,000. So, it's been itself a quarter with extreme price volatility. But in that, we have a balanci
40%
e on margin calls. We've kept a steady mind and a steady head and kept our hedging ratio at about 40% to 50% to balance between all kinds of risk. Now we have seen that even though the gold prices ha
50%
rgin calls. We've kept a steady mind and a steady head and kept our hedging ratio at about 40% to 50% to balance between all kinds of risk. Now we have seen that even though the gold prices have been
1.5 lakh
ve seen that this lightweight design portfolio that we are building up, creating almost more than 1.5 lakh designs for the year, has been one of the factors that has helped our customers, who are our old
rs,
t more than 1.5 lakh designs for the year, has been one of the factors that has helped our customers, who are our old customers, loyal customers keep coming back to the stores. Usually, in this partic
20%
il as well. We are also extremely happy to discuss with the Board and propose a final dividend of 20% in addition to the earlier interim dividend of 15% that we had announced. Very importantly, cur
Guidance — 20 items
Vikrant Kashyap
opening
“On behalf of Asian Market Securities, I welcome you all to the Q4 FY26 Earnings Conference Call of Senco Gold Limited.”
Suvankar Sen
opening
“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
opening
“And we are very happy to let all of you know that FY25-26 has been a record-breaking year for Senco Gold and Diamonds from a revenue perspective, where 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
opening
“That will be the focus area, one of our core strengths, East India and Bengal.”
Suvankar Sen
opening
“And along with that, our pan-India expansion with a focus on North India and Central India, that will be the core focus.”
Suvankar Sen
opening
“So, with these 3-pronged planning, we will be able to continue to expand for the future.”
Suvankar Sen
opening
“In the last year itself, 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
opening
“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
opening
“In this high gold price scenario, getting the exact weights, exact designs, and exact products that the consumers will be buying is the key to success, and that will give us the best return on capital, profitability and growth.”
Sanjay Banka
opening
“In fact, gross margin and EBITDA were higher than our earlier guidance of 7.5% to 7.8% for the quarter as well as for the whole year, as we have explained earlier that this is due to the price rise in gold and silver and a part of it is due to the improvement in the product mix, premiumization, our movement to North outside Bengal, where our ASP ratings are very high.”
Risks & concerns — 15 flagged
We have been continuously focusing on driving efficiencies, optimising stocks and ensuring that within the resources that we have in this uncertain overall price scenario, we should keep the products that the customer can buy within their budget, and that has led to this amazing performance by the team.
— Suvankar Sen
From a macro standpoint, if you've seen that, especially in Q4, the gold price and the silver price have been extremely volatile.
— Suvankar Sen
So, it's been an uncertain time overall.
— Suvankar Sen
We've kept a steady mind and a steady head and kept our hedging ratio at about 40% to 50% to balance between all kinds of risk.
— Suvankar Sen
Now we have seen that even though the gold prices have been volatile.
— Suvankar Sen
In May, after the announcement, there has been a little bit of a slowdown.
— Suvankar Sen
So that could be another reason for the current slowdown.
— Suvankar Sen
As far as the impact of customs duty is concerned, the company has recognised an inventory gain arising from the customs duty revision.
— Suvankar Sen
Can you quantify in terms of what the trends are you are looking at in the sense of May, especially post the announcement, are we seeing a decline in revenue?
— Viraj
So, this is an impact of that, but you can broadly take 2.5% to 3% for the whole year.
— Sanjay Banka
And lastly was about the GML portion, why we see a decline this year?
— Pallavi Deshpande
So, if the hedging increases, it is a good risk mitigation technique.
— Sanjay Banka
But as we've always said, the intent of the company is focused on sustainable margin, risk protection, while managing the cash flow mismatch.
— Sanjay Banka
Sir, just want to understand as a layman, when the duty was reduced from 14%, 15% to 6%, we have an impact of INR57-odd crores in our balance sheet or our P&L.
— Raj Sarraf
And then we have a negative duty impact of INR57 crores, I think, in FY '25.
— Raj Sarraf
Q&A — 11 exchanges
Q
Congrats on a great set of numbers. So, I'd just like to get some light on what your guided mix is in the future, towards the old jewellery that's currently going on. It's been phenomenal that you've been able to drive around 50% of the Q4 revenue from the old gold exchange program. If I could just get a light on how much mix would potentially come up in the future, and possibly if there could be a tentative margin for that segment, that would be really helpful.
Suvankar Sen
So, thank you very much for the question. I think that old gold exchange is a minimum 50% of the overall business to move ahead from that, what we are seeing should be something that should be a benchmark, and we should work towards getting it. There are possibilities of increasing it further, maybe from 50% to 55%. But I would say that 50% to 55% is the range we will closely monitor. We are all trying to create our campaigns, all our schemes, offers, and reach out to our customers with that in mind. And as far as the impact on margin is concerned, I do not see that there will be such a direct
Q
Sir, my first question is regarding the current inventory. With the customs duty hike that we have seen, what impact will it have on the inventory gain? Because I'm assuming there will be further inventory gains, we'll have this quarter because the pricing of the same gold would have gone up. Is that a correct understanding? And what will be the quantum of that for us?
Suvankar Sen
Yes. As far as the impact of customs duty is concerned, the company has recognised an inventory gain arising from the customs duty revision. But we will keep getting the gain as and when that inventory is sold. So, you will see the gains happening, maybe not in the full first quarter itself, you might see the gains happening in maybe 2 quarters. But because of the action taken by the government, there was a one-time loss incurred when the customs duty was reduced in the past. So here again, there should be those kinds of gains sitting on the inventory. And with the sales of inventory, we will
Q
Congrats on a good set of numbers. Sir, growing within West Bengal in Tier 3, Tier 4 towns, as you mentioned, versus growing beyond West Bengal, how do you see opportunities? What are the priorities? So, do you see deep within West Bengal, given the kind of political environment it has been? Do you see that as an opportunity, say, on a 12 to 18-month basis? Or do you see diversifying business beyond West Bengal as more important in terms of building a very strong and stable franchise, which you said North and Central?
Suvankar Sen
No. So, I think we need to understand where our strength lies, and we need to understand where the opportunity for future growth lies. So, for being in Bengal and the Eastern part of India for more than 80, 85 years, there is a strong loyalty, and there is a strong emotional connection with the consumers here. And as a brand emerging out of this part of the country, we should continue to work towards how we can keep on penetrating into the smaller towns. And I must tell you that, considering Senco Gold Limited Q4 FY26 Earnings Call, Dated- May 27, 2026 the changing scenario, and I would say, t
Q
Can you give a sense of how Sennes is doing? I mean, with artificial diamond, that's a different sector altogether. So, can you give a sense as to what your initial aim was for Sennes? And how is it progressing on the goal you must have set for having a completely new brand and new setup?
Suvankar Sen
Right. Thank you very much! Sennes is a brand that is created keeping the lifestyle changes of the consumer in mind. And it was also one of our strategy that how to connect with the young consumer. So, while we are sitting on our strong, loyal customer base, our constant endeavour is to understand how we can keep on innovating ourselves and create new lines, new products to connect with the new generation consumer with the changing lifestyle. So, it is something that, along with Senco or compared to Senco, the volumes and the value are much lower. It is still in a state of getting invested, an
Q
I just wanted to understand, in the 9 months we had said about the hedging gains contributing to 2.5% of the margin, giving a boost. How much would it be for the 12 months? And the second question would be GML, which is also reduced. Any particular reason for that?
Sanjay Banka
Hi, Pallavi. Good morning, and thanks for asking this question. If you look at the number and the guidance that we are giving, it is partly self-explanatory. So, if you look at the gross EBITDA margin of 13.7% for the quarter and 11.5% for the whole year. And when I'm saying that my margin guidance is 7.5% to 7.8%, at least in the range of 2.5% to 3% is due to the price rise again. And while it cannot be exactly extrapolated because it is simple to explain, but this is broadly in this range, there is a weighted average cost impact, right? Then there is silver, which has also increased. Premium
Q
So, you said that around 50% of the sales in Q4 came from the old gold exchange. So, I just wanted to understand how your order relationship with the manufacturers has been changing. So, do you give more of an advance gold in respect to the traditional way of placing orders where they themselves buy the inventory, but has your portion of advanced coal to them been increasing?
Suvankar Sen
Right. No. So with the manufacturers, there are 2 parts, almost 70% to 75% of our work is done through job workers or our factories and the manufacturing production is mostly finished goods purchased. Now what we are also seeing is that diamond jewellery, where we used to do a lot of finished good purchases, we are utilising these kinds of goods advances. And this has started in the last, I would say, 1 or 2 months, where we are giving them some of the gold in advance for their manufacturing process. Senco Gold Limited Q4 FY26 Earnings Call, Dated- May 27, 2026 So, it's more gradual. It's not
Q
Can you tell me what kind of gold volume is kept today?
Sanjay Banka
I could not get you. Kindly repeat. What gold volume do you currently keep in your gold inventory? See, I think we should refer to the published number. We are saying by inventory days are 188 days blended. So, the gold volume approximately sold is around 6 tons. So, you can extrapolate from that how much inventory is, yes. 6 tons is the total gold sales by us. You can extrapolate the number accordingly. Okay. Understand. And as you mentioned, we procured the gold due to political uncertainty in West Bengal. What was the procurement cost at that time? No, sorry. What we said is that we built u
Q
So just wanted to understand that inventory must be repriced as the duty hike to 15% now. So, how much effect are we going to have this year, apart from the guided EBITDA or any ballpark number, if you can give?
Sanjay Banka
If you can just rephrase the question, then I will attempt to answer you. Sir, the inventory must be repriced at the duty hike from 6% to 15%. So, how much effect are we going to have this year, apart from the guided EBITDA or PAT or any ballpark numbers you can give, sir? Sir, I will say inventory is not repriced. See, the inventory is valued at cost or net realisable value, which is lower. So, inventory is always valued at the cost. Cost means weighted average cost. Now, the weighted average cost is usually lower than the market cost. And in the weighted average cost, hedging losses, the rea
Q
Sir, my concern is related to the inventory buildup. If I look at your inventory turns, it has gone down from 2.6x, I think, or 2.7x to now less than 2x. So, what would be the steady-state target for inventory turns? Because if the inventory keeps inching up and if there are no inventory gains, then our ROCE will keep on declining. And there is also market scepticism because of the past accidents in the Senco Gold Limited Q4 FY26 Earnings Call, Dated- May 27, 2026 jewellery sector. I'm not implying that this is the case with us, but this is something that makes the investor worried. Thank you.
Suvankar Sen
So, see, if you look at the inventory days in the previous year, it was around 166 days. And this year, since we had to build up the inventory for the festive season of April, it's looking a little on the higher side, plus the gold prices that has moved up so much has made us look at what is the exact kind of inventory that is selling and gradually changing from a heavier weight to lighter weight to make sure that the consumers can continue to buy. So, these have been the cases. So, if you look at a benchmark inventory days, I would think that anything around 150 to 160 days is a great invento
Q
Yes. No, thank you very much. It's been wonderful talking to all of you and answering all your queries. We want to, on behalf of the team, Senco would like to assure you that we shall keep working towards growing our business, working on ensuring that we work towards increasing the profitability and getting the best return on capital that we would be employing in our business. We know that the world is in a little bit of an uncertain situation. There are a lot of events happening. But again, as long as we can keep on continuing and focusing on the fundamental aspects of the business in terms o
Sanjay Banka
Thank you, everybody. Thank you very much.
Q
Gold Price Volatility: International gold prices swung from an all-time high of $5,600 to $4,400–$4,500 within days during Q4. INR average price ~₹1,51,000/10g. The company maintained a hedging ratio of 40–50% to balance risk and liquidity. Customs Duty Hike (6% → 15%): Gain estimated at ~9% of gold inventory value (~₹4,500 Cr), expected to flow through Q1–Q2 FY27. However, management guided that the reverse scenario (duty cut) could be a risk and flagged the difficulty of fully hedging this via MCX (MCX margins now ~25–26%). Post-PM Appeal Slowdown: Post the PM's appeal regarding old gold rec
Management
Speaking time
Sanjay Banka
24
Suvankar Sen
21
Moderator
12
Raj Sarraf
7
Arvind Dureja
7
Viraj
5
Kaushik Poddar
5
Pallavi Deshpande
4
Subhanu
4
Amish Kanani
3
Opening remarks
Active Participants
Gold Limited • Mr. Vikrant Kashyap – Asian Markets Securities • • Total of 124 participants, including the Speakers. Siddarth S from NAFA • Viraj from Enigma • Amish Kanani from Knowise Investment Manager • Kaushik Poddar from KB Capital Markets • Pallavi Deshpande from Sameeksha • Anushka Vora from Vimana Capital • Subhanu Bangal from 3 Head Capital • Raj Sarraf from Finvestors • Arvind Dureja, an Individual Investor
Vikrant Kashyap
Thank you. Good morning, everyone. On behalf of Asian Market Securities, I welcome you all to the Q4 FY26 Earnings Conference Call of Senco Gold Limited. Today, on the call, we have Mr. Suvankar Sen, MD; and Mr. Sanjay Banka, Group CFO. I now hand over the call to Mr. Suvankar Sen for his opening remarks. Thank you, and over to you, sir.
Suvankar Sen
Thank you very much. Good morning to all. It is a pleasure to be here, and this marks our first investor conference call of the new financial year. 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. And we are very happy to let all of you know that FY25-26 has been a record-breaking year for Senco Gold and Diamonds from a revenue perspective, where we have recorded a sale of INR8,430 crores, which is almost a 33% year-on-year growth, a great acceleration over last year. There are 2-3 factors that have led to the great performance in terms of growth in revenue. One is that the gold prices have moved up by almost 60% from the beginning of the year. Despite the increase in gold price, the faith and trust that the customers have placed in us, the new store openings during the year, and the continuous focus that we have put on innovating with new designs and creating jewellery, which wil
Sanjay Banka
Thank you very much, sir. As you briefed, I would like to quickly recapitulate that 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. In fact, gross margin and EBITDA were higher than our earlier guidance of 7.5% to 7.8% for the quarter as well as for the whole year, as we have explained earlier that this is due to the price rise in gold and silver and a part of it is due to the improvement in the product mix, premiumization, our movement to North outside Bengal, where our ASP ratings are very high. So basically, for FY26, we achieved the highest ever top line with 33% Y-o-Y growth and 24% CAGR over 5yrs and as we've already said earlier, that coin and bullion sales were marginal at 6% only. So, balance is entirely jewellery. Similarly, the stud ratio was in the range of 11%, while we have achieved the value and volume growth, which are explained in the presentation. But since the entire site itself has moved, that's why the stud
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