Senco Gold Ltd. shares are in focus on Wednesday, April 9, after the company reported its business update for the fourth quarter and the entire financial year 2025 on Tuesday, April 8.

Senco Gold said it witnessed a robust wedding season demand in the March quarter, with a 23% retail growth and 18.4% same store sales growth (SSSG) in comparison to the same quarter last year, despite the rising gold prices. It also recorded its highest-ever fourth quarter revenue of over ₹1,300 crore.

The company said gold prices increased by 11% sequentially and 33% from the previous year. The prices also increased by 19% in the last six months.

For the full financial year, Senco Gold witnessed a revenue growth of 19.1%, while diamond jewellery growth stood at 14.1% year-on-year.

Senco Gold said the growth in tier-3 and tier-4 towns outpaced growth in metros and tier-2 cities. Its coin / bullion sales continue to be a small fraction of the total gold sold, at less than 4%.

In the fourth quarter, Senco Gold launched four new showrooms under the franchisee and COCO model in West Bengal and Uttar Pradesh. For the full year, the company launched 15 showrooms, including six franchisees. Its entire showroom portfolio stood at 175, including 72 franchisee showrooms and one showroom in Dubai.

The studded ratio for the full year expanded marginally to 10.9% against 10.5% in the first nine months of the fiscal, it said.

Earlier this month, gold prices surged to a new record high of $3,167.57 per ounce.

The sharp volatility in gold prices in the fourth quarter led to an increase in old gold jewellery exchanges, with old gold contributing 40% to overall sales and 61% coming from non-Senco customers in financial year 2025, the company said. Earlier this month, gold prices surged to a new record high of $3,167.57 per ounce.

Senco Gold's outlook for the fourth quarter EBITDA margin is "very positive". It said the customs duty reduction impact on the second and third quarters and other business factors had impacted the margin by 80-90 bps leading to 6.2% adjusted EBITDA margin. However, the improved performance in the fourth quarter led by diamond jewellery sales is likely to result in improved business margin.

For the first quarter of financial year 2026, Senco Gold said it is confident of a strong start fuelled by robust demand during Poila Baisakh, Akshaya Tritiya and the wedding season momentum. The price reduction in the previous week is also likely to propel demand in the first quarter, it said.

Senco Gold plans to open five to seven new stores in the first quarter.

Courtesy: CNBC TV