Senco Gold shares fall over 8% after Q1 results. What squeezed profitability?

Senco Gold's shares plummeted 8.16%, reaching Rs 368.50 on the NSE, following the company's first quarter results released on June 30, 2026. Despite a 67% surge in overall revenue, profitability took a hit. The company reported a 3% year-on-year decline in consolidated profit after tax (PAT), which fell from Rs 105 crore to Rs 101 crore.

Moreover, margins declined significantly, with the PAT margin dropping 240 basis points to 3.3%, while EBITDA margin contracted 310 basis points to 7%. These margin pressures were attributed to promotional discounts, lower gold prices, and changes in customs duty.

Nevertheless, Senco Gold demonstrated robust operational growth, with retail sales increasing 50% year-on-year to Rs 2,651.5 crore. This growth was driven by strong same-store sales, boosted by festive occasions such as Poila Boishakh, Akshaya Tritiya, Baisakhi, and Bihu. The strong performance of key jewellery categories, particularly diamond jewellery, which expanded 43% year-on-year in value and 18% in volume, also contributed to the company's resilience amid high gold prices.

Senco Gold's expansion efforts, including the addition of eight new showrooms, helped maintain sales momentum. However, losses at its subsidiary, Senco Gold Fine Jewellery LLC, and its Dubai-based subsidiary, SGJTL, weighed on the overall group profitability, raising concerns amid geopolitical uncertainties and the ongoing war. Despite these challenges, Senco Gold's Managing Director, Suvankar Sen, expressed confidence in the company's growth trajectory, highlighting the company's focus on new design launches, store productivity, and margin protection.