Senco Gold Limited – Investor Presentation Summary

Key Operational Highlights

  • Total retail network expanded to 215 showrooms as of 30th September 2026 (123 company-owned, 92 franchisee)
  • Net addition of 14 showrooms during H1 FY27 (from 201 as of March 2026)
  • Same store sales growth (SSSG) of 30% in Q2 FY27 (Total growth 32%, SSSG 19%)
  • Average Sales Price (ASP) of ₹76,900
  • Average Transaction Value (ATV) of ₹1,15,500
  • Stud ratio improved to 11.6% from 11.0% in FY26
  • Inventory days at 191
  • 165+ master karigars supporting manufacturing capabilities
  • 3.24 Mn+ loyal customer base

Key drivers of operational performance:

Strong retail growth of 29% YoY in Q2 and 40% in H1 driven by resilient jewellery demand, favorable festive seasonality, consumer preference for lightweight jewellery (80-85% of sales), and shift in Shradh period to Q3 FY27 creating more favorable festive calendar.

Segment-wise Performance

  • Diamond jewellery delivered strong growth with value up 37% and volume up 12% in H1 FY27
  • Old Gold Exchange contributed 51% of retail sales by quantity and 41% of procurement
  • Non-East revenue contribution at 20%
  • Regional performance led by North, followed by East and Central

Explanation of significant changes in segment performance:

Growth driven by broad-based performance across regions with North showing strongest performance, followed by East and Central. Diamond jewellery growth reflects favorable shift in product mix and healthy demand across both premium and accessible price segments.

Financial Highlights

Revenue: ₹5,115 Cr (H1 FY27 consolidated)

EBITDA: ₹391 Cr (H1 FY27 consolidated)

PAT: ₹188 Cr (H1 FY27 consolidated)

EPS: Not explicitly stated

Margins: EBITDA margin 7.6%, PAT margin 3.7% (H1 FY27 consolidated)

YoY/QoQ comparison: Q2 FY27 revenue growth 34% YoY, PAT growth 78% YoY; H1 FY27 revenue growth 52% YoY, PAT growth 22% YoY

Drivers of financial performance:

Higher revenue growth, custom duty gains of ₹16 Cr in Q1 and ₹30 Cr in Q2, though EBITDA margin impacted by higher gold exchange, competitive pressure, higher discounting, and present hedging level of 40-50%.

Comparison to market estimates:

Not specified

Key Risks:

Raw material price volatility, competitive pressure, gold price fluctuations affecting working capital and margin calls during price rise.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not explicitly broken down by value

Regional Breakdown: West Bengal including Kolkata (111 showrooms), North including Delhi NCR (26 showrooms), East excluding WB (33 showrooms), North East (6 showrooms), West (12 showrooms), South (5 showrooms), Central (7 showrooms), International-Dubai (2 showrooms)

Balance Sheet Snapshot

Net Debt/Equity: Not explicitly stated

Reserves: Not explicitly stated

Current Assets/Liabilities: Current Assets ₹67,691.0 Mn, Current Liabilities ₹42,691.3 Mn as of Sep-26

Working Capital/Leverage Metrics: Working Capital Borrowings ₹20,805.0 Mn, Gold Metal Loan ₹4,343.7 Mn

Financial Health Insights:

Inventory increased marginally to ensure adequate stock availability ahead of Dhanteras, though average inventory quantity per store remains below FY24 levels. Incremental inventory requirements funded through higher borrowings, customer advances, trade payables and internal accruals. Trade receivables primarily comprise dues from temporary credit extended to franchisees.

Capex & Cash Flow Health

Capital Expenditure: Not explicitly stated for period

Free Cash Flow: Not explicitly stated

Operating Cash Flow: Net cash used in operating activities ₹(4,307.8) Mn (H1 FY27)

Net Debt Movement: Working Capital Borrowings increased by ₹5,802.4 Mn (H1 FY27)

Investment Rationale:

Focus on franchise-led, asset-light expansion with FOFO/FOCO already 43% of showrooms at near-zero capex to Senco, targeting Tier III/IV and Bharat reach.

Strategic & R&D Initiatives

Investments in Innovation: Launch of Ti22 Collection under Aham brand featuring titanium jewellery crafted with gold and diamonds; AI-driven design intelligence and inventory optimization tools

Expected impact on growth:

Not specifically quantified for individual initiatives

Strategic Rationale:

Expanding into high-growth markets through franchise model, reducing operational costs through asset-light expansion, and premiumization through brands like Sennes, Everlite and Gossip to win millennial/Gen-Z share.

Industry Trends & Business Environment

Macro/Industry Trends: India's gems and jewellery market expected to scale to $162 Billion by 2030; consistent shift from unorganized to organized jewellers; changing consumer preferences toward brand awareness and quality consciousness; regulatory developments including mandatory hallmarking

Impact on Company:

Benefiting from industry growth and formalization trends; regulatory compliance requirements; growing consumer preference for branded, quality-assured jewellery

Management Commentary & Growth Outlook

Strategic Outlook: "Management remains confident for continued growth and profitability" with H2 FY27 targeting 25%+ revenue growth, 7.5%-7.8% EBITDA margin, and PAT margin target of 4.0%-4.5%

FY Guidance:

Vision 2030 targets: Revenue ₹20,000 Cr, EBITDA margin ~8%+, PAT margin ~4.5-5%+, stud ratio ~15%+ of revenue, ROE 20%+ sustainable, ROCE 20%+ sustainable

Market Share Targets:

Not explicitly stated

Risks and Opportunities:

Risks: Gold price volatility, competitive pressures, working capital requirements

Opportunities: Industry growth, formalization trend, expansion into non-East markets, franchise-led growth model

ESG Updates

Recycled gold in sourcing mix: Not quantified

Reduction in single-use plastic: ~80%

Renewable energy generated: 4,470 kWh (H1 FY27)

Community programmes: 10+ across West Bengal, Jharkhand & beyond