Kolkata-based jewellery retailer Senco Gold eyes 25% revenue growth in FY27, up from its earlier guidance of 20%, as strong festive and wedding demand supports sales.
Managing Director and CEO Suvankar Sen said the company could consider raising its growth target to 30% after reviewing its performance in the December quarter.
Sen said, “We need to keep one thing in mind, is that as gold prices, it keeps increasing, quarter three is going to be an extremely important quarter for all of us, and we continue to work towards a 20% plus growth for the quarter three as well. We should all review after quarter three how things are and keep guiding for the future.”
The company reported around 31% revenue growth in the September quarter, taking its average revenue growth for the first half of FY27 to around 40%. Higher gold prices and strong customer participation in the old gold exchange programme supported sales during the period.
“25% growth is something that is achievable very easily,” Sen said, adding that the company could revisit the possibility of targeting 30% growth after the third quarter.
Senco Gold‘s old gold exchange programme was a major contributor to customer footfalls and sales in the September quarter. More than 50% of the business during the period came from customers exchanging old gold for new jewellery, according to Sen.
The stock was trading at ₹334.50 at 3:04 am on the NSE and has gained more than 3% over the past year.
The programme encourages customers to visit stores and purchase new jewellery despite elevated gold prices. However, the higher share of exchange transactions also comes with certain margin and liquidity challenges.
While the company earns making charges on jewellery sales, discounts offered alongside old gold exchanges can limit margin gains. The business also needs to recycle or reuse the exchanged gold, which affects liquidity until the metal is brought back into circulation.
Sen acknowledged that the old gold exchange programme could have some impact on margins. However, Senco Gold has retained its full-year FY27 margin target of 7.5%, against its earlier guidance range of 7.5–7.8%.
Senco Gold expects same-store sales growth (SSSG) of around 18–20% for FY27, higher than the 12–14% growth initially factored into its business plans alongside overall revenue growth of 20%.
The company is also counting on expansion to support its growth. Senco Gold added 14 stores in the first half of FY27, including 7 to 8 franchise outlets, and plans to open another 8 to 10 stores during the remainder of the financial year.
New store additions are expected to contribute around 7–8% to growth, alongside stronger sales from existing outlets.
Senco Gold expects the December quarter to be crucial for its performance, with festive purchases and wedding-related demand likely to support jewellery sales. The company is targeting revenue growth of more than 20% in the third quarter.
While rising gold prices have supported the value of sales, further price increases could influence consumer buying decisions. The company is therefore keeping a close watch on price movements even as it prepares for the peak festive and wedding season.
Higher gold prices can increase the value of jewellery sold even when the number of items purchased does not rise at the same pace. This was reflected in the September quarter, when revenue growth was largely value-led rather than volume-driven.
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Senco Gold eyes 25% growth in FY27, expects strong festive and wedding demand
