Senco falls 4% after modest Q2 growth amid soaring gold

Shares of Senco Gold tumbled 4.5% to their day’s low of Rs 323.90 on the BSE on Thursday after the jewellery retailer reported a 6.5% year-on-year rise in revenue for the September quarter, a steady performance given the challenges of a high base, seasonal lull, and shifting consumer demand.

The company, in a stock exchange filing, said its total revenue in Q2 FY26 grew 6.5% compared with the same period last year. For the first half of FY26, revenue rose 17.8% year-on-year, led by a 16% expansion in the retail business and a same-store sales growth of 7.5%.

Seasonal and external headwinds


Senco Gold noted that its quarterly performance came despite “a high base effect due to a customs duty cut in Q2 FY25,” alongside the Shraddh period from September 7 to 21 that typically dampens jewellery demand. The company also pointed to “a shift of consumer demand for a certain section of consumers towards capital goods due to a significant GST reduction.”

In addition, the jeweller said rains and a “flood-like situation after Shraddh” in Kolkata and parts of West Bengal further weighed on demand.

Gold prices at record highs


Gold prices surged during the quarter, averaging Rs 1,16,500 per 10 grams—the highest ever recorded—compared with Rs 1,00,800 in Q1 FY26 and Rs 75,300 in Q2 FY25. Prices rose 8% quarter-on-quarter and 43% year-on-year, driven by global central bank buying, strong ETF inflows, and resilient retail demand despite elevated price levels.

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Expansion and category growth


The company continued to expand its retail presence, adding five new showrooms in Q2, four under the Senco brand and one under its Sennes brand. The Senco network now comprises 184 stores, including one company-owned showroom in Kolkata and three franchise outlets in Bihar and West Bengal.

Sennes, the company’s premium silver and fashion jewellery line, launched a new exclusive store in Hyderabad, bringing its total to eight, and also expanded its Shop-in-Shop (SIS) footprint to over 100 counters.

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Diamond jewellery sales maintained momentum, posting a 12% value growth in Q2 and 31% for the first half of FY26, while silver jewellery sales saw a sharper 54% value growth, reflecting rising consumer interest in these categories.

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