Senco Gold shareholders approved the company’s financial statements and a final dividend of ₹1 per equity share for FY26 at its 32nd Annual General Meeting held on August 31, 2026. The Kolkata-based jewellery retailer also confirmed an interim dividend of ₹0.75 per share, bringing the total payout for the fiscal year to ₹1.75 per share.

The meeting, chaired by Chairperson Ranjana Sen, commenced at 11:30 am at G. D. Birla Sabhagar in Kolkata. Managing Director Suvankar Sen presented an overview of the company’s performance during FY2025-26. All ordinary business resolutions were put to vote through remote e-voting and ballot papers.

Key Resolutions Passed

The following items were transacted as ordinary business:

All resolutions were deemed passed subject to receipt of the requisite majority. The voting results, along with the Scrutinizer’s Report from M/s Labh & Labh Associates, will be submitted to stock exchanges within two working days.

Attendance and Governance

Approximately 590 shareholders holding 105,755,828 equity shares attended the meeting in person. Seven valid proxies representing 139 equity shares were also received. Statutory Auditors Walker Chandiok & Co LLP and Secretarial Auditor Labh & Labh Associates were present to oversee proceedings.

The management confirmed that there were no qualifications in the Statutory Audit or Secretarial Audit Reports. Consequently, these reports were not read out in full, as permitted under the Companies Act, 2013. Remote e-voting was conducted between August 28 and August 30, 2026, in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations.

Senco Gold delivered a robust top-line performance in Q1FY27, with consolidated revenue from operations surging 67% year-on-year to ₹3,056.0 crore. However, consolidated net profit contracted 3% to ₹101.1 crore as operating margins faced pressure from elevated gold prices, aggressive discounting, and increased finance costs. During the subsequent earnings call held on August 12, 2026, management provided critical context on profitability, clarifying that the reported EBITDA margin of 7.0% reflects normalised operational performance rather than a structural decline.

Financial Performance Overview

The company’s consolidated EBITDA rose 16% year-on-year to ₹213.1 crore, resulting in an EBITDA margin of 7.0%, down from 10.1% in Q1FY26. Group CFO Sanjay Banka explained that the previous year’s quarter benefited from inventory gains amounting to 1.5%-2% of margins. Consequently, the adjusted PAT for Q1FY26 was estimated at ₹70-75 crore, making the current quarter’s ₹101.1 crore PAT a stronger operational outcome despite the lower headline margin. The management reaffirmed its guidance for a sustainable operational EBITDA margin of 7.5%-7.8% for FY27.

Key financial metrics for the quarter are outlined below:

Operational Highlights and Growth Drivers

Retail sales expanded 50% year-on-year to ₹2,651.5 crore, driven by strong same-store sales growth (SSSG) of 39% and an average selling price (ASP) increase of 40%. The company added eight net showrooms during the quarter, bringing its total footprint to 209 outlets. Old-gold exchange initiatives remained pivotal, accounting for 43% of total sales quantity on a blended basis, with over 55% contribution from company-owned stores. Diamond jewellery value grew 43% year-on-year, supported by a shift towards lightweight, design-led collections and lower-ticket offerings.

Margin Dynamics and Hedging Strategy

Management attributed the margin compression to several factors, including the impact of the custom duty increase from 6% to 15%, intra-quarter gold price volatility, and competitive discounting. Other expenses rose significantly from approximately ₹80 crore to ₹195 crore due to store renovations, customer schemes, and brand-building activities, which management indicated were quarter-specific and would subside. Finance costs increased due to temporary unavailability of Gold Metal Loans (GML) during March and April, forcing procurement from the local market; GML availability has since normalised. The company maintains a hedging ratio of approximately 50% to balance liquidity risk with gold price volatility, with plans to increase this to 75%-80% as market conditions stabilise.

What the Numbers Show

The divergence between the 67% revenue growth and the 3% decline in net profit underscores the transitional nature of the jewellery sector amid high gold prices. While the top-line expansion demonstrates strong brand traction and volume resilience, the margin profile reveals the cost of maintaining market share through discounting and old-gold exchange schemes. The clarification that Q1FY26’s margins included non-operational inventory gains suggests that the current 7.0% EBITDA margin is closer to the true operational baseline than the prior year’s figure. Furthermore, the significant rise in other expenses indicates a one-off investment phase in brand building and store infrastructure, which should support margin recovery in subsequent quarters if these costs normalise as projected.

Outlook and Guidance

Looking ahead, Senco Gold reported that sales in July and August tracked 25% higher year-on-year, representing an 8%-10% improvement over the May-June run rate. The company retained its full-year guidance of 20%+ value growth, implying revenue above ₹10,000 crore against ₹8,430 crore in FY26. Management aims to build a 300-plus-store network over the next four to five years, targeting long-term revenue of ₹20,000 crore+. The focus remains on improving return on equity and capital employed, with a target PAT margin of 4.5%-5% supported by a higher stud ratio and optimised inventory turns.