Senco Gold Limited has announced an extension of its strategic partnership with August Jewellery Private Limited (AJPL), the parent company of the omnichannel brand Melorra. The company informed stock exchanges on December 29, 2025, that the strategic and marketing tie-up has been extended till March 31, 2026, on the same terms and conditions as the original agreement.

Partnership Extension Details

The extension maintains the existing framework of the collaboration between Senco Gold and August Jewellery:

Key Operational Structure

The partnership continues under the Master Franchise Agreement model with several operational aspects:

• All of Senco Gold's existing Company Owned & Company Operated (COCO) stores function as franchisees of AJPL's Melorra brand
• Melorra's current Franchisee Owned & Franchisee Operated (FOFO) and Franchisee Owned Company Operated (FOCO) stores operate as sub-franchisees under Senco Gold
• Senco Gold maintains its role as Master Franchisee for Melorra with rights to open new franchise stores
• Stores under this agreement exclusively sell Melorra products

Strategic Benefits and Market Position

This extension reinforces Senco Gold's strategic positioning in the Indian jewelry market. The partnership provides several key advantages:

Market Expansion: The tie-up gives Senco Gold continued access to younger demographics, including youth and Gen Z consumers, leveraging Melorra's strong brand recall in these segments.

Product Portfolio Enhancement: The arrangement enables Senco Gold to continue offering Melorra's products, focusing on high-margin diamond jewelry sales.

Retail Footprint: The agreement maintains Senco Gold's access to over 20 stores currently operated by AJPL, sustaining its expanded retail presence.

Regulatory Compliance and Financial Structure

Senco Gold confirmed that the extended arrangement does not constitute a related party transaction, maintaining an arm's length arrangement between the entities. The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The extension demonstrates Senco Gold's commitment to its omnichannel strategy and its focus on capturing the evolving preferences of modern jewelry consumers. As the Indian jewelry market continues to grow, this partnership positions Senco Gold to maintain its competitive edge in the design-led jewelry segment while expanding its reach across different consumer demographics.

Senco Gold Limited , a prominent player in the Indian jewelry market, has reported a significant surge in profitability for the second quarter, despite facing headwinds in revenue growth. The company's performance reflects its resilience in a challenging market environment characterized by high gold prices and shifting consumer behaviors.

Robust Profit Growth Amid Revenue Challenges

Senco Gold achieved a remarkable 300% year-on-year increase in Profit After Tax (PAT) to INR 48.80 crore for Q2. This substantial profit growth came even as consolidated revenue saw a modest 2% increase to INR 1,536.00 crore. The company attributed the slower revenue growth to high gold prices and consumers deferring purchases due to GST-related factors.

Strong Recovery in Festive Season

Despite the subdued Q2 performance, Senco Gold reported a strong rebound in October, coinciding with the festive season. The company recorded its highest-ever monthly sales of INR 1,700.00 crore, representing a growth of approximately 50% compared to the same period last year. This recovery has bolstered the company's year-to-date (YTD) performance, with revenue growth now standing at about 25%.

Financial Highlights

The company's EBITDA margin saw a significant improvement, expanding by 340 basis points year-on-year to reach 6.90% in Q2.

Operational Strategies and Market Trends

Senco Gold has been adapting to changing market dynamics by focusing on lightweight jewelry and expanding its product mix. The company maintained a strong stud ratio of approximately 12%, indicating continued demand for diamond-studded jewelry. Additionally, there has been an increase in old gold exchange transactions, which rose to 42% of total sales in Q2.

Outlook and Guidance

Despite the challenges faced in Q2, Senco Gold's management remains optimistic about the company's growth prospects. They have maintained their full-year revenue growth guidance of 18-20%, supported by the strong performance in October and positive expectations for the upcoming wedding season.

The company expects to achieve an EBITDA margin in the range of 7.20% to 7.40% for the full fiscal year, reflecting confidence in their operational efficiency and pricing strategies.

Expansion and Regional Performance

Senco Gold continues to expand its retail presence, having launched 16 new showrooms in the first half, including both company-owned and franchisee stores. The company's focus remains on the Eastern and Northern regions of India, where it sees significant growth potential.

Challenges and Strategies

While facing challenges such as high gold prices and changing consumer preferences, Senco Gold is adapting by:

1. Focusing on lightweight jewelry designs
2. Expanding its range of 18-karat, 14-karat, and even 9-karat gold offerings
3. Optimizing inventory management and hedging strategies
4. Leveraging technology for better stock management and design selection

As gold prices remain volatile, the company is maintaining a flexible approach to hedging, with sales hedged at 90-100% and inventory hedging at 65-70%.

Senco Gold's performance in Q2 and its subsequent recovery in October demonstrate the company's ability to navigate challenging market conditions while maintaining profitability. With a strong focus on adapting to consumer preferences and expanding its retail footprint, Senco Gold appears well-positioned to capitalize on the upcoming wedding season and maintain its growth trajectory in the Indian jewelry market.