Senco Gold shares fall 4% after Q2 business updates; what is weighing on investor sentiment?

The updates were shared by the company post-market hours on Wednesday.

Sharing key highlights on a standalone basis, Senco Gold, in its press release, said the second quarter of FY26 saw gold prices rising by 8% QoQ and 43% YoY on average, leading to major demand from global central banks, investment-led demand for ETFs, and resilient consumer demand amidst high gold prices. The gold price in Q2 FY26 reached ₹1,16,500, the highest ever recorded, as against ₹1,00,800 in Q1 FY26 and ₹75,300 in Q2 FY25.

It said that for the first half of the year (H1), its performance was robust, with total revenue growing 17.8% YoY. During H1 FY26, the retail business grew by 16% with a Same-Store Sales Growth (SSSG) of 7.5%.

In the second quarter (Q2), despite factors like the highest-ever gold prices, "our total revenue grew by 6.5% YoY. This performance was achieved amidst factors like a high base effect due to a custom duty cut in Q2 FY25, a Shraddh season (September 7th to 21st), and a shift of consumer demand for a certain section of consumers towards capital goods due to a significant GST reduction. Moreover, in Kolkata and West Bengal, rains and a flood-like situation after Shraddh also impacted the momentum," it said.

The company added that its retail expansion continued in the second quarter with the launch of five new showrooms, bringing their total store count to 184 (net of Sennes stores shown separately). The expansion includes four domestic showrooms—one company-owned in Kolkata and three franchise locations, one in Bihar and two in West Bengal—and one more international showroom in Dubai. We have also expanded SIS's presence from 19 to 24.

Category Performance

Senco Gold said it has achieved continuous growth in diamond jewellery demand since Q4 FY 25, and the momentum continued in Q2 as well, with value growth of 12% in Q2; and for H1, the value growth was 31% and volume growth was 14%. Similarly, silver sales also achieved a sharper 54% value growth.

Q3 and FY26 Outlook

Senco Gold said that the company was firmly on course to achieve its annual target of 20 new showroom openings for FY26. Our growth prospects are supported by a robust pipeline, and we expect to launch about 7~8 showrooms in Q3 and Q4 to meet our target of 20.

Looking ahead, Q3 is poised to be the strongest quarter for the jewellery industry, driven by major festivals like Dhanteras & Diwali and peak wedding season. In anticipation of heightened demand, we have built up our inventory with an optimal mix of new festive and bridal collections. We are confident in our preparation to capitalise on this period through targeted marketing, a hyperlocal product portfolio, wider lightweight options, and the introduction of 9K jewellery.

It added that its outlook for consumer demand in Q3 and Q4 remains optimistic, underpinned by a positive economic environment led by the GST rate cut. It is confident of 18% ~ 20% topline growth for FY26.