Why are Senco Gold shares trading lower despite 151% jump in Q4 net profits?

Senco Gold shares dropped 5% to hit their intraday low on Wednesday, May 27, as investors became wary of the commodity price volatility in the global market, despite the jewellery maker recording a 151% surge in its consolidated net profits for the March quarter of the year ended 2025-26, on the higher gold and silver prices.

As of 10:28 pm, Senco Gold shares were trading 4.2% lower at ₹334.10 on Wednesday, compared to ₹349.10 at the previous market close, as per NSE data.

For jewellery companies like Senco Gold, the profits and margins witness pressure from the prevailing prices in the market, as customers tend to shift their spending depending on the rates in the market.

In its NSE filing, Senco Gold disclosed that the company’s consolidated net profits (attributable to the owners) rose 151% to ₹156.87 crore in the fourth quarter, compared to ₹62.43 crore in the same period a year ago.

Senco Gold’s Group CFO, Sanjay Banka, attributed the strong March quarter results above the company’s earlier guidance to the rise in gold and silver prices in the market.

“Gross Margin and EBITDA for the quarter were higher than our guidance of a 7.5-7.7% range due to gains on account of gold and silver price rise. For FY26, we achieved the highest ever topline of ₹8,430 crore with a 33% YoY growth and 24% CAGR over the last 5 years,” said Banka.

NYMEX data showed that global gold prices have risen 3.84% so far in 2026, and the rates have gained over 33% in the last one year period.

Senco Gold Q4 results snapshot

Senco Gold’s revenue from core operations advanced 45% to ₹1,996.65 crore in the fourth quarter of the year ended 2025-26, compared year-on-year with ₹1,377.71 crore in the same period a year ago.

The consolidated statements further showed that the company’s gross margins expanded by 560 basis points to 22.4% in the fourth quarter, from 16.8% in the same period last year.

At the operational level, the earnings before interest, tax, depreciation and amortisation (EBITDA) gained 116% to ₹274.35 crore, from its earlier ₹127.02 crore a year ago.

The EBITDA margin also expanded by 450 basis points to 13.7% in the March quarter, compared with 9.2% in the same period a year earlier.

Looking ahead, the company’s management said that they aim to add 20% of value growth while targeting an EBITDA margin in the range of 7.5% to 7.7% in the financial year ending 2026-27.

“Subject to global uncertainties and market dynamics, we expect to improve our blended borrowing cost, maintain a strong vigilance on our capital allocation, improve inventory days, performance of subsidiaries and performance of showrooms in new geographies to deliver a minimum sustainable PAT of 4% to 4.5%,” the company said in its investor presentation.

Senco Gold dividend

Senco Gold’s board of directors also recommended a ₹5 per share final dividend with a face value of ₹1 apiece for the financial year ended 2025-26, according to an exchange filing.

“Recommended a Final Dividend at the rate of 20% (₹1 per equity share) of the face value of equity shares of ₹5 each, for the Financial Year 2025-26,” the company informed the stock exchanges.

If approved, Senco Gold will pay all eligible shareholders a final dividend payment of ₹5 per share for every share they own in the company’s stock, up to one day ahead of the pre-set record date of the corporate action.

The company will announce the record date after the upcoming annual meeting.

Senco Gold share price trend

Senco Gold shares closed 1.33% lower at ₹349.10 after Tuesday’s stock market session, compared to ₹353.80 at the previous market close, according to NSE data. The company announced its Q4 results and dividend update on Tuesday night.

Although Senco Gold shares have lost 3.86% in the last one year, the stock has delivered more than 10% returns so far in 2026. The company’s stock has gained 8.3% in the past one month, and was trading 3.3% higher in the last five market sessions.

Shares of Senco Gold surged to a 52-week high of ₹404.85 on September 8, 2025, while the 52-week low was at ₹276 on March 30, 2026, as per the exchange data. The company’s market capitalisation (m-cap) was at ₹5,735 crore as of Tuesday’s market close.