Senco Gold Q4 FY26 Earnings: Revenue Jumps 45%, Profit Soars 151%

Revenue for Q4 FY26 reached ₹1,997 crore, with Profit After Tax (PAT) at ₹157 crore.

Reader Takeaway: Strong growth in revenue and profit; inventory build-up and margin normalization are key concerns.

What just happened

Senco Gold Ltd announced its financial results for the fourth quarter and full year ended March 31, 2026 (Q4 FY26 and FY26). The company reported a significant year-on-year (YoY) increase in revenue for Q4 FY26, which grew by 45% to ₹1,997 crore. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) saw a substantial 116% jump to ₹274 crore, and Profit After Tax (PAT) surged by 151% to ₹157 crore in the same period.

For the full fiscal year FY26, Senco Gold achieved a revenue of ₹8,430 crore, marking a robust 33% growth compared to the previous year. The company's management has proposed a final dividend of 20%, adding to the interim dividend of 15% already declared.

Why this matters

The strong performance in Q4 and FY26 indicates robust demand for Senco Gold's products and effective operational strategies. The proposed dividend signals management's confidence in the company's financial health and its commitment to returning value to shareholders. However, the company's commentary on margins and inventory levels requires careful investor consideration.

The backstory

Senco Gold has been focusing on expanding its reach, particularly through the franchise model, and strengthening its 'old gold exchange' business. This segment has become a core part of its revenue, contributing around 50% in Q4 FY26 and 44% for the full year FY26. This strategy aims to improve sustainability and cater to customer needs for gold recycling.

What changes now

Management has provided a revenue growth guidance of 18–20% for FY27, which they describe as conservative due to market volatility and high gold prices. They also clarified that sustainable EBITDA margins are expected to be in the range of 7.5%–7.8%, with current higher margins partly attributed to inventory gains from rising gold prices in FY26. The company is targeting to reduce its inventory days from 188 in Q4 FY26 to 160–180 days in FY27.

Risks to watch

Key concerns include the high inventory levels, with inventory days reaching 188 in Q4 FY26, impacting working capital and free cash flow. Management indicated that negative free cash flow might persist due to working capital dynamics. The sensitivity to customs duty hikes (currently at 15%) on gold also poses a risk if duty reversals occur without adequate hedging. Additionally, a reported slowdown in demand in late May signals potential near-term uncertainty for Q1 FY27.

Peer comparison

While specific peer data isn't provided in the filing, Senco Gold's strategy of focusing on old gold exchange and franchise expansion places it within the competitive jewellery retail sector in India. Companies in this space often face similar challenges related to gold price volatility, inventory management, and changing consumer demand patterns.

Context metrics (time-bound)

• Revenue Growth: FY26 revenue grew 33% YoY to ₹8,430 crore.
• Q4 FY26 Performance: Revenue up 45%, EBITDA up 116%, PAT up 151% YoY.
• Old Gold Exchange: Reached ~50% of Q4 FY26 revenue.
• Inventory: Increased 61% YoY to ₹5,296 crore, with 188 inventory days in Q4 FY26.
• Guidance FY27: Revenue growth of 18–20%.
• Sustainable Margins: Expected at 7.5%–7.8%.

What to track next

Investors should closely monitor Senco Gold's progress in optimizing its inventory levels and reducing inventory days towards the guided target. Management's ability to achieve the FY27 revenue growth targets amidst market volatility and manage working capital will be critical. The company's performance in managing margins without the benefit of inventory gains will also be a key indicator.