Senco Gold Q3 FY26 Earnings Call Transcript Released

Senco Gold Limited has released the transcript of its Analysts/Investors Earnings Conference Call, which took place on Friday, February 13, 2026, following the declaration of its Unaudited Financial Results for the quarter and nine months ended December 31, 2025.

The call featured insights from Mr. Suvankar Sen, Managing Director and CEO, and Mr. Sanjay Banka, Group Chief Financial Officer & Head IR. Mr. Sen highlighted that Q3 FY26 was a historic quarter, with revenue crossing ₹3,000 crores, EBITDA at ₹404.6 crores, and PAT at ₹264 crores. He noted the significant volatility in gold prices, which reached ₹1,40,000 per ten grams during the quarter, a rise of approximately 65% year-on-year. Despite high gold prices, consumer confidence in gold and jewellery remained strong, with sales of ₹1,716 crores in October, driven by Dhanteras and the wedding season.

Senco Gold emphasized its strategy of understanding consumer needs and fitting products into their budgets, including the introduction of 9-carat gold and diamond jewellery. The company's hyperlocal strategy, leveraging technology for data analysis of local consumer needs, also played a crucial role. The revenue contribution was 33% from franchisee stores and 65% from company-owned stores, with the higher share from own stores contributing to improved profitability. Diamond jewellery sales saw a value increase of 38% and a volume increase of 10%.

Looking ahead, Senco Gold aims for a 20% plus growth in the coming financial year, focusing on strengthening its franchisee model, increasing the diamond jewellery segment, enhancing operational efficiencies, and building the brand. The company plans to expand its store network, aiming for over 200 stores by the end of the current quarter and adding 18-20 new stores, primarily franchisee-owned, in the next fiscal year.

Mr. Banka detailed the financial performance, stating that revenue grew by 50% year-on-year to ₹3,000 crores in Q3 FY26. EBITDA increased by 406% to ₹404 crores, with an adjusted EBITDA margin of 13.2%. PAT saw a 689% increase to ₹264 crores. For the nine-month period, revenue grew by 30%, adjusted EBITDA by 133%, and adjusted PAT by 200%. The company reiterated its guidance for FY27 sustainable EBITDA margin between 7.5% to 7.8% at elevated price levels. Working capital requirements increased, with inventory rising to ₹4,602 crores, funded by borrowing and trade payables. An AI-based software is being used for real-time inventory monitoring, keeping inventory days within a range of 166 to 188 days.

Discussions also covered hedging policies, with the company maintaining a hedging percentage of 55% to 60% for the last 6-9 months, noting that increased old gold exchange by consumers and customer advances also mitigate price risks. The company received a credit rating of A1 from CareEdge, expecting to reduce blended ROI by 30-40 basis points. Guidance for Q4 FY26 sales growth is conservatively set at 25% to 30%, with potential to increase to 30%-35% as the quarter progresses.