Senco Gold and Diamonds Ltd is banking on rising old gold exchange transactions, higher diamond jewellery sales and growing demand for lightweight and lower-carat jewellery to achieve its FY27 growth targets despite elevated gold prices.
The company has provided a conservative guidance of 18-20% revenue growth, targeting turnover of ₹10,000-10,500 crore in FY27 compared with ₹8,430 crore achieved in FY26.
“We have always looked at every scenario and the opportunities therein. We will continue to remain optimistic no matter what. In April, we saw very strong and robust growth of 40-50%. In May, after the announcement, there has been a little bit of a slowdown. But for the whole year, we will continue to remain positive,” Managing Director and CEO Suvankar Sen said during the earnings call.
Old gold exchange driving growth
A key growth driver for the company has been the increasing share of old gold exchange transactions.
“In the last year itself, we have seen that old gold exchange as a proportion of our overall transactions has gone up to 44% of total revenue for FY26 and 50% in Q4. There are possibilities of increasing it further to 55%,” Sen said.
“The strategy is also helping drive diamond jewellery sales. Diamond volume growth increased by 9% by ensuring that consumers can exchange their old gold to buy diamonds. We have seen a 32% value growth in diamond jewellery sales,” he said.
The Kolkata-based jewellery retailer expects profitability to improve through higher diamond sales, better making charges on lightweight jewellery and a growing contribution from lower-carat products.
Focus on lightweight and affordable jewellery
Senco has been expanding its portfolio of lightweight designs and lower-carat jewellery to cater to customers affected by rising gold prices.
“Senco is one of the first players in the industry to launch 9-carat jewellery not only to increase the customer base but also make it affordable to buy gold and silver,” Sen said.
“We are creating more than 1.5 lakh lightweight designs every year. It is one of the factors that has helped our old and loyal customers keep coming back to the stores.”
The company expects demand for 9-carat and 14-carat jewellery, particularly stone-studded products, to increase as consumers seek affordable gifting and fashion jewellery options.
Expansion plans
During the year, Senco plans to open 18-20 stores through a mix of company-owned and franchise outlets, with around 60% of expansion focused on its core eastern market and the balance in North and Central India.
The company is also scaling up its lab-grown diamond business under the Sennes brand, which currently operates 12 stores.
“Bengal will continue to be an engine of growth. We are focusing on Tier-II, Tier-III and Tier-IV towns and opening more franchises in smaller markets,” Sen said.