Gold Stock In Strong Rally: Gems & Jewellery Mega Stock Senco Gold Jumps 14% After Q4 Updates; BUY Time?

Gems and jewelry giant, Senco Gold's share price rallied by over 14% on BSE during the trading session of April 6th despite a broader bearish tone in market. The strong rally appeared after Q4 business update for FY26, where the company recorded healthy growth across verticals. Should you buy or sell Senco Gold?

Senco Gold Share Price:

At the time of writing, Senco Gold traded at Rs 326.05 apiece on BSE, up by 12.7% on BSE with market cap of Rs 5,340.92 crore. In the early trade, Senco Gold skyrocketed by over 14% to hit an intraday high of Rs 330 apiece.

Senco Gold Q4 & FY26 Update:

As per the regulatory filing, Senco Gold achieved a wedding season-led growth of ~46% YoY in Q4 FY26, leading to a ~35% YoY growth for FY26 as compared to 21% YoY growth in FY 25.

It said that the Q4 topline growth includes SSSG of ~34%.

"The wedding season in the quarter was spread across the whole quarter, and to cater for this, we launched new designs, collections and attractive offers. Valentine's Day and International Women's Day drove strong growth in footfall, particularly in our gifting and lightweight segments," Senco said.

Jewellery Demand Rises Despite Gold Prices Volatility:

According to Senco Gold, the price of bullion has been highly volatile in Q4FY26, rising by 20% QoQ to a peak level of $5595/Oz and, given the war and global uncertainty, again falling almost 20% to $4500/Oz in mid-March and currently settling around the $4700/Oz level, with a daily price variation of 2-5%.

Average gold price zoomed by 79% year-on-year since Q4FY25 from Rs 84,782 per 10 grams to Rs 151,783 per 10 grams in Q4FY26.

Despite this, Senco said, "customers have continued to purchase jewellery, and we have tried to plan our inventory based on changing consumer demand and maintaining our gross margin and profitability, managing the risk effectively."

"We have accelerated our focus on Lightweight Jewellery and Everyday Wear. A key highlight of this quarter has been the customer response to our 9k collection, christened Cloud 9, which will further promote jewellery demand amid rising prices. This allows us to maintain affordability and volume growth even in a high-price environment. We have launched a pioneering virtual experience in the jewellery industry in India called " Shape of You", which will help customers select jewellery based on their face shapes, a leading AI-based innovation. The focus has been to use data and keep optimising stocks for driving efficiency," said Senco.

During the quarter, Senco launched 7 new showrooms (2- Franchisee, 1- COCO and 4- Sennes) in Q4, reaching a milestone of 201 total showrooms(Net of closure of 2 stores). The current network now comprises 102 COCO and 85 FRN (FOFO-76 & FOCO-9) stores, 12 Sennes stores and 2 in Dubai.

Senco Gold FY27 Outlook:

Senco said, "We are geared up for the upcoming auspicious occasion of Akshaya Tritiya, Poila Boishak, Baishakhi, Rath Yatra & Raja Parba in Odisha and the summer wedding season in Q1 FY27 with curated collections and hyper-local jewellery."

Accordingly, Senco said they have a strong pipeline for store expansion in H1 FY 27 across the franchise and company-owned categories, and plan to launch 20-25 stores in FY 27, with a focus on opening more franchise stores.

The jewellery giant aims to achieve a minimum of 20-25% value growth while maintaining our EBITDA margin target of 7.5%-7.8% as specified in its earlier updates. Additionally, the company remains focused on its Phy-gital Model-seamlessly integrating its Omni-channel (Online, Offline, B2B) presence with tech-driven initiatives like Digi Gold, Magic Mirror, and Sencoverse.

BUY Senco Gold Stock?

As per Trendlyne data, the consensus recommendation from 6 analysts for Senco Gold is BUY. EPS is expected to grow by 185.1% in FY26. The average target price stood at Rs 486.33 apiece, signaling at nearly 50% potential upside ahead.

About Senco Gold Ltd:

Senco Gold and Diamonds is a brand owned by Senco Gold Limited ('the Company') with a legacy of over 85+ years. The company was incorporated as Senco Gold Private Limited on August 22, 1994, in Kolkata, West Bengal, under the provisions of the Companies Act, 1956.

Disclaimer:The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.