Senco Gold Shares Fall 6.4% Despite Strong Q3 Performance

Shares of Senco Gold saw a sharp decline of 6.4% on Friday’s trading session, reaching an intraday low of Rs 1,054 per share, following the release of its Q3 business update. By 10:34 AM, the stock was trading at Rs 1,059.95, down nearly 6%, while the BSE Sensex was slightly lower by 0.38% at 77,326.61. The company’s market capitalization stands at Rs 8,708.69 crore, with a 52-week high of Rs 1,544 and a low of Rs 685.10 per share.

Key Insights from Q3 Update

Senco Gold’s Q3 update highlighted several key achievements but also pointed to challenges in the gold market. After months of upward momentum, gold prices have experienced a slowdown since November, falling nearly 6% from their peak of $2,787/Oz in early November to $2,605/Oz in December 2024.

Despite the slowdown in gold prices, Senco Gold reported the highest-ever sales in October 2024, surpassing Rs 1,000 crore in a single month. The company also posted a record quarterly sales figure of Rs 2,000 crore in Q3 2025. On a trailing twelve-month (TTM) basis, the company’s revenue crossed Rs 6,000 crore, marking a 19-20% year-on-year (Y-o-Y) growth for the full year.

Growth Across Regions

The company reported a 22% Y-o-Y growth in total revenue for Q3 and a 19% Y-o-Y increase for the first nine months of FY25. Retail growth remained steady at 19% Y-o-Y in Q3, with growth in Tier 3 and Tier 4 towns outpacing metro and Tier 2 cities. The company noted that this trend mirrors broader economic and retail consumption patterns.

Senco Gold also highlighted its continued progress in the transition from non-organized to organized markets, with a 38% contribution from old gold and over 62% from non-sources. The average selling price (ASP) and average transaction value (ATV) for the first nine months of FY25 saw significant growth, rising 28% and 14%, respectively.

Expanding Showroom Network

The company’s showroom portfolio expanded to 170 locations, including 69 franchisee-operated stores. Senco Gold launched 12 new showrooms over the last nine months, with 7 of these being company-owned. The company also opened four more showrooms during Q3 in Gwalior (MP), Dehradun (UK), Barakar (WB), and Chandaneshwar (Odisha).

Senco Gold is on track to meet its goal of opening 18-20 jewellery showrooms this year, including 10-12 franchisee outlets.

Stock Performance

Despite a strong performance in terms of revenue growth and showroom expansion, the stock faced selling pressure following the update. Over the past year, Senco Gold’s shares have gained an impressive 53%, significantly outperforming the Sensex, which rose by 8.3% in the same period.

In summary, while Senco Gold showed strong growth in Q3, including record sales and expansion efforts, the recent dip in gold prices and investor reactions to the update led to a decline in share price.