Jewellery stock in focus after its net profit increases by 700% YoY

Synopsis: Jewellery stock gained attention after strong Q3FY26 performance, with earnings surging sharply year-on-year. The company expanded to 196 showrooms across 18 states, adding 21 stores in nine months. Despite gold prices jumping 63%, ATV rose to ₹93,000, supported by over 9,000 new design launches.

The shares of the prominent jewellery brand gained marginally in today’s trading session despite the company reporting a skyrocketing Q3FY26, followed by store expansion and aggressive launches.

With a market capitalization of Rs 5,916.78 crore, the shares of Senco Gold Ltd were trading at Rs 361.40 per share, decreasing around 3.17 percent, as compared to the previous closing price of Rs 373.25 per share.

Q3FY26 Highlights

The shares of Senco Gold Limited have seen marginal movement despite announcing its financial performance in Q3FY26, in which revenue increased by 50 percent on a year-on-year basis from Rs 2,045 crore in Q3FY25 to Rs 3,070 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 99 percent from Rs 1,536 crore in Q2FY26 to Rs 3,070 crore in Q3FY26.

Moreover, net profit increased by 700 percent on a yearly basis from Rs 33 crore in Q3FY25 to Rs 264 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 450 percent from Rs 48 crore in Q2FY26 to Rs 264 crore in Q3FY26.

Expansion & Guidance

The company expanded its retail footprint to 196 showrooms, adding four new franchise outlets in Q3 and a net 21 stores in nine months. However, a sharp 63% YoY rise in gold prices, touching ₹1,40,000 per 10 grams, weighed on volume growth despite strong network expansion.

Pricing metrics improved during the quarter, with Average Transaction Value rising to ₹93,000, up 7.8% QoQ, while Average Selling Price increased 6.3% to ₹60,270. Product innovation remained strong, with over 6,000 new gold and 3,300 diamond designs launched, taking total designs to 204,000 gold and 113,000 diamond pieces.

The company has expanded its retail footprint as of December 31, 2025, including 113 company-owned and 83 franchise outlets across 18 states and union territories and 128 towns and cities. It also operates 2 stores in Dubai. Strong Tier 2 and Tier 3 presence supports growth, with 53 metro and Tier 1 company showrooms and 46 franchise stores in Tier 4 markets.

Speaking on the performance, Mr. Suvankar Sen, Managing Director & CEO, Senco Gold Ltd, highlighted that the company delivered a record quarter despite elevated gold prices. Strong festive demand, growth in lightweight jewellery, expanding franchise presence, and rising traction in studded segments supported profitability. The company remains confident about sustaining momentum through the upcoming wedding and festive seasons.

Additionally, Mr. Sanjay Banka (Group CFO & Head IR) commented that the company delivered strong quarterly growth driven by better product mix, operating leverage, and lightweight jewellery demand amid rising gold prices. Margins improved meaningfully, while disciplined inventory management supported performance. Despite higher working capital needs, expansion plans remain on track with confidence in sustained growth ahead.

Additionally, the company remains on track to meet its FY26 target of 20 new showroom openings and expects to cross the 200-store milestone soon. Management is confident of delivering strong year-on-year growth in Q4 while maintaining EBITDA margin guidance. Looking ahead to FY27, expansion momentum is expected to continue with steady store additions and healthy topline growth.

Senco Gold Limited is one of India’s leading jewellery retailers, known for its strong presence in eastern India and expanding national footprint. The company offers a wide range of gold, diamond, and studded jewellery, blending traditional craftsmanship with modern designs while focusing on affordability, innovation, and customer trust.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Jewellery stock in focus after its net profit increases by 700% YoY appeared first on Trade Brains.