In an interview to CNBC-TV18, Suvankar Sen, MD & CEO of Senco Gold, said the company expects to clock EBITDA margins in the range of 6.8–7.2% for the full year, compared to an adjusted margin of 6.5–6.8% in FY25. “We were confident that in Q4, with the pickup in diamond sales and the removal of the duty impact, we would see recovery, and we did,” Sen said.
The company is holding on to its Q1FY26 guidance of 18–20% revenue growth, led by festive buying during Pohela Boishakh and Akshaya Tritiya. “Until now, we are clocking those numbers,” he confirmed.
Senco is seeing strong momentum in diamond jewellery, which grew 39% in Q4 and now contributes around 11% of overall revenue. With gold prices at all-time highs, Sen said consumers are leaning more towards diamond-studded 14 carat and 18 carat pieces. The company is targeting a 25–30% growth in diamond sales this year, with expectations of sustained momentum in the festive quarters of Q3 and Q4.
While Q1 is typically strong, Sen acknowledged that Q2 could be a softer quarter, and a good monsoon will be key to supporting demand in the second half of the year.
High gold prices are also reshaping consumer preferences. Volumes are down 4–5%, but average ticket sizes are up 15% year-on-year to ₹72,000, as customers look for lightweight, stylish pieces they can wear daily. “Gold may feel too light, but diamonds look trendy and stylish, that’s where the shift is happening,” Sen said.
Organised players like Senco are continuing to gain share from the unorganised sector. Old gold exchange volumes have climbed to 39%, with 60% of that coming from non-Senco gold. Meanwhile, consumers are increasingly treating gold coins and bars as investment assets, while diamonds, especially small-sized ones, are being bought for adornment rather than value appreciation, Sen said.
Watch accompanying video for entire conversation.
(Edited by : Unnikrishnan)
