Senco Gold Shares Fall 8% Despite 67% Revenue Growth — What Went Wrong?

$SENCO shares fell over 8% after the company reported a mixed Q1 FY27 performance. The headline revenue growth was strong, but profitability came under pressure, raising concerns among investors. Key Financial Highlights Revenue from Operations: ₹3,056 crore, up 67% YoY PAT: ₹101 crore, down 3% YoY EBITDA: ₹213 crore, up 16% YoY EBITDA Margin: 7%, down from 10% in Q1 FY26 PAT Margin: 3.3%, down from 5.7% Retail Sales: ₹2,651.5 crore, up 50% YoY Same-Store Sales Growth: 39% Diamond Jewellery: Value growth of 43%, volume growth of 18% Showrooms: Increased from 201 to 209 during the quarter. What Squeezed Profitability? The key issue was margin compression. Despite a 67% jump in revenue, PAT declined because EBITDA margins fell sharply. The company attributed the pressure to promotional discounting, lower gold prices and changes in customs duty. Losses at some overseas subsidiaries also weighed on consolidated profitability. Operationally, however, the business remained strong. Retail sales grew 50%, same-store sales rose 39%, and old jewellery exchange contributed 43% of total sales quantity, helping the company maintain demand despite elevated gold prices.