Senco Gold’s Share Price Hits a 52-Week Low: What’s Driving the Decline?

Senco Gold is a prominent pan-India jewellery retailer with a rich heritage spanning over 85 years. It is one of the largest organised jewellery retail chains in Eastern India, offering an extensive selection of over 1,51,000 gold jewellery designs and 85,000 diamond jewellery options.

Despite its strong market presence, Senco Gold’s stock has been under pressure in 2025, experiencing a significant downturn following a stellar performance in the previous year.

Stock Performance: A Sharp Reversal

On February 27, 2025, Senco Gold’s share price hit a fresh 52-week low of ₹295.75, with the stock trading 2.40% lower at ₹296.70 by 11:40 AM. This marks the 4th consecutive session of decline.

In CY2024, Senco Gold delivered a strong return of nearly 54%. However, in CY2025, the stock has reversed its gains, plummeting 43.4% year-to-date.

EBITDA Margin Takes a Hit: Key Factor Behind the Decline

A major factor behind the stock’s underperformance has been its weakening EBITDA margin. In Q3 FY25, Senco Gold reported an EBITDA margin of 3.8%, a steep decline from 11% in the same period last year.

The company attributed this drop to: Higher costs from launching new subsidiaries, the impact of customs duty over the last two quarters and volatility in gold prices. 

Initially, the company had anticipated EBITDA margins between 7-8%, but the actual results fell well below expectations.

Profitability Under Pressure

The weak operational performance has also impacted the bottom line. The company’s net profit fell sharply to ₹33.5 crore, compared to ₹101.3 crore in the corresponding quarter of the previous year.

However, revenue remained robust, reaching ₹2,100 crore, marking a 27% year-on-year growth. This indicates strong demand despite margin pressures.

Management’s Outlook for Q4 FY25

Looking ahead, Senco Gold’s management has set the following targets for Q4 FY25: Adjusted gross margins of 14-15% and Adjusted EBITDA margin of 7-8% (standalone basis). 

Conclusion

Senco Gold, despite its strong legacy and extensive product portfolio, is currently navigating through margin pressures and stock price volatility. While revenue growth remains intact, investors will closely watch upcoming earnings reports to assess whether the company can improve its profitability in the coming quarters.

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