Senco Gold reports record FY26 revenue as margins face pressure
Revenue climbed 33% to ₹8,430 crore, but management warns of a margin contraction to 7.5-7.8% for FY27 as hedging ratios slip.
— 3 earlier stories on Senco Gold Ltd. →What's new
- FY26 revenue hit ₹8,430 crore, a 33% year-on-year increase.
- Management expects FY27 margins to narrow to 7.5-7.8% from 11.5% in FY26.
- Old gold exchange now accounts for 50% of quarterly revenue.
- The company breached its board-mandated 50% hedging ratio.
Why this matters
Senco is navigating a transition from an exceptional FY26 to a more constrained FY27. The margin guidance shift is the most critical takeaway, signaling that the company expects competitive pressures to erode the gains seen last year. The hedging policy breach adds an element of risk to the company's inventory management strategy.
What we're watching
- Whether the company restores its hedging ratio to the 50% mandate.
- Realization of the estimated ₹400 crore customs duty inventory gain.
- Demand recovery following the late-May seasonal slowdown.
The full read
Senco Gold closed FY26 with record consolidated revenue of ₹8,430 crore, marking a 33% year-on-year rise and a net profit of ₹574 crore.
Margins are falling.
Management expects EBITDA margins to drop to 7.5-7.8% in FY27, a sharp decline from the 11.5% achieved in FY26. Operational shifts are also visible, with old gold exchange now representing 50% of quarterly revenue, while the company simultaneously disclosed a breach of its board-mandated 50% hedging ratio. Although demand spiked 66% during Akshaya Tritiya in April, a late-May slowdown has introduced caution, and the company expects to realize ₹400 crore in customs duty inventory gains over the coming quarters. The primary test for Senco is whether it can maintain its 20-25% revenue growth target while managing the anticipated margin squeeze and correcting its internal hedging position.
Questions answered
- What is the expected margin outlook for FY27?
- Management forecasts EBITDA margins will narrow to 7.5-7.8% in FY27, down from the 11.5% recorded in FY26.
- How did the company perform during the recent Akshaya Tritiya festival?
- Demand surged 66% in April during the festival, though management noted a subsequent slowdown in late May.
- What is the status of the company's hedging policy?
- The hedging ratio has fallen below the board-mandated minimum of 50%.
- What inventory gains does management expect?
- Management estimates a customs duty inventory gain of roughly ₹400 crore will be realized over the coming quarters.
- What is the company's revenue growth guidance for FY27?
- Management reaffirmed a revenue growth target of 20-25% for the year.
Story so far
All notes on SENCO →- 27 May 2026 · 12:29 PM IST Senco Gold reports record FY26 revenue as margins face pressure
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