Senco Gold Ltd. is targeting a revenue growth of 18% to 20% in FY26, driven by a surge in demand for diamond jewellery, according to Chief Executive Officer Suvankar Sen.

"The way the gold prices have been moving upwards, it is, I think, quite an easy possibility of having a growth of 18% to 20%," Sen told NDTV Profit in a conversation on Friday. "We are looking at about Rs 7,500 crore in the coming year."

Commenting on the slightly lower guidance for FY26 compared to Q4 FY25, the managing director projected a 6.8% to 7.2% Ebitda margin in the current financial year after adjustment for duty impacts. "That's how we are looking at it. It's not a very low margin; it's 7% and upwards."

In the current fiscal, the jewellery retailer plans to open 18–20 new stores, according to the top executive. "Almost 50% of those will be franchisees focusing on the tier two–three–and–four towns and cities."

Over the next four–five years, Senco Gold aims to diversify its portfolio. It is targeting an overall non-gold contribution of 20% to total sales, with diamonds at 15%, lab-grown diamonds at 1% to 2%, and silver and platinum at 2% to 3%. "So, 20% will be your non-gold portfolio and 80% will be your gold portfolio."

The company is also capitalising on the growing popularity of lab-grown diamonds and silver jewellery to attract younger consumers, particularly Gen Z and millennials, aged 25 to 35. It is leveraging its 'Everlite' brand for everyday wear and 'Senness' for its new lab-grown diamond offerings.

Senco Gold's Gossip brand, focusing on affordable silver and fashion jewellery with ticket sizes below Rs 10,000, is gaining traction in malls and departmental stores. Further, the company launched 30,000 new gold designs and 25,000 diamond designs last year, reinforcing its focus on modern, everyday wear.

Senco Gold has adjusted its hedging strategy. It has reduced its hedging ratio from 90% two quarters ago to 65% to 80% currently, anticipating gold price fluctuation globally.

"The next two months will be extremely volatile," the top executive anticipated. "That is primarily because of the gold price volatility; the dollar is getting weaker."

And there is so much uncertainty in the US markets, which will make the investors move more towards gold and silver as a hedge, the CEO said. "And if the interest rates of the Fed are going down and they try to start cutting the interest rates, that will also have an impact on weakening the dollar."

Courtesy: NDTV Profit