Shares of jewellery manufacturer Senco Gold fell over 4% in early trade on Wednesday’s despite the company reporting strong Q4 earnings and announcing a final dividend of Rs 5 per share.

The company posted a net profit of Rs 157 crore for Q4FY26. This marks a sharp 151% jump from Rs 62.4 crore reported in the same quarter last year.

Motilal Oswal maintains ‘Neutral’ stance

Following the results, the brokerage house Motilal Oswal maintained a ‘Neutral’ rating on Senco Gold and set a target price of Rs 325. This implies a downside of nearly 7% from the current market price.

According to the brokerage report, “volatile gold prices, customers continued to purchase jewelry. Senco planned its inventory based on changing consumer demand and maintained its gross margin and profitability, thereby managing the risk effectively. Our preview estimates were prepared prior to the prequarter update.”

Let’s take a closer look at the key factors investors need to watch of this jewellery sector –

#1 Senco Gold announces Rs 5 final dividend

The jewellery maker has recommended a final dividend of Rs 5 per share with a face value of Re 1 apiece. The record date for the same will be announced at its annual general meeting, and if approved, the dividend shall be paid to eligible shareholders within 30 days from the date of AGM.

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#2 Senco Gold Q4 highlights

The company’s consolidated revenue from operations for the reporting quarter stood at Rs 1,996 crore, rising 45% YoY from Rs 1,377 crore reported in the same quarter last year.

The jewellery retailer’s earnings before interest, tax, depreciation and amortisation (EBITDA) advanced 116% to Rs 274 crore from Rs 127 crore reported in Q4FY25. Its EBITDA margin expanded by 450 basis points to 13.7% from 9.2% posted in the corresponding quarter last year.

The company informed that it launched seven new showrooms during Q4, taking its retail network to 201 showrooms, including 199 across India and two in Dubai.

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#3 Senco Gold FY27 guidance

Commenting on Senco’s financial performance, Suvankar Sen, Managing Director & CEO said, “We expect around 20% revenue growth and maintain our EBITDA guidance of 7.5%-7.8%, ensuring best efforts towards return on capital, profitability, and franchise business growth.”

He added that the company plans to launch around 18 to 20 new showrooms in FY27.

Senco Gold share price

The share price of Senco Gold was down over 4% in the early trade today.  Over the past one month, the stock has delivered a return of nearly 4%, while over the past six months, it has advanced 8%. So far this year, the stock has jumped more than 5%.