Senco Gold Limited has received a credit rating of 'CARE A1' for its short-term bank facilities amounting to ₹50 crore from CARE Edge (CARE Ratings Limited).

This rating is attributed to the company's operational growth, financial discipline, robust capital allocation, and sustained improvement in key financial indicators. The announcement highlights the company's journey, including previous ratings from ICRA for long-term facilities which were enhanced to ICRA A(Stable) in June 2023 and retained with an increased borrowing limit of ₹2400 crore as of June 2025. Its short-term banking facilities were consistently maintained at ICRA A2+(Stable).

The press release from CARE Edge emphasizes that the 'CARE A1' rating reflects Senco Gold's sustained value creation through fund-raising via Private Equity in April 2022, IPO in July 2023, and QIP in December 2024. It also notes the company's consolidated market presence, efficient working capital management, resilience to gold price volatility, aggressive showroom expansion to 196 outlets, and sustained improvement in EBITDA, PBIT, and Adjusted PAT.

The rating rationale acknowledges Senco Gold's strong brand image and established market presence, particularly in the eastern region, satisfactory capital structure with a net overall gearing ratio of 0.86x as of March 31, 2025, and improved financial performance with a CAGR of approximately 19% in Total Operating Income from FY21 to FY25.

However, the rating is partially offset by the working capital-intensive nature of operations, geographical concentration risk, exposure to gold price volatility, intense competition, and susceptibility to regulatory risks in the gems and jewellery industry. The company's liquidity is noted as strong, with sufficient cash accruals expected to meet debt obligations.