Synopsis: Jewellery stock hit a 5% lower circuit after Q3 results despite 143% YoY revenue growth. Net profit rose annually but fell 32% QoQ, highlighting margin pressure and weak earnings momentum.
A small-cap company, primarily engaged in refining, manufacturing, and exporting of gold and Gold Products, has come into the spotlight following the announcement of its Q3 financial results, attracting attention from investors and market watchers.
With a market capitalization of Rs. 5,019.42 crore, the shares of Rajesh Exports Limited were trading at Rs. 170, down by 4.47 percent from its previous day’s closing price of Rs. 177.95 per equity share. The stock has touched intraday low of Rs. 169.10, hitting lower circuit of 5 percent.
Q3FY26 Results
The company reported strong revenue growth in Q3FY26, with revenue rising to Rs. 2,35,098 crore, marking a robust 143.3 percent year-on-year (YoY) increase compared to Rs. 96,630 crore in Q3FY25. On a quarter-on-quarter (QoQ) basis, revenue grew 34.2 percent from Rs. 1,75,212 crore in Q2FY26, indicating healthy sequential momentum alongside sharp annual expansion.
EBITDA stood at Rs. 114 crore in Q3FY26, up 70.1 percent YoY from Rs. 67 crore in Q3FY25. However, on a QoQ basis, EBITDA declined 35.2 percent from Rs. 176 crore in Q2FY26, suggesting margin pressure during the quarter despite strong annual growth.
Net profit came in at Rs. 71 crore in Q3FY26, registering a 97.2 percent YoY growth compared to Rs. 36 crore in Q3FY25. Sequentially, profit fell 31.7 percent from Rs. 104 crore reported in Q2FY26, reflecting a moderation in earnings performance compared to the previous quarter.
The increase in revenue quarter over quarter may have been supported by the rally in gold prices, which likely boosted topline performance. However, despite higher revenue, the company was unable to translate this growth into improved bottom-line profitability, indicating pressure on margins or higher operating costs. Additionally, the rise in interest expenses from Rs. 39 crore to Rs. 46 crore could have further weighed on net profit, as higher finance costs would directly impact earnings and limit overall profitability growth.
Rajesh Exports Limited is a gold refining company engaged in the manufacturing, wholesale, and retailing of gold and gold-based products across India. It operates retail outlets under the SHUBH Jewellers brand and also exports its products to international markets. Incorporated in 1989, the company is headquartered in Bengaluru, India.
A return on equity (ROE) of about 0.61 percent, a return on capital employed (ROCE) of about 1.47 percent and debt to equity ratio at 0.05 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 30x higher as compared to its industry P/E 22.3x.
Over the past five years, the company has demonstrated negative growth, achieving a revenue CAGR of 17 percent whereas a profit CAGR of -40 percent, and a price CAGR of -18 percent, reflecting operational performance and share price performance.
As of September 2025, the shareholding pattern of Rajesh Exports Limited shows that promoters hold a 54.55 percent stake in the company. Foreign Institutional Investors (FIIs) own 15.26 percent, while Domestic Institutional Investors (DIIs) account for 10.96 percent. Retail investors and others collectively hold the remaining 19.24 percent stake.
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