Rajesh Exports delivered a remarkable financial turnaround in the June 2026 quarter, posting a consolidated net profit of ₹469.2 crore compared to a net loss of ₹539.1 crore in the previous quarter. According to reports from Business Standard, this represents a complete reversal of the company's financial position from a loss-making to profit-making entity during the quarter. The Bangalore-based jewelry manufacturer saw its consolidated revenue from operations surge 82.7% year-on-year to ₹240,335.7 million, driven by strong demand for gold products.
Despite the financial turnaround, Rajesh Exports faces significant regulatory scrutiny with ongoing investigations by SEBI, ED, and SFIO. During June 2026, the Enforcement Directorate (ED) conducted searches at multiple premises of the company and some key managerial personnel. The Serious Fraud Investigation Office (SFIO) has initiated an investigation in this regard, with management stating that the company has furnished the required details and documents to the SFIO. The auditor's report included an emphasis of matter regarding the ongoing regulatory scrutiny, with SEBI having passed an interim ex-parte order against the company.
While the consolidated results show improvement, standalone performance presents challenges with net profit falling 29% year-on-year to ₹124.1 million compared to ₹176.5 million in Q1FY26. Standalone revenue from operations declined 7.6% year-on-year to ₹13,178.9 million, down from ₹14,265.5 million in the previous year's quarter. Standalone EBITDA dropped significantly to ₹65 million with a 0.5% margin, a sharp contraction from ₹500 million and a 3.51% margin in Q1FY26. The cost of materials consumed accounts for approximately 99.9% of total income, indicating the company operates on razor-thin margins typical of the gold jewelry sector.
Operating profit margin (OPM) improved to 0.02% in the current quarter compared to 0.03% in the previous year, indicating better operational efficiency. Profit before depreciation and tax (PBDT) increased significantly by 410% to ₹70.77 crore from ₹13.89 crore in the corresponding quarter of the previous year. Profit before tax (PBT) surged 3042% to ₹55.30 crore compared to ₹1.76 crore in the previous year's quarter. The consolidated cost of materials consumed remained high at ₹240,201.5 million, reflecting the pass-through nature of gold prices in the jewelry business. Finance costs turned into a net gain of ₹5.8 million in Q1FY27, contrasting with an expense of ₹414.9 million in the prior quarter.
