RAJESHEXPO - Rajesh Exports

📊 NSE: RAJESHEXPO 🏢 Diamond Cutting / Jewellery 📅 Last Updated: 12/14/2025 11:31

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single product segment (Gold products). Consolidated revenue for Q2 FY26 reached INR 175,211.76 Cr, representing a significant growth of 161.8% YoY compared to INR 66,923.67 Cr in Q2 FY25. H1 FY26 revenue stood at INR 306,753.56 Cr, up 141% YoY.

Geographic Revenue Split

Not explicitly disclosed in percentage terms, but the company maintains a global presence through its foreign subsidiary, REL Singapore Pte Ltd, and exports gold and diamond jewellery from its manufacturing base in India.

Profitability Margins

Net Profit Margin for Q2 FY26 was 0.059% (INR 104.05 Cr profit on INR 175,211.76 Cr revenue). Historically, the Net Profit Ratio fell 71.55% in FY24 to 0.12% from 0.42% in FY23 due to falling revenues. Return on Equity also dropped from 9.73% in FY23 to 2.21% in FY24.

EBITDA Margin

Not explicitly disclosed, but the Profit Before Tax (PBT) margin for Q2 FY26 was 0.078% (INR 138.23 Cr PBT). In FY24, the Return on Capital Employed (ROCE) fell by 76.04% YoY to 2.39% due to lower revenue realization.

Capital Expenditure

In H1 FY26, the company invested INR 166.37 Cr in the purchase of fixed assets, compared to INR 90.72 Cr in H1 FY25, representing an 83.4% increase in capital allocation for infrastructure.

Credit Rating & Borrowing

Not disclosed in available documents. However, the company reported finance costs of INR 76.26 Cr for H1 FY26, an increase of 22.5% YoY from INR 62.27 Cr.

⚙️ Operational Drivers

Raw Materials

Gold is the primary raw material, accounting for approximately 99.88% of total operating costs in Q2 FY26 (INR 175,003.50 Cr cost of materials consumed).

Import Sources

Not disclosed in available documents, though the company operates a major subsidiary in Singapore (REL Singapore Pte Ltd) for global sourcing and distribution.

Raw Material Costs

Raw material costs represent nearly the entirety of revenue (99.88% in Q2 FY26). The company's strategy focuses on vertical integration across the gold value chain to manage these high-volume, low-margin costs.

Manufacturing Efficiency

The company highlights different value-addition benchmarks: Asian-type manufacturing adds ~3% value, while Western-type adds ~6%. Refining margins are thin at 0.3-0.6%.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by vertical integration across the gold value chain, including refining (0.3-0.6% margin), manufacturing (3-6%), and retail/wholesale (5-6%). The company leverages its 'SHUBH' brand and global presence via Singapore to scale volumes, as seen in the 161.8% revenue jump in Q2 FY26.

Products & Services

Gold and Diamond Jewellery, including refined gold products and retail jewellery items.

Brand Portfolio

SHUBH, Rajesh Exports.

Market Expansion

The company maintains a global presence in gold and diamond jewellery with a focus on manufacturing and export from India and distribution through Singapore.

🌍 External Factors

Industry Trends

The industry is shifting toward higher value-addition in manufacturing (up to 6% in Western types). The company is positioned as a vertically integrated player to capture these shifts.

Competitive Landscape

Competes with both domestic Indian jewellery retailers and international gold refiners/wholesalers.

Competitive Moat

The company's moat is its scale and vertical integration, allowing it to process massive volumes (INR 1.75 Lakh Cr in a single quarter) at thin margins that competitors may find difficult to sustain.

Macro Economic Sensitivity

Highly sensitive to global gold prices and interest rates. The Debt Service Coverage Ratio fell from 18.26 to 2.64 in FY24, showing high sensitivity to revenue changes.

Consumer Behavior

Demand is driven by cultural affinity for gold in India and global investment trends in bullion.

Geopolitical Risks

As a major exporter and importer of gold, the company is subject to international trade regulations and gold import duty changes in India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Hallmarking standards, SEBI (LODR) regulations, and RBI/MCA guidelines for gold imports and foreign subsidiaries.

Taxation Policy Impact

The company reported no tax assessments for undisclosed income in FY24. It paid INR 255.31 Cr in taxes (net of refunds) in H1 FY26.

Legal Contingencies

The company is involved in a dispute with Canara Bank. Although the company considers itself debt-free, this disputed amount is classified as debt in financial ratios, which caused the Debt Service Coverage Ratio to decline by 85.54% in FY24.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the extreme margin thinness (0.059% net margin), where even a minor increase in operating costs or a slight dip in gold prices can lead to significant percentage drops in profitability.

Geographic Concentration Risk

Significant concentration in India for manufacturing and Singapore for international operations.

Third Party Dependencies

High dependency on global gold bullion suppliers and banking channels for trade finance.

Technology Obsolescence Risk

The company noted that its accounting software lacked an audit trail (edit log) facility in FY24, which is a regulatory compliance risk under the Companies Act.