Rajesh Exports Q1 2026 Results: Sharp Sales Growth but Profitability Under Pressure
Rajesh Exports, one of India’s largest players in the gold refining and jewellery export business, released its Q1 2026 financial results, which presented a mixed picture for investors. While sales surged impressively, the company’s profits did not keep pace and in fact turned negative, raising questions about its operating model and margin sustainability in a volatile global market.
At a market price of ₹203 per share and a market capitalization of approximately ₹5,980 crore, Rajesh Exports trades at a steep valuation of 81.4 times its earnings, which seems challenging to justify given the latest performance numbers. Investors tracking the company closely will want to unpack the details of the first quarter to assess where the business is headed.
Sales Surge in Q1 2026
The highlight of the Rajesh Exports Q1 2026 results was the 118% year-on-year growth in sales. Revenue jumped to ₹1,31,542 crore compared to ₹60,356 crore in Q1 2025. On a sequential basis, however, sales were down compared to the previous quarter (Q4 2025) where the company had posted ₹1,99,190 crore.
This revenue growth reflects robust global demand for gold and jewellery exports, as well as Rajesh Exports’ ability to capture larger contracts. The company remains a major global player in gold refining and jewellery exports, which allows it to leverage scale. However, the sequential dip signals that quarterly fluctuations remain sharp, which investors must take into account when evaluating growth stability.
EBITDA Trends
EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) saw a modest rise of 13% year-on-year, moving from ₹37.3 crore in Q1 2025 to ₹42.1 crore in Q1 2026. Sequentially, this is a significant turnaround from the negative EBITDA of ₹-13.5 crore in Q4 2025.
This indicates that operational efficiency has improved, but margins remain thin relative to the company’s massive sales figures. Given the scale of its business, EBITDA levels at just a few dozen crores raise concerns about whether the company is effectively converting revenue into operational profitability.
Net Profit Takes a Hit
The most concerning element of the Q1 2026 results was the steep fall in net profit. Rajesh Exports reported a loss of ₹9.53 crore, compared to a profit of ₹11.9 crore in Q1 2025 and a profit of ₹1.95 crore in Q4 2025. This represents a 180% year-on-year decline in net profitability.
The company attributed this decline to a mix of global gold price volatility, higher operational costs, and currency-related challenges. The depreciation in certain foreign currencies against the Indian Rupee may have also impacted export realizations.
Such fluctuations are not uncommon in commodity-linked businesses, but the sharp drop highlights the company’s vulnerability to external shocks.
EPS Performance
Earnings per share (EPS) also reflected the strain on profitability. EPS for Q1 2026 came in at ₹-0.32, compared to ₹0.40 in Q1 2025 and ₹0.07 in Q4 2025.
Negative EPS suggests that shareholders faced value erosion in this quarter despite the high topline growth. With a current price-to-earnings (PE) ratio at 81.4, the stock’s valuation seems stretched in the absence of consistent earnings growth.
What This Means for Investors
The Rajesh Exports Q1 2026 results paint a complex picture. On the one hand, the company demonstrated its ability to generate strong revenue growth in a competitive environment. On the other, the net profitability metrics reveal structural weaknesses in converting sales into sustainable profits.
For long-term investors, the concern lies in whether Rajesh Exports can stabilize its margins. If gold price fluctuations and operational inefficiencies continue to drag profitability, then the high valuation may not be justified.
Broader Industry Context
The jewellery and gold refining sector is highly sensitive to global economic conditions, gold price movements, and currency fluctuations. In recent months, global gold prices have been volatile due to central bank interest rate decisions, inflationary trends, and geopolitical tensions.
For exporters like Rajesh Exports, these factors play a significant role in determining quarterly performance. Unlike companies with diversified revenue streams, Rajesh Exports is heavily tied to one commodity, which increases risk exposure.
Strategic Outlook
Going forward, investors will watch whether Rajesh Exports can:
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Improve operational margins by streamlining costs.
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Hedge effectively against currency fluctuations.
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Reduce dependence on volatile external demand cycles.
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Deliver more consistent profitability despite global headwinds.
If the company can execute well on these fronts, then its large sales base can translate into higher shareholder value. Otherwise, the stock risks being overvalued in the medium term.
Valuation Concerns
At a PE multiple of 81.4, Rajesh Exports trades significantly above the industry average. Typically, such high multiples are reserved for companies with strong earnings visibility and growth consistency. Given the negative EPS in Q1 2026, the current valuation may appear stretched.
Investors should exercise caution and closely monitor subsequent quarters before committing long-term capital.
Analyst View
Market analysts remain divided on Rajesh Exports. Some highlight its global scale and ability to secure massive contracts, while others warn that its razor-thin margins and dependence on volatile global gold prices make it a risky bet.
The Q1 2026 results reinforce this duality. While sales growth is encouraging, the profit slump cannot be ignored. A cautious approach is recommended for those considering exposure to the stock.
FAQs
Q1: What were the key highlights of Rajesh Exports Q1 2026 results?
Rajesh Exports reported a 118% year-on-year increase in sales at ₹1,31,542 crore, but also posted a net loss of ₹9.53 crore, marking a sharp fall in profitability.
Q2: Why did Rajesh Exports report a net loss in Q1 2026?
The loss was attributed to higher operational costs, gold price volatility, and currency-related challenges impacting export margins.
Q3: How did Rajesh Exports’ EPS perform in Q1 2026?
EPS fell to ₹-0.32, compared to ₹0.40 in Q1 2025, reflecting the net loss recorded in the quarter.
Q4: Is Rajesh Exports stock overvalued at current levels?
With a PE of 81.4 and negative EPS in Q1 2026, the valuation looks stretched unless profitability improves in upcoming quarters.
Q5: What should investors watch for in the coming quarters?
Investors should track margin improvements, currency management strategies, and consistency in profit generation.
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Times of Dhan News Desk is a team of dedicated digital journalists who specialize in breaking down complex news across business, tech, and markets into simple, insightful stories. Our mission is to help readers stay ahead with timely, accurate, and helpful updates that matter.
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