Rajesh Exports reported a consolidated net profit of ₹469.2 million for the quarter ended June 30, 2026, marking a significant turnaround from the net loss of ₹539.1 million recorded in the previous 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.

In its standalone results for the same period, the company reported a net profit of ₹124.1 million, compared to a net loss of ₹170.9 million in Q4FY26 and ₹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 Q1FY26. Standalone EBITDA for the quarter was ₹65 million, reflecting an EBITDA margin of 0.5%, a sharp contraction from ₹500 million and a 3.51% margin in Q1FY26.

The company’s consolidated pre-tax profit stood at ₹553.0 million, compared to a pre-tax loss of ₹399.0 million in Q4FY26. This improvement was supported by a sharp decline in finance costs, which turned into a net gain of ₹5.8 million in Q1FY27, contrasting with an expense of ₹414.9 million in the prior quarter. Other income also contributed minimally at ₹116.3 million, down significantly from ₹2,406.3 million in the previous quarter.

Financial Performance

The board of directors approved the unaudited financial results during a meeting held on August 14, 2026. The limited review report from statutory auditors BSD & Co. confirmed that the statement contains no modified opinion.

Consolidated cost of materials consumed remained high at ₹240,201.5 million, reflecting the pass-through nature of gold prices in the jewelry business. Employee benefits expense decreased slightly to ₹607.0 million from ₹618.3 million in the previous quarter. Depreciation and amortization expenses rose to ₹154.7 million from ₹141.5 million.

Regulatory Developments

The auditor’s report included an emphasis of matter regarding ongoing regulatory scrutiny. SEBI has passed an interim ex-parte order against the company with certain directions, though no fine or penalty has been levied in the interim order. The company has filed its reply and required documents with the regulator.

During June 2026, the Enforcement Directorate (ED) conducted searches at multiple premises of the company and some key managerial personnel. Additionally, the Serious Fraud Investigation Office (SFIO) has initiated an investigation in this regard. Management stated that the company has furnished the required details and documents to the SFIO.

What the Numbers Show

The financial data reveals a stark divergence between operational scale and profitability margins. While consolidated revenue increased by over ₹108,793.9 million compared to the same quarter last year, the net profit margin remains extremely thin. The cost of materials consumed accounts for approximately 99.9% of total income, indicating that the company operates on razor-thin margins typical of the gold jewelry sector. The turnaround in profitability from Q4FY26 to Q1FY27 was largely driven by a reduction in finance costs rather than a significant expansion in operating margins, as other income also fell sharply from the previous quarter's high base. On a standalone basis, the compression in EBITDA margin from 3.51% to 0.5% highlights pressure on operating efficiency despite the overall group profitability.

The Enforcement Directorate (ED) has conducted an investigation into Rajesh Exports , finding that the company deviated from its usual business practices. The probe has resulted in the seizure of incriminating documents and digital evidence, marking a notable regulatory development for the company.

ED Investigation and Key Findings

During the course of the investigation, the ED identified deviations from Rajesh Exports' established business practices. Authorities seized incriminating documents and digital evidence as part of the enforcement action. The details of the specific nature of the deviations and the scope of the seized material have not been elaborated upon in the available information.

Regulatory Action

The seizure of both physical documents and digital evidence indicates a comprehensive enforcement exercise by the ED. Such actions are typically part of broader investigations into financial or regulatory compliance matters. Further developments in the case are subject to the ongoing investigation by the agency.