Rajnish Retail Limited Reports Q3 FY26 Loss Despite Revenue Growth
Rajnish Retail Limited reported a net loss of ₹67.83 lakhs for Q3 FY26 versus a profit of ₹35.91 lakhs in Q3 FY25, despite achieving 36.60% revenue growth to ₹3,204.87 lakhs. The company's nine-month performance shows a cumulative loss of ₹37.04 lakhs against the previous year's profit of ₹125.74 lakhs, even with 42.57% revenue growth to ₹8,924.69 lakhs. Significant increases in employee benefits expenses and purchase of stock in trade contributed to the profitability decline.
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Rajnish retail Limited has announced its unaudited financial results for the quarter ended December 31, 2025, revealing a challenging performance despite revenue growth. The company reported a net loss of ₹67.83 lakhs for Q3 FY26, marking a significant decline from the profit of ₹35.91 lakhs recorded in the corresponding quarter of the previous year.
Financial Performance Overview
The company's quarterly performance presents a mixed picture, with strong revenue growth offset by operational challenges:
| Metric | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Total Revenue | ₹3,213.87 lakhs | ₹2,361.33 lakhs | +36.08% |
| Revenue from Operations | ₹3,204.87 lakhs | ₹2,345.94 lakhs | +36.60% |
| Net Profit/(Loss) | ₹(67.83) lakhs | ₹35.91 lakhs | -288.88% |
| Basic EPS | ₹(0.0432) | ₹0.0234 | -284.62% |
The company's revenue from operations grew substantially by 36.60% to ₹3,204.87 lakhs in Q3 FY26 from ₹2,345.94 lakhs in Q3 FY25. However, this revenue growth was overshadowed by increased expenses and operational inefficiencies.
Expense Analysis
The company's expense structure reveals several key challenges that contributed to the quarterly loss:
| Expense Category | Q3 FY26 | Q3 FY25 | Change (%) |
|---|---|---|---|
| Purchase of Stock in Trade | ₹3,300.00 lakhs | ₹2,212.40 lakhs | +49.16% |
| Employee Benefits | ₹66.77 lakhs | ₹2.60 lakhs | +2,468.46% |
| Other Expenses | ₹69.31 lakhs | ₹68.50 lakhs | +1.18% |
| Total Expenses | ₹3,281.70 lakhs | ₹2,313.45 lakhs | +41.85% |
The most significant expense increase was in employee benefits, which surged from ₹2.60 lakhs to ₹66.77 lakhs. Purchase of stock in trade also increased substantially by 49.16%, outpacing revenue growth and impacting margins.
Nine-Month Performance
The company's nine-month performance for FY26 shows similar trends, with revenue growth accompanied by profitability challenges:
| Parameter | 9M FY26 | 9M FY25 | Change (%) |
|---|---|---|---|
| Total Revenue | ₹8,924.69 lakhs | ₹6,260.62 lakhs | +42.57% |
| Net Profit/(Loss) | ₹(37.04) lakhs | ₹125.74 lakhs | -129.45% |
| Basic EPS | ₹(0.0236) | ₹0.0820 | -128.78% |
For the nine months ended December 31, 2025, the company reported a net loss of ₹37.04 lakhs compared to a profit of ₹125.74 lakhs in the corresponding period of the previous year, despite achieving revenue growth of 42.57%.
Sequential Quarter Comparison
Comparing Q3 FY26 with the previous quarter (Q2 FY26) shows a decline in both revenue and profitability. Total revenue decreased from ₹3,514.23 lakhs in Q2 FY26 to ₹3,213.87 lakhs in Q3 FY26, while the company moved from a profit of ₹12.93 lakhs in Q2 to a loss of ₹67.83 lakhs in Q3.
Corporate Governance
The Board of Directors approved these unaudited financial results at their meeting held on January 21, 2026. The results were reviewed by the Audit Committee and have been subjected to a limited review by the company's statutory auditors, C.P. Jaria & Co., Chartered Accountants. The company operates in a single business segment, making segment reporting under accounting standards not applicable. The paid-up equity share capital stands at ₹1,567.50 crores with a face value of ₹1 per share.
Historical Stock Returns for Rajnish Retail
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.89% | -15.13% | -35.60% | -51.96% | -77.59% | +2,909.09% |
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