Radhika Jeweltech Ltd Q2FY26 (Sep 2025) – Gold Glitters, Auditors Quit, and Rajkot’s Favourite Showroom Keeps Flexing its 17% OPM
1. At a Glance
Radhika Jeweltech Ltd (RJL) — Rajkot’s gold and diamond darling — just reported another quarter that would make even Dhanteras blush. For Q2FY26 (Sep 2025), the company clocked revenue of ₹133 crore and PAT of ₹18.4 crore, delivering a jaw-dropping 74% YoY profit surge even as sales grew just 1.19%. The stock trades around ₹85.9, with a P/E of 14.4x, and a market cap of ₹1,012 crore, proving that even in a market of overpriced jewellery stocks (Titan at 82x!), small-town sparkle still finds its own shine.
With an ROCE of 25.8%, ROE of 20.5%, and Operating Margin of 17.2%, Radhika’s balance sheet is cleaner than most wedding rings it sells. No pledges, no drama — except for that 2023 Income Tax search operation cameo (more on that later).
But here’s the kicker: Promoter holding dropped by 6% in FY25, and yet the company keeps generating profit growth of 38.7%. If gold had a personality, Radhika would be that relative who shows up to weddings overdressed but still ends up charming everyone.
2. Introduction
Welcome to Rajkot — the land where even the smallest corner store sells gold heavier than your emotional baggage. Radhika Jeweltech, founded in 2016, didn’t just jump into the jewellery business; it practically cannonballed into it, making ripples big enough to reflect Titan’s glare in the mirror.
The company has served over 20 lakh customers, and if each of them bought even one ring, Rajkot’s streets are probably paved in 22-karat by now. With a 10,000 sq. ft. four-storey showroom that feels more like a jewellery theme park, Radhika is betting big on the “wedding economy” — because if Indians love two things, it’s shaadis and gold (and sometimes both together).
But hold on — this is not your typical “bullion bazaar” story. Radhika is lean, nimble, and shockingly well-managed for a smallcap jeweller. Its current ratio of 8.3x and debt-to-equity of 0.13 make it financially zen-like. The last five years have seen sales rise from ₹313 crore (FY23) to ₹588 crore (FY25) and PAT more than double from ₹30 crore to ₹60 crore.
Still, not everything that glitters is 24K. The promoter holding has been melting slowly, and after that Income Tax search in 2023, some investors began checking purity certificates twice.
3. Business Model – WTF Do They Even Do?
Radhika Jeweltech is basically Rajkot’s homegrown jewellery department store — they design, manufacture, and sell gold, diamond, and platinum jewellery, both standard and custom. In short: they sell “emotions in grams.”
Here’s the breakdown:
Gold jewellery – 97% of sales. The kind your aunt flaunts at every family function.
Diamond jewellery – 3% of sales. The kind your cousin’s fiancée demands.
Other bling – platinum pieces and gold-plated watches for those who can’t decide between subtle and shiny.
Their crown jewel (pun intended) is the Rajkot showroom:
2,500 sq. ft. old store (200 daily footfalls).
10,000 sq. ft. new showroom with a bridal experience centre, digital design bank, and valet parking — because god forbid someone scratch their Mercedes while buying mangalsutras.
In essence, Radhika runs on mass retail meets personal touch. They’re not a Titan with 1,000 stores — they’re a single-store powerhouse that knows every customer’s son’s engagement date.
Commentary: Revenue barely moved, but profits sprinted like Usain Bolt with a gold chain. This margin expansion is not luck — it’s the sweet combo of higher-value sales and tight cost control. The 17% operating margin proves that while others are fighting for carat, Radhika’s fighting for cash flow.
5. Valuation Discussion – Fair Value Range
Method 1: P/E Basis
Industry P/E: ~30x
RJL P/E: 14.4x
Annualised EPS: ₹6.24
Fair Value Range = 15×6.24 to 25×6.24 = ₹94–₹156
Method 2: EV/EBITDA Basis
EV/EBITDA = 10.2x (current)
Assuming peer average 14–18x
EBITDA (FY25): ₹89 Cr
Fair Value Range = ₹1,250–₹1,600 Cr EV → Equity Value ≈ ₹90–₹120 per share
Method 3: DCF (Simplified)
PAT CAGR (last 5 yrs): ~42%
Assume 15% sustainable growth for 5 years, 8% terminal, discount 12%. → Fair Value ≈ ₹95–₹140
Fair Value Range (Educational Estimate): ₹90–₹140 per share.
Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
Where do we start? 2023 gave RJL its own Netflix-worthy plot twist — Income Tax Department raid on 17 July 2023. Rumours swirled faster than karats in a centrifuge, but the company carried on, cleaned up its act, and doubled profits since then.
In October 2025, the company saw a promoter share transmission after the passing of a family member, leading to new heirs — Divyesh and Trushil — entering the promoter group. If there was ever a Gujarati family business succession story, this is it.
And of course, the showroom upgrade remains the flagship event. The expanded 10,000 sq. ft. space means RJL can finally sell diamond chokers without customers elbowing each other.
