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
