Rajesh Exports Ltd Q2 FY26: From Gold Bars to Governance Scars – The ₹6 Lakh Crore Sales Giant with 1% Margins and 100% Drama

1.At a Glance

If Bollywood ever made a movie called“The Great Indian Margin Mystery”, Rajesh Exports Ltd (REL) would be the star. Picture this: ₹6,02,574 crore in sales, ₹132 crore in profit, and an operating profit margin that could fit inside a mosquito’s mouth—0.05%. The company, with a market cap of ₹5,504 crore and a P/E of 41.7, looks like a paradoxical mix of ambition, opacity, and sheer audacity.

It refines 35% of the world’s gold and yet trades at 0.33x book value, which is basically the market saying, “Bhai, kuch toh gadbad hai.” Despite posting quarterly sales of ₹1,75,212 crore in Q2 FY26 and a PAT of ₹104 crore (128% jump YoY), its ROE barely twitches at 0.61%. Debt? A modest ₹879 crore—probably less than their annual tea budget. But governance issues, missing audit reports, and a mysterious Swiss subsidiary ensure the glittering empire keeps investors guessing: “Is it gold, or just gold-plated chaos?”

2.Introduction

Welcome to the world of Rajesh Exports Ltd—India’s golden enigma since 1989. On paper, this company processes more gold than most countries possess in reserves. In reality, its margins are thinner than a 24-karat leaf and its filings murkier than a politician’s affidavit.

It’s the only firm globally present across the entire gold value chain—from refining to retailing. Yet, for shareholders, that chain often feels more like handcuffs. REL’s share price is down 20% over the past year, 35% over three, and 16% over five. Investors are still waiting for the shine to return while the company casually reports an EPS of ₹4.47 and continues to pay no dividend.

And let’s not ignore the numbers: ₹1,75,212 crore quarterly sales in Sep 2025, ₹104 crore profit, 128% profit growth, and a P/E that looks like a Titan wannabe. It’s the kind of balance sheet that makes you laugh, cry, and check your calculator twice. So buckle up—because this gold bar has more plot twists than a Sanjay Leela Bhansali film.

3.Business Model – WTF Do They Even Do?

So what exactly does Rajesh Exports do? In simple terms:They turn gold into smaller, shinier gold—and somehow make no money doing it.

Here’s the pitch: REL refines gold, designs jewelry, manufactures machine chains, and exports the shiny stuff to over 60 countries. They claim to process 35% of all the gold produced worldwide—yes, one-third of global production—yet they operate at margins of under 1%. That’s like owning half of Zomato and still eating Maggi for dinner.

Their flagship brandSHUBH Jewellersruns 82 stores across Karnataka, catering to retail buyers who like their jewelry with a side of confusion (“Why does a global gold refiner only sell in Karnataka?”).

The company’s crown jewel (pun intended) isValcambi, its Swiss subsidiary that makes gold bars for major bullion banks. Add to that a new venture in lithium-ion battery manufacturing under “ACC Energy Storage,” and you’ve got a company that’s somehow both medieval (gold refining) and futuristic (EV batteries). Think of it as Lakshmi meeting Elon Musk.

But with operating costs consuming 99% of total sales, it’s less “gold rush” and more “gold crush.”

4.Financials Overview

Commentary:So yes, revenue doubled, profit tripled, and EPS turned from red to gold—literally. But before you get excited, remember: ₹1.75 lakh crore in sales to earn ₹104 crore profit means they earn ₹1 for every ₹1,685 sold. This is not a business model; it’s a financial comedy sketch. Even a vada pav vendor has better margins.

5.Valuation Discussion – Fair Value Range (Educational Only)

Let’s get nerdy.

P/E