Radhika Jeweltech Ltd Q3 FY26: ₹214 Cr Sales, ₹31 Cr PAT, 20% OPM — Is Rajkot’s Gold Machine Mispriced at 10.7x P/E?

1. At a Glance – The Rajkot Gold Factory That Markets Forgot

₹836 crore market cap. ₹70.8 stock price. 10.7 P/E. 25.8% ROCE. 20.5% ROE. 20% quarterly operating margin.

And the stock is down ~16% in 3 months and ~28% in one year.

Welcome to the strange world of Radhika Jeweltech Ltd — a Rajkot-based jeweller quietly compounding profits while the market seems busy buying shinier national brands.

Latest Q3 FY26 (Dec 2025 quarter):

• Revenue: ₹214 Cr
• PAT: ₹30.6 Cr
• EPS: ₹2.60
• OPM: 20%

At 10.7x earnings in a sector where peers trade at 20–70x, this company looks like the quiet topper in the backbench.

But jewellery business is tricky. Gold prices swing. Inventory cycles stretch. Family control is tight. And promoter holding just fell.

So what’s happening here?

Is this:

• A disciplined regional powerhouse?
• Or a small-cap that hasn’t scaled beyond one city?
• Or a goldmine hidden in plain sight?

Let’s open the locker.

2. Introduction – Small City, Big Margins

Rajkot isn’t Mumbai. It isn’t Chennai. It isn’t Dubai.

Yet, out of this city operates a jewellery retailer serving 20 lakh+ customers till date.

Founded in 2016, Radhika Jeweltech focuses on:

• Gold jewellery (~97% revenue in FY23)
• Diamond jewellery (~3%)
• Customised bridal pieces
• Jewellery repairs & services

They started with a 2,500 sq ft showroom seeing 200+ daily footfalls. Then upgraded to a 10,000 sq ft, four-storey showroom.

Ticket size? ₹10,000 to ₹5 lakh.

That’s not roadside jewellery. That’s serious spending.

Now here’s the interesting part.

Despite being:

• Single-city focused
• Gold-heavy revenue mix
• Family-controlled

They’ve delivered:

• 36% sales CAGR (3 yrs)
• 42% profit CAGR (5 yrs)
• 20%+ ROE consistently

So the obvious question:

If growth is solid and returns are strong, why is the valuation so modest?

And why did promoter holding fall from ~63% to ~57%?

Before we judge, let’s understand the business.

3. Business Model – WTF Do They Even Do?

Let’s simplify.

Radhika Jeweltech does three main things:

1. Sells gold jewellery (main revenue driver)
2. Sells diamond jewellery (small but higher margin)
3. Offers customisation & bridal experiences

They are not a pan-India chain like Titan Company or Kalyan Jewellers.

They are a deeply local brand in Rajkot.

Key differentiators:

• Bridal experience centre
• Digital design bank
• Jewellery experience lounge
• Valet parking (because gold