01 — At a Glance
The Gold Refiner That Processes 35% of Global Gold But Can’t Refine Its Own Business Model
- 52-Week High / Low₹239 / ₹93.8
- Q3 FY26 Sales₹2,35,098 Cr
- Q3 FY26 PAT₹71.5 Cr
- Q3 FY26 EPS₹2.42
- Annualised EPS₹9.68
- Book Value / Share₹562
- Price to Book0.17x
- Operating Margin0.04%
- Debt / Equity0.05x
- ROCE1.47%
Flash Summary: Rajesh Exports is that friend who says “I’m doing great, business is booming!” while their actual profit margin is 0.04% — basically the financial equivalent of that bhaji vendor who serves you with incredible enthusiasm but can’t actually make money from it. Q3 FY26: ₹2,35,098 crore in sales for ₹71.5 crore profit. That’s 99% material cost and your margin left behind at the chai tapri. Stock down 54% in 3 months. Brickwork Ratings said “issuer not cooperating” — even the auditors have lost patience.
02 — Introduction
The Company That Processes 35% of Global Gold & Still Trades at 0.17x Book Value
Imagine this. You’re told a company processes 35% of the world’s gold. You think: “That’s massive. This must be a fortress.” Then you look at the financials and realise that 99% of their sales value is literally just the cost of the gold they’re processing. It’s like being a master chef who makes 0.04% margin on a biryani. Your skill is incredible. Your business model is a slow-motion car crash.
Rajesh Exports Limited, since 1989, has positioned itself across the entire gold value chain — refining, manufacturing, exporting, and retailing through its SHUBH Jewellers brand. Two refining facilities (Valcambi, Switzerland and Uttarakhand, India) with 2,400 TPA capacity. Three manufacturing facilities (Bangalore, Cochin, Dubai) with 350 TPA capacity. 82 retail showrooms in Karnataka. A design portfolio of 29,000 active designs. On paper? A gold empire. On the balance sheet? A company where the margin is so thin it’s basically theoretical.
Q3 FY26 results show ₹2,35,098 crore in sales, ₹71.5 crore profit, and an operating margin of 0.04%. That 0.04% figure isn’t a typo — it’s a permanent feature of the business. The company has ₹879 crore in debt (relatively low), ₹1,26,986 crore in assets, and a stock price that has collapsed 54% in 3 months, and -50% in 12 months. Brickwork Ratings downgraded to BWR D and marked them as “issuer not cooperating” — which is credit analyst speak for “we’ve given up trying to get information from you.”
The Governance Red Flag: Since Q1 FY24, the company has missed auditor report filings, skipped cash flow statements, and failed to align preliminary financials with final ones for 3 consecutive years. The consolidated subsidiary (REL Singapore Pte Ltd) which contributes 98% to consolidated sales has NOT been audited by the consolidated auditor since FY22. Both BSE and NSE issued warning letters in Nov 2024. SEBI initiated a forensic investigation (Dec 2024). The company received multiple fines, including ₹9.26 lakh from exchanges. This isn’t just sloppy reporting — this is structural corporate governance that makes investors sweat.
03 — Business Model: WTF Do They Even Do?
Refine Gold. Mark It Up 0.04%. Pray. Repeat.
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