Rajesh Exports profit falls 75% despite 65% sales rise

Rajesh Exports Limited reported net profit of Rs 25.617 crore for the quarter ended September 30, 2026, down 75.4% year on year, although net sales increased 65.5% to Rs 2,89,585.404 crore. The consolidated statement shows profit before tax fell to Rs 54.381 crore from Rs 137.024 crore a year earlier.

Why did Rajesh Exports’ profit decline despite higher sales?

Rajesh Exports’ filing shows that expenses rose alongside income, leaving a smaller reported profit before tax, but it does not provide a management explanation for the decline. Net sales increased by Rs 1,14,573.641 crore from Rs 1,75,011.763 crore in the quarter ended September 30, 2025 to Rs 2,89,585.404 crore in the latest quarter.

Total income from operations was Rs 2,89,595.170 crore in the September 2026 quarter, compared with Rs 1,75,224.059 crore a year earlier. Other income was Rs 9.766 crore, lower than Rs 12.296 crore in the comparable quarter, while total expenses reached Rs 2,89,540.788 crore, compared with Rs 1,75,087.035 crore.

The difference between reported total income and total expenses was Rs 54.381 crore in the latest quarter, matching the reported profit before tax. The equivalent difference was Rs 137.024 crore a year earlier, meaning the pre-tax surplus narrowed even as the group’s sales expanded.

What does Rajesh Exports’ cost data show?

Rajesh Exports reported cost of materials consumed of Rs 2,89,300.015 crore for the September 2026 quarter, versus Rs 1,75,003.495 crore a year earlier. That cost increased by Rs 1,14,296.520 crore, close to the Rs 1,14,573.641 crore increase in net sales shown in the consolidated statement.

The company recorded a negative Rs 18.758 crore change in inventories of finished goods, work in progress and stock in trade in the latest quarter. The equivalent figure was negative Rs 52.771 crore in the September 2025 quarter, a movement of Rs 34.013 crore between the two periods.

Finance costs were Rs 178.394 crore in the latest quarter, compared with Rs 19.244 crore in the corresponding quarter of 2025. The filing also reports employee-benefit expense of Rs 67.873 crore and other expenses of Rs 12.535 crore for the September 2026 quarter, alongside the cost-of-materials line.

These figures establish the reported movement in income and expenses but do not identify a specific operational cause for the lower profit. Rajesh Exports stated that it deals in a single product, gold products, and therefore did not furnish segment-wise figures that could separate revenue, costs or profit across businesses.

How did Rajesh Exports perform compared with the June quarter?

Rajesh Exports’ September-quarter sales were higher than in the preceding June 2026 quarter, while profit was lower. Net sales rose by Rs 49,249.689 crore from Rs 2,40,335.715 crore in June 2026 to Rs 2,89,585.404 crore in September 2026.

Net profit after tax fell by Rs 21.575 crore sequentially, to Rs 25.617 crore from Rs 47.192 crore in the June quarter. Profit before tax edged down by Rs 0.916 crore, from Rs 55.297 crore in June to Rs 54.381 crore in September.

Tax expense was Rs 28.764 crore in the September quarter, compared with Rs 8.105 crore in the June quarter. The quarter-on-quarter change in tax expense was therefore larger than the Rs 0.916 crore reduction in profit before tax, based on the figures reported in the consolidated statement.

Total income from operations rose from Rs 2,40,347.349 crore in June 2026 to Rs 2,89,595.170 crore in September 2026. The filing does not provide management commentary on why the higher September sales did not translate into a higher quarterly net profit.

What were Rajesh Exports’ half-year results and financial position?

Rajesh Exports reported net sales of Rs 5,29,921.119 crore for the half year ended September 30, 2026, up from Rs 3,06,753.559 crore in the corresponding half year of 2025. Net profit after tax was Rs 72.809 crore, compared with Rs 94.519 crore in the prior-year half year.

Profit before tax for the latest six-month period was Rs 109.678 crore, down from Rs 138.786 crore a year earlier. Tax expense was Rs 36.869 crore for the half year ended September 30, 2026, while the company reported earnings per share of Rs 2.45, compared with Rs 3.20 for the corresponding 2025 half year.

Total assets stood at Rs 32,767.462 crore at September 30, 2026, compared with Rs 40,892.549 crore at March 31, 2026. Total equity was Rs 17,326.250 crore at the half-year date, against Rs 17,416.703 crore at the preceding financial year-end.

What did the auditor say about Rajesh Exports’ results?

Rajesh Exports’ unaudited consolidated results were reviewed by the audit committee and approved by the board on November 14, 2026. The company separately stated that the accompanying limited review for the quarter ended September 30, 2026 contained no modified opinion.

B S D & Co. said nothing had come to its attention from its review and procedures performed that caused it to believe the statement had not disclosed the required information or contained a material misstatement. The review was conducted under the Standard on Review Engagements 2410, which the report says provides moderate assurance and is substantially narrower in scope than an audit.

The auditor said it did not review the interim financial information of subsidiaries included in the consolidated results. Those financial results were certified by the holding company’s management, and the auditor relied on board-approved unaudited subsidiary financial statements and its stated procedures for that part of the conclusion.

The consolidated group comprises Rajesh Exports, an Indian subsidiary, and a wholly owned Singapore subsidiary that includes two overseas step-down subsidiaries. The reported current liabilities were Rs 15,285.341 crore at September 30, 2026, down from Rs 23,314.451 crore at March 31, 2026.

Conclusion

Rajesh Exports reported a substantial divergence between sales and profit in the September 2026 quarter. Net sales rose 65.5% year on year to Rs 2,89,585.404 crore, but net profit fell 75.4% to Rs 25.617 crore as total expenses increased to Rs 2,89,540.788 crore and profit before tax declined to Rs 54.381 crore.

The next results disclosure will show whether profit conversion changes after the September quarter, when profit was below the June 2026 quarter despite higher sales. The November 14, 2026 filing disclosed no earnings target, operating plan or scheduled corporate event, and it did not give a specific explanation for the lower profitability.