Rajesh Exports turns Q1FY27 profitable at ₹47 Cr amid SEBI/ED probe overhang

Rajesh Exports' consolidated Q1FY27 (quarter ended June 30, 2026) results mark a turnaround: the group swung to a net profit of ₹47.19 Cr against a loss of ₹9.53 Cr in the year-ago quarter and a loss of ₹53.50 Cr in the immediately preceding quarter (Q4FY26). Revenue from operations rose 82.7% YoY to ₹2,40,335.72 Cr (₹1,31,541.80 Cr in Q1FY26), and was up a modest 1.5% QoQ from ₹2,36,864.21 Cr. Basic EPS came in at ₹1.59 versus a loss per share of ₹0.32 a year earlier. This filing carries only the consolidated statement — no standalone results are included. Profitability improved on both a revenue-scale and margin basis. Total expenses of ₹2,40,292.05 Cr (dominated by cost of materials consumed at ₹2,40,201.47 Cr, the bullion cost that tracks gold prices almost one-for-one) grew slightly slower than income, lifting pre-tax profit to ₹55.30 Cr from a ₹39.90 Cr pre-tax loss in Q4FY26 and a ₹1.76 Cr pre-tax profit in Q1FY26. Net profit margin turned positive at roughly 0.02% of total income, against -0.01% a year ago — margin "expansion" in relative terms, but the absolute level underscores that this remains a wafer-thin-margin bullion-trading business rather than a jewellery-brand margin story. No exceptional or one-off items are broken out in the statement, so the swing reflects the ordinary trading spread rather than a one-time gain. We found no formal management guidance on record for this quarter, and no analyst/brokerage consensus estimate for Q1FY27 PAT or revenue turned up in a web search — vsGuidance and vsStreet are both unknown; no management press-release commentary was available in the context either. What is on record, and material, is the auditor's Emphasis of Matter: SEBI has passed an interim ex-parte order against the company (no fine or penalty imposed; the company has filed its reply), the Enforcement Directorate searched multiple company premises and some KMPs' premises during June 2026, and the Serious Fraud Investigation Office (SFIO) has separately opened an investigation, with the company stating it has furnished the requested documents. The auditor's review conclusion itself was not modified by these matters. This sits alongside the company's own June 2026 clarifications denying knowledge of an NEFRA probe and denying revenue-overstatement allegations tied to the SEBI order. Going into Q2FY27, the operating print — a return to profit on both YoY and QoQ bases — is secondary to the unresolved regulatory track: the SEBI order, the ED searches, and the SFIO investigation are all still open as of this filing, and their resolution (or escalation) is the dominant swing factor for the stock rather than the underlying bullion-trading margin, which remains structurally thin.