Rajesh Exports: consolidated PAT falls 75% YoY, 46% QoQ despite 65% revenue surge

Rajesh Exports' consolidated PAT for Q2 FY27 (quarter ended September 30, 2026) came in at ₹25.6 Cr (₹25.4 Cr attributable to owners of the parent, ₹0.2 Cr to minority interest) on revenue from operations of ₹2,89,585 Cr. Revenue grew 65.3% YoY (from ₹1,75,212 Cr) and 20.5% QoQ (from ₹2,40,336 Cr in Q1 FY27), but PAT fell 75.4% YoY (from ₹104.1 Cr in the year-ago quarter) and 45.7% QoQ (from ₹47.2 Cr in Q1 FY27) — moving in the opposite direction of revenue. This reverses Q1's narrative: after Q1 FY27 marked the company's first profitable quarter following a string of losses, Q2 shows that turnaround losing steam rather than building on it, even as the topline kept climbing.

The divergence sits entirely in the margin line. Net profit margin collapsed to ~0.009% of revenue from 0.06% a year ago and ~0.02% in Q1 FY27; EBITDA margin (PBT + depreciation + finance cost, over revenue) fell to ~0.023% from ~0.11% YoY and ~0.03% QoQ. Cost of materials consumed (bullion/gold input cost) alone was ₹2,89,300 Cr — 99.9% of revenue — so in a business with this thin a spread, small swings in input cost or trading volume swamp the profit line; a tax expense of ₹28.8 Cr against PBT of ₹54.4 Cr implies an unusually high effective tax rate of ~53% this quarter, further squeezing what reaches the bottom line. H1 FY27 PAT of ₹72.8 Cr trails H1 FY26's ₹94.5 Cr by ~23%, confirming this isn't a one-quarter blip against an easy base.

The stock went into the print at ₹50.78, down 9.3% over the past month of trading.

For context: revenue is at a 6-quarter high.

EPS ₹0.86 (basic & diluted) on 295.26 Cr shares, down from ₹1.59 in Q1 FY27 and ₹3.52 a year ago

There is no formal analyst consensus for this print in the public domain, and management has issued no formal guidance on record — both gaps we flag rather than paper over. Our own pre-result preview had set an on-plan expectation of ~₹35–50 Cr consolidated profit for the quarter; the actual ₹25.4–25.6 Cr misses that range, confirming rather than easing the Street's pre-result Hold/Neutral stance (target ₹210–290, per JM/Kotak) against a stock trading at ₹50.78 and down 95% from its peak. The quarter's other developments sit alongside, not inside, the numbers: SEBI's October 15, 2026 order imposed no fine but required continued cooperation, the company appointed a new Company Secretary and Compliance Officer on October 8, and the 32nd AGM plus FY26 annual report were completed in September — all consistent with a company still working through a regulatory overhang rather than one that has moved past it. The filing itself carries no separate management commentary or press release beyond the statutory board-meeting letter and the standard note that the group reports a single segment (gold products), so there is no company framing to reconcile against the numbers this quarter.