Radhika Jeweltech (RADHIKAJWE) Q2 FY27 Profit Grows 20% as Margins Expand Despite a Seasonal Sales Dip
The Rajkot jeweller posted a 19.5% jump in net profit year-on-year, but revenue slipped sequentially ahead of the festive season.
Radhika Jeweltech's Q2 FY27 profit rose 19.5% year-on-year to ₹22 crore, driven by a 100 bps margin expansion. Revenue grew 12% from last year but dipped 2.3% from the previous quarter, reflecting a pre-festive lull in a high gold price environment.
For a regional jeweller like Radhika Jeweltech, the September quarter is often a quiet prelude before the Diwali and wedding season rush. This year, that meant navigating record-high gold prices that weighed on national demand. Against that backdrop, the company delivered a quarter of profitable growth, where efficiency gains mattered more than sales volume.
Revenue for Q2 FY27 stood at ₹149 crore, a 12% increase from the same period last year. Net profit grew faster, rising 19.5% to ₹22 crore. The net profit margin expanded by 100 basis points year-on-year to 14.8%, as the company managed its costs effectively.
Revenue & profit
Revenue (₹ Cr)
Net Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 149.0 | 152.5 |
| Net Profit (₹ Cr) | 22.0 | 22.9 |
| Net Profit Margin (%) | 14.8 | 15.0 |
The margin story behind the profit
The year-on-year profit jump was powered by operating leverage. According to Flash Finance, the operating profit margin expanded by 199 basis points to 21.3%. This suggests the company successfully passed on higher gold costs to customers and managed its core expenses well. However, a sequential dip in profit was linked to a sharp rise in finance costs, which more than doubled from the June quarter.
A muted quarter before the rush
The 2.3% quarter-on-quarter revenue decline aligns with a tough industry environment. The World Gold Council reported India's Q3 gold demand fell 29% year-on-year, with jewellery volumes down 20%. For Radhika Jeweltech, this meant selling less gold but at higher prices, protecting the top line. Management, cited by Flash Finance, has moderated its full-year revenue growth expectation to 7-9% from 9-11% earlier.
The festive test ahead
The real test begins now. Reports from Gujarat Samachar and other outlets note a recent dip in gold prices has sparked a buying rush in Gujarat ahead of Dhanteras and Diwali. The company’s strategic focus, per its annual report, is on scaling its new 10,000 sq ft flagship store in Rajkot and perfecting operations for this peak season. If consumer sentiment holds, the December quarter could see a strong sequential rebound.
Key Points
- Net profit grew 19.5% year-on-year to ₹22 crore, outpacing a 12% rise in revenue due to margin expansion.
- Revenue dipped 2.3% sequentially, reflecting subdued pre-festive demand amid record-high gold prices nationally.
- The company has tempered its FY27 revenue growth guidance to 7-9%, focusing on operational execution for the festive season.
- Finance costs more than doubled from the previous quarter, slightly pressuring sequential profitability.
Hexa Perspective
Radhika Jeweltech’s quarter shows a business managing what it can control—margins—amid external volatility it cannot. The margin expansion is a clear positive, but its sustainability hinges on the upcoming festive quarter delivering the expected volume rebound. Investors are weighing a strong balance sheet with a low debt-to-equity ratio of 0.19 against the company’s concentrated regional footprint and the persistent sensitivity to gold price swings. The stock’s 2.8% gain post-results, noted by Flash Finance, suggests the market approved of the margin discipline, awaiting the seasonal catalyst.
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.