Rafale might have the kinematic advantage but the J-10CE does have a larger radar. But beyond that, the two aircraft are broadly similar enough such that the minutiae of their technological differences won't make a difference if their respective pilots are simply mismatched. Factor in stuff like ECM and AEW and their inherent capabilities begin to matter less and less.
Which is to say that PAF's victory is in large part due to its operational planning, tactics, pilot skill, and also the fact that they specifically targeted the Rafales to maximize the kill probability. If the PAF had operated Rafales and the IAF the J-10C, the IAF would've lost 3 J-10Cs instead.
If I were the IAF, I'd focus money and personnel on the AMCA and maybe the TEDBF. Everything else matters little.