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Rashi Peripherals Ltd
NSE: RPTECH BSE: 544119 INE0J1F01024 Information Technology IT 🔎 Screen
₹5,432 Cr
Market Cap
17.4
P/E
0.54
PEG
17.0%
ROCE
14.7%
ROE
0.49
D/E
2.9%
OPM
-16.1%
% from 52W High
97
α RS
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About

Incorporated in 1989, Rashi Peripherals Ltd operates in ICT product distribution business and after-sale services

✓ Strengths 1
  • Company is expected to give good quarter
! Concerns 1
  • Company has a low return on equity of 13.2% over last 3 years.
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Strong quarter: consolidated revenue grew 61.9% YoY and PAT jumped 69.5%, although EBITDA margin slipped 24 bps YoY on cost pressure. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹5,101.9 Cr
+61.9% YoY
EBITDA Margin
3.04%
-24 bps YoY; +9 bps QoQ
PAT
₹104.6 Cr
+69.5% YoY
Working Capital Days
56
vs 73 in Q1-FY26
What Went Right
  • Consolidated revenue hit ₹5,101.9 Cr, up 61.9% YoY, supported by enterprise solutions and strategic vendor partnerships.
  • PAT rose 69.5% YoY to ₹104.6 Cr; diluted EPS increased 64% to ₹15.25 from ₹9.30.
  • PAT margin expanded 9 bps YoY to 2.05%, and consolidated EBITDA margin improved 9 bps sequentially from Q4-FY26's 2.95%.
  • Working capital days improved from 73 to 56 YoY, with debtor days down from 53 to 41 and inventory days from 64 to 55.
  • Added new branches in Udaipur and Dhule; entered AI-infrastructure space via WEKA.io partnership and invested in VDA Infosolutions.
What to Watch
  • Consolidated EBITDA margin contracted 24 bps YoY to 3.04%; operating expenses grew 62.3% YoY, slightly faster than revenue at 61.9%.
  • Standalone EBITDA margin fell 31 bps YoY to 3.03%, showing no improvement in core distribution economics.
  • Finance costs remained elevated at ₹27.4 Cr, up 1.9% YoY and consuming roughly 18% of consolidated EBITDA.
  • Balance sheet leverage remains a risk: net debt-to-equity was 0.43x as of FY26, with no quarterly leverage update disclosed.
  • No quantified margin, growth, or integration targets were provided for VDA Infosolutions or WEKA.io.
Investor Lens
Revenue and PAT momentum strengthen the growth thesis, but economics remain thin: consolidated EBITDA margin is just 3.04%, and the 24 bps YoY decline shows distribution pricing power has not improved. The working-capital improvement is the clearest positive — down from 73 to 56 days — and lower credit/inventory provisioning supports earnings quality. That said, finance costs still absorb ~18% of EBITDA and net debt/equity is 0.43x, leaving little cushion if growth slows or working capital needs to be funded. The VDA Infosolutions investment and WEKA.io partnership are strategically sensible but lack disclosed financial impact; watch for margin contribution and integration progress. Next quarter, focus on whether consolidated EBITDA margin can move toward 3.5% and whether working-capital days stay below 60.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q1: Revenue up 61.9% YoY, PAT jumps 69.4% to ₹105 Cr
Revenue
Revenue surged 61.9% YoY to ₹5,102.0 Cr, with strong sequential growth of 13.7% QoQ. This reflects robust demand momentum in the IT distribution business.
Profitability
Net profit rose 69.4% YoY to ₹105.0 Cr, while EPS improved to ₹15.59 from ₹9.31 a year ago. Profit growth outpaced revenue growth, driven by operating leverage and higher other income.
Margins
Operating profit margin dipped to 3.0% from 3.3% YoY, despite a 49.0% rise in operating profit. Margins held steady sequentially at 3.0%, indicating stable cost management.
Cash Flow
No cash flow data provided in the quarterly statement.
Balance Sheet
Debt-to-equity stands at a moderate 0.49, indicating manageable leverage. RoCE of 16.8% and RoE of 14.7% reflect healthy capital efficiency.
Key Risks
Margins remain thin at ~3%, leaving limited buffer against cost inflation or pricing pressure. Higher interest expense of ₹27 Cr and depreciation of ₹6 Cr partly offset operating gains. Sustaining 60%+ revenue growth may face base and demand cyclicality risks.
Outlook
With strong revenue and profit growth momentum, the company appears positioned for continued expansion in IT distribution. Maintaining margins while scaling will be key going forward.
Generated by AI · Jun 2026 results · Not investment advice
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