Detailed Narrative
Q2 FY26 Financial Performance Highlights
RIR Power Electronics reported a strong Q2 FY26, with standalone revenue from operations reaching ₹25.64 crores, marking a 36% year-on-year growth and a 22% sequential increase from Q1 FY26. EBITDA for the quarter was ₹4.36 crores, a 77% YoY growth, with EBITDA margins improving significantly to 17.01% from 13.09% in Q2 FY25. Profit After Tax (PAT) more than doubled, increasing by 105% YoY to ₹3.15 crores, and PAT margin expanded by 400 basis points to 11.97%. EPS for the quarter stood at ₹0.47 per share, compared to ₹0.21 in the prior year.
Silicon Carbide Ecosystem Project Update
The company is making significant progress on its ₹618 crore Silicon Carbide Ecosystem facility in Bhubaneswar. For Phase 1, focusing on epitaxy and packaging (totaling ₹225 crores), the Government of Odisha has already accorded ₹32.56 crores in fiscal support, with ₹26 crores recently deposited. The EPI reactor, part of Phase 1, is expected to come online in January 2026, with the entire fab and ecosystem projected to be operational in about two and a half years. The facility is designed for 150mm lines with a capacity of 4000 wafers per month, targeting an 85% yield.
Capex and Funding Strategy
The total capex for FY26 is estimated at ₹118 crores, with ₹68 crores already spent and another ₹50 crores planned for EPI and clean room readiness. Phase 1 capex of ₹225 crores is funded by 50% government grant (₹110-115 crores), ₹85 crores from a preferential issue, and a planned ₹30 crores debt. Phase 2 capex of ₹400 crores will be funded by ₹200 crores government grant, ₹100 crores debt, and ₹120 crores equity. The company is currently negotiating with two banks for the debt component, aiming for finalization by November or mid-December.
Technology Roadmap and Market Focus
RIR's technology roadmap focuses on medium and high-power silicon carbide devices, starting with 1200V and moving to 3.3 KV and 6.5 KV. The company aims to serve Indian Railways, defense applications, and grid/renewable energy sectors, with an expected EPI revenue mix of 65% export and 35% domestic. While 200mm technology exists, RIR believes it won't be mainstream for 3-5 years due to technical challenges and high investment, thus focusing on 150mm devices for now.
Operational Readiness and Strategic Partnerships
To ensure operational readiness, RIR is leveraging academic institutions like TIFR, IIT Delhi, IIT Bhubaneswar, and IIT Bombay for research and development, material science, device design, and packaging. The company also has a long-term contract manufacturing arrangement with a Taiwan facility, which has validated RIR's IP with 85-90% yield. Total employment at the Odisha facility is projected to be 300-400 people, with about 50 for Phase 1.