RIR Power Electr — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

RIR Power Electronics delivered a strong Q2 FY26, marked by robust revenue and profit growth, driven by improved demand across various industrial sectors. The company made significant strides in its strategic transition towards advanced power electronics and semiconductor technologies, particularly with its Silicon Carbide Ecosystem project, and is progressing with its NSE listing plans.

Highlights

  • Revenue grew 36% YoY to ₹25.64 crores and 22% sequentially from Q1 FY26.

  • EBITDA grew 77% YoY to ₹4.36 crores, with margins improving to 17.01% from 13.09% last year.

  • Profit After Tax (PAT) more than doubled, increasing 105% YoY to ₹3.15 crores.

  • PAT margin expanded by 400 basis points, reaching 11.97% from 7.96% in Q2 FY25.

  • EPS for Q2 FY26 increased to ₹0.47 per share, up from ₹0.21 in the corresponding last year.

  • H1 FY26 revenue stood at ₹46.6 crores, a 17% YoY increase, with PAT at ₹4.89 crores, up 12% YoY.

  • Significant progress on the ₹618 crore Silicon Carbide Ecosystem facility in Bhubaneswar, with ₹32.56 crores fiscal support received for Phase 1.

Key financials

  1. Revenue ₹25.64 Cr +36%YoY
  2. EBITDA ₹4.36 Cr +77%YoY
  3. EBITDA Margin 17%
  4. PAT ₹3.15 Cr +105%YoY
  5. PAT Margin 12%
  6. EPS ₹0.47

What they filed

Q1 FY27: revenue up 29.3%, net profit up 80.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue19 20 26 21 26 +36%20 +2%24 −9%27 +29%
EBITDA2 2 3 3 4 +78%1 −59%2 −39%4 +38%
Net profit2 1 3 2 3 +106%0 −68%1 −45%3 +80%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

low confidence

Pipeline

qualified rfp

Letters of intent and qualification from companies like Alpha Omega Semiconductor, ST Micro, Microchip.

Management indicated strong customer engagement and higher repeat businesses, with specific deliveries to the Indian Navy, but did not quantify a total order book or new order inflows for the quarter.

Source: Inferred

Capital allocation

high confidence
  • Capex ₹118 Cr Phase 1: 50% grant from Odisha government (₹110-115 crores), ₹85 crores from preferential issue, ₹30 crores debt. Phase 2: ₹200 crores grant from Odisha government, ₹100 crores debt, ₹120 crores equity.
    • Silicon Carbide Ecosystem facility (Phase 1 - EPI & Packaging) ₹225 Cr
    • Silicon Carbide Ecosystem facility (Phase 2 - Fab) ₹400 Cr
    • EPI and clean room readiness (FY26) ₹50 Cr
    Strategically we made significant progress on our 618 crore rupees Silicon Carbide Ecosystem facility at Bhubaneswar. Government of Odisha has already accorded fiscal support of 32.56 crores for phase 1, half of the money we had already spent and just last, this Saturday they also deposited 26 crores in our NLA account. ... I think this fiscal year, as I said, we already have done about 68 crores and we will do another 50 crores on a capex side for EPI and getting clean room ready and so forth. ... The first phase would be epitaxy and packaging process. So both combined together we expect a capex of around 225 crores. ... Out of which 50% would be a grant that we would receive from Odisha government. Okay. So roughly 110-115 crore is what we need to put out of which we have already done a preferential issue of 85 crores and we have received the last tranche as well. So all 85 crores have been accounted for. And we are also looking to raise a debt to cover up the balance, a portion of 30 crores. So with that we'll be able to achieve the financial closure for phase one. For phase two the total capex is around 400 crores out of which 200 crores will be the grant expected to be received from the Odisha government. And out of that 200 crores we are looking to do debt of around 100 crores and an equity of around 120 crores.
  • Debt Debt disclosed
    • New borrowing Seeking to raise ₹30 crores debt for Phase 1 capex, currently negotiating with two banks. ₹30 Cr
    And we are also looking to raise a debt to cover up the balance, a portion of 30 crores. ... So we have current negotiations that are going on with two banks. Two banks for same amount. So the negotiation is going on and whosoever would be able to provide the better terms will go ahead with that particular bank.
  • Liquidity Liquidity disclosed Growth liquidity remains comfortable and our balance sheet continues to strengthen.
    Growth liquidity remains comfortable and our balance sheet continues to strengthen.

Guidance & targets

Revenue

  • Revenue from EPI process (FY26) Revenue · FY26 · Medium confidence ₹8-10 crores
    So basically considering that we were to start the AP process with that one reactor, we had one quarter for this particular financial year and we were targeting at around 8 to 10 crores revenue out of that for this fiscal year.

    — Ankit Shah

  • Revenue from EPI (next year) Revenue · Next year (FY27) · Medium confidence ₹60 crores
    I expect about 60 corrodes or so revenue from EPI.

    — Dr. Harshad Mehta

  • Revenue (fully operating) Revenue · Once fully operating · Medium confidence ₹600 crores
    So you can expect once we are fully operating revenues about 600 crores or so.

    — Dr. Harshad Mehta

  • Revenue from Odisha facility Revenue · Q4 FY26 · Medium confidence Generating revenue
    So I'm pushing for it so that we can start generating revenue. Q4 FY26.

    — Dr. Harshad Mehta

Yield

  • EPI yield Yield · High confidence 85%
    Yes, we expect, we expect about 85% yield and, and which is very competitive to the global players.

    — Dr. Harshad Mehta

Capacity

  • EPI wafer capacity Capacity · Once fully implemented · High confidence 4000 wafers per month
    The capacity of the plant is 4000 wafer per month.

    — Dr. Harshad Mehta

NSE Listing

  • NSE listing completion NSE Listing · Before end of this fiscal year · High confidence Functional by 31st March 2026 or earlier
    So the NSE listing process is underway and we expect that to get completed before end of this fiscal year. So we expect it to become functional by 31st March 2026 or earlier.

    — Ankit Shah

Asset Turnover Ratio

  • Asset turnover ratio (fully operating) Asset Turnover Ratio · Once fully operating · Medium confidence 0.8 to 1.0

    From 0.6 to 0.8 (industry average) today

    In semiconductors the asset turnover ratio is about 0.6 to 0.8 and I would say we will go up to between 0.8 and 1.0. So you can expect once we are fully operating revenues about 600 crores or so.

    — Dr. Harshad Mehta

Employment

  • Total employment at Odisha facility Employment · Medium confidence 300-400 people
    So for phase one total we have, we expect total employment at our Odisha facility to somewhere between 300 to 400 people.

    — Dr. Harshad Mehta

  • Phase 1 employment at Odisha facility Employment · Medium confidence 50 people
    Phase one would be about maybe 50 or so, and then phase two.

    — Dr. Harshad Mehta

Timeline

  • EPI reactor online Timeline · January 2026 · High confidence January 2026
    However, we have been moving forward with our first part of the project which is EPI reactor and that should come online in January 2026.

    — Dr. Harshad Mehta

  • Full fab and ecosystem online Timeline · From now · Medium confidence Two and a half years
    The entire fab and the whole ecosystem will take about two and a half years to come online.

    — Dr. Harshad Mehta

Revenue Mix

  • EPI revenue mix (export) Revenue Mix · Medium confidence 65%
    I would say about 65% would be export. 35% with domestic.

    — Dr. Harshad Mehta

What to watch in Q3 FY26

Finalization of bank tie-up for capex debt

By end of November or mid-December
Current Negotiations ongoing with two banks
Target Bank tie-up finalized

Why it matters

Securing debt funding is crucial for the financial closure of Phase 1 of the Silicon Carbide Ecosystem project.

So we have current negotiations that are going on with two banks. ... By end of November or mid December.

Risks & concerns

  • Delay in government funding for Silicon Carbide Ecosystem facility

    medium

    Government of Odisha funding for Phase 1 was delayed by about six months, though recent tranches have been received.

    Management acknowledged

  • Delay in securing power line for Odisha facility

    medium

    The power line for the Odisha facility, crucial for generating revenue in Q4 FY26, is still being pushed for with the Odisha government.

    Management acknowledged

  • Competition in the 1200V silicon carbide market

    medium

    China is aggressively competing in the 1200V market, leading RIR to focus on medium and high-power applications.

    Management acknowledged

  • Challenges with 200mm silicon carbide wafer technology

    medium

    200mm technology is not expected to be mainstream for 3-5 years due to difficulties in growing thick EPI, edge termination, and physical challenges for high-power devices.

    Management acknowledged

Q&A highlights

7 direct
CAPEX plans, capacity utilization, and funding for the Silicon Carbide Ecosystem facility Direct
The first phase would be epitaxy and packaging process. So both combined together we expect a capex of around 225 crores. ... Out of which 50% would be a grant that we would receive from Odisha government. ... For phase two the total capex is around 400 crores out of which 200 crores will be the grant expected to be received from the Odisha government.

Clarified the total project cost, phase-wise capex, and the detailed funding mix from government grants, preferential issues, debt, and equity, providing crucial financial visibility for the large-scale project.

Asked by Raj Sara

Status of the new MD appointment Partial
We are very close but I will not tell you any more information except it would be happening. It would definitely happen by end of this year.

Indicated that the MD appointment is imminent by year-end, addressing a recurring concern about leadership for on-ground operations, but without revealing specific details.

Asked by Sandeep Rao

Resolution of electricity supply for the Odisha plant Direct
They are providing they will provide us enough power for one reactor. But before we get the second reactor we need 1 megawatt of power in a second reactor. Second reactor will come sometime around May of 2026.

Provided an update on a critical infrastructure requirement, confirming that power for the first reactor is secured, but highlighted that securing 1MW for the second reactor is still pending and linked to its May 2026 timeline.

Asked by Sandeep Rao

Nature and role of the Taiwan facility Direct
No, no, it's a longer period as and when we need it to fulfill the demand in the market. So they have used our IP and proved that they can make product at about 85, 90% yield.

Clarified that the Taiwan facility is a long-term contract manufacturing partner, validating RIR's IP and demonstrating high yield, which is key for meeting market demand and maintaining competitiveness.

Asked by Buddha Holker

Economics and technical details of Silicon Carbide EPI wafer production, including cost, yield, and thickness Direct
So I think silicon carbide wafer, in the, in the last year or so, the prices have significantly dropped. But silicon carbide, raw silicon carbide weight for substrate, weight for 150 millimeter, it's about $250 per wafer. ... 50 micron would be about $800. We paid 180 micron thick EPI almost., $1500 when we use those devices.

Provided specific cost benchmarks for raw wafers and EPI layers at different thicknesses, offering insight into the unit economics and pricing strategy for RIR's products.

Asked by Rupesh Tatia

Technological roadmap, particularly regarding 200mm silicon carbide technology and RIR's focus Direct
Our focus is going to be 3.3 KV for Indian Railways as well as defense applications and grid and renewable as we go higher. ... 200 millimeter has at least for next three to five years. I don't see that technology to be mainstream because of the. It's difficult to grow 18 EPI thicker.

Outlined RIR's strategic focus on medium and high-power applications (3.3 KV for railways, defense, grid) where competition is lower, and provided a realistic assessment of the 200mm wafer technology, indicating it's not mainstream for 3-5 years due to technical challenges and investment costs.

Asked by Rupesh Tatia

Readiness for the significant supply chain and manpower requirements for silicon carbide manufacturing Direct
So for example, let me and this is a real, one of the, our AP scientists, he came from TIFR, he finished his PhD at TIFR about two and a half, three years ago and he had no opportunity in India to work anywhere. RIR gave him an opportunity and he was very happy to join RIR.

Demonstrated RIR's approach to talent acquisition and leveraging academic partnerships (TIFR, IITs) to build expertise and ensure operational readiness, addressing concerns about the specialized manpower and supply chain needed.

Asked by Rupesh Tatia

Need for strategic investors and its impact on market capitalization Direct
Yes we are in talks with strategic partners to join in but we will not be able to share any names currently as the discussions are currently ongoing. So once something is formed up and finalized we do proper disclosures at the stock exchange.

Confirmed ongoing discussions with strategic partners, which could provide validation and potentially re-rate the stock, addressing analyst concerns about funding and market perception.

Asked by Sandeep Rao

2 min read 5 chapters

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.

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