RIR Power Electr — Q3 FY26 earnings call

Call held 17 Feb 2026

Management summary

RIR Power Electronics reported a moderated Q3 FY26 performance with revenues of ₹20.27 crores and PAT of ₹0.44 crores, attributed to order realignments and cost increases. The company is making significant progress on its Odisha project, with the clean room and power connection targeted for completion by March end. New MD & CEO, Mr. N. Ramesh Kumar, outlined strategic priorities focusing on sales, operational efficiency, and brand visibility.

Highlights

  • Q3 FY26 Revenue stood at ₹20.27 crores.

  • Q3 FY26 EBITDA was ₹0.86 crores, with PAT at ₹0.44 crores.

  • Nine-month FY26 Revenue grew to ₹66.92 crores from ₹59.74 crores YoY.

  • Nine-month FY26 EBITDA increased to ₹8.11 crores from ₹7.95 crores YoY.

  • Odisha clean room expected to start by Feb end/mid-March, with power connection targeted by March 31st.

  • Phase 1 of Odisha project has a total capex of ~₹225 crores, with ₹70 crores debt currently being negotiated.

  • New MD & CEO, Mr. N. Ramesh Kumar, joined effective February 11, focusing on sales organization, operational excellence, and brand building.

Concerns

  • Odisha Power Supply Quality and Availability

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹20.27 Cr
  • EBITDA
    ₹0.86 Cr
  • PAT
    ₹0.44 Cr
  • EPS
    ₹0.06

9M FY26

  • Revenue
    ₹66.92 Cr
    YoY +12%
  • EBITDA
    ₹8.11 Cr
    YoY +2%
  • PAT
    ₹5.33 Cr
    YoY -7%
  • EPS
    ₹0.74
    YoY -1.3%

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
Q3 performance was affected by customer-driven scheduling changes, implying existing orders were realigned rather than new orders being significantly impacted.

Source: Inferred

Capital allocation

high confidence
  • Capex Capex disclosed Phase 1: Bank debt (₹70 crores currently negotiating) + equal contribution from government. Phase 2: Co-financed by government.
    • Odisha Phase 1 total capex ₹225 Cr
    • Odisha Phase 2 total capex ₹395 Cr
    • Spent on reactors, clean room, infrastructure, vendor advances for Odisha project (RIR's own spend before first disbursement) ₹64 Cr
    • Spent from escrow kitty for Odisha project (equipment and tools) ₹43 Cr
    So INR26 crores we have contributed to an escrow account, with the same contribution has been matched by the government, which makes it to total INR52 crores. ... So we have spent roughly around INR43 crores-INR45 crores out of the INR52 crores kitty and we have capex plan for the balance as well post which we are lining up the bank debt financing which will contribute to this particular escrow which will be an equal contribution will be matched by the government as well and with those funds we will be able to achieve a closure for Phase 1. ... What is the total capex for the first phase? It is roughly around INR225 crores. ... So Phase 2 capex is INR395 crores to INR400 crores and that lineup will be we are currently in process, but we'll tie up that once we have this particular bank financing done for Phase 1 then Phase 2. ... So Phase 2 also will be co-financed by the government? Yes.
  • Debt Debt disclosed
    • New borrowing Negotiating for ₹70 crores debt for Phase 1 of Odisha project, expecting in-principle approval this week and final tie-up by first/second week of March. Moratorium period sought. ₹70 Cr

Guidance & targets

Project Completion

  • Odisha Clean Room Completion Project Completion · Q4 FY26 · High confidence end of February or mid-March
    First of all, Odisha, we are very close to getting clean room started by about February end or mid-March, most likely February end.

    — Harshad Mehta

Infrastructure

  • Odisha Power Connection (33 kV) Infrastructure · Q4 FY26 · High confidence by March 31st
    We are pushing for March 31st because by that time, both our reactors will be on ground and we should be able to start qualification for the EPI.

    — Harshad Mehta

Corporate Action

  • NSE Listing Corporate Action · Q4 FY26 · High confidence finish by March 31st or as soon as possible
    NSE is equal priority and that's our next action to finish it by March 31st or as soon as we possibly can.

    — Harshad Mehta

Project Timeline

  • Odisha Epitaxy Reactors Qualification Period Project Timeline · post clean room completion · Medium confidence ~60 days
    So the qualification period is about 60 days and then the commercial production about 30 days after that.

    — Harshad Mehta

  • Odisha Commercial Production (after qualification) Project Timeline · post qualification · Medium confidence ~30 days

    — Harshad Mehta

  • Odisha Commercial Production (after power connection) Project Timeline · once power is received · High confidence within 90 days
    I told them within 90 days, once we get the power, we will have the commercial production started at Bhubaneswar facility.

    — Management

Capital Raising

  • Bank Debt Tie-up for Phase 1 Capital Raising · Q4 FY26 · High confidence first week or second week of March
    maybe by first week or second week of March, we should be able to get a positive response and tie-up for the debt portion with the banker.

    — Ankit Shah

Revenue Targets

  • Halol Business FY27/FY28 Revenue Targets Revenue Targets · next call · Low confidence will share in next call
    But definitely in the next call, I will definitely tell you what is our plan for FY '27 and FY '28 is.

    — Ramesh Kumar

What to watch in Q4 FY26

Odisha 33 kV Power Connection

by March 31st
Current State offering 11 kV, RIR requesting 33 kV; struggling due to government changes.
Target 33 kV power connected

Why it matters

Critical for the stable operation of the clean room and subsequent semiconductor production, directly impacting project timelines.

We are pushing for March 31st because by that time, both our reactors will be on ground and we should be able to start qualification for the EPI.

Risks & concerns

  • Odisha Power Supply Quality and Availability

    high

    The state is offering 11 kV power, but RIR requires 33 kV for semiconductor manufacturing due to quality and reliability needs; ongoing struggle with government changes.

    Management acknowledged

  • Government Dependencies and Project Delays

    medium

    Delays in power connection and funding tranches due to changes in government personnel and processes, despite single-window clearance promises.

    Management acknowledged

  • Q3 Performance Moderation Factors

    low

    Temporary moderation in Q3 due to customer-driven scheduling changes, increased material consumption costs, and new labor law provisions.

    Management acknowledged

  • Bank Debt Finalization for Odisha Phase 1

    low

    While negotiations are positive and 90-95% complete, final in-principle and committee approvals for the ₹70 crores debt are still pending.

    Management acknowledged

Q&A highlights

6 direct, 1 evasive
Product concentration and strategic focus for new products Direct
We certainly have niche product. But if you look at it, overall, from last at least year and a half plus, there is a significant push towards self-reliant India. And what that matters is we would be keeping, pushing for infrastructure intensive project where we will gain the volume, top line as well as bottom line both.

Clarifies the company's strategic direction towards infrastructure-intensive projects and self-reliance, leveraging its niche product capabilities across various power-sensitive industries.

Asked by Sandeep Rao

Odisha project delays, government funding, and utilization of funds Direct
So INR26 crores we have contributed to an escrow account, with the same contribution has been matched by the government, which makes it to total INR52 crores. ... So we have spent roughly around INR43 crores-INR45 crores out of the INR52 crores kitty and we have capex plan for the balance as well post which we are lining up the bank debt financing which will contribute to this particular escrow which will be an equal contribution will be matched by the government as well and with those funds we will be able to achieve a closure for Phase 1.

Provides detailed financial breakdown of the Odisha project funding, including RIR's contribution, government matching, and how funds are being utilized for capex, addressing concerns about delays and transparency.

Asked by Prateek Giri

Timelines for Odisha clean room, power connection, and production start Direct
The clean room will be done by end of February or mid-March. ... So the qualification period is about 60 days and then the commercial production about 30 days after that. ... Yes, the assumption is that we get the power by that time, correct.

Establishes clear, albeit conditional, timelines for critical milestones of the Odisha project, allowing investors to track progress and understand the sequence of events leading to commercial production.

Asked by Prateek Giri

New MD & CEO's vision and priorities for the company Direct
Externally is strengthening my sales organization first, and then enhancing the reach, and strengthening the enquiry pipeline, converting them into orders and identifying new application, new products and new avenues of businesses. ... And internal is concerned, it is more than, more is operational excellence. First we have to see what is the capacity? Capacity mapping and then bottleneck, how to overcome the bottleneck operations, and then improving the productivity.

Outlines the strategic direction and immediate focus areas for the new MD & CEO, providing insight into how he plans to drive growth and operational efficiency.

Asked by Sandeep Rao

Status of bank debt finalization for Odisha Phase 1 Direct
So basically we were in negotiations earlier with another banks, another banker and right now the banker we are in conversation with or in talks with, they are quite positive to move ahead with this particular proposal. ... Currently we are looking for INR70 crores. ... So we have sought a moratorium period, but maybe that would be quite a lot of intricacies and detailing.

Confirms the progress and specific amount (₹70 crores) of debt being negotiated for Phase 1 of the Odisha project, which is crucial for its funding, and mentions the request for a moratorium.

Asked by Prateek Giri

Specific issues regarding power supply for the Odisha project Direct
So right now there are the issue of power is I know power quality and reliability is very important for semiconductors because any fluctuation in the power, any fluctuation in the power can result into the entire batch being redone or restart. So state is offering us, the state is offering us power from 11 kV line. And we are requesting we are requesting power from 33 kV line because the variations and the purity is much higher at 33 kV line.

Highlights a critical operational challenge for the Odisha project – the need for a stable 33 kV power supply for semiconductor manufacturing, which is currently a point of contention with the state government.

Asked by Harish Shiyad

Suggestion for investor presentation with project details Partial
You know, if you can publish investor presentation also with little details about the project, the timelines and since we are already kicking INR1 crores of revenue from the Silicon Carbide contract manufacturing thing, I think that also will be helpful if that can be put there. ... That's a good suggestion. ... Sure, we will take your recommendation.

Indicates a potential improvement in investor communication and transparency regarding the Odisha project, which is a key growth driver for the company.

Asked by Prateek Giri

Long-term revenue targets for the Halol business (North Star for FY27/FY28) Evasive
So definitely in last 4 days of my interaction with the people and seeing the products and then where they are selling and what they are doing, I have something in my mind, but I don't want to drop those numbers within 3 days or 4 days it will not be right on my part. But definitely in the next call, I will definitely tell you what is our plan for FY '27 and FY '28 is.

Management defers providing specific long-term revenue targets for the Halol business, indicating that while a vision exists, it's too early to quantify, leaving investors awaiting future guidance.

Asked by Prateek Giri

2 min read 7 chapters

Detailed narrative

Q3 FY26 Financial Performance and Moderation Factors

RIR Power Electronics reported a revenue of ₹20.27 crores for Q3 FY26, with EBITDA at ₹0.86 crores and PAT at ₹0.44 crores. The earnings per share for the quarter stood at ₹0.06. This moderation in performance was attributed to several factors, including the realignment of certain orders due to customer-driven scheduling changes, an increase in material consumption costs, and provisions for new Labour Laws.

Nine-Month FY26 Performance Overview

For the nine-month period of FY26, the company's revenue increased to ₹66.92 crores, up from ₹59.74 crores in the corresponding period. EBITDA also saw a slight increase to ₹8.11 crores from ₹7.95 crores. However, PAT for the nine months declined to ₹5.33 crores from ₹5.73 crores, resulting in a marginal decrease in EPS to ₹0.74 per share from ₹0.75 per share year-on-year.

Odisha Project Progress and Funding Status

The Odisha project is progressing, with the clean room expected to be operational by the end of February or mid-March. The company has already generated approximately ₹1 crore in revenue from the project between Q2 and Q3 this fiscal year. The total capex for Phase 1 is estimated at ₹225 crores, with ₹43-45 crores already spent from a ₹52 crore escrow kitty (comprising ₹26 crores from the Odisha government and ₹26 crores matched by RIR).

Strategic Business Focus and New MD's Vision

Mr. N. Ramesh Kumar joined as the new MD & CEO on February 11, bringing extensive experience from GEC of India and CG Power. His immediate priorities include strengthening the sales organization, enhancing market reach, and identifying new applications externally. Internally, he aims to improve operational excellence through capacity mapping, bottleneck resolution, and IT infrastructure upgrades, while also overseeing the Odisha project.

Halol Operations and Specialized Product Development

The Halol facility continues to surpass records, having provided and tested a 10 megawatt rectifier for rocket launchers. The company is also nearing completion of a unique high voltage capacitor discharge switch for the Indian Army, capable of 10,000 volts and 200,000 amps. These developments underscore RIR's core expertise in medium and high-power electronics, serving critical sectors like defence and railways.

Challenges in Odisha Project Execution

A significant challenge for the Odisha project is securing a stable 33 kV power line, which is crucial for semiconductor manufacturing due to power quality requirements. The state government is currently offering an 11 kV line, leading to ongoing efforts by RIR to secure the higher voltage supply. This issue, coupled with changes in government personnel, has caused delays despite earlier promises of single-window clearance.

Capital Raising for Odisha Project

RIR Power Electronics is actively negotiating for a ₹70 crore debt facility with a bank to fund Phase 1 of the Odisha project. The company expects to receive in-principle approval this week, with the final tie-up anticipated by the first or second week of March. A moratorium period for interest payments has also been sought as part of these negotiations.

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