RIR Power Electr — Q4 FY25 earnings call

Call held 30 May 2025

Management summary

RIR Power Electronics Limited delivered strong financial performance in Q4 and full year FY25, driven by significant revenue growth. The company is making substantial progress on its ambitious INR 618 crore silicon carbide fabrication plant in Odisha, which is expected to be a major revenue and margin contributor by FY30. Management also provided clarity on the phased operational timeline and funding strategy for this key project.

Highlights

  • Q4 FY25 Revenue stood at INR 26.46 crores.

  • Q4 FY25 EBITDA was INR 3.44 crores, with PAT at INR 2.55 crores and EPS at INR 3.45 per share.

  • Full Year FY25 Revenue reached INR 86.21 crores, marking a 29.13% YoY growth from INR 66.76 crores in FY24.

  • Full Year FY25 EBITDA increased by 14.36% to INR 11.39 crores, up from INR 9.96 crores in FY24.

  • Full Year FY25 PAT was INR 8.28 crores, a 4.02% YoY increase from INR 7.96 crores in FY24, with EPS at INR 11.48 per share.

  • The company is investing INR 618 crores in its Odisha silicon carbide plant over 2 to 2.5 years, with 10% already spent.

  • The Odisha plant is projected to generate INR 1,200 crores in revenue by FY30 at 90% capacity utilization, with expected EBITDA margins of 25-28%.

  • Management expects to receive government subsidy for the Odisha plant before the end of June 2025.

Key financials

2 periods

Q4 FY25

  • Revenue
    ₹26.46 Cr
  • EBITDA
    ₹3.44 Cr
  • PAT
    ₹2.55 Cr
  • EPS
    ₹3.45

FY25

  • Revenue
    ₹86.21 Cr
    YoY +29.1%
  • EBITDA
    ₹11.39 Cr
    YoY +14.4%
  • PAT
    ₹8.28 Cr
    YoY +4%
  • EPS
    ₹11.48

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
The company has received some orders for its silicon carbide diode product and has letters of intent from various sectors globally.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹618 Cr 50-75% government subsidy (50% state committed, 25% central pending), remaining from equity (INR 120-125 crores) and debt (INR 125 crores).
    • Silicon carbide fabrication plant in Odisha (total project) ₹618 Cr
    • First phase of Odisha silicon carbide plant ₹100 Cr
    The capex for the Odisha plan is INR618 crores over two or two and a half years. And we expect to be beginning the plan beginning end of this year. So far, we have spent about 10% or so. The capex on that first phase is INR100 crores. So the policy, as you know, for the government policy, the 50% from central government and 25% from state. We have some special incentives provided by Odisha because of the fact that we are unique in this technology globally. We have commitment of 50% from state of Odisha. So basically, it's like around INR200 crores will be from RIRs and around INR400 crores will be coming from the government, both state and central together. We are targeting somewhere around 125 or so. and the balance from equity. No, 125 from debt and another 120 or 125 from equity.
  • Debt Debt disclosed
    And, in the remaining part, we will distribute between equity and debt. We've been talking to a few banks because the subsidy part also includes subsidy on the interest. So that's the plan.

Guidance & targets

Capex

  • Odisha Plant Total Capex Capex · over 2-2.5 years · High confidence INR 618 crores
    The capex for the Odisha plan is INR618 crores over two or two and a half years.

    — Harshad Mehta

  • Odisha Plant First Phase Capex Capex · High confidence INR 100 crores
    It is INR100 crores, I think.

    — Harshad Mehta

Operations

  • Odisha Plant First Phase Operation Start Operations · Q4 FY26 · High confidence Q4 FY26
    So, the first phase is expected to start somewhere in Q4 of FY26.

    — Ankit Shah

  • Odisha Plant Full Facility Operation Operations · by Q4 FY27 · High confidence 2-2.5 years from now
    And the full facility would start operating or functional from 2 years, 2.5 years from now.

    — Ankit Shah

Revenue

  • Odisha Plant Revenue (Q4 FY26) Revenue · Q4 FY26 · High confidence INR 10-12 crores
    And for Odisha, one quarter that we would be operational, we expect it to be around INR10 crores to INR12 crores.

    — Ankit Shah

  • Overall Company Revenue Revenue · FY26 · High confidence INR 110-122 crores
    So from the existing plant, we expect INR100 crores and INR110 odd crores. And for Odisha, one quarter that we would be operational, we expect it to be around INR10 crores to INR12 crores.

    — Ankit Shah

  • Odisha Plant Revenue (Full Capacity) Revenue · by FY30 · High confidence INR 1,200 crores
    I think we should be able to get from Odisha, silicon carbide plant about INR1,200 crores or so.

    — Harshad Mehta

Profitability

  • Odisha Plant EBITDA Margins Profitability · High confidence 25-28%
    I expect EBITDA margins to be about 25% to 28%.

    — Harshad Mehta

Market Growth

  • Silicon Carbide Market CAGR Market Growth · next 10 years · High confidence 35%
    I expect, I mean, obviously, the potential, the growth of silicon carbide over the next 10 years is about at least 35% compounded annual growth rate.

    — Harshad Mehta

Efficiency

  • Odisha Plant Asset Turnover Ratio Efficiency · FY30 · High confidence 2
    Yes. [in response to 'INR 1,200 crores in FY30. So does that mean our asset turnover ratio will be 2?']

    — Ankit Shah

Capacity Utilization

  • Odisha Plant Capacity Utilization Capacity Utilization · FY30 · High confidence 90%
    Yes. Correct. [in response to 'FY30 could be 90% capital capacity utilization?']

    — Harshad Mehta

Funding

  • Odisha Plant Debt Funding Funding · High confidence INR 125 crores
    No, 125 from debt and another 120 or 125 from equity.

    — Harshad Mehta

  • Odisha Plant Equity Funding Funding · High confidence INR 120-125 crores

    — Harshad Mehta

Government Support

  • Odisha Government Subsidy Receipt Government Support · June 2025 · Medium confidence before end of June
    I expect, I mean, I expected a year ago. But I think we should expect something before end of June.

    — Harshad Mehta

What to watch in Q1 FY26

Odisha Government Subsidy Receipt

next quarter (by end of June 2025)
Current Expected
Target Received

Why it matters

Crucial for the funding of the INR 618 crore Odisha silicon carbide plant.

I expect, I mean, I expected a year ago. But I think we should expect something before end of June.

Risks & concerns

  • Competition from Chinese manufacturers in silicon carbide

    low

    Chinese manufacturers focus on lower power (1200 volts) silicon carbide, while RIR targets premium, high-reliability, medium and high-power segments.

    Analyst downplayed

Q&A highlights

7 direct
Odisha Plant Capex and Timeline Direct
The capex for the Odisha plan is INR618 crores over two or two and a half years. And we expect to be beginning the plan beginning end of this year. So far, we have spent about 10% or so. The capex on that first phase is INR100 crores.

Clarifies the total investment, initial spend, and phased timeline for the major silicon carbide project.

Asked by Garvit Goyal

Odisha Plant Revenue Potential and Ramp-up Direct
So, the first phase is expected to start somewhere in Q4 of FY26. And revenue expectation for the last quarter would be around INR10 crores to INR12 crores... in 5 years or so, once the plant is in a full capacity mature, I think we should be able to get from Odisha, silicon carbide plant about INR1,200 crores or so.

Provides specific revenue targets and a detailed ramp-up schedule for the new plant, crucial for future growth projections.

Asked by Garvit Goyal, Manan Vandur

Overall Company Revenue Target for FY26 Direct
So from the existing plant, we expect INR100 crores and INR110 odd crores. And for Odisha, one quarter that we would be operational, we expect it to be around INR10 crores to INR12 crores.

Offers a consolidated revenue outlook for the upcoming fiscal year, combining contributions from existing and new operations.

Asked by Garvit Goyal

USP and Customer Strategy for Silicon Carbide Direct
Our core expertise is power semiconductors and the biggest USP is that we are vertically integrated. Our roots started from GE and Harris Corporation... we are the smallest of the smallest, but still, in terms of the breadth of the product, we are second to none in terms of technology as well as our ability to reach.

Highlights the company's competitive advantages and strategic positioning in the power semiconductor market, especially against global players.

Asked by Yash

EBITDA Margins for Silicon Carbide Venture Direct
I expect EBITDA margins to be about 25% to 28%.

Provides a key profitability metric for the significant new silicon carbide business, indicating strong potential returns.

Asked by Rushabh

CEO Appointment Status and Leadership Changes Partial
We are in the process of shortlisting the potential CEO. And before that, we already hired Chief Marketing Officer, Global Marketing Officer, because of the fact two things are important. One, having product. And second, being able to sell it.

Addresses a key governance and strategic leadership question, indicating ongoing efforts to strengthen the management team.

Asked by Sandeep Rao

Funding for Remaining Odisha Plant Capex Direct
And, in the remaining part, we will distribute between equity and debt. We've been talking to a few banks because the subsidy part also includes subsidy on the interest. So that's the plan. No, 125 from debt and another 120 or 125 from equity.

Details the financial strategy for the unfunded portion of the capex, providing clarity on the mix of internal and external financing.

Asked by Manan Vandur

Rationale for Bonus and Share Split Direct
So, bonus and split, they are non-cash events. And they do not have any impact on the cash flow of the company. And these corporate events are generally to reward the shareholders who have been associated with the company for so long. So, bonus and share split was basically to reward the shareholders. And just to reiterate, these are non-cash events. And they do not have any impact on the cash flows of the company.

Explains the strategic reasoning behind the bonus and split, addressing analyst concerns about capital allocation during a capex-intensive period.

Asked by Sandeep Rao

3 min read 7 chapters

Detailed narrative

Strong Financial Performance in FY25

RIR Power Electronics Limited reported robust financial results for Q4 and full year FY25. For the full year, revenue grew by 29.13% to INR 86.21 crores from INR 66.76 crores in FY24. EBITDA increased by 14.36% to INR 11.39 crores, and PAT rose by 4.02% to INR 8.28 crores. The company's EPS for FY25 stood at INR 11.48 per share, remaining largely consistent with the previous year.

Ambitious Silicon Carbide Expansion in Odisha

The company is embarking on a significant expansion with India's first silicon carbide fabrication plant in Odisha, entailing a total capex of INR 618 crores over the next 2 to 2.5 years. Approximately 10% of this capex has already been incurred, with the initial phase requiring an investment of INR 100 crores. This project is central to the company's strategy to focus on silicon carbide components and develop a complete ecosystem.

Phased Operational Timeline and Revenue Potential

The Odisha plant is planned for phased operations, with the first phase expected to commence in Q4 FY26, projected to contribute INR 10-12 crores in revenue for that quarter. The full facility is anticipated to be functional within 2 to 2.5 years from May 2027. At full capacity, the plant is targeted to generate INR 1,200 crores in revenue by FY30, operating at 90% capacity utilization with an asset turnover ratio of 2.

High Margin Expectations and Competitive Strategy

Management anticipates strong profitability from the silicon carbide venture, guiding for EBITDA margins in the range of 25% to 28%. The company differentiates itself by focusing on premium, high-reliability, medium and high-power products, leveraging its vertical integration and historical expertise from GE and Harris Corporation. This strategy aims to mitigate competition from Chinese manufacturers who primarily focus on lower-power segments.

Strategic Funding for Capex and Government Support

The INR 618 crore Odisha capex is planned to be funded through a mix of government subsidies, equity, and debt. The government policy provides for 50% central and 25% state subsidy, with Odisha having committed 50% due to special incentives. The company plans to raise approximately INR 120-125 crores through equity and INR 125 crores through debt for its remaining share of the funding, and expects to receive the government subsidy before the end of June 2025.

Leadership and Market Development Initiatives

RIR Power Electronics is actively strengthening its leadership, with Dr. Harshad Mehta currently overseeing the project while the company is in the process of shortlisting a new CEO. A Chief Marketing Officer, Perry Schugart, has been appointed to enhance market reach in key sectors such as energy, railways, aerospace, and defense. This aligns with the company's goal to develop Indian markets for global applications and leverage its vertical integration for leadership in application development.

Shareholder Reward and Liquidity Enhancement

The company recently executed a bonus issue and share split, which management clarified as non-cash events. The primary objectives were to reward long-term shareholders and improve the liquidity of the stock, particularly in response to requests from institutional investors regarding illiquidity issues in trading volumes.

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