RIR Power Electr — Q4 FY26 earnings call

Call held 2 Jun 2026

Management summary

RIR Power Electronics reported a 5.41% YoY revenue growth for FY26, reaching INR90.87 crores, with Q4 FY26 revenue at INR23.95 crores. The company is making steady progress on its INR618 crore Odisha facility, with epitaxy operations expected to commence in Q2 FY27 despite power supply delays. Significant investments are also planned for the Halol facility, and the company secured its first overseas order, reinforcing its strategic focus on high-power semiconductors and Make in India initiatives.

Highlights

  • FY26 Revenue increased by 5.41% to INR90.87 crores, demonstrating steady growth.

  • Q4 FY26 Revenue showed strong sequential growth of 18.16% to INR23.95 crores.

  • Secured first overseas order for 5kV Silicon Control Rectifier Thyristor, expected to complete by end of 2026.

  • Significant progress on Odisha facility, with clean room construction completed and plant & machinery installation by July end.

  • Development of a 25kV, 120 kiloamps capacitor discharge semiconductor switch and new SiC MOSFETs/MPS diodes.

Concerns

  • Q4 FY26 revenue experienced a 9.5% degrowth YoY, primarily due to a large one-time order in March 2025 not recurring.

  • Delays in obtaining the 33kV power supply for the Odisha facility, pushing timelines for epitaxy operations.

  • Bank loan tie-up for packaging facility is still in process, awaiting fulfillment of certain conditions for sanction.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹23.95 Cr
    YoY -9.5% QoQ +18.2%
  • EBITDA
    ₹2.09 Cr
  • PAT
    ₹1.39 Cr
  • EPS
    ₹0.17

FY26

  • Revenue
    ₹90.87 Cr
    YoY +5.4%
  • EBITDA
    ₹10.21 Cr
  • PAT
    ₹6.72 Cr
  • EPS
    ₹0.86

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

high confidence

Total value

₹17.4 Cr

as of 2026-03-31 quantified

Composition

  • Overseas Customers (client type) 20%
The company secured its first overseas order for 5kV Silicon Control Rectifier Thyristor, expected to be completed by end of 2026.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed 50% subsidy expected from Government of Odisha for remaining INR500 crores of Odisha capex; Halol investment from internal accruals.
    • Total project capex for Odisha facility ₹618 Cr
    • Capex undertaken for Odisha facility (50% from Govt. of Odisha) ₹120 Cr
    • Remaining capex for Odisha facility (INR100cr for Phase 1, INR400cr for Phase 2 fabrication) ₹500 Cr
    • Upgrading Halol facility and testing for defence development ₹5 Cr
    So the total capex for the project is around INR618-odd crores. Out of which we have undertaken a capex of almost around INR120 crores. Out of which 50% has been provided by the Government of Odisha. So the remaining INR500 crores is yet to be undertaken, out of which INR100 crores pertains to the first phase and INR400 crores pertains to the second phase for fabrication, wherein for the entire INR500 crores we expect 50% subsidy to come in from the Government of Odisha. ... We will be investing approximately INR5 crores out of internal accruals for upgrading of facility to meet the customer expectations on growing high power devices demand and testing facility for defence development in Halol.
  • Debt Debt disclosed
    No, that was not for working capital, that was for the packaging investment. As Ankit said that INR100 crores is required for packaging facility to come up. So today I mean RP facility is almost ready, that is where the power supply is required. And then what we are discussing with the banker is for the packaging facility. ... So the discussions are still on, in principle approval is there. There are certain conditions that we are fulfilling. Hopefully post which we should be able to get that sanction. So it is all lined up and we just await some we are just fulfilling those certain formalities to get completed, post which we'll be able to avail the term loan facility.

Guidance & targets

Operations

  • Odisha Plant & Machinery Installation Completion Operations · July 2026 · High confidence July end
    Currently, the plant and machinery installation is under progress and estimated to be completed by July end, by which time the power supply is also expected to be available.

    — N. Ramesh Kumar

  • Odisha Power Supply Availability Operations · July 2026 · High confidence July end

    — N. Ramesh Kumar

  • Odisha Epitaxy Operations Commencement Operations · Q2 FY27 · High confidence Q2 FY27
    We expect to commence epitaxy operations in the second quarter of FY27.

    — N. Ramesh Kumar

  • Odisha Power Supply (33kV) Deadline Operations · June 2026 · Medium confidence June 30th

    Previously March end → June 30th

    And so far I think everyone has committed end of June. Hopefully, it will happen soon.

    — Harshad Mehta

  • Odisha Transformer Supply and Erection Operations · July 2026 · High confidence mid-July or end of July max
    So the line work is already on, at the same time parallelly our erection is also going on. So both will get completed by end of maybe mid of July or end of July max.

    — N. Ramesh Kumar

Revenue

  • Odisha Epi Wafers Validation and Revenue Generation Revenue · FY27 · High confidence FY27
    Manufacturing will be outsourced with our Epi wafers for validation and revenue generation in FY27, reinforcing the company's commitment to Make in India initiative and strengthening the country's advanced manufacturing ecosystem.

    — N. Ramesh Kumar

  • Halol Plant Turnover Growth Revenue · next two to three years · High confidence 2x to 3x
    See as you rightly said, we are also working very hard on increasing the turnover of Halol to at least not definitely not 4x, definitely at 2x to 3x in next two to three years' time.

    — N. Ramesh Kumar

Order Execution

  • Overseas Order Completion (5kV SCR Thyristor) Order Execution · 2026 · High confidence end of 2026
    The order will be executed in a phased manner with completion expected by end of 2026.

    — N. Ramesh Kumar

Capex

  • Odisha Capex Completion Capex · FY28 · High confidence December '27 or March '28
    So we expect the entire capex to be undertaken by December of '27 or March '28, that is the timeline we are looking at.

    — Ankit Shah

Profitability

  • Asset Turnover Ratio Profitability · Long-term · Medium confidence 0.65x
    And we also expect to be in the same range somewhere around 0.65x of our total assets.

    — Ankit Shah

Market Share

  • Medium and High Power Segment Market Share Market Share · Long-term · Medium confidence 20%-25%
    And we expect the market share for medium and high power segment on industrial, data center, railways and so forth, we would at least get probably about 20%-25% market share.

    — Harshad Mehta

What to watch in Q1 FY27

Odisha Power Supply Availability

Next quarter (July 2026)
Current Delayed, new commitment for June 30th
Target Available by July end

Why it matters

Essential for commencing epitaxy operations and revenue generation from the new Odisha facility.

And so far I think everyone has committed end of June. Hopefully, it will happen soon. ... So the line work is already on, at the same time parallelly our erection is also going on. So both will get completed by end of maybe mid of July or end of July max.

Risks & concerns

  • Odisha Power Supply Delays

    high

    Delays in securing the 33kV power supply for the Odisha plant, initially expected by March end, are impacting project timelines, though a new commitment for June 30th has been made.

    Management acknowledged

  • One-time nature of defence/nuclear orders

    medium

    Analyst concern about past defence/nuclear orders being one-off; management clarified these are initial orders leading to follow-up contracts and long-term engagement.

    Analyst downplayed

  • Halol Capacity Constraints

    low

    Potential capacity constraints at the Halol plant if turnover grows beyond 3x, but current investments and productivity improvements are expected to manage near-term growth.

    Management acknowledged

Q&A highlights

6 direct
Capital allocation for Odisha project and asset turnover Direct
So the total capex for the project is around INR618-odd crores. Out of which we have undertaken a capex of almost around INR120 crores. Out of which 50% has been provided by the Government of Odisha. So the remaining INR500 crores is yet to be undertaken, out of which INR100 crores pertains to the first phase and INR400 crores pertains to the second phase for fabrication, wherein for the entire INR500 crores we expect 50% subsidy to come in from the Government of Odisha. ... Yes, globally the asset turnover ratio for the companies in this industry is ranges from around 0.5x to 0.75x of your gross assets. And we also expect to be in the same range somewhere around 0.65x of our total assets.

Provided detailed breakdown of the large Odisha capex, funding, and expected asset turnover, crucial for understanding future financial efficiency.

Asked by Balasubramanian

Technical moat and competitive advantage against global players Direct
RIR, though it may seem like a small player and newest player compared to the -- competitors that you mentioned, ABB, Siemens, Infineon, was split into Infineon and Siemens, Mitsubishi, Toshiba, Hitachi. ... We have been doing it on an average for last 20 years. We have been spending about 10% minimum in terms of advanced technology that relates to the all the key value chain of power electronics in terms of device design, in terms of packaging, in terms of control, in terms of reliability, as well as how to apply with a value addition these high power devices that can provide reliably and effectively specialize in the marketplace.

Management articulated RIR's long-term strategy of focusing on high-power semiconductors, R&D investment, and technical expertise to differentiate from larger global competitors.

Asked by Balasubramanian

Impact of depreciating rupee on profitability Partial
I think it would be beneficial because what is going on is we are facing multiple opportunities. In terms of low power devices that RIR has been making traditionally, the market is still there globally, but the suppliers are limited outside India. ... In medium and high power, what Harshad sir is saying, is that medium and high power, there are less players and we will be exporting. We will be -- exporting will be more than the import. So at present, we are at the same level. Our total imports and exports matches. So it doesn't give us a big impact on the depreciation of the rupee.

Clarified the nuanced impact of currency depreciation, beneficial for low-power exports but neutral for medium/high power due to balanced import/export.

Asked by Yogesh Patil

Delays in Odisha electricity line and project timeline Partial
Unfortunately, this is even though we manage power, we don't produce power or we don't transmit or distribute power. This is going on because every time I make any commitment is from Odisha. I do not control the destiny of that and Odisha government right now specially the power transmission sector is about three or four different agencies involved in it. ... And so far I think everyone has committed end of June. Hopefully, it will happen soon.

Revealed ongoing challenges with government coordination causing delays in critical infrastructure for the new plant, impacting project timelines, despite new commitments.

Asked by Sandeep Rao

Status of bank loan tie-up for packaging facility Direct
So the discussions are still on, in principle approval is there. There are certain conditions that we are fulfilling. Hopefully post which we should be able to get that sanction. So it is all lined up and we just await some we are just fulfilling those certain formalities to get completed, post which we'll be able to avail the term loan facility.

Provided an update on the financing for a key part of the Odisha project, indicating progress but also pending conditions.

Asked by Sandeep Rao

Repeat orders for defence and nuclear power products Direct
So all of these are I think your observation is correct that these are one-time orders, but this is the beginning of next follow up. So for example on our defence side of it, the army side of it, we developed the product, it went through full testing what army was looking for that has been fully accepted and the sample has been delivered and evaluated and accepted. And now we expect the multiple orders of the same module that what the Army is planning over the next five years.

Addressed concerns about the sustainability of defence orders, clarifying that initial orders serve as validation for future, larger contracts.

Asked by Sandeep Rao

Halol facility's potential and capital allocation between Halol and Odisha Direct
See as you rightly said, we are also working very hard on increasing the turnover of Halol to at least not definitely not 4x, definitely at 2x to 3x in next two to three years' time. ... I certainly keep on looking at capex requirements for Halol as well as Odisha, and we try to manage it. We cannot share, but there are ongoing activities going on with earlier questions person asked the question in terms of the strategic investment and so forth.

Management confirmed ambitious growth targets for the existing Halol plant and discussed the balanced approach to capital allocation between new and existing facilities.

Asked by Prateek Giri

New product strategy and backward integration Direct
So here you know the first focus is on to the two sectors where the new product development which we are thinking of that is railways as well as defense because the product configurations and the technology is being changed because these two sectors are upgrading their system also. ... So, I am hopeful that reaching that 2.5-3x with the existing facility by upgrading every year by investing maybe few crores here and there for equipment as well as upgrading the existing equipment not going to be a big challenge.

Outlined the strategic direction for new product development, focusing on railways and defence, and how existing facilities will support this growth through upgrades and productivity.

Asked by Prateek Giri

3 min read 7 chapters

Detailed narrative

Q4 FY26 and Full Year FY26 Financial Performance

RIR Power Electronics reported Q4 FY26 revenue from operations at INR23.95 crores, marking an 18.16% sequential growth over Q3 FY26, though a 9.5% year-on-year decline due to a non-recurring one-time order in March 2025. EBITDA for the quarter stood at INR2.09 crores, with PAT at INR1.39 crores and EPS at INR0.17. For the full FY26, revenue reached INR90.87 crores, up 5.41% from FY25, with EBITDA of INR10.21 crores, PAT of INR6.72 crores, and EPS of INR0.86 per share.

Odisha Facility Development and Timelines

The company's new facility in Odisha is progressing, with Phase 1 (epitaxy and packaging) construction completed. Plant and machinery installation is underway and expected to finish by July end, coinciding with the anticipated availability of power supply. Epitaxy operations are projected to commence in Q2 FY27, with epi wafers slated for validation and revenue generation in FY27 through outsourced manufacturing of SiC devices.

New Product Development and Strategic Orders

RIR has secured its first overseas order for 120 units of 5kV Silicon Control Rectifier Thyristors, with completion anticipated by the end of 2026. On the R&D front, a significant milestone was achieved with the development of a 25kV, 120 kiloamps capacitor discharge semiconductor switch. The company also expanded its portfolio with new Silicon Carbide MOSFETs and MPS diodes, targeting applications in EVs, industrial systems, and energy infrastructure.

Halol Facility Upgrades and Growth Outlook

An investment of approximately INR5 crores from internal accruals is planned for the Halol facility to upgrade capabilities and enhance testing for defence development. Management aims to increase Halol's turnover by 2x to 3x within the next two to three years, driven by productivity improvements and strategic investments. The facility currently operates on a single shift, offering potential for increased output by adding more shifts.

Capital Allocation for Odisha Project

The total capex for the Odisha project is estimated at INR618 crores. INR120 crores has already been undertaken, with 50% funded by the Government of Odisha. The remaining INR500 crores (INR100cr for Phase 1, INR400cr for Phase 2 fabrication) is expected to receive a 50% subsidy from the Odisha Government. The entire capex is targeted for completion by December '27 or March '28.

Odisha Power Supply Challenges and Resolution Efforts

The 33kV power supply for the Odisha facility, initially expected by March end, has faced delays due to changes in government officials and involvement of multiple agencies. Management expressed frustration but noted a new commitment from officials for the supply by June 30th. Additionally, transformer supply and erection are expected by mid-July or end of July, which is critical for the plant's operational readiness.

Market Positioning and Long-term Vision

Chairman Harshad Mehta emphasized RIR's focus on high-power semiconductors for critical Indian sectors like railways, grid, and defence, aligning with 'Make in India' and 'Self-Reliant India' initiatives. The company aims for a 20-25% market share in the medium and high-power segments. Management highlighted RIR's 20-year investment in advanced technology and 10% R&D spend as key differentiators against global competitors.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls