Rishabh Instruments Q1 FY27 earnings call

Rishabh Instruments Limited reported a positive start to FY27 with consolidated revenue of INR1,983 million, a 4.2% YoY increase. Consolidated EBITDA grew by 17.3% to INR333 million, achieving a 16.8% margin. Despite a 1.4% YoY decline in PAT to INR194 million due to increased depreciation, the company remains net debt-free with INR1,606 million in net cash. The strategic focus remains on profitable growth, operational excellence, and technology-led expansion amidst global uncertainties.

The Electrical and Electronics Instrumentation (EEI) segment continued to be the primary growth engine, delivering a robust 34% YoY revenue growth. The segment maintained a strong EBITDA margin of approximately 24%, with adjusted EBITDA increasing by 69.1% to INR382 million and margins expanding to 24.8% from 19.6% in Q1 FY26. This performance is attributed to operating leverage, improved product mix, procurement efficiencies, and disciplined cost management, reinforcing EEI's position as a key driver of the group's profitability.

The solar inverter business made significant progress, achieving operational profitability following the successful launch of the single-phase iUNO inverter series. In Q1, the portfolio was expanded with next-generation 3-phase iNEO inverter models up to 12 kilowatts. The company plans to introduce a 50-kilowatt range and develop hybrid inverter solutions by the end of the financial year, targeting INR250-300 crores in revenue from this segment next year, positioning it as a meaningful growth pillar.

Lumel Alucast faced a significant revenue degrowth of 41.2% YoY to INR443 million, resulting in a negative adjusted EBITDA of INR28 million and a -6.4% margin. This decline was a planned strategic move. The company is focused on progressively filling available capacity with higher-value profitable opportunities and aims to achieve breakeven adjusted EBITDA by the end of FY27. The long-term goal is to restore a double-digit EBITDA margin over the medium term^⏳ through new project conversions and operational efficiency.

Rishabh Instruments partially commissioned its new manufacturing facility at Nashik, which is expected to be fully operational within 1-2 months, significantly enhancing capacity and supporting new product introductions and export opportunities. The company also launched its first Rishabh TMI Experience Center for test and measurement instruments, with plans for similar centers in Mumbai and Delhi. These initiatives are designed to strengthen customer relationships, improve product awareness, and accelerate portfolio adoption.

The standalone India business grew 25.6% YoY with a 22.9% EBITDA margin. Lumel S.A. in Poland delivered strong 39% YoY revenue growth and a 24% adjusted EBITDA margin, despite a subdued European industrial environment, by gaining market share and diversifying offerings. The US and UK businesses grew over 40% YoY, while China grew 20.3%, contributing to the group's diversified global platform and offering significant scaling opportunities for future growth.

The company is actively exploring inorganic growth opportunities, particularly in the US, Europe, and India, targeting acquisitions in the INR50-200 crore range that strategically fit its business. Rishabh Instruments maintains a net debt-free status with INR1,606 million in net cash and cash equivalents. Capital expenditure is focused on capacity expansion, such as enhancing CT manufacturing capacity from 5,000-6,000 units/day to 8,000-10,000 units/day, and developing new products like hybrid inverters.