Rishabh Instruments Limited

Rishabh Instruments reported robust financial results for Q2 FY26, with consolidated revenue growing 7.7% YoY to ₹1,963 million and H1 FY26 revenue up 9.9% YoY to ₹3,867 million. This growth was attributed to healthy order inflows, new product launches, and an improved geographical mix. Consolidated EBITDA for Q2 FY26 surged 220% YoY to ₹334 million, with margins expanding significantly to 17% from 5.7% in Q2 FY25. H1 FY26 EBITDA stood at ₹618 million, up 244% YoY, with margins improving to 16% from 5.1% in H1 FY25. The company remains confident in achieving its full-year EBITDA target of ₹100 crores for FY26.

The standalone India business delivered a strong performance, with Q2 FY26 revenue increasing by 12.1% to ₹660 million and H1 FY26 revenue up 14.6%. Its EBITDA margin expanded to 26.1% in Q2 FY26, a 950 basis points improvement YoY. Lumel SA, the Polish entity, also performed well, with Q2 FY26 revenue growing 10.4% YoY to ₹615 million and maintaining healthy EBITDA margins at 24.4%. Lumel Alucast, the high-pressure die-casting business, showed significant improvement in profitability, narrowing its Q2 FY26 EBITDA loss to ₹1 million from ₹82 million YoY. Its H1 FY26 Adjusted EBITDA turned positive at ₹78 million, compared to a loss of ₹128 million in H1 FY25, by strategically exiting low-margin legacy contracts, despite a 10.7% decline in Polish Zloty revenue.

Management emphasized its strategic focus on new product pipelines, with teams across group companies accelerating innovation. New products like MID meters for Europe and solar inverters have been launched, with the latter receiving strong initial order bookings of 1,000 units. Geographical expansion into new markets like the Middle East, US, and Southeast Asia is a key pillar, with early traction observed. The company aims for 12-15% topline growth in its electronics business for FY26 and expects sustainable EBITDA margins of 20-22% for this segment, driven by improved raw material sourcing, enhanced operational efficiencies, and a favorable product mix.

CAPEX in India is progressing, with 50% of the construction work for two new 5 and 7-storied buildings completed. These facilities, expected to be finished by mid-next year (March-April 2026), will effectively double production capacity, enabling the company to meet rising export demands. Approximately ₹55-60 crores from IPO proceeds are allocated for this construction, with over 50-55% already utilized. The full operational value and added capacity from these investments are anticipated to come online in FY27.

Rishabh Instruments maintained a net debt-free status with a strong balance sheet. As of September 30, 2025, net cash and cash equivalents stood at ₹121 crores, supported by a healthy cash flow from operations of ₹626 million. The company successfully reduced inventory days from 6-7 months to 2-3 months and improved product lead times from 2-3 months to 2-3 weeks. This indicates disciplined cost management and enhanced operational efficiencies, contributing to margin stability and improved liquidity.

Despite global uncertainties and a subdued European market, Rishabh Instruments remains confident in its long-term growth trajectory. The company aims for a realistic 20-22% CAGR on topline and 25% on bottomline in the long term. Management expects the momentum to remain sustainable, supported by strong export demand and successful conversion of new opportunities. The focus on operational excellence, product diversification, and geographical expansion is expected to drive profitable growth, with the company committed to delivering consistent sustainable value to all stakeholders.