Rashi Peripherals Limited — Q3 FY26 earnings call

Call held 4 Feb 2026

Management summary

Rashi Peripherals reported a robust Q3 FY26, with consolidated revenue growing 43% YoY to ₹4,030 crores and PAT soaring 132% YoY to ₹75 crores. This growth was equally split between volume and average selling price increases. The company demonstrated strong operational efficiency, maintaining stable working capital days and generating positive operating cash flow. Management expressed optimism for continued revenue growth, driven by price hikes and strategic expansion, despite challenges like component price volatility and the discontinuation of Micron's crucial consumer brands.

Highlights

  • Consolidated Revenue grew 43% YoY to ₹4,030 crores in Q3 FY26.

  • Consolidated PAT surged 132% YoY to ₹75 crores in Q3 FY26.

  • Volume growth contributed 50% to the Q3 revenue increase, indicating strong underlying demand.

  • Debtor days improved to 47 days from 61 days a year ago, reflecting stronger collection.

  • Achieved 5% 9-month revenue growth without any large project orders, compared to ₹2,000 crores last year.

Concerns

  • Micron's crucial consumer brands business declared end-of-life, expected to cause a 'hit' in FY27.

  • Rising prices of components (RAM 2x-3x, other products 20-30%) could lead to unaffordability, especially for B2C consumers.

  • Potential for volume growth to flatten after 1-2 quarters, relying more on price increases for revenue growth.

Key financials

4 periods

Headline

  • Inventory Days
    56 days
  • Debtor Days
    47 days
  • Creditor Days
    43 days
  • Working Capital Days
    60 days

Q3

  • Consolidated Revenue
    ₹4,030 Cr
    YoY +43%
  • Consolidated PAT
    ₹75 Cr
    YoY +132%
  • Consolidated PAT Margin
    1.9%

9M

  • Consolidated Revenue
    ₹11,338 Cr
    YoY +5%
  • Consolidated PAT
    ₹196 Cr
    YoY +25%

YTD

  • Operating Cash Flow
    ₹34 Cr

What they filed

Q1 FY27: revenue up 61.9%, net profit up 69.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue3,706 2,826 2,973 3,152 4,155 +12%4,030 +43%4,489 +51%5,102 +62%
EBITDA99 21 94 104 104 +5%119 +467%133 +41%155 +49%
Net profit70 32 53 62 59 −16%75 +134%87 +64%105 +69%
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.

Segment breakdown

Share of Revenue (9M)
₹11,339 Cr Total
  • Personal Computing and Enterprise Solutions (PES) ₹6,572 Cr 58.0%
  • LIT, Lifestyle and IT Essentials ₹4,767 Cr 42.0%

Order book

medium confidence

Pipeline

deal pipeline tcv

Many projects in the pipeline, but execution is slower due to supply and price volatility.

The 9-month revenue growth of 5% was achieved without any large project orders this year, compared to INR 2,000 crores from project orders last year. This was a deliberate decision due to payment delays on previous projects.

Source: Q&A

Capital allocation

high confidence
  • Debt Debt disclosed Cost 7.5%
    Himanshu Shah: "cost of borrowing is in the range of 7.5% to 8%."
  • Liquidity Liquidity disclosed Generated positive operating cash flow of INR 34 crores year-to-date.
    Himanshu Shah: "On cash flows, after periods of outflow in the earlier years, we generated a positive operating cash flow of INR34 crores for year-to-date."

Guidance & targets

Revenue

  • Revenue Growth Revenue · Q4 FY26 and beyond · Medium confidence continue to grow positively
    As I said, we are looking for continued unit-wise consistency. And with a little bit further price hike, the revenue will -- should continue to grow positively.

    — Rajesh Goenka

  • Long-term Y-o-Y Growth Revenue · long-term · High confidence 8% to 10%
    8% to 10% Y-o-Y growth was anticipated. So basis that, we have already planned those numbers.

    — Rajesh Goenka

Volume

  • Unit-wise Volume Growth Volume · after next 1-2 quarters · Medium confidence flattish
    So for at least next 1 to 2 quarters, unit will continue to grow. Subsequently, units will start getting flattish. And that's where the higher selling price will start playing a bigger role.

    — Rajesh Goenka

  • Unit-wise Volume Growth (Y-o-Y) Volume · next two quarters · Medium confidence continue to grow
    So volume growth from year-to-year will continue to be seen for the next two quarters.

    — Kapal Pansari

Profitability

  • PAT Margin Trend Profitability · FY26 · Medium confidence similar trend only
    So our expectation is that it will be the similar trend only. We are not seeing any major variation.

    — Rajesh Goenka

  • Return on Capital (ROC) Profitability · in next 2 to 3 years' time · Medium confidence get back to the pre IPO level
    And we expect that in next 2 to 3 years' time, we will be able to get back to the pre IPO level.

    — Himanshu Shah

What to watch in Q4 FY26

Dell Business Scaling

Q4 FY26 and FY27
Current pretty small, insignificant in Q3 FY26
Target decent in Q4 FY26, substantial in FY27

Why it matters

Dell is identified as a new growth driver expected to significantly contribute to revenue.

Dell was pretty small, insignificant, but we've had a good start and we are hoping that the next quarter and the next year will be really big. Previous quarter was just a start.

Risks & concerns

  • Supply Constraints and Price Volatility

    medium

    Global demand for personal computing has regained momentum, but price increases and volatility are a challenge, potentially leading to unaffordability, especially for B2C consumers. Supply gets extended, and price confirmations are difficult.

    Management acknowledged

  • Micron Crucial Business End-of-Life

    medium

    Micron has stopped crucial consumer brands, which will cause a 'hit' in the next financial year, though the company has backup plans and will continue Micron's enterprise business.

    Management acknowledged

  • Working Capital Management / Inventory Risk

    low

    There is a potential risk of having excess inventory or lengthened debtors, but the company is actively monitoring its ecosystem daily.

    Management acknowledged

Q&A highlights

8 direct
Component Shortages and Price Hikes Direct
There are some products, where there is no price increase at all, especially in products like motherboard. There are some products, where the price increase is between 20% to 30%. And there are some products like the RAM, where the price increase is 2x or even 3x.

Clarifies the varying impact of global component price increases across different product categories and how the company is managing it.

Asked by Aejas Lakhani

PC Refresh Cycle and Volume Impact Direct
So as I said, at this moment, what we are seeing not really the shortages, but it's the prices that are going up. All the products, including notebook prices have gone up by almost 20% to 30%, and there would be further price increase.

Addresses concerns about the sustainability of demand and volume in a rising price environment, noting both extended refresh cycles and preponed purchases.

Asked by Aejas Lakhani

Q4 Momentum and Preponed Purchases Direct
As I said, we are looking for continued unit-wise consistency. And with a little bit further price hike, the revenue will -- should continue to grow positively.

Provides an outlook for the immediate next quarter, suggesting continued positive revenue growth despite potential demand pull-forward.

Asked by Madhur Rathi

Working Capital Cycle and Cash Flow Direct
See, for our working capital, if you look at Rashi Peripherals business, this is a business, where we have a working capital cycle of anywhere between 50 to 60 days.

Explains the company's working capital strategy and its impact on cash flow, differentiating their distribution business model.

Asked by Madhur Rathi

Credit Rating Upgrade and Future Capital Management Direct
our primary objective was to reduce our cost of borrowing.

Highlights the strategic use of the improved credit rating to reduce borrowing costs and potential future actions like factoring receivables to enhance ROC/ROE.

Asked by Varun Gandhi

Dell Business Contribution Direct
Dell was pretty small, insignificant, but we've had a good start and we are hoping that the next quarter and the next year will be really big.

Identifies Dell as a new, significant growth driver expected to scale substantially in the near future.

Asked by Hitesh Goel

Volume vs. Price Growth in Q3 Direct
more than -- I would say 50% is volume growth and 50% is because of the ASP, which is also supported by the dollar appreciation.

Provides a crucial breakdown of the strong Q3 revenue growth, indicating a healthy balance between volume expansion and price increases.

Asked by Deepak Poddar

Impact of Nil Project Orders on Growth Direct
I'm happy to share that on a 9 months to 9-month basis, our revenue growth is 5%, but all this growth, even bigger 5% growth is without any project order. So last year, we had almost INR2,000 crores of project order vis-a-vis this year, it is nil.

Demonstrates the underlying strength of the core distribution business, achieving growth even without large project orders, and explains the strategic reason for avoiding them this year.

Asked by Bhavin Chheda

2 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Performance Driven by Volume and Price

Rashi Peripherals reported a robust Q3 FY26, with consolidated revenue growing 43% year-on-year to ₹4,030 crores and consolidated PAT surging 132% year-on-year to ₹75 crores, achieving a PAT margin of 1.85%. This strong performance was attributed to both price and volume growth, with approximately 50% of the Q3 revenue increase coming from volume and the other 50% from higher average selling prices, supported by dollar appreciation. For the nine months ended December 31, 2025, consolidated revenue grew 5% year-on-year to ₹11,338 crores, and PAT rose 25% year-on-year to ₹196 crores.

Market Tailwinds and Strategic Positioning

The company benefits from a global market trend of regaining momentum in personal computing, driven by enterprise refresh cycles, Windows 10 end-of-support, and AI-ready devices. India is mirroring this trend, with the domestic PC market experiencing its strongest quarter ever, growing over 10% year-over-year. Rashi Peripherals positions itself as a technology adoption enabler, leveraging its pan-India network of over 10,000 distribution partners across 700+ locations to bridge global innovations with India's expanding digital economy.

Operational Excellence and Network Expansion

Rashi Peripherals continues to strengthen its distribution network, having launched its 55th branch in Solapur during the quarter. This expansion enhances regional presence and coverage in core markets. The company's strong performance reflects the robustness of its distribution platform and operating model, with management emphasizing disciplined planning and execution to drive consistent growth across all business verticals.

Working Capital Management and Cash Flow

The company maintained tight discipline in working capital management, with working capital days stable at 60 days. Inventory days marginally increased to 56 days to support strong demand, while debtor days improved significantly to 47 days from 61 days a year ago, reflecting stronger collection efforts. Creditor days stood at 43 days. For the year-to-date, the company generated a positive operating cash flow of ₹34 crores, a turnaround from outflows in previous periods.

Outlook on Demand, Pricing, and Volume

Management expects continued positive revenue growth in Q4 FY26 and beyond, driven by further price hikes. While unit-wise volume growth is anticipated to continue for the next 1-2 quarters, it may flatten thereafter, with higher selling prices playing a larger role in revenue growth. The company acknowledges that component price increases (e.g., RAM 2x-3x, other products 20-30%) are a concern, potentially impacting affordability, but they are actively managing inventory to mitigate supply constraints.

Capital Allocation and Debt Management

The company's debt-to-equity ratio stands at 0.5, with the cost of borrowing in the range of 7.5% to 8%. Following a credit rating upgrade to AA-, the primary objective is to further reduce borrowing costs. Management is open to factoring trade receivables if it adds value to ROC and ROE. The company also prudently recognized an incremental impact of over ₹4 crores related to new labor code notifications, primarily due to increased gratuity obligations and higher leave liabilities.

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