Detailed Narrative
Industry Outlook and Structural Tailwinds
The Indian ICT distribution industry experienced a consequential year in FY26, driven by three structural forces. India's traditional PC market shipped a record 15.9 million units in calendar year 2025, growing 10.2% YoY. The AI PC inflection is accelerating, with AI-enabled notebooks growing 129% YoY in CY25, and Gartner projects AI PCs to cross 50% of global PC shipments by CY26. Additionally, Windows 10 end-of-support in October 2025 has triggered a multi-year refresh cycle, creating a structural upgrade super cycle.
Q4 and FY26 Financial Performance
For Q4 FY26, consolidated revenue from operations increased 51% YoY to INR 4,489 crores. EBITDA grew 41% YoY, with margins at 2.95%, and PAT was INR 87 crores, up 65% YoY, with margins at 1.93%. For the full FY26, consolidated revenue grew 15% YoY to INR 15,827 crores. EBITDA increased 53% to INR 459 crores, with margins expanding 72 bps to 2.90%, and PAT rose 35% YoY to INR 282 crores, with margins at 1.78%. The company generated a healthy operating cash flow of INR 514 crores for the period.
Operational Highlights and Strategic Initiatives
Rashi Peripherals maintained strong execution momentum, leveraging its distribution network of 55 city branch offices and 10,000+ customers. The company strengthened its market presence through strategic partnerships, including with Dell Technologies for commercial portfolios (servers, storage) and Teachmint Technologies for AI-powered classroom solutions. They also added 3 new branches in Maharashtra, expanding reach to C and D-class cities, and conducted 8-city AI Bootcamps engaging 2,500 developers and 300+ CXOs to accelerate AI adoption.
AI PC Inflection and Semiconductor Business
The company defines an AI PC as one with a predominantly NPU or high-end processors with GPUs capable of AI workloads. Currently, about 25% of PCs sold are AI PCs, a figure expected to accelerate significantly in the next 1-2 years, driving up average selling prices. The semiconductor business, though relatively new, grew 131% YoY, demonstrating strong traction. Management expects this segment to meaningfully impact top and bottom lines in a few years as its scale increases.
Data Center and Project Business Strategy
Rashi Peripherals was the first to execute a INR 2,000 crores AI data center project in FY25. While no substantial project business was undertaken in FY26, the company is actively discussing a pipeline of INR 20,000-25,000 crores for AI and non-AI data center projects for FY27. Management will selectively pursue these projects, balancing their capital-intensive nature and lower margins with the company's regular run-rate business, aiming for projects with decent ROI.
Working Capital Management and Margins
The company maintained disciplined working capital management, with inventory days at 56, debtor days at 46, and creditor days at 44, resulting in 58 working capital days. Margins remained intact with price rises; as the company earns a percentage of margin, absolute value grows with price increases. Any perceived gross margin dip in Q4 FY26 was attributed to prudent accounting for slow-moving inventory, not underlying business deterioration.
Outlook for FY27 and Beyond
Management is confident in maintaining a 20% CAGR for FY27. While IDC forecasts a 5-10% dip in PC shipments for CY26, the company expects PES revenue to grow 10-15% due to a 20-25% price increase, offsetting unit degrowth. A potential softness in consumer demand in H2 FY27 is anticipated due to rising PC prices impacting affordability, but this could be mitigated by longer EMI schemes (24-36 months). The company aims to maintain PAT margins in the 1.5-1.75% range, consistent with industry standards.