RICHA - Richa Info

📊 NSE: RICHA 🏢 Computers - Hardware 📅 Last Updated: 12/14/2025 11:52

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 48.6% YoY to INR 127.73 Cr in FY25. The newly launched IT services segment achieved a 294% growth rate, driven by a sole execution contract with Roopyaa Tradebizz Limited.

Geographic Revenue Split

100% of operations are based in India, specifically headquartered in Gandhinagar, Gujarat.

Profitability Margins

Net Profit Margin stood at 4.1% (INR 5.24 Cr) in FY25. Profit Before Tax (PBT) margin was 5.6%, down from 6.5% in FY24 due to increased employee and finance costs.

EBITDA Margin

EBITDA margin was approximately 6.3% (INR 8.06 Cr) in FY25, reflecting core profitability after accounting for a 121% increase in employee benefit expenses.

Capital Expenditure

Tangible assets decreased from INR 0.40 Cr to INR 0.16 Cr, indicating minimal recent capital expenditure in physical infrastructure.

Credit Rating & Borrowing

Borrowing costs increased significantly as finance costs rose 1763% YoY to INR 0.65 Cr. CRISIL Ratings Limited acts as the monitoring agency for fund utilization.

⚙️ Operational Drivers

Raw Materials

IT Hardware and Software Stock-in-Trade (92.5% of total revenue costs).

Capacity Expansion

Not applicable as the company operates in IT trading and services; however, authorized share capital was increased from INR 25 Cr to support higher business volumes.

Raw Material Costs

Purchase of Stock-in-Trade accounted for INR 118.21 Cr (92.5% of revenue) in FY25, compared to INR 124.65 Cr in FY24.

Manufacturing Efficiency

Not applicable for a service and trading-based business model.

📈 Strategic Growth

Expected Growth Rate

48.60%

Growth Strategy

Expansion into the high-margin IT services segment and leveraging a major contract with Roopyaa Tradebizz Limited. The company raised INR 20.71 Cr through warrant conversions in Q2 FY26 to fund working capital for these new segments.

Products & Services

IT hardware, IT staffing solutions, and IT services (including software development and maintenance).

Brand Portfolio

Richa Infosystems.

New Products/Services

IT Services segment launched in FY25, contributing significantly to the H1 FY26 revenue jump to INR 117.04 Cr.

Market Expansion

Strategic shift from pure hardware trading to integrated IT services and staffing globally.

Strategic Alliances

Sole service contract with Roopyaa Tradebizz Limited.

🌍 External Factors

Industry Trends

The Indian IT sector is evolving toward a USD 282.6 billion market by FY25, with increasing demand for digital transformation and specialized talent staffing.

Competitive Landscape

Competes with global IT staffing firms and domestic IT service providers in a highly fragmented market.

Competitive Moat

Moat is based on ISO 9001-2015 certification and established relationships in the Gujarat region, though sustainability is challenged by high client concentration.

Macro Economic Sensitivity

Sensitive to the Indian technology sector growth, which NASSCOM projects at 5.1% for FY25.

Consumer Behavior

Increased corporate demand for outsourced IT services and flexible staffing models post-pandemic.

Geopolitical Risks

Global political volatility and mobility restrictions are cited as key risks to the IT staffing business model.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Companies Act 2013, SEBI LODR, and data protection laws. A governance discrepancy was noted regarding the non-accounting of sitting fees for Independent Directors.

Taxation Policy Impact

Effective tax rate was approximately 25.5% (INR 1.83 Cr tax on INR 7.16 Cr PBT) in FY25.

Legal Contingencies

The company reported no major pending litigations, but a significant governance risk exists as a partner of the audit firm was also a promoter of the company's sole major client, Roopyaa Tradebizz.