RISHABH - Rishabh Instrum.

📊 NSE: RISHABH 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 11:53

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 7.7% YoY to INR 196.3 Cr in Q2 FY26 and 9.9% YoY to INR 386.7 Cr in H1 FY26. Standalone Rishabh India business grew 12.1% YoY to INR 66 Cr in Q2 FY26 and 14.6% YoY to INR 127.8 Cr in H1 FY26. Lumel SA revenue grew 10.4% YoY in Q2 FY26 with a 33.6% sequential recovery over Q1 FY26. Lumel Alucast delivered 1% revenue growth in Q2 FY26.

Geographic Revenue Split

The group operates in 70+ countries with a bulk of revenue derived from overseas operations. Key regions include India, Poland, China, Middle East, South Africa, South America, Southeast Asia, USA, UK, and Germany. Standalone export demand is a primary driver for the 12.1% growth in the India business.

Profitability Margins

Consolidated Gross Margin improved by 835 bps to 57.1% in Q2 FY26. Standalone EBITDA margin stood at 26.1% for Q2 FY26. Consolidated PAT grew 475% YoY to INR 22.1 Cr in Q2 FY26 and 492% YoY to INR 41.7 Cr in H1 FY26. Historical PAT margin was 8.69% in FY23 compared to 10.52% in FY22.

EBITDA Margin

Consolidated EBITDA margin strengthened to 17% in Q2 FY26, a 1,129 bps improvement from 5.7% in Q2 FY25. Standalone EBITDA margin was 26.1% in Q2 FY26. Lumel SA reported EBITDA margins of 24.4% in Q2 FY26. The improvement is driven by the turnaround of the HPDC business and growing contribution from the high-margin EEI segment.

Capital Expenditure

The company raised INR 491 Cr through an IPO in FY24 to support growth and debt management. Debt repayment obligations are approximately INR 10-12 Cr over the medium term. Large debt-funded capex is identified as a downward rating risk factor.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Interest coverage ratio was 14.52 times in FY23. Gearing was healthy at 0.27 times as of March 31, 2023. Liquidity is supported by cash and equivalents of INR 208 Cr as of September 31, 2024.

⚙️ Operational Drivers

Raw Materials

Aluminum (for high-pressure die-casting) and electronic components for ICP and TMI products. Specific percentage of total cost not disclosed.

Import Sources

Sourced globally to support manufacturing facilities in Nashik (India), Poland, and China.

Capacity Expansion

Manufacturing facilities are located in Nashik, Poland, and China, with modification centers in the US and UK. The company is filling vacated capacity in the HPDC segment with high-margin contracts.

Raw Material Costs

Operating margins fell to 6.1% in H1 FY25 due to losses in the aluminum die-casting business, which is sensitive to raw material price fluctuations and energy costs.

Manufacturing Efficiency

Inventory levels were significantly reduced from 6-7 months to 3-4 months. On-time delivery lead times were reduced from 3 months to a few weeks across several product lines.

Logistics & Distribution

The group maintains 5 international and 8 domestic sales offices with 350+ global authorized dealers to manage distribution across 70+ countries.

📈 Strategic Growth

Expected Growth Rate

12-15%

Growth Strategy

Growth will be achieved through a 12-15% topline expansion in the electronics business, new product launches, and deeper penetration into the Middle East, US, and Africa. The company aims to reach INR 100 Cr EBITDA by the end of the financial year through operational leverage and high-margin contracts in the HPDC and EEI segments.

Products & Services

Industrial Control Products (transducers, analogue and digital panel meters), Testing and Measuring Instruments (hand-held multimeters, insulation testers), solar strings, and aluminum high-pressure die-casting products.

Brand Portfolio

Rishabh, Lumel.

New Products/Services

Continuous product additions in the ICP and TMI segments and expansion of the high-margin EEI segment are expected to drive margin expansion.

Market Expansion

Expanding sales presence in the Middle East, South Africa, South America, and Southeast Asia, with a focus on the US market.

Market Share & Ranking

Established leading position in the ICP and TMI business segments.

Strategic Alliances

Acquisitions of Lumel SA and Lumel Alucast in Poland have been central to geographic and product diversification.

🌍 External Factors

Industry Trends

The industry is shifting toward automation and higher operational efficiency. Rishabh is positioning itself by transitioning its HPDC business to high-margin contracts and expanding its electronics portfolio which is growing at 12-15%.

Competitive Landscape

Leading player in ICP and TMI; faces competition in the global aluminum die-casting and electronics manufacturing services markets.

Competitive Moat

Moat is built on vertically integrated operations, strong in-house R&D, and a global distribution network of 350+ dealers. These are sustainable due to established customer relationships and high switching costs for industrial control products.

Macro Economic Sensitivity

Sensitive to global industrial demand and geopolitical stability, as evidenced by the impact of the Russia-Ukraine war on Polish operations.

Consumer Behavior

Increasing demand for robust export-quality industrial instruments and energy-efficient control products.

Geopolitical Risks

The Russia-Ukraine war impacted the profitability of Polish subsidiaries in FY23; ongoing global uncertainties remain a monitored risk.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with international manufacturing standards for electronic testing and measurement instruments across manufacturing sites in India, Poland, and China.

⚠️ Risk Analysis

Key Uncertainties

Turnaround of the aluminum die-casting business (HPDC) which reported operating losses in H1 FY25; impact of global geopolitical tensions on European subsidiaries.

Geographic Concentration Risk

Revenue is geographically diversified across 70+ countries, though European operations (Poland) represent a significant portion of consolidated performance.