RPTECH - Rashi Peripheral

📊 NSE: RPTECH 🏢 Trading 📅 Last Updated: 12/14/2025 11:39

💰 Financial Performance

Revenue Growth by Segment

The core business is expected to grow at 15% YoY. Personal-computing devices, peripherals, and components are the dominant segments, contributing 85% to 90% of total sales. Total operating income reached INR 13,833.37 Cr in FY25, representing a 28.9% growth compared to INR 10,731 Cr in FY24.

Geographic Revenue Split

The company operates primarily in India with a significant international presence through its Singapore-based subsidiary, Rashi Peripherals Pte. Ltd (RPTE). While specific percentage splits per region are not disclosed, the Singapore entity is a key distributor of ICT products for the group.

Profitability Margins

Operating margins have historically ranged between 2.6% and 2.7%. In FY24, the operating margin was 2.64%, which slightly dipped to 2.37% in H1FY25. The company targets a long-term PAT margin of 1.5%, having delivered 1.24% (INR 133 Cr) in FY24 and 1.33% (INR 123.07 Cr) in FY23.

EBITDA Margin

Operating profitability improved to 3.5% in Q1FY26. The company expects to sustain operating margins between 2.8% and 2.9% over the medium term by optimizing operational efficiencies and managing product mix.

Capital Expenditure

The company has no major debt-funded capital expenditure or acquisitions planned over the medium term. It maintains a nil term debt obligation, with cash accruals expected to exceed INR 200 Cr per annum to cushion liquidity.

Credit Rating & Borrowing

CRISIL Ratings maintains a Stable/Positive outlook. Finance costs were reduced by 27.6% to INR 77.54 Cr in FY25 from INR 107.14 Cr in FY24. Interest coverage was healthy at 2.65 times in FY24 and improved to 5.92 times by September 2024.

⚙️ Operational Drivers

Raw Materials

As a distributor, the 'raw materials' are finished ICT products including personal computers, notebooks, mobile phones, wearables, IT consumables, storage products, and networking gear.

Import Sources

Products are sourced globally from principals, with the Singapore subsidiary (RPTE) acting as a key hub for international procurement and distribution.

Key Suppliers

The company is highly dependent on five major principals: Lenovo, Asus, Hewlett-Packard (HP), SanDisk, and Western Digital.

Capacity Expansion

Not applicable as the company follows a distribution and service-led model rather than a manufacturing model.

Raw Material Costs

Cost of goods sold is the primary expense. Inventory levels increased by INR 175.11 Cr in FY25 to support the 28.9% revenue growth.

Manufacturing Efficiency

Efficiency is driven by working capital management; bank limit utilization was moderate at 63.46% for the 12 months through July 2025.

Logistics & Distribution

Distribution is managed through a diversified geographical footprint; costs are controlled through resource optimization and bulk purchase discounts from vendors.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is targeted through adding new vendors (recently Samsung and LG), expanding the product basket into wearables and mobile phones, and bidding for large-scale projects like the Yotta deal. The company is also developing a software services division, currently in the startup phase.

Products & Services

Laptops, desktops, smartphones, wearables, printers, networking products, storage devices, UPS, and inverters.

Brand Portfolio

Lenovo, Asus, HP, SanDisk, Western Digital, Samsung, and LG.

New Products/Services

Recent addition of Samsung and LG brands; revenue from these new brands is on an increasing trend. A new software division is currently at the design board stage.

Market Expansion

Expansion is focused on deepening the domestic IT hardware distribution footprint and leveraging the Singapore subsidiary for broader ICT product reach.

Market Share & Ranking

Established market position in the Indian IT hardware distribution business, which is characterized as oligopolistic.

Strategic Alliances

Maintains long-standing distributorship and after-sales service relationships with global IT principals.

🌍 External Factors

Industry Trends

The IT distribution industry is growing due to healthy demand for technology products, though it remains a low-margin, high-volume business with intense competition.

Competitive Landscape

Faces stiff competition from larger established players and newer, less-established brands that provide price competition.

Competitive Moat

Moat is sustained by long-term relationships with top-tier global brands and a robust risk management framework (price protection and forex hedging) that is difficult for smaller players to replicate.

Macro Economic Sensitivity

Sensitive to global IT spending cycles and demand for personal computing hardware.

Consumer Behavior

Increasing consumer demand for mobile phones, wearables, and updated personal computing devices drives volume growth.

Geopolitical Risks

Susceptible to global supply chain disruptions and trade policies affecting the import of ICT components from international principals.

⚖️ Regulatory & Governance

Industry Regulations

Complies with the Companies Act, 2013 and standard internal financial controls; auditors confirmed effective operation of controls as of March 31, 2025.

Taxation Policy Impact

The company paid net income taxes of INR 36.80 Cr in FY25, compared to INR 49.67 Cr in FY24.

Legal Contingencies

Not disclosed in the provided document snippets.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the performance and market share of the top 5 principals, which account for over 70% of sales. A decline in their market position would directly impact the company.