Rashi Peripherals Q2 profit nearly triples as margin expands

Rashi Peripherals Limited reported Q2-FY27 standalone profit after tax (PAT) of Rs 152.9 crore, up 171.6% year on year, as earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased 95 basis points to 3.44%. RP tech’s revenue from operations rose 42.0% to Rs 5,707.5 crore and EBITDA increased 96.1% to Rs 196.3 crore.

How did RP tech perform in Q2-FY27?

RP tech delivered higher revenue and faster operating-profit growth in Q2-FY27, with revenue from operations reaching Rs 5,707.5 crore and EBITDA reaching Rs 196.3 crore. Revenue rose 42.0% from Rs 4,018.7 crore in Q2-FY26 and 18.1% from Rs 4,832.2 crore in Q1-FY27. EBITDA rose 96.1% year on year from Rs 100.1 crore and 34.3% sequentially from Rs 146.2 crore.

The difference between revenue and EBITDA growth accompanied a 95-basis-point, or 0.95-percentage-point, year-on-year rise in EBITDA margin to 3.44% from 2.49%. The margin was also 41 basis points above Q1-FY27’s 3.03%. Operational expenses increased 40.6% year on year to Rs 5,511.2 crore, below the 42.0% revenue increase, while expenses rose 17.6% sequentially from Rs 4,686 crore.

Why did RP tech’s standalone profit rise faster than revenue?

RP tech’s standalone PAT rose faster than revenue because operating profit increased and Q2-FY27 included Rs 41.4 crore of exceptional items. Profit before tax (PBT) before exceptional items was Rs 154.8 crore, up 105.0% from Rs 75.5 crore in Q2-FY26. After exceptional items, reported PBT was Rs 196.2 crore, up 159.9%, and PAT reached Rs 152.9 crore compared with Rs 56.3 crore.

The quarterly income statement also records higher finance costs, tax and depreciation alongside the increase in operating earnings. Finance costs rose 93.8% year on year to Rs 46.7 crore, tax expense increased 125.5% to Rs 43.3 crore, and depreciation and amortisation rose 32.0% to Rs 6.6 crore. Other income was Rs 11.8 crore against Rs 4.5 crore a year earlier, but below Rs 17.3 crore in Q1-FY27. PAT margin nevertheless increased 128 basis points to 2.68%, while diluted earnings per share rose 167.7% to Rs 22.70.

How did RP tech’s H1-FY27 performance compare with last year?

RP tech’s H1-FY27 standalone revenue rose 49.0% to Rs 10,539.7 crore, while PAT increased 117.3% to Rs 250.1 crore. EBITDA for the first half increased 70.9% to Rs 345.4 crore from Rs 202.1 crore, lifting EBITDA margin by 42 basis points to 3.28%. PAT margin rose 74 basis points to 2.37% from 1.63%, and diluted earnings per share increased 116.6% to Rs 37.54.

At the consolidated level, Q2-FY27 revenue was Rs 6,185.1 crore, 48.8% above Q2-FY26, while EBITDA was Rs 220.1 crore, up 112.2%. Consolidated PAT was Rs 130.7 crore, up 120.8%, and was below standalone PAT of Rs 152.9 crore in the same quarter. For H1-FY27, consolidated revenue rose 54.5% to Rs 11,287 crore, EBITDA increased 81.2% to Rs 375.4 crore, and PAT grew 94.6% to Rs 235.3 crore.

What working-capital movement did RP tech report in H1-FY27?

RP tech reported working-capital days of 55 in H1-FY27, down from 61 days in H1-FY26. Debtor days declined to 43 from 46, while creditor days increased to 48 from 44. Inventory days rose by one day to 60, compared with 59 in H1-FY26.

The presentation also reported increases in the provision for doubtful debt and the provision for inventory write-off. The doubtful-debt provision was 0.090% in H1-FY27 against 0.009% in H1-FY26, while the inventory write-off provision was 0.070% compared with 0.019%. These measures accompanied the 49.0% increase in standalone H1 revenue to Rs 10,539.7 crore.

What expansion plans has RP tech disclosed?

RP tech said it is shifting from a volume-led distributor toward an integrated technology solutions provider spanning information and communications technology distribution, managed services, and embedded and semiconductor solutions. The company disclosed an announced acquisition of a 67% stake in VDA Infosolutions to expand into enterprise information technology, cloud infrastructure, cybersecurity, system integration and managed information technology services.

The company also formalised a joint venture with Japan-based Restar Corporation for embedded and semiconductor solutions, supported by local design and engineering, talent transfer and technical services. RP tech conducted artificial-intelligence bootcamps in six cities for enterprise partners covering accelerated computing, artificial-intelligence workstations and enterprise workloads. It also expanded branch operations across Tier 2 and Tier 3 cities and emerging commercial hubs.

Conclusion

RP tech’s Q2-FY27 standalone results show operating profit growing faster than sales: revenue increased 42.0%, EBITDA rose 96.1%, and EBITDA margin reached 3.44%, up 95 basis points. Reported PAT increased 171.6% to Rs 152.9 crore, with the quarterly statement recording Rs 41.4 crore of exceptional items; PBT before those items still increased 105.0% to Rs 154.8 crore.

The disclosed matters to watch are progress on the announced 67% acquisition of VDA Infosolutions and the formalised Restar Corporation joint venture. These are the routes RP tech has identified for adding system-integration, managed-services, embedded and semiconductor capabilities alongside its technology-distribution operations.