Rashi Peripherals Q4 FY26: Revenue up 51%, PAT 65%

Key update from the latest earnings

Rashi Peripherals Ltd. reported strong growth in its March 2026 quarter results announced on 14 May 2026. The company’s consolidated net sales rose to ₹4,489.38 crore in Q4 FY26, up 51.00% year-on-year and 11.39% sequentially from ₹4,030.41 crore in Q3 FY26. Net profit for the quarter stood at ₹84.21 crore, up 64.22% YoY and 14.49% QoQ.

Alongside the consolidated numbers, the same results cycle also highlighted standalone March 2026 net sales of ₹4,206.79 crore, up 46.18% YoY. The data set also references a “Q0 FY26-27” earnings print dated 14 May 2026, showing revenue of ₹4,206 (₹ crore), gross profit of ₹113 (₹ crore), and net profit of ₹76 (₹ crore), with QoQ and YoY growth rates provided.

Q4 FY26 snapshot: growth with stable margins

The quarter showed a mix of volume-led expansion and steady profitability. Operating profit (PBDIT), excluding other income, was ₹132.64 crore in Q4 FY26, with an operating margin of 2.95% reported as flat QoQ and down 20 bps YoY. PAT margin improved to 1.93%, up from 1.85% in Q3 FY26.

Gross profit margin was reported at 2.67% in Q4 FY26, up 7 bps QoQ and 15 bps YoY. Interest costs increased to ₹28.93 crore from ₹26.24 crore in Q3 FY26, consistent with higher working capital needs as the revenue base expanded. Employee cost came in at ₹53.13 crore versus ₹55.66 crore in the previous quarter, while depreciation was steady at ₹6.13 crore.

Revenue trend: new quarterly peak

The company reported Q4 FY26 as the highest quarterly revenue in its recent history, surpassing the earlier peak of ₹4,155.41 crore in Q2 FY26. After volatility earlier in the series, net profit has shown three consecutive quarters of sequential improvement, moving from ₹58.51 crore (Q2 FY26) to ₹73.55 crore (Q3 FY26) and then ₹84.21 crore (Q4 FY26).

Quarterly performance table (consolidated)

Balance sheet and cash flow: working capital remains the key swing factor

Rashi Peripherals operates in a working-capital intensive distribution model, and the article data reflects that reality. For FY25, despite profit before tax of ₹268 crore, changes in working capital consumed ₹565 crore, resulting in negative operating cash flow of ₹299 crore.

As of March 2025, shareholder funds were reported at ₹1,742.16 crore (up from ₹1,550.58 crore), while long-term debt was minimal at ₹0.88 crore. Current assets were ₹4,175.94 crore versus current liabilities of ₹2,506.07 crore.

Leverage metrics cited include an average debt-to-EBITDA ratio of 4.11x, net debt-to-equity of 0.50, and average EBIT-to-interest coverage of 3.42x.

Operational efficiency metrics: modest returns, high throughput

Return ratios were described as modest for the latest period, with ROE at 10.84% and ROCE at 10.91%. At the same time, the sales-to-capital employed ratio was cited at 4.55x, aligning with the high-volume nature of IT hardware distribution. Over five years, sales CAGR was 19.44% and EBIT growth was 26.32% annually.

Industry and business updates mentioned

The company operates in India’s IT hardware distribution sector, where the model is typically defined by thin margins and high working capital needs. Within the business narrative provided, the company reported expanded distribution partnerships with Dell Technologies and Teachmint Technologies, new branches in Nanded, Baramati, and Solapur, and the launch of ‘Oura’ in India. The semiconductor business expansion was also mentioned with new subsidiaries in India and Singapore.

An 8-city AI Bootcamp was said to have engaged over 2,500 developers and 300+ CXOs. The company was also recognized as a ‘Great Place to Work’ for the fifth consecutive year.

Stock, valuation, and peer context cited in the data

At a reported market price of ₹506.35, valuation metrics cited include a P/E of 12.14x versus an industry benchmark of 22x, P/BV of 1.82x (book value ₹264.35), EV/EBITDA of 9.38x, and dividend yield of 0.39% (₹2 per share). Market capitalisation was cited at ₹3,383 crore.

The stock’s 1-year return was reported at 70.23%, compared with the Sensex declining 8.84%. The current price was said to be 7.49% below the 52-week high of ₹547.35 and above the 52-week low of ₹275.00.

Broker view and stated risks

A separate note in the provided text said it retained a “BUY” rating and raised the target price to ₹610 (from ₹505 earlier). It also cited provisions of ₹4+ crore for labour code changes and ₹7 crore of ESOP expenses, while stating EBITDA margins were around 3% (and 3.2% excluding those items). The note flagged risks such as delay in PC replacement cycles, sudden decline in DRAM/SSD prices, and slower wins in large deals from data center projects.

What to monitor from here

The data points repeatedly highlight two operational levers: sustaining margins in a competitive distribution environment and improving cash conversion as scale rises. Interest costs rising in Q4 FY26 alongside rapid sales growth reinforces why working capital efficiency matters for reported profitability and cash flows.

The next key reference point in the text is the upcoming earnings date stated as 14 May 2026.

Conclusion

Rashi Peripherals’ March 2026 quarter showed strong top-line growth with consolidated net sales at ₹4,489.38 crore and net profit at ₹84.21 crore, while operating margin stayed at 2.95%. Investors are likely to track whether growth sustains alongside better operating cash flow trends, given the working-capital intensity indicated in FY25 cash flow data.