Rishabh EEI reaches 79.2% of H1 revenue as HPDC posts loss

Rishabh Instruments Limited derived 79.2% of H1FY27 revenue from Electrical and Electronic Instruments, up from 65.1% a year earlier, as EEI revenue rose 29.3% to Rs 325.5 crore. High Pressure Die Casting revenue fell 36.6% to Rs 85.5 crore and the segment reported a Rs 12.2 crore loss after tax.

How dependent is Rishabh on EEI revenue?

Rishabh generated 79.2% of H1FY27 consolidated revenue from Electrical and Electronic Instruments, or EEI, compared with 65.1% in H1FY26. EEI revenue increased by Rs 73.8 crore year on year to Rs 325.5 crore, while its revenue share rose 14.1 percentage points as High Pressure Die Casting, or HPDC, contracted.

HPDC contributed 20.8% of H1FY27 revenue, down from 34.9% in H1FY26. Rishabh’s consolidated revenue increased 6.3% to Rs 411.1 crore from Rs 386.7 crore, with EEI’s Rs 73.8 crore increase more than offsetting HPDC’s Rs 49.4 crore decline.

The concentration was also apparent in Q2FY27. EEI represented 80.6% of revenue in the quarter, versus 69.7% in Q2FY26, after revenue grew 24.9% to Rs 171.6 crore. HPDC’s Q2FY27 share declined to 19.4% from 30.3%, while its revenue fell 30.1% to Rs 41.2 crore.

What caused HPDC revenue and earnings to fall?

HPDC revenue declined by Rs 49.4 crore to Rs 85.5 crore in H1FY27, and adjusted earnings before interest, tax, depreciation and amortisation, or adjusted EBITDA, changed from a Rs 7.8 crore profit to a Rs 3.2 crore loss. Its adjusted EBITDA margin moved to negative 3.8% from positive 5.8% in H1FY26.

The presentation does not identify or quantify a specific operating reason for the 36.6% revenue decline. Management says it is prioritising sustainable profitability over volume in HPDC, describing its approach as value over volume, while the lower revenue base and negative H1FY27 adjusted EBITDA show the first-half outcome of that business position.

HPDC reported EBITDA was a Rs 7.0 crore loss in H1FY27, compared with a Rs 7.8 crore profit a year earlier. The difference from adjusted EBITDA included Rs 1.3 crore of employee stock option plan and Stock Appreciation Rights costs, plus a Rs 2.5 crore withholding-tax provision in H1FY27.

How did EEI support Rishabh’s group earnings?

EEI added Rs 73.8 crore of H1FY27 revenue and Rs 17.2 crore of adjusted EBITDA, reaching Rs 75.0 crore of adjusted EBITDA. Its adjusted EBITDA margin was 23.1%, 10 basis points higher than H1FY26; one basis point equals one-hundredth of a percentage point.

EEI gross profit rose 24.4% to Rs 192.6 crore, although its gross margin declined 240 basis points to 59.2%. Employee costs increased to Rs 75.3 crore from Rs 63.7 crore and other expenses rose to Rs 42.3 crore from Rs 33.4 crore, while adjusted EBITDA grew 29.9%.

At the bottom line, EEI recorded H1FY27 profit after tax of Rs 49.7 crore, up 32.2% from Rs 37.6 crore. Its reported EBITDA margin improved 90 basis points to 22.3%, and its profit-after-tax margin rose 30 basis points to 15.3%, compared with HPDC’s negative 14.3% profit-after-tax margin.

Rishabh’s geographic mix also changed during H1FY27. Europe accounted for 60.3% of revenue, down from 69.4% in H1FY26, while Asia increased to 28.1% from 23.7% and other geographies rose to 11.5% from 6.9%.

Why did Rishabh’s consolidated profit decline despite revenue growth?

Rishabh’s consolidated profit after tax fell 10.1% to Rs 37.5 crore in H1FY27 despite the 6.3% revenue increase to Rs 411.1 crore. The presentation shows HPDC’s loss, a 250-basis-point decline in consolidated gross margin to 60.4%, and higher depreciation and finance costs over the period.

Consolidated adjusted EBITDA increased 9.5% to Rs 71.8 crore, and its adjusted EBITDA margin improved 50 basis points to 17.5%. Reported EBITDA was Rs 65.7 crore after Rs 3.6 crore of employee stock option plan and Stock Appreciation Rights costs and a Rs 2.5 crore withholding-tax provision, leaving the reported margin at 16.0%.

Below EBITDA, depreciation increased to Rs 19.5 crore from Rs 16.2 crore and finance cost rose to Rs 2.7 crore from Rs 2.3 crore. Consolidated earnings before interest and tax therefore declined 1.9% to Rs 53.7 crore, while profit before tax declined 2.8% to Rs 51.0 crore.

What is Rishabh management targeting for HPDC in FY27?

Management expects HPDC to reach adjusted EBITDA break-even for full FY27, despite its Rs 3.2 crore adjusted EBITDA loss in H1FY27. The presentation also states that HPDC was at operating-level break-even and was expected to be at adjusted EBITDA break-even by the end of FY27.

This expectation requires a different second-half earnings result from H1FY27, when HPDC generated Rs 85.5 crore of revenue at a negative 3.8% adjusted EBITDA margin. Management did not disclose an HPDC revenue target, margin target or a more specific timetable within FY27.

Management’s broader FY27 priorities include profitable growth, product-mix improvement, new-product development, deeper customer relationships, geographic expansion and disciplined capital allocation. It identified investments in energy meters, medium-voltage products, automation and solar inverters, alongside expansion across the United States, Africa and Southeast Asia.

Conclusion

Rishabh’s H1FY27 results show a materially more concentrated business mix: EEI produced 79.2% of revenue and Rs 75.0 crore of adjusted EBITDA, while HPDC supplied 20.8% of revenue and recorded a Rs 3.2 crore adjusted EBITDA loss. Consolidated revenue rose 6.3%, but profit after tax fell 10.1% to Rs 37.5 crore as gross margin declined and costs below EBITDA increased.

The next disclosed milestone is management’s FY27 expectation that HPDC will achieve adjusted EBITDA break-even. Results for the second half will indicate whether HPDC can recover from its negative 3.8% H1FY27 adjusted EBITDA margin and whether EEI can maintain its 23.1% adjusted EBITDA margin while Rishabh expands its stated product and geographic initiatives.