Rishabh Instruments FY26: Margin Reset, EEI Momentum, and a Deliberate HPDC Transition

Rishabh Instruments ended FY26 with steady revenue growth but a much sharper improvement in profitability. On a consolidated basis, revenue from operations rose to Rs 7,751 million in FY26 from Rs 7,203 million in FY25, a 7.6% year-on-year increase. The bigger change came in operating performance. Reported EBITDA rose to Rs 1,264 million from Rs 484 million, and PAT increased to Rs 822 million from Rs 210 million.

Q4FY26 continued the same pattern. Consolidated revenue grew 9.3% YoY to Rs 2,049 million, while reported EBITDA more than doubled to Rs 333 million and PAT increased to Rs 200 million. Management linked the profitability shift to better raw material sourcing, operational efficiencies, product mix improvement, and operating leverage.

The company has also proposed a final dividend of Rs 2 per share, which is 20% of face value, subject to shareholder approval.

Segment picture: EEI drives growth while HPDC is reset for profitability

Rishabh has restructured its reporting into two divisions, aimed at clearer operational focus.

The Electrical and Electronic Instruments (EEI) division remained the growth engine. FY26 EEI revenue increased 17.5% YoY to Rs 5,369 million. Segment adjusted EBITDA rose to Rs 1,330 million, and adjusted EBITDA margin expanded to 24.8% in FY26.

High Pressure Die Casting (HPDC), largely represented by Lumel Alucast in Poland, reported a planned decline in revenue. FY26 HPDC revenue fell 9.6% YoY to Rs 2,383 million. The notable improvement was in operating performance. Segment adjusted EBITDA improved to a positive Rs 33 million in FY26 compared with a loss of Rs 150 million in FY25. Management described this as the outcome of exiting low-margin legacy contracts, improving pricing, and pushing toward higher-margin non-automotive opportunities.

Revenue mix and geography: Europe still dominates

In FY26, the revenue mix tilted further toward EEI. The company disclosed FY26 split as 69.3% from EEI and 30.7% from HPDC.

Geographically, revenue remained Europe-heavy. FY26 geography split was 68.0% Europe, 24.8% Asia, and 7.2% Others, broadly similar to FY25.

This concentration matters because management acknowledged Europe faced subdued industrial activity. At the same time, they highlighted increasing investment momentum in the US, Southeast Asia, and Africa across electrification, industrial automation, and power infrastructure.

Capacity, R&D, and product roadmaps: building the next leg

The FY26 narrative included multiple capacity and product initiatives.

The Nashik expansion capex is nearing completion. The company stated it is adding two new buildings at the Nashik site, with advanced SMT capability and related machinery. Management described the facilities as effectively doubling production capacity to support export and domestic demand.

Lumel SA in Poland also commissioned a new advanced SMT line. Management said this increases manufacturing flexibility and supports next-generation complex medium-voltage controllers. The call noted that 40% of this investment was supported by European Union funds.

Solar inverters are being positioned as a meaningful growth lever, though management was cautious about margins. The presentation discussed government support for rooftop solar and highlighted new product launches such as the single-phase iUNO inverters. In the earnings call, management guided for solar inverter revenue of about Rs 24 to 25 crore in FY27 and discussed adding hybrid variants.

The company also spoke about medium-voltage product expansion. Management said certain medium-voltage products are already launched, and more products are expected to be developed through FY27, with sales impact thereafter.

What management guided for FY27

Management provided explicit guidance for the EEI division in FY27. The CEO stated that the company is looking at about 20% to 25% topline growth in the EEI segment and reiterated an EBITDA guidance of about 20% to 22%, noting that product mix can move margins up or down.

For Lumel Alucast (HPDC), management indicated that FY27 revenue may be roughly similar or slightly lower than FY26, with an emphasis on not losing money and rebuilding volume through RFQs and customer approvals. They also stated the improvement trajectory is expected to strengthen from FY28.

The company also discussed its ambition in the US market. Management stated the US requires product redesign and UL certification, and highlighted a target of taking the US business to about Rs 100 crore over 3 to 4 years.

Takeaways

FY26 showed a clear profitability reset for Rishabh Instruments. EEI delivered strong growth and margin expansion, while the HPDC business reduced losses and turned positive at the adjusted EBITDA level. The next set of milestones will likely be around sustaining EEI growth within the guided margin band, executing the Nashik capacity ramp-up, and showing tangible progress in HPDC volume recovery without returning to low-margin contracts. The company’s commentary also suggests a deliberate push to widen the addressable market through medium-voltage products, US certifications, and a scaled solar inverter roadmap.