Rishabh Instruments profit falls 20% despite revenue growth

Rishabh Instruments Limited reported consolidated profit after tax of Rs 18.13 crore for the quarter ended September 30, 2026, down 20% from Rs 22.69 crore a year earlier, although revenue from operations increased 8% to Rs 212.78 crore. Total expenses rose faster than revenue, reducing quarterly profit before tax to Rs 24.44 crore.

Why did Rishabh Instruments’ quarterly profit decline despite higher revenue?

Rishabh Instruments’ profit after tax declined because total expenses rose to Rs 192.13 crore in the September 2026 quarter from Rs 172.73 crore in the September 2025 quarter, an increase of Rs 19.40 crore that exceeded the Rs 16.45 crore rise in revenue from operations. Profit before tax consequently declined to Rs 24.44 crore from Rs 28.53 crore despite higher sales.

The cost of materials consumed increased to Rs 71.21 crore from Rs 59.55 crore, while employee-benefit expense rose to Rs 57.54 crore from Rs 55.04 crore. Finance costs increased to Rs 1.79 crore from Rs 1.09 crore, depreciation and amortisation rose to Rs 9.99 crore from Rs 8.68 crore, and other expenses increased to Rs 34.46 crore from Rs 33.28 crore.

How did Rishabh Instruments perform in the first half?

Rishabh Instruments reported first-half profit after tax of Rs 37.45 crore for the period from April 1, 2026 to September 30, 2026, compared with Rs 41.71 crore in the corresponding 2025 period. Revenue from operations rose to Rs 411.07 crore from Rs 386.66 crore, while total expenses increased to Rs 367.50 crore from Rs 343.35 crore.

The half-year comparison shows that revenue rose by Rs 24.41 crore, but profit before tax fell to Rs 51.00 crore from Rs 52.49 crore. Material cost increased to Rs 149.02 crore from Rs 122.87 crore and employee-benefit expense rose to Rs 116.87 crore from Rs 112.10 crore. Depreciation and amortisation also increased to Rs 19.46 crore from Rs 16.19 crore, while finance costs rose to Rs 2.72 crore from Rs 2.70 crore.

Rishabh Instruments recorded total comprehensive income of Rs 15.38 crore in the September 2026 quarter, compared with Rs 31.89 crore in the September 2025 quarter. The difference from reported profit reflected other comprehensive loss, including a Rs 2.75 crore exchange loss on translation of foreign operations, compared with other comprehensive income of Rs 9.20 crore a year earlier.

What does Rishabh Instruments’ cash flow show for the half year?

Rishabh Instruments generated net cash flow from operating activities of Rs 47.09 crore in the half year ended September 30, 2026, down from Rs 52.72 crore in the comparable prior-year period. Cash generated from operations was Rs 55.43 crore, compared with Rs 62.55 crore, after working-capital movements that included a Rs 20.95 crore increase in inventories.

The group used Rs 18.35 crore in investing activities, compared with an outflow of Rs 70.59 crore a year earlier. Purchases of property, plant, equipment and intangible assets were Rs 25.41 crore, lower than Rs 73.04 crore in the prior-year half. Financing activities used Rs 15.54 crore, against a net inflow of Rs 0.07 crore previously, including Rs 7.73 crore of dividend payments and Rs 6.55 crore of net borrowing repayments.

Cash and cash equivalents stood at Rs 106.47 crore at September 30, 2026, compared with Rs 96.41 crore at March 31, 2026. Net cash increased by Rs 13.20 crore during the half year, while a Rs 3.13 crore negative foreign-exchange difference affected the closing balance. The balance comprised Rs 106.44 crore held with banks and Rs 0.03 crore in fixed deposits with an original maturity below three months.

What changed in Rishabh Instruments’ balance sheet?

Rishabh Instruments’ total assets increased to Rs 1,027.58 crore at September 30, 2026 from Rs 1,002.76 crore at March 31, 2026. Non-current assets rose to Rs 483.33 crore from Rs 469.97 crore, led by property, plant and equipment of Rs 346.18 crore, compared with Rs 325.65 crore at the previous financial year-end.

Current assets increased to Rs 544.25 crore from Rs 532.80 crore, with inventories rising to Rs 193.08 crore from Rs 172.13 crore. Trade receivables decreased to Rs 122.20 crore from Rs 131.93 crore, while cash and cash equivalents increased to Rs 106.47 crore from Rs 96.41 crore. The inventory movement corresponds with the Rs 20.95 crore increase recorded in half-year operating cash flow.

Total equity was Rs 780.44 crore at September 30, 2026, compared with Rs 749.07 crore at March 31, 2026, while total liabilities fell to Rs 247.14 crore from Rs 253.69 crore. Current borrowings increased to Rs 31.22 crore from Rs 3.86 crore, whereas non-current borrowings declined to Rs 36.52 crore from Rs 37.42 crore. The filing identifies one operating segment covering test and measuring instruments and industrial control products, with geographic reporting across Asia, Europe and other locations.

Were Rishabh Instruments’ results reviewed and what corporate actions occurred?

Rishabh Instruments’ unaudited consolidated results were approved by its board on November 13, 2026, after review by the audit committee, and the statutory auditors issued an unmodified review conclusion. The review covered the quarter and half year ended September 30, 2026 under Indian Accounting Standard 34, or Ind AS 34, governing interim financial reporting.

The consolidated group includes subsidiaries in India, Cyprus, the United States, China, Poland and the United Kingdom. The filing states that Przedsiebiorstwo Wdrozeniowe INMEL Sp. z o.o. was an associate only until August 11, 2026. The board proposed a final dividend of Rs 2.00 per equity share on May 18, 2026; shareholders approved it on July 31, 2026 and Rishabh Instruments paid it during the September quarter.

Conclusion

Rishabh Instruments delivered higher revenue in both the September quarter and first half, but higher material, employee, depreciation and other costs coincided with lower profit after tax. Quarterly revenue increased to Rs 212.78 crore while profit after tax fell to Rs 18.13 crore; for the half year, revenue reached Rs 411.07 crore and profit after tax was Rs 37.45 crore.

The filing discloses no revenue target, capital-expenditure plan or future reporting date. Subsequent comparisons will reflect the higher inventory balance of Rs 193.08 crore, Rs 25.41 crore of half-year spending on property, plant, equipment and intangible assets, and the end of the associate relationship on August 11, 2026.