Rishabh Instruments Q1 FY27: EEI Drives Growth, HPDC Reset Continues

Rishabh Instruments opened FY27 with a quarter that looked steady at the consolidated level, but structurally important underneath. In Q1 FY27, consolidated revenue rose to INR 1,983 million, up 4.2% year on year. Consolidated EBITDA increased faster, up 17.3% to INR 333 million, taking EBITDA margin to 16.8% from 14.9% last year. Reported consolidated PAT was INR 194 million, down 1.4% year on year. Management attributed the PAT softness mainly to higher depreciation.

The core takeaway from the quarter was the continued strength of the Electrical and Electronics Instrumentation segment, and a deliberate, value-focused reset in the HPDC business at Lumel Alucast. The company also highlighted ongoing investments in manufacturing capacity, product development, and international expansion, especially across the US and other growth markets.

The quarter in numbers: profitability improved, PAT impacted by depreciation

On a standalone basis, the India entity delivered a sharper growth profile. Standalone revenue rose 25.6% year on year to INR 776 million. Standalone EBITDA was INR 178 million, up 24.5%, with margin at 22.9%. Standalone PAT increased 20.2% to INR 119 million.

At the group level, the margin expansion continued to be driven by improved sourcing, operational efficiencies, favourable product mix, and operating leverage, as noted in management commentary.

Segment story: EEI accelerates, HPDC sacrifices volume to rebuild quality

Segment performance explained most of what happened in the quarter.

The EEI segment remained the primary growth and profitability engine. In Q1 FY27, EEI revenue rose 34.0% year on year to INR 1,540 million. Adjusted EBITDA increased 69.1% to INR 382 million and margins expanded to 24.8% from 19.6% in the prior year quarter. Reported EBITDA margin for EEI was 23.9%.

In contrast, HPDC reported a sharp revenue decline that was described as planned. HPDC revenue fell 41.2% year on year to INR 443 million, reflecting exit from lower-margin contracts and management’s decision to not pursue volume at the cost of profitability. HPDC adjusted EBITDA for Q1 FY27 was negative INR 28 million, with adjusted EBITDA margin at negative 6.4%. The company said it was at operating break-even in Q1 and expects to reach adjusted EBITDA break-even by the end of FY27.

The revenue mix shift was visible. EEI accounted for 77.7% of consolidated revenue in Q1 FY27 versus 60.4% in Q1 FY26, while HPDC fell to 22.3% from 39.6%.

What is driving EEI: multiple growth engines, international scale-up, and product cadence

Management pushed back on the idea that Q1 EEI growth was driven by a single large order or a temporary spike. The CEO described the growth as coming from multiple factors across products and markets.

In India, management pointed to stronger demand in the current transformer business, linking it to structural themes like data centers and solar. In Europe, Lumel S.A. delivered strong growth despite what management called a relatively subdued European industrial environment. The CFO stated Lumel S.A. revenue for Q1 FY27 was INR 639 million, EBITDA INR 153 million, and PAT INR 115 million. In the call, management also indicated that in Europe, part of the momentum is linked to energy distribution upgrade activity in Germany.

The company also highlighted improving traction in smaller international operations. Management stated the US and UK businesses grew by over 40% year on year, while China grew 20.3% in Q1 FY27. They positioned these as scaling opportunities over the coming years.

A key operational driver was the product pipeline. Management stated the group launched around 15 new products over the past two years and has more than 15 products planned for FY27. The stated objective is to broaden the addressable market and create new revenue streams.

Solar and manufacturing capacity: early traction, portfolio expansion, and a larger platform

Solar inverters were discussed as an emerging pillar rather than a current driver of consolidated performance. Management stated solar remains less than 5% of India business mix and indicated that last year solar revenue was around INR 8 to 9 crore, with a plan to do about INR 24 to 25 crore in FY27.

Product actions were concrete. The company said it launched single-phase iUNO inverters up to 5 kW and added next-generation 3-phase iNEO models up to 12 kW in Q1 FY27. Development is underway for next-generation models up to 50 kW by end of the financial year. Management also said it is developing hybrid inverters to address growing demand for integrated renewable energy systems, which is relevant in use cases where peak and off-peak energy management and battery utilisation matter.

Beyond products, the capacity platform is being upgraded. Management highlighted partial commissioning of a new manufacturing facility at Nashik, stating both buildings are completed and full completion should happen within about 1 to 2 months from the call date. The CEO said the facility is designed for a 4 to 5 year plan to raise production to more than 2.5 times.

On go-to-market, the company also mentioned opening a Rishabh TMI Experience Center for test and measurement instruments, aimed at live demonstrations and technical engagement. Similar centers are planned for Mumbai and Delhi by the end of the financial year.

Outlook and guidance: conservative stance, clear focus areas

Management described the industry outlook as structurally attractive, citing investments in electrification, grid modernization, renewable energy, and industrial automation. It also pointed to AI-driven data centers as an opportunity for energy measurement, monitoring, and power quality solutions.

However, the company did not raise its stated guidance after a strong Q1. Management reiterated its EEI guidance of around 20% top line growth and EBITDA margin of 20% to 22%, while acknowledging Q1 performance came in above those initial guidelines. Management also highlighted seasonality factors in Europe and India that can affect quarterly patterns.

For HPDC, management reiterated its stated path: focus on filling capacity with higher-value opportunities, progress RFQs through qualification and approval cycles, and achieve adjusted EBITDA break-even by end of FY27.

The quarter therefore reinforced two themes: a structurally stronger EEI segment with rising profitability, and a deliberately rebuilt HPDC segment that is being managed for long-term returns rather than near-term volumes.