Rishabh Instruments Shines in Q3 FY26: A Deep Dive into Growth and Strategy

Rishabh Instruments Limited has delivered a robust financial performance for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26), showcasing significant growth across key metrics. The company's consolidated revenue for Q3 FY26 stood at INR 183.6 crore, marking a 1.3% year-on-year increase. For the nine-month period, consolidated revenue reached INR 570.3 crore, reflecting a healthy 7% year-on-year growth. This performance underscores the company's strategic focus on cost optimization, operational efficiencies, and a favorable product mix.

The profitability metrics were particularly impressive. Consolidated EBITDA for Q3 FY26 surged to INR 31.4 crore, an astounding 119.5% increase year-on-year, with margins expanding by 920 basis points to 17.1%. For the nine months, consolidated EBITDA reached INR 93.2 crore, up by 188.8% year-on-year, with margins improving to 16.3% from 6.1% in the previous period. This strong operational leverage translated into a consolidated Profit After Tax (PAT) of INR 20.5 crore for Q3 FY26, a 161.5% increase, and INR 62.2 crore for 9M FY26, a substantial 317.9% growth. The management highlighted that they have already achieved their full-year adjusted EBITDA guidance within nine months, demonstrating strong execution.

Segmental Performance and Strategic Shifts

The company's performance was largely driven by its Electrical and Electronic Instrumentation (EEI) segment, which recorded a robust 17.7% year-on-year revenue growth in Q3 FY26 and 14.0% in 9M FY26. This segment's adjusted EBITDA margin improved significantly to 26.6% in Q3, well above the 25% benchmark. This growth was attributed to a strong product portfolio, a favorable product mix, sustained operational efficiency, recent product launches, and expanding geographic reach. The company aims for 15-20% top-line growth in this segment by year-end.

In contrast, the High Pressure Die Casting (HPDC) segment experienced a planned revenue decline of 29.1% in Q3 FY26 and 5.5% in 9M FY26. This degrowth is a result of a deliberate strategy to phase out loss-making legacy automotive contracts and increase focus on non-automotive customers. Despite the revenue decline, the segment's adjusted EBITDA for 9M FY26 turned positive to INR 6.4 crore, a significant turnaround from a loss of INR 15.1 crore in the previous year. This indicates effective management of the transition, with a priority on achieving EBITDA above break-even levels. The management expects to return to current year's top-line levels and achieve double-digit EBITDA margins by FY28.

Future Growth Drivers and Strategic Initiatives

Rishabh Instruments is actively pursuing several strategic initiatives to sustain its growth trajectory. The expansion of its Nashik manufacturing facilities, with two new multi-storied buildings, is nearing completion. This project will effectively double the company's production capacity, enhancing its ability to meet rising export demands and support long-term growth. The new facilities are expected to be operational by H2 FY27.

The solar business is emerging as a significant growth driver. The company has sharpened its focus and execution in this segment, which is now profitable after a period of losses. In-house R&D has developed new single-phase inverters (UNO 2.5KW-6KW) and next-generation inverters (NEO RADIUS 3KW-120KW). The company aims for the solar business to become an INR 100 crore business in the next 3-4 years, with a sustainable growth aspiration of 20-50%. Additionally, Rishabh Instruments has acquired Microsys, a SCADA software company in the Czech Republic, strengthening its offerings in industrial process automation.

Management is also committed to continuous innovation, as evidenced by its partnership with the ASPIRE-IITB Research Park Foundation for cutting-edge R&D. A five-year strategic roadmap has been rolled out, targeting incremental revenue of up to 50% of the current electronic turnover, driven by new product lines and expansion into the medium-voltage segment. The company's diversified global footprint, with increasing focus on emerging markets like the Middle East, Africa, and South America, further de-risks its revenue streams. With a net debt-free status and a strong balance sheet, Rishabh Instruments is well-positioned for sustainable and profitable growth, leveraging a supportive policy environment and improving global economic conditions.