Rashi Peripherals Q4 FY26: Strong scale, improving margins, and selective bets beyond core distribution

Rashi Peripherals Limited, branded as RP Tech, closed Q4 FY26 with a sharp jump in reported growth and a clearer articulation of how it wants to evolve from a pure ICT distributor into a broader technology enablement platform. The quarter reflected a combination of strong demand, higher pricing in key PC-linked categories, and operating leverage, while the full year underscored the company’s ability to expand margins in an industry known for fine spreads.

On a consolidated basis, Q4 FY26 revenue from operations was INR 4,489.4 crore, up 51.0% year on year. EBITDA rose 41.4% to INR 132.6 crore, with EBITDA margin at 2.95%. Profit after tax increased 64.7% to INR 86.8 crore, and PAT margin improved to 1.93%. For FY26, consolidated revenue grew 14.9% to INR 15,827.3 crore, EBITDA expanded 52.8% to INR 458.7 crore, and PAT increased 34.6% to INR 282.3 crore. FY26 EBITDA margin expanded 72 basis points to 2.90% and PAT margin improved to 1.78%.

A key context point from management was that price increases in the PC ecosystem became meaningful in the second half of the year. Management stated that H1 growth was primarily driven by higher unit sales and more customers, while H2 growth had a substantial pricing contribution. That operating environment helped distributors with deep OEM relationships and disciplined inventory management.

Two-engine model: PES and LIT

RP Tech runs a two-segment model. Personal Computing and Enterprise Solutions (PES) caters to bundled enterprise solutions with pre and post-sales support, including government, data centers, and institutional customers. Lifestyle and IT Essentials (LIT) is a faster-moving portfolio spanning peripherals, accessories, gaming, wearables, and everyday IT products.

The investor presentation disclosed FY26 segment revenues of INR 9,126.6 crore for PES and INR 6,700.8 crore for LIT. On the earnings call, management described the revenue mix as roughly 58% PES and 42% LIT. This balance matters because the pricing cycle was described as most pronounced in PES, while LIT sees more routine pricing.

Management also highlighted that LIT grew 24% year on year in FY26 and PES grew 37% year on year, pointing to stronger enterprise and PC-linked momentum. Importantly, management emphasised that dependency on any single product or brand is small due to the broad portfolio.

FY26 and Q4 FY26 financial snapshot (Consolidated)

Note: Values are from the company’s consolidated highlights and income statement tables.

Operating model and network advantage

RP Tech’s thesis is built on reach and execution. The presentation cites 55 branches, 71 warehouses, 50 service centres and presence across 700 plus locations, supported by over 10,300 partners or B2B customers. The company positions itself as a bridge between global OEMs and India’s channels across general trade, modern trade, and e-commerce.

The company also highlighted the breadth of its brand relationships. While brand names are not revenue-disclosed, management noted that the Dell Technologies partnership is expanding their commercial portfolio, including servers and storage. However, the company stated it cannot disclose brand-wise numbers due to contractual restrictions.

Pricing cycle, demand visibility, and what FY27 could look like

A notable part of the call was the discussion on pricing versus volume. Management said that the pricing impact was limited in H1 and became meaningful in H2. They indicated that in H2, a meaningful portion of growth came from price increases.

For FY27, management reiterated confidence in maintaining a long-term 20% CAGR trajectory, even while acknowledging an IDC view that PC shipment units could temporarily decline by 5% to 10%. The company’s argument is that even if units soften, PES pricing could rise by about 20% to 25%, supporting net growth. Management also cautioned that consumer demand could see softness in the second half of FY27 if affordability becomes a constraint, given the step-up in entry laptop pricing.

This demand outlook was not presented as risk-free. Instead, management framed it as a period where distributors with strong balance sheets and inventory discipline can take share.

New growth vectors: Dell, semiconductor, and AI enablement

Three themes stood out beyond core distribution.

First, Dell Technologies. Management said Dell currently represents a low single-digit share but could move toward a double-digit share of annual top line next year, subject to execution. The company indicated it handles Dell’s range from PCs and laptops to servers, storage, and monitors.

Second, semiconductors. Management reported 131% year on year growth in semiconductor business, while being explicit that the base is small relative to the overall INR 15,827.3 crore revenue. They stated meaningful impact is a few years away. The company also created a semiconductor subsidiary to improve focus and accelerate partnerships and customer acquisition, and mentioned expansion of semiconductor footprint through new subsidiaries in India and Singapore.

Third, AI enablement. RP Tech highlighted an 8-city AI Bootcamp that engaged developers and CXOs. Management described this as a seeding and training program that tends to convert to inquiries and orders over a 6 to 12 month lead cycle. This complements the company’s broader push into AI infrastructure opportunities.

Capital intensity, projects, and disciplined selection

Project business, especially large data center deals, was addressed with a clear filter: ROI and feasibility. Management stated that in FY24-FY25 the company executed a INR 2,000 crore project, but in FY25-FY26 it consciously avoided substantial project business as the non-project core business already grew strongly. For FY27, management indicated it may pursue some project opportunities but only where returns justify the capital intensity.

This is consistent with another disclosure in the call, where management said funnels of INR 20,000 to 25,000 crore exist in the market, but not all will be pursued given capital intensity and lower margins.

Working capital and cash flow signals

Working capital remains central for any distributor. The company disclosed FY26 inventory days of 56 and debtor days of 46, with creditor days at 44, resulting in working capital days of 58 versus 54 in FY25. The presentation also reported an improvement in cash flow from operations to INR 113.7 crore in FY26, compared to negative operating cash flow in FY23 to FY25.

Management also discussed inventory prudence. They noted slow-moving inventory provisioning impacted gross margins in Q4 comparisons, and the presentation shows provision for inventory write-off percentage increased in FY26.

Takeaways

RP Tech’s FY26 narrative is a blend of scale and discipline. The company delivered consolidated revenue growth while expanding EBITDA and PAT margins, helped by a pricing tailwind in PES and operating leverage. At the same time, management remained realistic on the structural nature of distribution margins, guiding that PAT margins typically stay in a 1.5% to 1.75% range unless mix changes materially.

Strategically, the company is trying to build a portfolio that can capture enterprise and AI-related demand while keeping its core distribution engine strong. The Dell partnership, semiconductor focus through dedicated subsidiaries, and AI bootcamp-led demand creation point to that direction. The main investor watch items remain working capital, the sustainability of unit demand in a higher price environment, and the company’s discipline in pursuing large capital-intensive projects.