In , Rishabh Instruments Ltd (Capital Goods - Electric General) is outperforming Nifty 500 with +22.1% relative strength. Fundamentals: Weak. On a 5-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: EBITDA Margin Expansion: 920 bps YoY
Impact: 119.5% EBITDA growth
“Once you do automation, you reduce headcounts and people become more efficient, your rework becomes less, and the cost of quality goes down.”
What: US Market Growth: 50%
Impact: $3 million revenue
“we have 50% growth in US market this year... our STI USA business, we grew from $2 million last year to we will be closing around $3 million.”
What: Solar Inverter Orders: 1,000 units
Impact: ₹10-12 Cr revenue
“Recently, we secured new orders for our single-phase inverter model... For the current year, we may end up with around Rs.10 crores to Rs.12 crores.”
What: India-EU FTA / India-US Trade: 18% tariff
“The conclusion of the India-European Union Free Trade Agreement... the reduction from 25% to 18% is a meaningful, positive for export-oriented manufacturers.”
What: EEI Segment Growth: 17.7%
Impact: 26.6% segment margin
“The Electrical and Electronics Instrumentation, (EEI) segment delivered 17.7% year-on-year growth... with an adjusted EBITDA margin improving to 26.6%.”
What: 9M Adjusted EBITDA of ₹100.9 Cr
“Sourcing, we went through a full rehaul of sourcing... we got about 4-5% squeezed in our raw material purchase prices over this period.”
What: ₹100 Cr → ₹115 Cr - ₹120 Cr
“we are targeting adjusted EBITDA to reach about Rs.115 crores to Rs.120 crores... much more than what we committed at the beginning.”
Earnings deceleration risks from management commentary
Trigger: European markets are experiencing softness across industrial automation and power infrastructure.
Management view: Diversifying geographic exposure to Africa, Middle East, and the US to mitigate European headwinds.
Monitor: geopolitical
Trigger: Policy changes in the US have introduced a flat duty on all products exported from India.
Management view: Management notes that 18% is still lower than duties for other countries and they managed growth even during 50% tariff regimes.
Monitor: regulatory
Trigger: Regulatory changes in Indian labor laws required a one-time provisioning.
Impact: PAT impact: ₹2.4 Cr
Management view: One-time provision already accounted for in Q3 results.
Monitor: labor
Key quotes from recent conference calls
“we remain confident of achieving a full-year target of Rs. 100 crores in terms of EBITDA. [Previous Full Year EBITDA guidance]”
“A key highlight was the proposed ISM 2.0 program for electronic components with an outlay of Rs.40,000 crores. [Initiative: ISM 2.0 Program Participation]”
“The European market has been relatively subdued... partly due to government spending priority shifting towards defense. [Risk (geopolitical): MEDIUM]”
“Trump has put a flat duty on each country for every product... from India... will have a 18% duty. [Risk (regulatory): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹183.6 Cr
Why: Growth was supported by healthy order inflow in the electrical and electronic instrumentation segment, though overall revenue was below internal expectations.
Consolidated revenue growth was muted at 1.3% YoY, primarily due to a 29.1% decline in the high-pressure die-casting segment.
EBITDA
₹31.4 Cr
Why: Profitability improved due to better raw material sourcing, enhanced operational efficiencies, and a more favorable product mix.
EBITDA margins expanded significantly despite a ₹3.9 Cr provision for ESOP costs and new labor code implementation.
PAT
₹20.5 Cr
Why: The sharp YoY increase was driven by significant margin expansion in the core electronics business and narrowing losses in the Alucast segment.
PAT growth of 162% YoY reflects the impact of cost optimization and operational leverage playing out.
Other Highlights
• Standalone EBITDA margin reached 21.1%, an improvement of 1,109 basis points over Q3 FY25.
• Solar business turned profitable at the operating level after a long period of losses.
• Net cash and cash equivalents stood at ₹123 Cr as of December 31, 2025.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
EEI Segment Revenue Growth
17.7%
Why: Driven by strength of product portfolio and expanding geographic reach.
EEI Segment EBITDA Margin
26.6%
Why: Favorable shift in product mix and sustained operational efficiency.
Alucast Revenue Degrowth
29.1%
Why: Deliberate reduction in exposure to the automotive segment and phase-out of legacy contracts.
Raw Material Sourcing Savings
4-5%
Why: Full rehaul of the sourcing process.
Solar Business Revenue Guidance
₹10-12 Cr
Why: New orders for single-phase inverter models.
US Market Revenue Growth
50%
Why: Aggressive sales strategy and increased marketing personnel.
Standalone EBITDA Margin
26.3%
Why: Cost optimization, improved product mix, and operational leverage.
Net Cash and Equivalents
₹123 Cr
Why: Strong balance sheet maintenance.
Forward-looking targets from management for Perpetual/Long-term
Revenue Growth Target
22.5%
OPM Guidance
115–120%
20-25%
Targeting adjusted EBITDA of ₹115 Cr to ₹120 Cr for FY26.
Guidance Changes
FY26 Adjusted EBITDA: ₹100 Cr → ₹115 Cr - ₹120 Cr
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +2% | +15% | Stable |
| PAT (Net Profit) | +163% | -25% | Stable |
| OPM | 17.0% | +900 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Rishabh Instruments Ltd's latest quarterly results (Dec 2025) show
Rishabh Instruments Ltd's profit is growing with an stable trend.
Rishabh Instruments Ltd's revenue growth trend is stable.
Rishabh Instruments Ltd's operating margin is volatile.
Rishabh Instruments Ltd's long-term compounding rates
Rishabh Instruments Ltd's earnings growth is stable with weakening on a sequential basis.
Rishabh Instruments Ltd's trailing twelve month (TTM) performance
Rishabh Instruments Ltd appears overvalued based on our fair value analysis.
Rishabh Instruments Ltd's current PE ratio is 29.8x.
Rishabh Instruments Ltd's current PE is 29.8x.
Rishabh Instruments Ltd's price-to-book ratio is 2.9x.
Rishabh Instruments Ltd is rated Weak with a fundamental score of 38.2/100. This score is calculated from objective financial metrics
Rishabh Instruments Ltd has a debt-to-equity ratio of N/A.
Rishabh Instruments Ltd's return ratios over recent years
Rishabh Instruments Ltd's operating cash flow is positive (FY2025).
Rishabh Instruments Ltd currently does not pay a significant dividend (yield 0.00%).
Rishabh Instruments Ltd's shareholding pattern (Mar 2026)
Rishabh Instruments Ltd's promoter holding has decreased recently.
Rishabh Instruments Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Rishabh Instruments Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
Rishabh Instruments Ltd has 7 key growth catalysts identified from recent earnings analysis
Rishabh Instruments Ltd has 3 key risks worth monitoring
In Q3 FY26, Rishabh Instruments Ltd's management highlighted
Rishabh Instruments Ltd's management has provided the following forward guidance for Perpetual/Long-term
Rishabh Instruments Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Rishabh Instruments Ltd may be worth studying
Rishabh Instruments Ltd investment thesis summary:
Rishabh Instruments Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
