Rishabh Instrum. Q1 FY27 Earnings Call — Analysis (NSE: RISHABH)
Rishabh Instruments posts 34% YoY EEI revenue growth and 520bps EBITDA margin expansion, driven by diversified product engines, while maintaining conservative guidance; Lumel Alucast turnaround remains on track for FY27 EBITDA breakeven.
Result quality: strong — Margin expansion. Management sentiment: optimistic.
The take
Q1FY27 Consolidated Revenue ₹198.3 Cr ( +4.2% YoY ) . New guidance — FY27 eei segment revenue growth 20-25% . New story: EEI multi-engine, broad-based growth .
Results
Consolidated revenue ₹198.3 Cr (+4.2% YoY); EBITDA ₹33.3 Cr (+17.3% YoY); PAT ₹19.4 Cr (-1.4% YoY). EEI segment delivered 34% YoY revenue growth with EBITDA margin expanding 520bps to 24.8%, exceeding management's initial guidelines.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Consolidated Revenue | ₹198.3 Cr | +4.2% | yoy · Q1FY27 |
| Consolidated EBITDA | ₹33.3 Cr | +17.3% | yoy · Q1FY27 |
| Consolidated PAT | ₹19.4 Cr | -1.4% | yoy · Q1FY27 |
| Standalone India Revenue | ₹77.6 Cr | +25.6% | yoy · Q1FY27 |
| EEI Segment Revenue Growth | 34% | +na | yoy · Q1FY27 |
| EEI Adjusted EBITDA | ₹38.2 Cr | +69.1% | yoy · Q1FY27 |
| EEI EBITDA Margin | 24.8% | +520bps | yoy · Q1FY27 · from 19.6% in Q1FY26 |
| Lumel S.A. Revenue | ₹63.9 Cr | +39% | yoy · Q1FY27 |
| Lumel Alucast Revenue | ₹44.3 Cr | -41.2% | yoy · Q1FY27 · planned decline |
| Net Cash | ₹160.6 Cr | point_in_time · as of Jun 30, 2026 |
Guidance
Management reiterates FY27 EEI revenue growth guidance of 20-25% and EBITDA margin of 20-22%; Lumel Alucast expected to achieve adjusted EBITDA breakeven by end of FY27.
What management committed to
- EEI segment revenue will grow 20-25% year-on-year in FY27 — 20-25%, FY27
- EEI segment EBITDA margin will be in the 20-22% range for FY27 — 20-22%, FY27
- U.S. operations revenue will reach ₹45 Cr in FY27 — ₹45 Cr, FY27
- U.S. operations revenue will reach ₹100 Cr in 2-3 years' time from Q1FY27, i.e. by FY29-FY30 — ₹100 Cr, FY30
- Lumel Alucast will achieve adjusted EBITDA breakeven by end of FY27 — breakeven, FY27
- Lumel Alucast will restore double-digit EBITDA margin in about 2 years (by FY29) — double-digit, FY29
- Solar inverter business will deliver revenue of ₹24-25 Cr in FY27 — ₹24-25 Cr, FY27
- Solar inverter business revenue will reach ₹250-300 Cr in the next year (FY28) — ₹250-300 Cr, FY28
- Next-generation 3-phase iNEO solar inverters up to 50 kW and hybrid inverters will be launched by end of FY27 — up to 50 kW 3-phase and hybrid inverters, FY27
- Two Rishabh TMI Experience Centers in Mumbai and Delhi will be operational by end of FY27 — two centers (Mumbai, Delhi), FY27
- Low-voltage current transformer production capacity is being enhanced to 8,000-10,000 units per day — 8,000-10,000 per day, as we speak (ongoing)
Key themes
EEI outperformance, margin expansion, international scaling, Alucast recovery
How the narrative shifted
- EEI multi-engine, broad-based growth: Management attributes EEI's 34% growth to diversified demand drivers—CT volumes from data centres/solar, Lumel SA’s grid-modernization projects and new products, U.S. scaling, and new product adoption—making it sustainable and not lumpy.
- Conservative guidance philosophy: Despite a strong Q1 beat, management explicitly declines to raise the 20-25% EEI revenue and 20-22% margin guidance, preferring to overdeliver; cites seasonality risks and desire to avoid disappointment.
- Lumel Alucast managed decline and recovery: The planned revenue contraction continues, but the unit hit operating breakeven; adjusted EBITDA breakeven is expected by FY27-end, and a double-digit margin is targeted in ~2 years as RFQ pipeline converts and cost efficiencies take hold.
- U.S. market acceleration as a growth pillar: U.S. revenue grew >40% and is targeted at ₹45 Cr in FY27 and ₹100 Cr in 2-3 years, driven by product adaptation (ANSI/UL), increased sales resources, and potential inorganic moves; positioned as the next scalable international leg.
- Solar inverter emerging as material growth engine: Solar inverter business achieved operational profitability and is building a full product suite (up to 50 kW, hybrid); management projects ₹24-25 Cr in FY27 and a sharp jump to ₹250-300 Cr in FY28, signaling a major pivot.
- European energy/security demand tailwinds: Grid modernization in Germany and heightened security needs in Poland (radiation gates at airports/borders) provide niche demand, insulating Lumel S.A. from the broader European industrial slowdown.
Operational commentary
- EEI segment delivered 34% YoY revenue growth and EBITDA margin expansion to 24.8% (+520bps), driven by multiple product engines, operating leverage, procurement efficiencies and mix improvement. Management called it the group's primary growth engine.
- Lumel S.A. (Poland) revenue grew 39% YoY to ₹63.9 Cr with EBITDA margin of 24%, supported by high-value electronics manufacturing, grid-upgrade orders (EUR3M follow-on, ~20-25% of sales), radiation gate projects, and new customer wins.
- U.S., U.K. and China businesses grew >40%, >40% and 20.3% YoY respectively, albeit from a small base. U.S. revenue targeted at ₹45 Cr in FY27, on track to ₹100 Cr in 2-3 years through product localization (ANSI/UL), resource addition, and inorganic exploration.
- Solar inverter business achieved operational profitability; launched next-gen 3-phase iNEO inverters up to 12 kW; developing range up to 50 kW and hybrid inverters by FY27-end. Management expects FY27 solar revenue of ₹24-25 Cr and FY28 ₹250-300 Cr.
- New Nashik manufacturing facility partially commissioned, enhancing capacity 2.5x; full operationalisation expected in 1-2 months. Supports new product introductions and export scaling.
- Lumel Alucast achieved operating breakeven in Q1; adjusted EBITDA at -6.4%, with clear path to full-year adjusted EBITDA breakeven by FY27-end. RFQ pipeline progressing through qualification and approval stages; double-digit EBITDA margin target in ~2 years.
- Current transformer (CT) capacity being doubled from 5,000-6,000 to 8,000-10,000 units/day, driven by AI/data center and solar demand. Medium-voltage CT expansion also underway.
- Order bookings in domestic market up ~20% YoY in Q1, with several data-center wins (1 announced, 3-4 won, 10 quoting).
- ~15 new products launched over past 2 years; >15 more planned in FY27 across EEI portfolio to broaden addressable market.
- First Rishabh TMI Experience Center opened; two more (Mumbai, Delhi) planned by FY27-end to accelerate test & measurement product adoption.
Analyst Q&A
Q. What is driving the 34% EEI growth? Is there any lumpiness, and how should we think about sustainability for the rest of the year?
Growth is coming from multiple engines — CT demand from data centres/solar, Lumel S.A. benefiting from energy distribution upgrades and new products, U.S. scaling, and new product adoption. It is not lumpy and is quite sustainable. Management stands by the 20-25% revenue growth and 20-22% EBITDA margin guidance for FY27, but will try to overdeliver as last year.
Q. What is the Americas go-to-market strategy and scaling plan?
Organic target is ₹45 Cr in FY27, aiming for ₹100 Cr in 2-3 years. Strategy includes upgrading products to ANSI/UL standards, adding sales resources in Mexico and Canada, and exploring inorganic opportunities.
Q. Have we started receiving production schedules from clients for solar inverters?
We sell through distribution channels and also are in discussions with EPC contractors who are looking for local sourcing alternatives due to Chinese dependency issues. No specific production schedules confirmed yet, but the pipeline is strong and the business is operationally profitable.
Q. Given the stupendous Q1, are we looking at much higher than 20% growth for EEI this year?
We do not want to raise guidelines, though Q1 performance has been strong. There is seasonality in Europe (July-August holidays) and India (Diwali). We will try to overdeliver again but prefer to stick to the earlier guidance.
Research and educational content only. Not investment advice.