Rishabh Instruments reported a decline in profitability for the first quarter of FY27, with net profit after tax falling to ₹222.51 lakh for the period ended June 30, 2026. This represents a decrease from the ₹267.57 lakh recorded in the same quarter of the previous fiscal year.

The company's total income also contracted during the period, registering at ₹1,267.23 lakh against ₹1,317.94 lakh in Q1FY25. Profit before tax, exceptional, and extraordinary items was ₹297.35 lakh, lower than the ₹357.82 lakh reported in the prior year's corresponding quarter.

Financial Performance

Earnings per share (basic) for the quarter stood at ₹4.52, down from ₹5.43 in Q1FY25. The equity share capital remained unchanged at ₹492.70 lakh. For the full fiscal year ended March 31, 2026, the company had reported a net profit after tax of ₹2,006.18 lakh on total income of ₹7,661.17 lakh.

What the Numbers Show

The divergence between pre-tax and post-tax performance indicates a significant impact from other comprehensive income items. While the net profit before tax was ₹297.35 lakh, the total comprehensive income for the quarter rose to ₹394.71 lakh, up from ₹362.97 lakh in the prior year. This suggests that non-operating or other comprehensive income components contributed positively to the overall bottom line, partially offsetting the decline in core operational profitability.

Rishabh Instruments reported a positive start to FY27, with consolidated revenue rising 4.2% year-on-year to ₹1,983 crore in Q1FY27. Consolidated EBITDA increased 17.3% to ₹333 crore, driven by improved sourcing, operational efficiencies, and favourable product mix. The company’s EBITDA margin expanded by 190 basis points to 16.8% from 14.9% in the corresponding period of the previous fiscal year.

Despite the strong operating performance, consolidated net profit (PAT) declined marginally by 1.4% to ₹194 crore from ₹196 crore in Q1FY26. This decline was primarily attributed to higher depreciation charges, which rose to ₹95 crore from ₹75 crore, and a higher tax provision of ₹72 crore compared to ₹43 crore in the prior year quarter.

Segment performance

The Electrical & Energy Infrastructure (EEI) segment continued to be the primary growth engine, delivering robust revenue growth of 34.0% year-on-year to ₹1,540 crore. EEI contributed 77.7% of total consolidated revenue in Q1FY27, up from 39.6% in Q1FY26. The segment maintained healthy EBITDA margins of approximately 24%, with adjusted EBITDA margins reaching 24.8%.

In contrast, the High-Pressure Die Casting (HPDC) business at Lumel Alucast faced headwinds, with revenue falling 41.2% to ₹443 crore from ₹754 crore in Q1FY26. The company stated that it remained breakeven at the operating level in Q1FY27 after exiting lower-margin contracts. Management indicated that the priority is not pursuing volume at the cost of profitability, but rather filling capacity with higher-value opportunities. The company expects to remain breakeven at adjusted EBITDA for the full FY27.

Financial highlights

The table below captures the key consolidated financial metrics for Q1FY27 on a year-on-year basis:

What the Numbers Show

The divergence between operating profits and net profit highlights the impact of non-cash and tax items on bottom-line results. While adjusted EBITDA grew 16.6% to ₹353 crore, reported EBITDA was lower due to ESOP costs and Stock Appreciation Rights (SAR) amounting to ₹20 crore. Furthermore, depreciation expenses increased significantly to ₹95 crore from ₹75 crore, absorbing much of the operating gain. This suggests that capital-intensive investments or asset additions are impacting near-term net profitability despite strong top-line and operating leverage improvements.

Outlook and strategy

Management highlighted a structurally attractive industry outlook driven by investments in electrification, grid modernization, renewable energy, and industrial automation. The rapid expansion of AI and data centres is creating new opportunities for energy measurement and power quality solutions.

The company is accelerating global diversification across the US, Africa, and Southeast Asia while strengthening its presence in India and Europe. Strategic priorities for FY27 include profitable growth, better product mix, new product development in energy meters and solar inverters, and disciplined capital allocation.