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%. Management noted that this growth exceeded initial guidelines of 20-25% and is sustainable across multiple geographies and product lines.

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.

Geographical and product highlights

Standalone India business delivered 25.6% year-on-year revenue growth with an EBITDA margin of 22.9%. Internationally, Lumel S.A. saw revenue grow 39% year-on-year to ₹639 million, with adjusted EBITDA margins expanding to 24%. The US and UK businesses grew by over 40% year-on-year, while China delivered 20.3% growth. Management outlined a target to reach ₹100 crore in US revenue within 2-3 years through organic expansion and potential inorganic acquisitions.

The solar inverter business achieved operational profitability following the launch of the single-phase iUNO series. In Q1FY27, the company launched next-generation 3-phase iNEO inverters up to 12 kilowatts and is developing hybrid inverter solutions up to 50 kilowatts. Additionally, the company is doubling its current transformer production capacity from 5,000-6,000 units per day to 8,000-10,000 units to meet global demand driven by AI data centers and grid modernization.

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. The company remains net debt-free with net cash and cash equivalents of ₹1,606 crore as on June 30, 2026.

Rishabh Instruments promoters are exploring a potential stake sale while retaining controlling interest in the company, according to reports by CNBC-TV18. The development signals a possible change in the shareholding structure of the instrumentation and energy metering company. Promoters are targeting a valuation exceeding ₹3,000 crore for the deal and are in talks with multiple suitors, including a German entity.

Stake sale details

The report indicates that promoters are open to divesting a portion of their holdings without ceding majority control. They currently hold a near 70% stake in the company and plan to sell a significant chunk of this holding. Key details of the reported development are as follows:

No specific deal value for the portion being sold, final stake size post-transaction, or timeline has been disclosed in the available information. Further disclosures from the company or its promoters would be required to confirm the scope and structure of any such transaction.