Rishi Laser Limited reported a financial year ended March 31, 2026, characterized by revenue growth but significant profitability compression due to execution challenges at its new Malur facility. Total revenue for FY26 rose 7% to ₹160 crore, falling short of management targets, while Profit After Tax (PAT) declined 55% year-on-year to ₹3.67 crore. EBITDA margins reduced to 8.7% from 9.1% in the previous year, impacted by elevated employee and finance costs associated with the commissioning of the new plant. The company's balance sheet remains disciplined with a debt-to-equity ratio of 0.29x and total assets of ₹148.7 crore.

Operational Challenges and FY26 Performance

Management attributed the financial performance to two primary execution failures during the commissioning of the Malur plant: underestimating the complexity of calibrating large-format machinery and inadequate human capital readiness. The machinery was progressively operational but not fully productive for a substantial portion of the year, while restructuring the workforce consumed leadership bandwidth. Consequently, the company failed to meet its sales projections, with the Malur plant contributing only partially to the year's revenue. Exports accounted for 14.2% of total revenue, amounting to ₹22.83 crore.

Q4 FY26 Results

For the fourth quarter ended March 31, 2026, the company reported a revenue of ₹40.76 crore. The quarter witnessed a sharp decline in profitability, with a PAT of negative ₹0.26 crore compared to ₹3.20 crore in the corresponding period of the previous year. EBITDA for the quarter stood at ₹2.78 crore, with margins contracting to 6.74%.

Strategic Outlook and Guidance

As of June 2026, the Malur plant is fully operational with tooling validated for medium and heavy fabrication. Phase one of the in-house paint shop became operational in June 2026. Management targets a revenue contribution of ₹60 crore from the Malur facility in FY27, scaling up to ₹100 crore by FY29. The company expects the overall revenue CAGR to be approximately 20% over the next three years. EBITDA margins are projected to be in the band of 9% to 11% as operating leverage improves and the plant ramps up utilization. The Pune plant is also expected to reach 80% utilization by the third quarter of FY27, targeting a revenue of ₹50 crore for the year.

Harshad Bhavanbhai Patel, a promoter of Rishi Laser Limited , has increased his shareholding in the company through the conversion of warrants. The acquisition of 1,25,000 equity shares was executed via preferential allotment on June 4, 2026, pursuant to the exercise of an option for conversion. This transaction raises the acquirer's total voting rights in the company to 14.23%, a move disclosed to the stock exchange under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Prior to this acquisition, Patel held 12,96,626 shares, which represented 14.11% of the total share capital. The conversion of warrants has added 1.25% to his holding, bringing his post-acquisition stake to 14,21,626 shares. The total equity share capital of Rishi Laser Limited remains unchanged at Rs. 9,99,26,000 following this transaction.

Breakdown of Holdings

The following table details the changes in the acquirer's shareholding before and after the transaction:

The disclosure confirms that the acquirer belongs to the promoter group. The shares of Rishi Laser Limited are listed on BSE Limited. The intimation regarding this change in shareholding was submitted to the stock exchange on June 5, 2026.