RIR Power Electronics Ltd. , a key player in the power electronics sector, has received a significant boost for its Silicon Carbide (SiC) manufacturing plant in Bhubaneswar, Odisha. The company announced that it has been granted a capital subsidy of ₹32.56 crore from the Government of Odisha, marking a substantial support for its operations in the state.

Subsidy Details

The financial support, categorized as a Capital Subsidy / Fiscal Support Incentive, was received by RIR Power Electronics on September 1, 2025. This subsidy is specifically allocated for Phase I of the company's Silicon Carbide manufacturing plant located in Bhubaneswar.

Official Disclosure

In compliance with regulatory requirements, RIR Power Electronics promptly informed the Bombay Stock Exchange about this development. The company's Company Secretary, Bhavin P Rambhia, filed an official intimation under Regulation 30 on September 2, 2025, ensuring transparency with investors and stakeholders.

Implications for RIR Power Electronics

This government subsidy represents a significant vote of confidence in RIR Power Electronics' Silicon Carbide manufacturing capabilities. Silicon Carbide is a crucial material in the power electronics industry, known for its superior properties in high-power and high-temperature applications. The support from the Odisha government could potentially accelerate the company's production capabilities and strengthen its position in the SiC market.

Conclusion

The receipt of this substantial subsidy underscores the growing importance of advanced materials like Silicon Carbide in India's electronics manufacturing sector. It also highlights the Odisha government's commitment to supporting high-tech industries within the state. As RIR Power Electronics moves forward with its SiC plant, the industry will be watching closely to see how this financial boost translates into technological advancements and market growth for the company.

RIR Power Electronics , a global semiconductor company specializing in power semiconductors, has announced its unaudited standalone financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported stable revenue but experienced a decline in profitability as it navigates through a strategic investment phase.

Financial Performance

RIR Power Electronics maintained a steady top line, with revenue remaining largely flat at ₹21.01 crore in Q1 FY26, compared to ₹21.05 crore in the same quarter of the previous fiscal year. However, the company faced challenges in maintaining its profit margins:

The company's EBITDA decreased to ₹2.89 crore from ₹3.37 crore in the corresponding quarter, resulting in an EBITDA margin compression from 16.02% to 13.75%. Profit After Tax (PAT) saw a significant decline, falling to ₹1.74 crore from ₹2.83 crore, with the PAT margin shrinking to 8.14% from 13.06%. Consequently, the Basic Earnings Per Share (EPS) decreased to ₹2.26 from ₹4.06.

Strategic Developments and Future Outlook

Despite the short-term profitability challenges, RIR Power Electronics has made several strategic moves to position itself for future growth:

1. Silicon Carbide Semiconductor Facility: The company received fiscal support from the Government of Odisha for its ₹618 crore Silicon Carbide semiconductor manufacturing facility in Bhubaneswar. This project is expected to establish RIR Power as a pioneer in India's high-performance power electronics segment.

2. National Stock Exchange Listing: The Board has approved the listing of the company's equity shares on the National Stock Exchange of India, which could potentially increase visibility and liquidity for investors.

3. Corporate Actions: RIR Power completed a 1:1 bonus issue and a 5:1 stock split to reward shareholders and improve market accessibility. Trading on an ex-bonus basis began on July 11, 2025, followed by ex-split trading on July 25, 2025.

4. Employee Stock Option Plan: The Board has initiated the process of formulating an Employee Stock Option Plan (ESOP) to align employee interests with those of the company.

Management Commentary

Dr. Harshad Mehta, Promoter & Chairman of RIR Power Electronics Ltd., commented on the results, stating, "Our Q1 FY26 performance reflects operational resilience with stable topline despite global disruptions and higher overheads leading to margin compression. While EBITDA and PAT are lower compared to last year, we view this quarter as a strategic investment phase, where the benefits will accrue in the coming periods."

Dr. Mehta expressed optimism about the company's future, particularly highlighting the significance of the Odisha government's support for the Silicon Carbide semiconductor facility. He emphasized that this project would enable import substitution and drive technology leadership in critical applications such as electric mobility, renewable energy integration, railways, aerospace, defense, and industrial automation.

Looking ahead, the management anticipates gradual improvement in margins as recent capital investments start contributing to revenues and the semiconductor expansion begins its rollout. The company remains focused on optimizing its cost structure, strengthening its supply chain, and expanding its customer base across domestic and export markets.

As of August 14, 2025, RIR Power Electronics had a market capitalization of approximately ₹1,842 crores. The company continues to pursue its long-term vision of becoming a globally recognized brand in high-power semiconductor solutions, with an emphasis on innovation, quality, and sustainability.