Rashi Peripherals Limited delivered exceptional financial performance in Q3 FY26, demonstrating strong execution amid challenging market conditions characterized by component shortages and rising prices. The company's comprehensive distribution network and strategic inventory planning enabled it to capitalize on market opportunities while maintaining operational efficiency.

Strong Financial Performance Across All Metrics

The company's Q3 FY26 results showcased robust growth across key financial parameters:

For the nine months ended December 31, 2025, the company maintained strong momentum with consolidated revenue reaching INR11,338 crores (5% YoY growth) and PAT of INR196 crores (25% YoY growth), achieving healthy margins of 1.72%.

Market Dynamics and Growth Drivers

The exceptional Q3 performance was driven by multiple favorable market factors. Global demand for personal computing regained momentum, with the domestic PC market delivering one of its strongest quarters ever, growing upwards of 10% year-over-year. Management noted that approximately 50% of the 43% revenue growth came from volume increases, while the remaining growth resulted from higher average selling prices due to component price increases and dollar appreciation.

The recent union budget further strengthened the technology sector foundation with a strong policy push towards electronics manufacturing, semiconductor self-reliance, and AI infrastructure. The government allocated around INR40,000 crores for digital capacity creation, nearly double the initial outlay of INR22,999 crores, creating a favorable environment for long-term technology investments.

Segmental Performance and Product Mix Evolution

The company's business segments showed notable shifts in composition:

Management highlighted that the PES (Personal Computing and Enterprise Solutions) business increased to 56% in Q3 FY26 compared to 51% in the previous year's corresponding quarter, representing a 5 percentage point improvement in the higher-value segment.

Operational Excellence and Network Expansion

Rashi Peripherals continued strengthening its distribution capabilities during the quarter. The company launched a new branch in Solapur, bringing its total network to 55 branches across India. This unprecedented network of branches, service centers, and warehouses now spans 55 towns, serving over 10,000-plus distribution partners across 700+ locations nationwide.

The company maintained disciplined working capital management with inventory days at 56 days, debtor days improving to 47 days from 61 days year-ago, and creditor days at 43 days. This resulted in working capital days of 60 days, remaining stable and well-aligned with the operating model.

Financial Health and Cash Flow Improvement

A significant operational milestone was achieved with positive operating cash flow of INR34 crores for the year-to-date period, marking improvement after periods of outflow in earlier years. The company also benefited from a credit rating upgrade, enabling reduced borrowing costs with the current blended cost of borrowing in the range of 7.50% to 8.00%.

The company recognized an incremental impact of over INR4 crores following new Labour Code notifications, primarily due to increased gratuity obligations and enhanced employee benefits. Additionally, INR14 crores of ESOP costs were provisioned year-to-date, reinforcing commitment to talent retention and long-term value creation.

Rashi Peripherals Limited has filed a NIL statement of deviation for its IPO proceeds utilization during Q3FY26 under Regulation 32 of SEBI Listing Regulations. The company confirmed to BSE and NSE on February 3, 2026, that there were no deviations or variations in the utilization of proceeds from its Rs. 600.00 crore Initial Public Offer during the quarter ended December 31, 2025.

Regulatory Compliance and Filing Details

The company submitted the NIL deviation statement to both stock exchanges, with BSE scrip code 544119 and NSE symbol RPTech. The filing was made pursuant to Regulation 32 requirements and was reviewed by the company's Audit Committee in its meeting held on February 3, 2026. Company Secretary and Compliance Officer Arvind Bajoria signed the compliance document, while Chief Financial Officer Himanshu Kumar Shah authenticated the deviation statement.

IPO Proceeds Utilization Status

The monitoring report reveals comprehensive utilization across the three main IPO objects. The company has successfully completed debt repayment and working capital funding, with only General Corporate Purpose showing remaining funds of Rs. 1.61 crore out of the original Rs. 8.14 crore allocation.

Timeline Extension for General Corporate Purpose

The company has extended the utilization timeline for General Corporate Purpose funds through a Board resolution dated April 21, 2025. Originally scheduled for completion by the end of fiscal year 2024, the timeline has been extended to the end of fiscal year 2026 or thereafter. This extension provides flexibility to deploy the remaining Rs. 1.61 crore based on business requirements without requiring shareholder approval as no deviations occurred.

Audit Committee and Monitoring Agency Review

CARE Ratings Limited, serving as the monitoring agency, confirmed that all fund utilization remains consistent with the original offer document disclosures. The Audit Committee reviewed the utilization status and found no material deviations from the disclosed objects. Both the Audit Committee and auditors provided no adverse comments on the IPO proceeds utilization during the quarter.