Rishabh Instruments Limited has delivered exceptional financial performance in Q3FY26, with consolidated net profit surging 138% to ₹200 million and EBITDA more than doubling to ₹315 million. The company demonstrated strong operational leverage with EBITDA margin expanding significantly to 17.16% from 7.89% in the corresponding quarter last year.

Consolidated Financial Performance

The company's consolidated operations showed robust growth across key financial metrics. Revenue reached ₹1.84 billion compared to ₹1.8 billion in the year-ago quarter, while the substantial improvement in profitability metrics reflects enhanced operational efficiency and strong business execution.

Management Commentary and Business Outlook

Commenting on the Q3 and 9MFY26 results, Mr. Dineshkumar Musalekar, Whole Time Director, highlighted the company's diversified growth strategy. "Our consolidated revenue grew 1.30% YoY in Q3FY26 and 7.00% in 9MFY26, supported by product expansion and steady demand across key markets. Consolidated EBITDA margins expanded by 920 bps, with EBITDA increasing 119.50% YoY in Q3FY26, driven by sourcing efficiencies, operational improvements, and operating leverage."

Operational Excellence and Strategic Initiatives

The standout performance was driven by significant margin expansion, with EBITDA margin improving by over 900 basis points year-on-year. Rishabh Standalone revenue increased 3.10% YoY in Q3FY26 and 10.60% YoY in 9MFY26 respectively, led by strong export growth. Continued cost optimization resulted in a standalone adjusted EBITDA margin of 26.30% in Q3FY26.

Lumel SA delivered strong growth of approximately 22.40% YoY in Q3FY26, supported by product diversification and geographic expansion. The EEI business recorded robust growth, with revenue up 17.70% in Q3FY26 and 14.00% in 9MFY26, alongside strong EBITDA expansion.

Board Meeting and Results Approval

Rishabh Instruments Limited conducted its board meeting on February 5, 2026, to consider and approve the quarterly financial results. The meeting was held through video conferencing from 2:30 PM to 3:40 PM IST, in accordance with regulatory requirements under SEBI listing obligations. The company subsequently released a comprehensive results presentation on February 6, 2026, providing detailed insights into its financial performance and strategic direction.

Global Expansion and Future Growth

The company remains confident in its growth trajectory, supported by a diversified business model and expanding global footprint across the Middle East, South Africa, South America, and Southeast Asia, where it is seeing encouraging traction. The HPDC business saw a planned revenue decline due to the phased exit from loss-making legacy contracts; however, 9MFY26 EBITDA improved to ₹64 million from a loss of ₹151 million last year, in line with expectations.

Rishabh Instruments Limited has submitted its quarterly statement on fund utilization deviation to the stock exchanges for the quarter ended December 31, 2025, in compliance with SEBI regulations. The filing reveals modifications to the company's original fund utilization plan following shareholder approval.

Fund Raising Details

The company's fund raising particulars demonstrate a structured approach to capital deployment:

Modified Fund Utilization Plan

The company has restructured its original manufacturing expansion strategy with shareholder consent. The modification involved splitting the original Nashik Manufacturing Facility I expansion into two separate facilities with revised fund allocations.

Utilization Progress

The fund utilization shows significant progress across the modified objectives. The original Nashik Manufacturing Facility I expansion, now allocated Rs. 321.80 million, has utilized Rs. 224.31 million. The newly created Nashik Manufacturing Facility II, with an allocation of Rs. 300.00 million, has deployed Rs. 204.19 million and reported a quarterly deviation of Rs. 34.45 million.

Regulatory Compliance

The statement confirms that the deviation in fund utilization was implemented pursuant to changes in contract terms and objects, which received proper shareholder approval on September 13, 2024. Both the Audit Committee and auditors have provided nil comments on the fund utilization pattern, indicating compliance with regulatory requirements.

Corporate Governance

The filing was signed by Ajinkya Joglekar, Company Secretary and Compliance Officer, and submitted to both NSE (Symbol: RISHABH) and BSE (Scrip Code: 543977) on February 5, 2026. The company maintains its commitment to transparent reporting under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.