Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Rishabh Instruments Ltd (NSE: RISHABH) Q4 2026 Earnings Call dated May. 18, 2026
Corporate Participants:
Narendra Joharimal Goliya — Executive Chairman
Dinesh Musalekar — Whole Time Director
Vishal Kulkarni — Chief Financial Officer
Unidentified Speaker
Analysts:
Unidentified Participant
Kiran Dhanwada — Analyst
Kartik Giri — Analyst
Presentation:
Operator
Ladies and Gentlemen, good day and welcome to the Rishabh Instruments Limited Q4 and FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during this conference call, please signal an operator by pressing Star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference call over to Mr. Narendra Golia, the motor and Executive Chairman for his opening remarks. Thank you. And over to you sir.
Narendra Joharimal Goliya — Executive Chairman
Thank you. Good evening all the participants. A warm welcome to all in this season of result declaration. Thank you for joining us on our Q4 and FY26 earnings call. I have with me on this call our whole time Director and CEO Dinesh Muslekhar, our CFO Vishal Kulkarni and GM Strategy Nishant Bedoria. The financial results and investor presentation are uploaded to the stock exchanges and on the company’s website. We assume you had an opportunity to evaluate them. Financial year 2026 has been a defining year for Rishabh Instruments marked by all round strong operational execution and resilient performance despite a dynamic global environment laden with war, tariff imposition and other challenges.
The year for the Eshop Group was marked by substantial improvement in profitability overall adjusted EBITDA doubling and reported EBITDA at approximately two and a half times last year’s corresponding numbers. Also, the fact that 1/3 of the total group business from high pressure die castings also improved to an adjusted ebitda of about rupees 33 million positive compared to a loss of 150 million last year. All this was with better quality, expansion into new markets, continued new product development and corresponding approvals and continued progress on long term strategic priorities.
Over the last quarters we have strengthened our business parameter indices anchored in product portfolio mix and sourcing and technology capabilities. This disciplined operating model helped strengthen the Rishabh Group’s diversified business and transmit the ability to execute consistently amidst geopolitical and supply chain uncertainties. We will continue these strategies with renewed efforts in the coming quarters. The standalone India business remained a key growth driver during the concluded year supported by strong export demand, deeper customer engagements and growing traction across the electrical instrumentation portfolio.
We continue to focus our business position both in the domestic and the international market through product innovation, improved market penetration and consistent quality and service to the customer to remain the preferred choice across segments for our business partners. Reported EBITDA grew by 72.6% over last year and gross margin was 554 basis points higher at 54% in comparison to 48.6% last year mainly on account of product mix and improved buying, diversification and efficiency while keeping employee cost and other expenses under check.
Lumal SA the electronics business in Poland also delivered a good performance during FY26 supported by new customer wins, product diversification and expansion into newer geographies. Adjusted EBITDA grew by more than 32% during the year. A key milestone during the year was the commissioning of one of Europe’s most advanced electronics assembly lines which significantly enhanced manufacturing flexibility and position the business well for future growth. We are also pleased to report a meaningful progress at Lumel Alukash during the year.
Through decisive actions such as exiting low margin legacy contracts, improving customer pricing and increasing focus on higher margin non automotive opportunities, the business moved towards a more sustainable and profitable operating model. In spite of the fact that the Turnover shrunk by 21% in Polish currency during the year, all focus is on efforts to bring this business back to the earlier profitability by getting non automotive business in the coming quarters. Also, Shanghai vna, cfarm, Tinsley USA and UK have all shown good growth with positive EBITDA in all the three entities.
We are also working to grow them much faster in the coming years albeit on a smaller base to add to the group revenue and profitability. On the industry front, the broader sectoral developments remain encouraging despite global macro volatility emerging from tariff imposition, West Asia war and supply chain disruptions. In India, strong government focus on manufacturing, renewable energy, transport and transmission infrastructure, smart metering and electronics localization continue to create long term demand for the electrical and instrumentation business.
The progress on global trade agreements and continued policy support push towards renewable energy sources and mobility aim to create a favorable long term environment. Global market landscape also remains structurally favorable. It is driven by long term investments in electrification, automation, grid modernization and renewable energy integration. While Europe witnessed lower industrial activity, markets such as us, Southeast Asia and Africa are seeing increasing investments in power infrastructure and industrial automation, creating a strong long term opportunities for companies like Rishabh who have always had a world vision.
In addition to the focus on domestic markets. These emerging trends align well with Rishabh’s portfolio and reinforce confidence in the long term business building as we enter FY27. We remain optimistic about the opportunities lying ahead. The upcoming state of the art manufacturing capability is built at NASIC and commissioned at the end of last financial year. Expanding global customer base in Western countries. Robust new product pipeline for India, Lumel V and a US and UK position. The Rishabh Group.
Well, for the next phase of growth in the coming years, we must thank all our teams of dedicated employees led by our CEO Dinesh Muslekar, without whom this would not have been possible. We remain very much committed and focused on delivering long term value to all our stakeholders in the years to come. Thank you. I will now hand over the call to Dinesh for deeper engagement in operational performance for the financial year 26. Over to you, Dinesh.
Dinesh Musalekar — Whole Time Director
Thank you sir and good evening ladies and gentlemen. So financial year 26 marked a year of a strong execution and significant strategic progress for Rishabh Group amidst the dynamic global operating environment affecting all countries adversely. I hope the war cloud settle down and we can have even better in the financial year 27. At the beginning of the year we had laid out a strong profitability roadmap and I am pleased to report that we have successfully delivered on our commitment with consolidated ebitda reaching to rupees 126 crores and adjusted EBITDA reaching to rupees 136 crores in FY26 overreaching on the earlier commitment of rupees 110 crores at the start of the year.
So we have continued to build a solid and resilient foundation anchored in in our product and technology competencies with extensive sales and marketing efforts. This has pulled up a consolidated revenue record growth of 9.3% year on year in Q4FY26 and 7.6% in FY26 for the year. More importantly, the profitability has more than doubled compared to last year as a result of this foundation. Consolidated EBITDA saw a growth of 161% in FY26 driven by better raw material sourcing, operational efficiencies, product mix improvement and operating leverages.
Over the last six quarters. We have consistently improved margins across both the standalone and consolidated business through better planning, procurement efficiencies, faster production cycles, inventory optimization, production automation and a clear focus on profitable growth. The EEI I.e. Electrical and electronics instrumentation segment continued to be the primary growth engine for the group. The EEI segment has registered a growth of 17.5% in FY26 on a year on year basis. This performance was supported by product diversification, new launches and and improved geographical reaches.
We continue to execute our long term innovation roadmap where new products are expected to contribute meaningfully to the future revenues. The standalone Rishabh Instruments business remained a consistent performer. The team’s deep customer engagement, new product developments and successful conversion of opportunities across key international markets have resulted in bagging high margin business across the regions. We continue to see healthy and sustainable demand momentum across export as well as domestic markets and remain confident of further growth in the same trajectory supported by strong order pipeline now coming to Lumel SA which has demonstrated resilience during financial while the European markets remained relatively subdued due to macroeconomic pressures and slower industrial spending, while the top line for us remained moderate, Lumel SA has contributed 51% of the group’s consolidated path with a 23% EBITDA backed by major wins in our niche market segments.
We remain confident that several opportunities that we are working on will also convert into orders over the coming quarters. Profitability has always remained strong supported by favorable mix of high margin service revenues and project based solutions along with disciplined execution. As mentioned by Mr. Golia, another key milestone in financial at 26 for Numel SA was the commissioning of the most advanced electronic assembly line which we call Ascenter line, significantly enhancing our manufacturing complexity as well as flexibility and for the future growth.
40% of this investment was supported by European Union funds as this setup will be used to design and produce the next generation of very complex medium voltage controllers. Our focus on yesterday, USA UK and V& A in China have started yielding results as these entities have recorded 53%, 25% and 23% growth on the top line respectively and all these three companies together cumulatively have contributed 13% of our electrical electronics instrumentation business. The solar inverter business delivered encouraging progress during financial year 26 with the successful launch of single phase IUNO Innovator, gaining very strong market acceptance and generating initial volumes.
The business has now turned operationally profitable thanks to the new designs and automation of production. With the introduction of hybrid and next generation of I NEO inverters in the product development pipeline, we are expecting that the sales in financial year 2017 to ramp up for inverters. The long term growth opportunities will continue in this segment as renewable energy adoption continues to accelerate both in India as well as abroad. Overall in electrical electronic instrumentation segment we continue to see significant opportunities across energy efficiency, metering, automation, testing and measurement instruments and renewable energy solutions.
Now coming to Lumel Alucast which continued its planned transition towards more sustainable, profitable and competitive operating model. While revenues declined as planned and communicated to all of you in advance, profitability improved significantly. Adjusted EBITDA for financial year 26 improved to 33 million compared to a loss of 150 million last year, reflecting the benefits of portfolio restructuring, pricing improvements and overall operational efficiency. We continue to build a strong pipeline of non automotive and selective automotive opportunities that will support future growth and profitability.
To bring this business back on track, we continue to work on multiple RFQs, a few of which have been approved and few. We remain engaged with several key global customers. The qualification cycles in this business are longer as is the nature of the business. We remain confident that this transition will create more profitable business in financial year 27 and start its mounting trajectory from financial year 28. The NASIQ expansion CAPEX is now completed with two manufacturing facilities almost ready and are under commissioning now.
These facilities will effectively double our production capacity, enhancing our ability to meet rising export and domestic demand across the product lines that we serve and support future growth. In parallel, we continue to invest aggressively in R and D across energy meter, medium voltage products, automation solutions and solar products to expand our addressable market. We continue to advance our innovation roadmap with new products expected to contribute meaningfully to future revenues while expanding our global footprint beyond India and Europe into high growth markets such as us, Latin America, Africa, Southeast Asia where investments in electrification, industrial and road rail infrastructure malnation and energy efficiency remain very very strong.
Looking ahead for financial year 27, we remain optimistic on supportive policy developments around trade and domestic manufacturing which will create more favorable long term tailwind to deliver us say about 20 to 25% growth in EEI segment in spite of geopolitical uncertainties and and West Asia war and the consequent shortages of petroleum products throughout the world. I’d like to thank our stakeholders which include our employees of the group companies, customers, suppliers and of course the shareholders for their continued trust and support without whom we may not be able to produce the results that we have.
With that I conclude and ask Vishal to give. Over to you. Vishal
Vishal Kulkarni — Chief Financial Officer
Thank you sir. Good evening all. Before I start on the financial performance, please note that all the numbers are in IRR. The consolidated revenue for quarter four FY26 stood at 2,049 million and for full year FY26 stood at 7,751 million reflecting a growth of 9.3% over 1875 in quarter four of FY25 and 7.6% from 7,203 in FY25 respectively. On a year on year basis, the Consolidated EBITDA stood at 333 million for quarter four of FY26, marking 105.8% year on year increase over 162 million in Q4FY25 and EBITDA margins improved by 760 basis points to 16.2% from 8.6% in Q4FY25.
In Q4FY26, the consolidated EBITDA is after provision of 22 million comprising 20 million towards ESOP cost and 2 million due to the implementation of the new Labor Code bill. Further, annual Consolidated EBITDA stood at 1,264 million for FY26, marking 161.1% year on year increase over 484 million. In FY25, the EBITDA margins improved by 960 basis points to 16.3% on year on year basis from 6.7% in FY25. In FY26, the consolidated EBITDA is after provision of 99 million comprising 73 million towards ESOP cost and 26 million due to the implementation of the new Labor Code bill, the profit after tax for Q4FY26 stood at 200 million, increasing by 229.4% year on year from 61 million in Q4FY25 while PAT for FY26 stood at 823 million, a substantial 292.2% year on year growth from 210 million in FY25.
Now with respect to the standalone performance of Rishabh Instruments, the revenue stood at 788 million for Q4FY26, registering a 15.2% year on year growth from 684 million in Q4FY25. In FY26, the standalone revenue stood at 2,676 million reflecting 11.9% year on year increase from from 2,392 million. In FY25, the standalone EBITDA for Q4FY26 stood at 161 million, up by 14.7% from 140 million in Q4FY25 with EBITDA margins at 20.4%. For full year, the standalone EBITDA stood at 604 million, which is up by 72.6% from 350 million in FY25 with EBITDA margins at 22.6% that is improved by 800 basis points year on year from 14.6% in FY25.
It includes provision of 57 million, comprising 37 million towards ESOP cost and 26 million on account of implementation of the new labor code bill. In FY26, the standalone profit after tax for quarter four FY26 stood at 107 million, up by 21.2% year on year from 89 million in Q4 FY25, while the PAT for FY26 was 417 million, registering a 78.2% year on year growth over 234 million in FY25. Now with respect to Lumal SA Poland, the revenue stood at 585 million, reflecting a staggering 35.9% year on year increase from 430 million in Q4 FY25 while FY26 revenue remain at 2,286 million, growing by almost 15% year on year from 1,989 million in FY25.
The adjusted EBITDA for Q4 FY26 stood at 167 million, up by 69% year on year from 99 million in Q4 FY25. And for FY26 the adjusted EBITDA stood at 535 million, registering a 32.2% year on Year growth over 405 million in FY25. The adjusted eBITDA margins expanded to 28.6% in Q4 FY26 from 23% in Q4 FY25, an improvement of 560 basis points, while margins for FY26 remain at 23.4%, which is higher by 310 basis points on year on year basis from 20.4% in FY25. The profit after tax for Q4 FY26 was 141 million, up by 94% year on year from 73 million in Q4 FY25.
And for FY26 the PACT stood at 419 million, reflecting a 19.5% year on year growth from 350 million in FY25. Now, with respect to our diecasting business at Poland, the revenue for quarter four FY26 stood at 575 million, reflecting a degrowth of 22.8% on year on year basis. This is from 745 million in Q4 FY25 or FY26. The revenue stood at 2,383 million, down by 9.6% on year on year basis from 2,636. In FY25, the adjusted EBITDA for FY26 remain at 33 million compared to a loss of INR 150 million in FY25.
The adjusted EBITDA margins stood at 1.4% for FY26 increased by 710 basis points from minus 5.7% in FY25. The profit after tax for Alluka’s business for Q4, FY26 remained negative at 58 million. And for FY26 it also remained negative at 41 million though a strong improvement from the negative 252 million in FY25. On the consolidated level we remain net debt free with a strong balance sheet. Net cash and cash equivalence as on 31st March 2026 stands at 1,276 Million. With this I shall now leave the floor open for Q and A.
Thank you.
Dinesh Musalekar — Whole Time Director
Yeah. Before we move on. Thanks Vishal. Before we move on this, I think we missed out on one point. You know I would like to highlight that in today’s board meeting there was decision made on the. On the. On the issuing of. Dividend. So this is. I would like Mr. Goliath to announce this will be better because there could be some questions around that.
Narendra Joharimal Goliya — Executive Chairman
Yeah. So for the year concluded since it was such a good year we will give a dividend of 20% on the basic on the share capital. So for 10 rupees share there will be a dividend of 2 rupees. And all the formalities will be done before it goes to the stock exchanges and you see the hard cash. I hope it’s good news for all the investors.
Dinesh Musalekar — Whole Time Director
Thank you sir.
Operator
Thank you.
Dinesh Musalekar — Whole Time Director
We
Operator
Will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touch tone telephone. If you wish to withdraw yourself from the question queue you may press star and two participants are requested to use handset while asking the question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Unidentified Speaker
The first question comes from the line of Rahul Jain with credence. Well, please go ahead.
Questions and Answers:
Unidentified Participant
Hello. Hello. Yes, we can hear you. Go ahead. Thank you for the opportunity, sir. Congratulations on great numbers and also thanks a lot for the dividend announcement. And I hope that we will continue to share dividends to get, you know, 20% or more going ahead. Coming down to my question sir, with regards to the EI business. So with regards to that business, how do we look at growth going ahead in terms of the standalone sales and also the human sales growth? Yeah.
Dinesh Musalekar
Okay. If I may Answer this. For the whole EEI business we are looking at, you know, anywhere between 20 to 25%, around 20% top line growth and at a profit EBITDA profit of EBITDA level of about 20 to 22%. Like same guidelines which we projected last year. That will continue in terms of composition. Rishabh is also expected to grow around the same rate. And also Lunel SA also we will be growing around the same rate. These are two big part of that which cover almost like in 85% of this EAI business.
The remaining about 13, 15% which you are talking this is at a lower base so that I expect to grow faster. Like, for example USA, we have seen 50% growth year on year we projected about 25%. We recorded about 25%, 22% with China and UK business. So they will be more towards 30% than 20%. So overall it will be around 20% 20, 20, 22%. For Rishabh and Lumel the big companies will be around 20 top line and the other smaller companies will be around 30% growth average. I mean it all evens out with 20 to 22% growth.
But on the profitability we maintain the same level of profitability at all the companies.
Unidentified Participant
So if you look at overall profitability for EBITDA is roughly around 24% plus in the current year on the EEI business. So going ahead with the kind of growth to the tune of 20 to 25%. Do we feel there is some scope of margin improvement due to operating leverage?
Dinesh Musalekar
Yeah. So I’ll answer that question by way of product mix. Because our product mix has got, you know, contribution level margin from 20% to 70%. So for example solar business is around 20, 20% there and then for EMs is also around 20%. But if you look at some of the high end products like power quality analysis will be 60, 70% and there’s a lot of business which is in between. So each because we are spread across the geographies and companies, so the segments will go up and down. So generally if the product range is very narrow and you have a same kind of cost of manufacturing and your contribution margins same, then the sales grows up and you don’t add so much cost to that.
Your EBITDA should potentially increase. But in our case like for example this year we may sell more solar, the top line will go up. That percentage will absolute numbers will always grow all of them. But that percentage can be not 24, can be 22 also. So we want to be very kind of conservative and Aware of this fact. So we want to commit 20 to 22% as a EBITDA could be more. Same thing we committed last year, we delivered more. So that’s a better way to project. So that it. I’m not, I’m not trying to predict that we had 24% EBITDA.
Now I think I’ve dropped on the call.
Narendra Joharimal Goliya
No, no, no, no,
Dinesh Musalekar
We can hear, we can hear you. Okay, okay. Yeah, so. So because the sales is going to grow 20% next year. So. So EBITDA is going to become 30%. I don’t want to say that. So I wish it happens that way. But the most realistic is more like 20 to 22%. So we can have couple of percent up and down, but that’s where we want to put our guidelines.
Narendra Joharimal Goliya
Also there’s a lot of geopolitical uncertainty. So all of us are aware that if something happens and this oil shortage and shocks and lockdown, I mean, so many rumors are floating. I don’t want to put my time into that, but we should be conscious of that, that all this is subject to normal working and no upsetting, at least in India. I mean, of course, if the world gets affected, we get affected, but I hope nothing gets affected.
Unidentified Participant
So vision is that we continue the trend of meeting our guidance. For the second question with regards to margin, also, given the current environment and the energy prices, do we feel on the energy side, typically for the European part of the business, we should not have any issues on the margin front.
Dinesh Musalekar
On the margin front we try to, we try to, at least on the EEI business, we try to pass on the cost of manufacturing if it goes up, whether on material or something where we do it because we have our own brand, our own products, our own prices. So we do that. So that’s not a big problem. But also the other side of it is advantage for our business because we are in the business of energy efficiency and we help companies to save their cost on manufacturing, save their energy bills. So a lot of people will look at it as an initiative to, to invest and do all those things.
And also in Europe the regulations are driving to have more energy optimization. There is ISO50000 which, which is come in place and you got all those ESG compliances where you are expected to monitor, control your energy patterns, energy consumption and reduce them. So when somebody wants to do that, they have to come to companies like us to use solution.
Unidentified Participant
Last question, sir, on the cost business. In the previous interactions we have been talking about a sharp drop in the sales for the year FY27 and then for FY28 going back to the levels of somewhere near FY25. And also with regards to margin our earlier guidance was to do around 5, 6% type 7% margins for FY27 in this business and go somewhere try to reach double digit margins per year ahead. So do we stick to those kind of numbers or is there any change over there?
Dinesh Musalekar
Yeah. On Vimel alokast business the year which we closed was a transition where we phased out loss making businesses and we have that vacuum which is created. So we had to do away with almost from 250 crores business which we are doing we kind of dropped to about 180 or so. There’s been a drop. And this drop was part of those we are phasing out. So in total those two businesses which went out accounted for about 100 crores of close to 100 crores of business. So we have been able to fill in some of it already and some which is going on.
So that filling up of those business is something which is a priority this year. This year also we are not putting big margin numbers on that. So our focus for this year also for aluminum by casting business is not to lose the money and build these projects. Once these projects are because once we win the project we have to prepare the tools and launch those. So that will not add volume. The volume will come from order booking plus one year. So we have started doing part of it in the remaining. This year we build that and try to have no losses.
Last year also we said zero. We did about three, three and a half crores. And this year also the situation could be similar. Next year will be something where we are looking at getting double double digit number. Not this financial. Next financial year. That’s more or less the trajectory on which we are. We are. We are riding.
Unidentified Participant
Sure sir. Thank you so much for the insights. Yeah. Thank you so much for the insight. All the best.
Dinesh Musalekar
Thank you. Thank you Rahul.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to answer questions from all participants please limit your questions to two per participant. The next question comes from the line of Kiran D with Table 3 capital. Please go ahead.
Kiran Dhanwada
Thanks for the opportunity sir. And congratulations on turning around this company. It has been trouble in FY25 and there’s been a significant turnaround. So many, many congratulations. I’m sorry to interrupt.
Operator
Mr. Kiran, could you please use your headset?
Kiran Dhanwada
Sure. So is this better?
Dinesh Musalekar
Yes, I could hear you.
Kiran Dhanwada
Perfect. In terms of EI business we are now at about 536, 540 crore. And you’ve given a guidance of 2025% with 2022% margin. Where are we? We are primarily in the low voltage business. Where are we on the medium voltage business in terms of Is it still in the sampling stage or is it in. Will it meaningfully add to our revenues in FY27 or is that two, three years away? And any plans of getting into high voltage? So that’s like the EI question.
Dinesh Musalekar
Okay. On this we already have few products which are already released. Some medium voltage current transformers we have already released. And also in the medium voltage we have got protection relays which Lumel is doing. And CTs are done at Rishabh. So there is something which is already started to happen and this will continue so with the new facility which will be commissioned by June July. So we will ramp it up more there. So we will be. We already. Our R and D team is already working on medium voltage.
You know, VTE and pts. So the specs, drawings and design work is already started. So we expect these things to be ready by end of this financial year. So all the. There will be four, five products which will be ready. Additional four or five products to what we have by end of this financial year. And then the sales will start happening from the next year. And on the high voltage as of now we don’t have any intentions or any plans to get into that. It’s for us and also medium voltage. We don’t want to go into each and everything.
We want to expand our portfolio where we are strong cities. Current transform is very strong. We are the largest manufacturer of cities in the whole world by value, by number of products that we sell. We are making 6,000 cities daily. Now we are expanding that capacity to 10,000 per day that we are as we speak. This is a plan which is ongoing with additional lines, additional equipment and manpower and floor space etc. So it makes more sense for us to extend this current transformer business more into medium voltage.
Likewise we are already into power quality analyzers. So there we can extend them into. You know, even we call this as media voltage protection relay. It is not like a protection. It’s a actually controller of the heart of the whole medium voltage panel which controls everything. So that’s natural progression for us. So we have that product. We are expanding more and more. We also won European Union project for Lunel sa. As a part of that we have put this new SMT line which will have a lot of compliances which will come into India eventually.
On the safety cyber security at the level of manufacturing in the equipment itself they call it as a SIL1 SIL2 qualification. So those are the things which we are doing. It’s really very exciting and nice product that we are rolling out. So they will go into medium voltage. So high voltage we at the moment we don’t want to touch.
Kiran Dhanwada
Got it sir, got it. Thanks for the comprehensive answer. And on the HPDC business I know there’s been a long history and there is a particular history to HPDC business. We used to make very good margins way back in the past. Now we are barely breakeven two part question one in FY27 you will see it at least hitting 200 crore sales. I know we have talked about break even 200 crore sales or is it lesser than 200 crore sales? Point number two is the management.
Operator
Yeah, please
Kiran Dhanwada
Go ahead. Yeah sure. And is there any plans from the management to Demerge Alucards given it has completely different dynamics There is a history to it plans being side by side and all. But is there any plans or any vision for demerging this alicast business?
Dinesh Musalekar
Yeah, there are two questions in that. First of all as we said last year the sales dropped but also we had some of those outgoing contracts which were there for half of the year. So to that extent on the volume of business it’s worse than last year. On the positive side we don’t have anything loss making so we are filling in. So our target is to come close to what we were, what we did, what we closed last year. So this is where we are and we don’t see we have some gap to cover there. So I am not expecting growth in Lumel Alukast than what we had last year on the top line.
But on the bottom line we really want to there we spoke in few of the calls that they’re also the issues are not with profitability now. The issues are to we have reduced the substantial cost people, you know changing from three shifts to two shift many things, whatever we could do without. We are at a stage where that resource which we need is bare minimum needed to run that facility and we have to fill in there. So the question now is of the break even from the volume perspective not from the profitability perspective.
So there is some work to be done which is in progress and which is encouraging also. So that’s the challenge we have. So with these two things kept in mind we still want to give the same guideline like we want to not Lose money. And also there may not be growth. It could be flattish. But we will have. The target is to sign as many contracts as possible which will come into play end of the year or beginning of next financial year. And coming to the second question, coming to the second question, that’s something which, which we don’t want to commit either.
Yes or no. But that’s, that’s a, that’s a possible scenario also. But we are not, you know, committed yes or no on that. Maybe Mr. Golem is May shed some light on this.
Narendra Joharimal Goliya
Yeah, that’s a possibility. See, in business you discuss many, many things. You know, if you demerge it, how do you demerge it? Do you keep it within the group? Do you sell it to somebody? But as of now, absolutely no decision has been taken. We are doing our best to turn it profitable. Dinesh explained to you how we removed all the loss making and turned it costs have been controlled very much. So I think if we do something, we’ll definitely inform you at the right time. But as of now there is nothing concrete.
Kiran Dhanwada
Got it, sir. And Mr. Kirk, this year we did 238 crore as per the presentation. So we are seeing in FY27 we will be below 200 crore. Right. So that’s what we are saying.
Dinesh Musalekar
Yeah, yeah, yeah.
Kiran Dhanwada
Okay, okay. Around 180 crore is a fair estimate. Okay, got it.
Dinesh Musalekar
The thing is there is also another element to that because Forex also has some influence. So when I talk, I talk in local currencies here or euros. So the devaluation of rupee also has skewed a little bit on that. If it is at the same level, it will be similar. If the rupee becomes stronger then that gap will be not so big. So this is also another element to that because we are talking in Indian rupees, currencies and whole businesses. Yeah, that has come in Polish
Kiran Dhanwada
Currency. We are, we are basically saying we are below 180 crore. If you consider rupee at 85 already. So next year also will be around 180 crores. That’s. That’s how you are seeing it in on a constant currency. Yeah, yeah,
Dinesh Musalekar
Yeah, exactly. Got it.
Kiran Dhanwada
Got. Thank you so
Operator
Much. Thank you. The next question comes from the line of Pratik Giri with Shublal research. Please go ahead.
Kartik Giri
Hi Dinnerji. Hi Goliaji. Greetings. Good set of numbers. Dinnerji. I hope I’m audible. My first question is on solar inverter opportunity. You know, so in fact it’s a part of a broader question. Which is growth lever for the company and I would like some objectives around them. So the first point I wanted to understand is solar inverter and second is U.S. Opportunity. If we see our development of solar inverter probably for the past six, eight quarters, we have invested a lot of bandwidth in it whereas the bigger players have already put their capacity and probably are churning out production.
Also. I just want some objective, you know, sense that how much this business will do for us in FY27 even this year the growth is, you know, 8% which is very, very tiny given the size of the business. And an add on to this is US opportunity. We were very bullish about US opportunity. So if you can give the number of, you know, the revenue from us this year and what is the target we have kept for the next year.
Dinesh Musalekar
Okay, let me answer your second question first because it’s a very straight and small answer for that. So last two years we have, we have grown 50% year on year, two years back to back. So there is a great rate of growth. I would say. So that business used to be around $1 million. From 1 we got it to 2. From 2 we bought it to $3 million now and next year we are targeting in spite of all this Trump and all this thing which was going on for the whole year. So we got $3 million last year and now this year we are planning to get into another, you know, 40, 50% growth.
That’s what is planned. So there is a, you know, steep growth plan for us and we are adding resources also for that. We started a small Mexico operations as well. Many new customers and projects are initiated. We are having more and more products getting UL certified. So that is helping us. So this is all going good. So that will be a strong this thing. We want to get US business to about 100 crores in a couple of years time. Two, three years time. That’s the plan. We’ll see how we’ll work on that.
So there is a plan to get you to 100 crore business in a, in a 3, 4 time, 3, 3, 4 years of time. That’s the plan. So that’s on the U.S. We are very bullish and we are going and then we may look at South America also. That’s also in the trajectory to probably open office in South America and connect all those Americas together and grow that. That’s one part. Coming to your first question on, on solar, you know it’s like this. You, you are doing a lot of groundwork and you can like this bamboo Tree A lot of work has happened and just the first leaves have started coming.
So first, first we are in this whole dilemma whether we want to sell more because the more you sell the more losses we’re making. That is gone now. We introduced these single phase inverters which, which we had really, really good response to that. But these launches happened in the third and fourth quarter of last year. So up to, you know, close to about 10 kilowatt we have the single phase and also the second one up to 20 kilowatt. The new three phase also has been there. Now it is, it is done in three phases.
First is to get the design and production to, to beat the, to be competitive in the market because most of the other people which you are referring, they are getting SKDs from China and assembling it. It’s no secret but it’s all Chinese thing. So if you have to beat them, we have to get our design procurement cost. We have to be volume. Yeah,
Kartik Giri
I’m sorry to interrupt you. So sorry. I understand we have perfected the product over probably past 2, 3/4 and I am glad that now it’s a unit level profit, profitable product. I, if you can help me understand the sales strategy which we are following going ahead. Are we going to partner with these polar
Dinesh Musalekar
Players or are we going to. I
Unidentified Participant
Was coming for that. Yeah.
Dinesh Musalekar
If you want to see the numbers, I can give you the numbers. We are looking for 25 crores. 24, 25 crores business in the coming financial year. It’s doubling. That’s one. And then we are also looking at three, four major people who are buying from China and assembling it. We are going to partner with them and will be a OEM supplier for them because they have a brand and we will do our own brand also. We have got natural campaigns to drive it. It’s not that we are just playing around with it. There’s a complete concrete strategy for that and we will do that.
And one or two ports of manufacturing are going to be used for this one. So we are putting up a manufacturing setup which Chinese do in their countries, how they manufacture mask automated production lines. We are putting all of that, if you have to build them, you have to play their game. This is how the strategy is and I’m sure that we’ll be successful with that. And those are numbers and strategies. If you, if I had to tell you very quickly.
Kartik Giri
No, that is, that is really helpful. D I sincerely look forward, you know, for this segment to scale from here because it has taken a lot of our, you know, at least mental bandwidth in last two years. Just one last question.
Dinesh Musalekar
We are also adding a hybrid. If we add hybrid we can export it. Because outside of India mostly even in India also people are asking for hybrid because you want to manage your energy which is generated when you want to consume. So hybrid version also we started. We’ll be starting to work on single phase hybrid. Once we do that, our markets to Saudi Arabia, even in Europe will open up.
Kartik Giri
Understood? Understood. I. I just have a follow up. D I’ll join back with you after that. $3 million US revenue to $4.5 million US revenue. I understand. D 50% revenue growth looks very good. But in my opinion in such a big market, just 12, 13 crore of incremental business probably is an underachievement for Rishabh given the kind of product portfolio we have. So if we can do something there that will be. I think that will give us another lever for kicking in the growth in the company. That’s all.
Dinesh Musalekar
We are aware of that. And one of the all the products which Lumel or Rishabh made, they were made for India and European market. All those standards are quite uniform. When it comes to usa you have to go through UN certification. It is a lot of investment in terms of time and cost. And we are doing all those products. You have to redesign the product. Unfortunately America is totally a different animal. So if everybody is. The products have to be. If the box is square, they want round, everything is.
If it’s 50 hertz, that is 60 hertz. Everything is different. If you want 230 words, they won 110. Also all the products have to be redesigned and also how to go through your certification. And the labs also have a lot of queue. So we are doing that. That’s where the. There are some challenges for every market. So we’re doing. And that’s. That’s where the direction is.
Kartik Giri
Understood. Very helpful. Thanks a lot Dineshi and good luck to the entire team.
Dinesh Musalekar
Thank you. Thank you very much.
Operator
The next question comes from the line of Ankur Gulati. The genuine capital. Please go ahead. So just one clarification on solar inverter. Are we now cost competitive with Chinese product in India?
Narendra Joharimal Goliya
Not yet. Yes, not yet. We are close to it. But I mean if you really want to make profits. We are not. But we are competing them and we are selling it in competition with them. But as Dinesh just pointed out, Chinese people, they really do mass manufacturing. They get lot of government support. We don’t get that government support. But we will do it on our own strength, you know, going ahead. And of course we have to also reach the volume. See, China has already reached volumes whereby they are able to do a lot in resource, in buying, you know, and that is still to be done.
But again, as Dinesh said, we are conscious and we are doing all that is necessary to be done to become conscious. See, that was true in our other products also. When we went and we started, we were not able to compete China. But in course of time we have done that and I’m sure we will do it in this product also.
Dinesh Musalekar
Yeah, to be more precise, we have started the whole product basket from one end. We have started where we have completed. We are competitive. And there are other areas where we have to do. For example, the single phase unit, we change the design from boxes to aluminium die casting. And those are the kind of profit, they are not as profitable as the rest of the gross margins are in the range of 15 to 20% that we already been able to achieve and now we are expanding that. So we are expanding to 20.
Now on the drawing board we are working up to 50 kilowatt once they are done, we are taking step by step. So some, I would say half of the product they are completed, half we are not, we are working on them.
Operator
And so similar product. Are we competitive with Chinese in European market or there also we are still behind if at all we were to sell there.
Dinesh Musalekar
Yeah, in European market at the moment we are not very aggressively looking, looking at. Because Europe had its peak on solar and it’s dropping. So maybe Middle east could be a better market for us. So in, in, in Europe every see in India we have this make in India and there is a national pride associated with the product designed and made there in Europe. That advantage we will not have. So all the Chinese big brands are already there for a very, very long period and penetrating that will be difficult.
And also Europe went through this phase and there are no subsidies, no support from the government. So as it is the solar business in Europe is less now. So we rather look at markets in, in Middle East.
Operator
So sir, at what revenue, whether it’s 50, 100, whatever, we’ll have the same margin, let’s say of 20 to 20% whatever as our electrical and electric instrument business level.
Dinesh Musalekar
So, so the gross margins or contribution level margins for our other businesses will be much higher than this. So for these businesses it will be, it’s a mixed bag, so it will be lower.
Operator
And we are manufacturing this via contract factories or are we doing our Own capex.
Dinesh Musalekar
We do everything our own.
Operator
Fair enough. What current capacity? If you can help me. For solar inverters in terms of revenue
Dinesh Musalekar
We said we are planning for 24 crores next year.
Operator
Sorry. So what I meant is what is the maximum we can produce from current capacities? That’s 24 is your target. Wherever
Dinesh Musalekar
The current capacity is, you know we can. We can go up to. It’s a ramp up process. So what we need for solar manufacturing is the space which we are building this new building and one entire floor is going to be for that. Then we need assembly lines. We are putting one assembly line and as the sales increases we put the additional assembly lines we can. In this new building we can go up to 100 crores.
Operator
So it is
Dinesh Musalekar
Only incremental investment which you have to do.
Operator
And can you give us more color on the new plant? What are the new products if at all we are planning to launch. I mean are we getting into broader electronic space or will we stick with the current product suit?
Dinesh Musalekar
Yeah. So the one is to support the product, current product source. Because we are almost running out of space before. So that’s for supporting the organic growth. The other product lines which we want to expand. There are medium voltage products like medium voltage CTs, PTs and VT’s which I think Kiran had asked this question before. So that’s something which will be there. Solar will be our second expansion which will happen. Cam switches is another expansion which we will do and general growth of rest of the business.
Operator
Okay, thanks.
Dinesh Musalekar
Thank you.
Operator
The next question comes from the line of sir and Dojal investor. Please go ahead.
Kiran Dhanwada
Sir, can you hear me?
Narendra Joharimal Goliya
Yes.
Kiran Dhanwada
Congratulations on a healthy closing to the year sir. And going forward. Best wishes for going forward, sir. As. As I hear Dinesh, the general trend. Can we assume that by March 28th we’ll cross the thousand crore revenue mark and have a 200 crore EBITDA
Dinesh Musalekar
On a consolidated basis. See we said that the IE business is 560 crores now. So 20% growth on that will bring it to you know around 670 crores. And at the same time the other business which is aluminum diecasting which is not growing on the top line. So that will be you know around the same or at the best or maybe 5, 10% lower. So that’s where the difference is coming. So we may get, you know close to that. But crossing 1000cr may not be what we want to say now on the top line. On the bottom line again we have, we had adjusted EBITDA of 130 approximately 136cr and I mean we are talking about 20% growth on the, on the, on this one.
So around 150, 160cr is what we can expect as a broader guideline because it’s not going to be like the last year to this year. Because last year lot of these changes happened because we had losses in Limel Lalukas which did not happen. So we plugged it and the growth on top line and bottom line are basically coming from IE sector. So that is just adding value at the top for the. For one more year.
Kiran Dhanwada
I am asking for March 2028 sir. So I think reasonably two hundred and thousand should be doable. I mean looking at the kind of numbers you are only talking about two years from now
Dinesh Musalekar
If you project the same guidelines. So we can, we can come close to that
Kiran Dhanwada
And yes, and what, what plans do we have for our liquidity on books or any kind of next level expansion or organic inorganic. Could you just throw some light on that sir?
Dinesh Musalekar
On inorganic growth we are all the time looking for opportunities and few we have engaged in US and in other places in Europe and India also are looking but nothing significant to announce or talk about it. As Mr. Goliath said that if there is something that approaches we will announce it to the market for sure. But that is inorganic growth is part of our growth strategy also we are looking at it to reinvest the profit that we have from the business. So that is all the time there. Thank you sir, best wishes for the year.
Thank you Jagir sir. Thank you.
Operator
The next question comes from the line of Mulesh Sabla. Please go ahead.
Unidentified Participant
Thanks for the opportunity. Most of my questions have been answered but sir, I just wanted to have your thought on. There are few sectors which are growing faster in countries like India like BMS data center, semicon industry and all. So what are the efforts we are taking to you know directly target those industries and grow our businesses.
Dinesh Musalekar
So the data centers. AI Data centers is a business. We have some global hotspots. India is one of them and then Ireland is another one. USA is a big market for that. Canada is investing also Middle east was. Now we don’t know after this Middle east war whether Amazon has pulled out and we don’t know. But what we have done is we have bundled our product that was one of the reason why Microsys was procured so that we can use solutions with our product and the software together. And I’m really happy to announce that we have some projects which we won and repeat Projects are coming from sifi, it’s one of the data centers in India and we have similar in Ukraine UK which is supporting our Ireland.
And we are also developing some products because for USA every time you have to develop something because of what I explained in one of the calls before. So we are also developing these products for US market. So there is a focus on those sectors which are there. Fortunately all the sectors which you mentioned, our products can be customized, bundled and you know we call that as a sectorial marketing. So we can have our products tailor made for these sectors and sell them. So there is a focus on this.
That’s one of the reason why we also hired specification specialists so that they can work with these consultants and understand their requirement and get that feedback to our product development. We modify that and we preferably spec in our products as a preferred product to be used in these projects.
Unidentified Participant
So what kind of revenue potentially we can target maybe two years down the line from these sector? These sectors.
Dinesh Musalekar
Yeah, so that, that is all getting, you know, absorbed into what the projections we are talking about. So what happens is when new sectors and new things emerge out, so all these new solutions come into play and also some of the old things start going away like analog panel meters, those costs will be kind of lower in some areas. So this is, this is kind of a thing where you do new product development and as the product lifecycle goes down, some of the products also phase out. So I mean for everything we cannot put a number actually it’s really fragmented and lot of industries, lot of product lines and lot of markets.
Unidentified Participant
Great, great. Okay. And sir, I just had some doubt about solar inverter. You said that we will have our own brand also and we will do it for OEMs also. Will that work? Because then in that case we will become the competitors to our OEMs and whether they would be inclined to get outsource those manufacturing facilities from us.
Dinesh Musalekar
It’s good and bad. But this is how the world is working today. So some of these Chinese companies are supplying the SKDs to these so called Indian brands and also selling on their brand. It works like that. And we also supply some of our products to say abb, Siemens. And we also, wherever it is possible we collaborate. Wherever it is possible, we compete. Every customer, every customer has their own loyal customer base, their own distribution channels, their own network. If somebody is in kind of appliance support business, he wants to come into solar, he has a huge service network.
So to do this. So they, these companies will be more like EPC companies Small EPC companies. So what they do is they are not selling only inverters. They are taking inverters from me. They are buying panels from somebody else. They are putting all of that as a kit and selling it like a bundle. So I am one of the supplier I can be supplying to somebody and they want to supply in their brand, for example. So I make it for somebody, XYZ, whatever I don’t want to 7 is and they will put it. But I my product is available for smaller EPCs who want to buy directly from me.
Of course somebody is buying thousands will have a different price proposition because it’s a supply contract over a period of few years and somebody who is buying 5, 10 I will have a different pricing strategy. So this works and it works in some of our existing products also already and globally. Also it works.
Unidentified Participant
Okay, okay. And just a small question on. Can you throw some light on what kind of product they are called these advanced automotive technology products. What are they exactly and where are they used?
Dinesh Musalekar
Advanced Automotive. I mean I need. Because this looks very generic. Every industry has different. So if I can
Unidentified Participant
We have mentioned somewhere in our PowerPoint, I mean these PPTs that we are targeting, these are some of the it is there on slide number 30 we say that PLI scheme will boost the domestic manufacturing of advanced automotive technology products.
Dinesh Musalekar
Yeah. So this PLA scheme has has been catalyst for many companies to go into semiconductor business and advanced semiconductor business etc. Like for example the motherboards of laptops or those kind of manufacturing. So those EMS services we have started doing for such companies also we have capacity and we have capabilities to do complex these things. So those are the things which will come out of that indirectly to us.
Unidentified Participant
Okay, okay, great. Great. I think we started supplying motherboard to some of the companies whose principal supplier was Intel. So how that business is.
Dinesh Musalekar
Yeah, it is started.
Unidentified Participant
It has started. Okay. Okay sir, thank you so much and all the very best.
Dinesh Musalekar
Thank you.
Operator
The next question comes from the line of Daniel Desai from Turtle Capital. Please go ahead.
Unidentified Participant
Hi, good evening everyone. So my first question is, you know, earlier participant talked about the US market and you kind of elaborately answered that question. Also my question is the next three years there is a large capex lined up, you know, on the AI data center, electrification, everything. Are you talking about the product development and approval and certification part of it. But by the time we get it, maybe the largest part of that capex may get over. So is there any opportunity possibility of us getting some acquisition in US where you can kind of speed up this entire process, are we thinking in terms of that as an option?
Dinesh Musalekar
Yes, it’s really a very good question and we are working on that. And also we are very much aware of this capex which is happening on data centers and then we don’t want to be in a only replacement market. So there is a lot of pressure on our R and D teams also to prioritize this and do this. So we are working on both sides. One is to get them as quickly as possible because this is going to be a phase of five, six years of investment and at least half of it we want to catch up. If we miss this buzz then we’ll be only in the placement market later.
So that’s something which we are, which we are looking at closely and we have products like for example our current transformer sales have significantly increased last year in my speech also I covered or spoke about it from capacity of 6,000 per day, we are enhancing it to 10,000 per day. And this is one product which goes in every data center behind every meter that they use there. So this we already and we have all the UL certification for this product and one of the significant growth driver for us in US is coming from current transformers and also these medium voltage stuff.
Also we are doing it with dual specification now. So this is all part of the plan and what you said. We are really mindful of that and making some actions on this.
Unidentified Participant
Got it sir. Second question is on the last. So sir Lucast, you talked about you know, almost similar or slightly lower number on the revenue for FY27 with a break even or early single digit margin. But next year you’re talking about let’s say double digit, closer to double digit margins. So do we have some see through in terms of the product or the project which are going to ramp up which gives you a confidence on, you know, that kind of a number or it is more of a, you know, our expirational number that we want to get it to that number.
That’s one and the second. Sorry.
Kiran Dhanwada
Yeah, go ahead.
Unidentified Participant
No, and the second part to that question is that whatever my little understanding of that segment is that globally in that segment you compete with global players with scale which are outside of Europe. While the cost of labor and energy both is relatively higher in Europe. So with that kind of a setup it’s very difficult to compete and kind of gain business and operate it profitably. So malav again maybe one year we can do 10% margin but on a longer duration basis is that sustainable model? What’s your thoughts on that.
Dinesh Musalekar
Yeah. So again, very good questions both of them. So over a period of time, this situation of competing on a global landscape and all these costs disadvantages for European market vis a visa, China or India or Southeast Asia, they all existed in the past also and we still had good growth and good margins. So it is distorted because of auto industry for some time now. There are also other challenges when it comes to die casting business because the weight of the part so much and it’s so much back to back supply if there are any lapses on supply chain or quality of products.
So then it creates a huge distortion. So we had these cycles of, you know, people going to China and then coming back to Europe and then having dual sources. All those things we have seen in many industries. This is one part, so that fairly remains. And the second part which we are talking about is because this auto industry created so much of, you know, losses in the whole industry. Many companies closed down. So those, those companies which closed down their projects are shifting to somebody who is existing.
So maybe about 20, 30% of the companies still are able to be there on the ground and supply out of this aluminium die casting kind of businesses. So you are like last man in the queue and people are coming, major part is shifted to China or India. But also they want to have a lot of these companies have dual sourcing. So that will come in and coming to this feeling, it’s not feeling. I have concrete things which we worked on with how many crores of offers we have given, how many customer visits and the audits have been performed, how many we have cleared and how many we are negotiating.
We are in some, we are in a kind of a negotiation with enterprises some way. We have negotiation on, you know, other general conditions of business etc. So there are at least about 3, 4 new customers and from our world existing some 2, 3 where we are getting some new projects. So all that is going on. So those numbers which we are talking in a two years line to get back to better number are all based on real data. It’s not wishful thinking. So that’s where we are
Unidentified Participant
Very clear sir. Thank
Operator
You and wish you all the best.
Dinesh Musalekar
Thank you.
Operator
Thank you. Ladies and gentlemen. Due to time constraint, that was the last question for today. I now hand the conference over to the management for closing comments.
Narendra Joharimal Goliya
Thank you very much everybody for attending. There were great results. You will have a more detailed look at it. We promise to do all that we can to make sure that these results only improve over time. Of course the work clouds are hanging all around us. But we hope Indian philosophy this will clear off and we will come back to a normal growth path. So thank you once again for attending. All the best. Until our next call. Bye. Bye.
Dinesh Musalekar
Yeah, I just want to conclude we have done our part. Now the market has to respond. So, yeah, thank you.
Unidentified Participant
Bye.
Operator
Thank you on behalf of Vishab Instruments Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.
Unidentified Speaker
Thank you.