Rashi Peripherals Ltd (NSE: RPTECH) Q1 2026 Earnings Call dated Aug. 06, 2025
Corporate Participants:
Unidentified Speaker
Kapal Pansari — Managing Director
Rajesh Goenka — Chief Executive Officer
Himanshu Shah — Chief Financial Officer
Analysts:
Unidentified Participant
Anuj Kotewar — Analyst
Sankaranarayanan S — Analyst
Abhishek Kumar — Analyst
Madhur Rathi — Analyst
Yash Master — Analyst
Vinay Menon — Analyst
Bhavin Chheda — Analyst
Miloni Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 conference call of Rashi Peripherals Limited. 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 than zero on your Touchstone phone. Please note that this call is being recorded before we begin. Please note that 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 the date of this call.
The statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. On the call Today we have Mr. Kapil Pansari, Managing Director, Mr. Rajesh Goenka, Chief Executive Officer and Mr. Himanshu Shah, Chief Financial Officer. The management will take us through the operational and financial performance for the quarter gone by, following which we will open the forum for Q and A with this. I now hand the conference over to Mr. Kapil Pansari for opening remarks. Thank you and over to you Sir.
Kapal Pansari — Managing Director
Good morning everyone. We welcome you to the earnings call for the first quarter of the new financial year ended 30 June 2025. We have shared our results, earnings release and investor presentation with the Exchange and all are available on our website. Hope you have had the chance to go through the same to set the context as an ITC player, PC market remains a dominant driver for the growth. However, there is huge potential to increase PC penetration in India. The rising digital demand across the country makes it a highly attractive market, drawing significant investment and strategic focus from global tech layers.
Leading global PC manufacturers are deepening their investments to capture this high growth market. Dell has introduced a wide range of AI powered PCs in India, leveraging a multi silicon strategy that integrates processors from leading chip makers backed by advanced NTUs, robust security features and sustainable design elements. In parallel, Lenovo is scaling up its local manufacturing footprint with a goal to produce all its PCs for the Indian market domestically within the next three years, including AI GPU servers, aligning with government incentives and solidifying India’s role as a global tech manufacturing hub. Meanwhile, ASUS is tapping into the surging demand for AI gaming and content creation species, projecting a 30% growth in 2025.
With a strong presence in copilot PCs and affordable AI models, the brand is expanding its retail footprint, aiming to strengthen its position in the desktop PC market. Rashi Peripherals is strategically positioned to leverage this market search utilizing its extensive distribution network to connect global brands with India’s hinterlands. Our robust Q1 FY26 performance builds on FY25 strong growth with the devices segment excelling due to heightened demand for personal computing and peripherals, our focused efforts to expand AI solutions penetrations are delivering substantial results, reinforcing our leadership in this transformative domain. By diversifying our brand portfolio, we’ve captured new market segments, enhancing our offerings and strengthening our role as a leading ICT distributor.
This initiative underscores our commitment to driving sustained value and capitalizing on India’s dynamic PC market, ensuring we remain at the forefront of this rapidly evolving landscape. Before I hand over to Mr. Rajesh Venka, I would just like to inform that we were honored with VAR India Most Promising Partner in India in 2025 and DT Best National Distributor of the Year which underscores our commitment for all round growth. I now hand over to our CEO Rajesh Goenka for further update about the company.
Rajesh Goenka — Chief Executive Officer
Thank you Kapil. I extend a warm welcome to all the stakeholders on today’s call as we discuss our business and operational highlights for the quarter. The overall PC market in April and May was flattish, but it gained momentum especially with the onset of the festivities in August, so July relatively was better. Microsoft is set to officially end Support on Windows 10 in October 2025 which is pushing both individual users and business to upgrade their system. This impending change is seen as a major opportunity for the tech industry, particularly in our country. While the demand for PC and AI hardware will accelerate, much of it is coming from tier 2 and tier 3 cities, regions where poor infrastructure and limited warehousing capacities are creating bottlenecks.
These issues also extend to after sales support, that is Warranty services and that have not scaled in line with the demand, leading to delays and customer dissatisfaction at Rashi Peripherals. With our deep expertise and Strong presence in 52 cities of India, we are well positioned to gain this advantage. By leveraging advanced technologies in real time inventory tracking and smart routing, we are already mitigating the logistical and local challenges going forward. We believe close collaboration amongst OEMs, logistics providers and distributors and partners will be key to building a decentralized network of fulfillment and service hubs, ensuring reliable access and support across India.
Next wave of growth market which is the BNCD class cities Our operational excellence in the fiscal year 2026 is clearly reflected in our improved EBITDA margins, a direct result of optimized processes and a careful cost management. The surveillance business in particular has been a key growth driver due to rising demand for advanced security solutions. By actively participating in key Channel Business Forums such as CBF 2025, we have significantly enhanced our market visibility. To give you a brief, Channel Business Forum is the largest and the longest running Channel Business Forums. This is the 14th year in last 20 years where we cover 50 cities in just three months time.
This has strengthened our partner relationship and helped us identify new business opportunities especially in the BCD class cities. Despite not including project business in our revenue, our core distribution model has demonstrated remarkable resilience and shown 11% growth diversity, achieving a strong top line growth and also fat growth. To further provide details on our financials for this quarter, I will hand over the call to our CFO Mr. Rimansusha.
Himanshu Shah — Chief Financial Officer
Thank you Rash and a very August morning to all of you. All the investors present on the call. I would like to take you through the financial highlights for the first quarter FY 2026 on a consolidated basis for quarter one. For FY 2026 revenue stood at 31,521, a 26% decline. YoY. However excluding the project deal if we compare there is a actual revenue growth and revenue grew by strong 11.4%. EBITDA grew by 23% to 1114 million and PAT came in at 617 million up 12.1% compared to quarter one. FY 2025 there was a significant jump in margin.
EBITDA margin expanded by 140 basis points to 3.5% for the quarter and PAT margin rose 70 basis points to 2%. Looking at the business mix on a trailing 12 months basis, our PES segment contributed 57% of the revenue while LIT accounted for 43%. Reason was 62% of the revenue came from Metro cities and rest was from non metro geographies. With this update now I would like to open the forum for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question comes from the line of Anuj from mutual fund. Please go ahead.
Anuj Kotewar
Hello.
operator
Yes sir, you’re audible. Please go ahead.
Anuj Kotewar
Hi sir, good morning. Congratulations on excellent quarter. Two questions from my side. First, last quarter you mentioned there was some problem regarding collections post Diwali. That is one house the scenario now and secondly Working capital days. If I see in the BPT it has, it has gone to 73 versus that of 5055 averagely maintained. So what’s the reason for that?
Rajesh Goenka
Yeah, so as far as your first question is concerned, the collections which we raised concern slowing down has started becoming to normalcy. However the full effect will get reflected over a period of maybe this quarter. Secondly, the working capital going up is concerned there are two components attributable to this. One is one sizable debtor payment which got delayed in this quarter which is expected in maybe next 10 to 15 days and that will normalize. That has an effect of around eight days. And second is certain businesses where we have gone for availing early payment incentive from brands there we have paid inventory on record.
So creditors have come down by four to five days. So these two components. So effectively our investment or the inventory days remains same and yeah, that is. The impact on working capital.
Anuj Kotewar
So. Yes. So was there any sizable order like in last quarter, Last year, first quarter?
Rajesh Goenka
No, it was. It was last year.
Anuj Kotewar
Any sizable quarter in this, Any sizable order in this quarter?
Kapal Pansari
There was no sizable order in this quarter. While last year we had a very sizable order from the NMDC UOTA for about approximately 1500 crores approximately. Whereas this quarter there was no such order.
Anuj Kotewar
Okay sir, EBITDA margin for the second consecutive quarter was about 3%. Should this be sustainable or how should we look at this going forward?
Rajesh Goenka
So while EBITDA margin flows down mainly from GP also the operational efficiencies remain at same level. However, for long term trend we would not say that this is maintainable because it’s a factor depending upon the customer mix and the sales mix and all that stuff. So I would like to say that yes, these are good for us, 2/4. However, for you know, on a long term basis, definitely we don’t advise such high range to be meeting.
Anuj Kotewar
Okay, thank you. Sir, just one last question. What was the reason for increase in interest for the discord.
Rajesh Goenka
Again the working capital investment which is balanced by eight days.
Rajesh Goenka
Okay.
Rajesh Goenka
The interest is coming out of that.
Anuj Kotewar
Thank you so much. That was it. From my.
operator
Thank you. The next question comes from the line of. From I thought pms. Please go ahead.
Sankaranarayanan S
Good morning sir. Congrats on a good set of numbers. My first question is regarding the large deals. Do you have any large deals in your pipeline or and in this quarter.
Kapal Pansari
Have you executed any large deals? Yeah. So Shankar, thank you for asking this question. So last year if you remember we did those large deals on the AI data center of Yota however in this Q1 April, May, June we have not done any large deals and our focus was more on run rate business. But at the same time I must say that there are multiple opportunities in the country for large deals. But then the margins and the payment cycles are little bit extended so it is a judgment whether to take it or no or even if to take it, how much to take it.
But in April, May, June we have not picked up any deals. Despite that if you see our revenue growth has been about 11% if I just remove the NMDC deal on an AMG to MG basis.
Sankaranarayanan S
So my second question is that you have been spoken that the government is interested in buying 10,000 GPUs and we might get that order from any of the system integrators. What is the progress on this?
Kapal Pansari
Yeah, so this order is likely to get finalized within this quarter. There is a Q2 and it will be available for all of us to grab. But then we need as I said earlier, we need to analyze the margins and roes before we pick up the order.
Sankaranarayanan S
Got it. Sir, we have improved our EBITDA margin significantly. So could you please throw the mic if there is a significant increase in EBITDA margin that really happened due to the large deals that have happened in last year in quarter one so which.
Kapal Pansari
Have other expenses, other operating expenses, setting up the large deal in the site.
Sankaranarayanan S
So that other expenses part is not.
Kapal Pansari
Visible in this quarter.
Sankaranarayanan S
So is my understanding correct sir, that’s why we have seen a increase in EBITDA margin.
Kapal Pansari
Yeah, one of the reason is of course we are not having any large deal in this particular quarter. So even if you compare our last year Q1 without the large deal it was 2.68% and right now it is at around 3.5%. So that is one reason. Second, we have done more consistent business and more rotational business and our regular business where the margins are relatively higher. And third, very important point is in this particular quarter if you see our 11% growth that I explained earlier, majority of the growth has come from our regular channel business.
The second growth has come from organized retail business and our online business actually has shown a degrowth and this is done consciously because the returns on online business is the lowest. So as a result of an appropriate mix of product and go to market business, we have been able to improve our EBITDA margin.
Rajesh Goenka
One more thing I would like to add that on your specific question of other expenses line item, the exchange rate at this year end was favorable as compared to last year.
Sankaranarayanan S
Got it sir.
Rajesh Goenka
Thank you.
operator
Thank you. The next question comes from the line of Abhishek Kumar from JM Financial. Please go ahead.
Abhishek Kumar
Yeah, hi, good morning and thanks for taking my question. I have two questions, both on demand outlook. First on these large deal data center or otherwise, our understanding was that yes, while these large deals might be low in margin, but ROCE profile of these deals should be better than the usual business given low inventory days, etc. Now seems like you’re not as confident as you were earlier and you’re talking about judgment. So I just want to understand what is our stance now? What is the ROCE that you observed in in the last deal that you did last year and what are some of the parameters you’re looking at to evaluate future deals?
Kapal Pansari
Yeah, so I think I’ll answer your question in two parts. One is our regular run rate business, particularly in the first Q1 the overall market was flattish or about 2 to 3% market grew whereas we have grown about 11%. So which is almost more than double or triple of the market. But going forward in Q2 we see this market growing to about 8 to 10%. And at Rashi Verifice our endeavor is always to grow at 2x. So that’s for the run rate business. As far as these large deals, particularly in the AI data center, I think your point is very right.
In the previous deals we had the first movers advantage where we picked up the first deal. So there the ROCE was better. But now the competition is hotting up not only amongst the vendor suppliers but amongst the distribution also. So at this moment it appears that the ROCs are lower, but that does not determine us not to participate in it. We are evaluating each and every deal because there are multiple deals available in this quarter and we may pick up some of them.
Abhishek Kumar
Okay, you mentioned 8 to 10% in normal business. I see in your presentation in Q2, okay. For the full year what your presentation mentions is that PC shipment 2025 is projected to grow at 6% and we are already growing at 11%. So fair to assume that, you know, this is the growth rate that we should assume X of any large project deal, etc. And second, related is this 6% growth projection? I mean, does it, I mean will you have any idea, does it include the impact of Microsoft, you know, pushing people to upgrade, etc. And therefore some surge that might happen because of that?
Kapal Pansari
Yeah, this is all taken care, but These are all third party reports. Some reports indicate 6%, some reports indicate 8%, some reports indicate about 9%. So the variation is 6 to 9%. That’s the third party report. But the real fact in Q1 market was about 3% growth only. But we grew 11% in Q2 we expect the market to grow around 9% to 10%. And our endeavor, I’m repeating my statement. We our endeavor is always to have 2x of the market growth. So in summary, annually if the market grows by 6% then obviously we will have minimum 2x growth.
If market grows at 9, we will still have 2x to its growth. That’s our strategy and aspiration.
Abhishek Kumar
Great. That’s all from my side. Thank you and all the best.
operator
Thank you. The next question comes from the line of Madhur Rathi from Countercyclical Investments. Please go ahead.
Madhur Rathi
So thank you for the opportunity. So I wanted to understand this 3.5% as you mentioned, like these are on the higher end. And 2.5 to 2.7% like you mentioned previously should be the steady state margin, just full year. What kind of margin can we expect? And so this 3.5% you mentioned some of the reasons, but can so. So is the what could be the new normal? Has the business dynamics changed or we should still think about from a 2.5 to 2.7% EBITDA margins.
Rajesh Goenka
So just to mention to your first question, the 2.5 to 2.7 range which I have, we have been giving is an annualized range only. Second thing, as Anish mentioned in his speech also it’s a mix of customers. So like second quarter typically E commerce goes high which is of a lower margin but equivalent sort of roc. So the percentages may get reflected in terms of variation in GP, NP and EBITDA. Our RoC will not vary then that’s what our focus always remains.
Madhur Rathi
Got it. Answer. One of our competitors, our competitor Reddington said they have mentioned that there has been an increased pressure in the server and storage business because of these OEMs reducing margins as well as OEM getting direct orders from customers. In our business, are we seeing some kind of impact of those terms of trade?
Kapal Pansari
Yes. So I think that is predominantly in the large deals only run rate business there is no impact. And that is why particularly in Q1 we went all out for doing run rate business which actually helped us to improve our margins. Had we also gone for the large deals then obviously our margins also could have been impacted. But consciously in Q1 we chose to prefer the run rate business over the large deals.
Madhur Rathi
Got it. And so just a final question from men sir. Our cash flow causes because of Q4 and Q2 being dominant, we don’t get a true picture of what our CFO could be. So if you could just give us a what was the CAO post the December quarter end or post the Q1 end for the TTS trailing 12 months. Sir, it would be very helpful for us to understand our business much better. So if you could have have that figure, it would be very helpful. Or if you could just send me on email, that would also work on transactional things.
Rajesh Goenka
Yes, we can send you separately or we can connect offline to get onto the detailing of the sale. However, on the cash flows, I would like to mention that as evident in our presentation also the working capital cycle increase effectively has will result in, you know, cash flow getting invested. So to that extent, yes, cash flows, if the debtors or if there’s a variation in debtors or the, you know, strategic call on the payment side of paid inventory, there will be impact on cash flows. But those are not long run impacts. Basically it gets normalized within a quarter itself because credit terms vary from 30 to 45 days only.
Madhur Rathi
Got it sir. Thank you so much and all the best.
Rajesh Goenka
Thank you.
operator
Thank you. The next question comes from the line of Yash from Unify Capital. Please go ahead.
Yash Master
Hi. Am I audible?
operator
Yes, please go ahead.
Yash Master
Yeah. Hi. Congratulations on a good set of numbers. So just a couple of questions. So first on, have we received a full payment from Tamil Nadu government and the Utah deal? And if not, what is the amount that is yet to be received and when do we expect to receive it?
Rajesh Goenka
Right. Yeah, we have almost received very small point money is pending which will come by next week.
Yash Master
Okay. From Tamil Nadu.
Kapal Pansari
Yeah, Tamil Nadu deal. Your question was about the Tamil Nadu deal?
Yash Master
Yeah. And on the Utah deal also.
Kapal Pansari
Yeah. Majority payment has come. Only a small portion is pending which is expected anytime in next week.
Sankaranarayanan S
Okay. Okay. And if I exclude the, we had a one off deal last quarter in Q1, so if I exclude the number, we had a good growth of 11%. But as you pointed out last quarter that this large deal could be replaced by a combination of small deal. So are we seeing that happening? How is the demand environment panning out in the data center deal? And were there any data center deals this quarter, small or big?
Kapal Pansari
Yes. So in Q1 there were only one or two large deals where we decided not to participate. But in Q2, Q3 and Q4 there will be few large and some small deals. Also we have a separate vertical, separate team working on these project businesses. We are evaluating every project orders that are there in the pipeline and we will take an appropriate decision what to pick up, how much to pick up at the appropriate time. But I must say I am not trying to give any pessimistic signal. We are very optimistic on this. But careful optimism is what is our current strategy for the large deals? Run the data center business.
Rajesh Goenka
Yes, just to add it on the compensation of that big deal in the form of other deals was more on an annualized basis in a quarter. It cannot be, you know, replicate.
Yash Master
Yeah, I understand that and just sorry if I am replicating this question but on the margin front this quarter you had 3.5% margin. So is this margin sustainable going ahead?
Rajesh Goenka
So normally in our kind of business model, 2.7% to 2.8% is what we normally give. Barring some operational efficiencies, all the customer mix which has got favorable in this quarter on annualized basis, CS 2.7, 2.8 is sustainable. And long run.
Kapal Pansari
See right now we are getting opportunity for the economies of scale that we’ve delivered on the expansions that we have done two years ago. So definitely there is some upside that we are enjoying at this point in time. What Himanshu mentioned on a long term guidance that we give is the range that is mentioned to him. So it is very difficult to answer your question. Whether it is sustained, sustainable immediately on the long term or not is something that not very easy to answer at this point in time.
Rajesh Goenka
Until long term trends are established in this range.
Yash Master
Okay, so long term 2.7 is the guidance that you gave now. Yes. Sorry, did you say something?
Anuj Kotewar
No. We are waiting for your next question, if any.
Yash Master
No, no, I think so. 2.7 is the guidance that you’re giving for a long time.
Kapal Pansari
Yes, that’s what Examanshu said.
Yash Master
Oh, okay. So that’s it from my side. Thanks for answering the questions.
Kapal Pansari
Thank you Yash.
operator
Thank you. The next question comes from the land of Vinay Menon from Munnar Capital. Please go ahead.
Vinay Menon
Yeah, thank you for the opportunity, sir. Congratulations on a great set of numbers. Just a few questions on the business side. One is that you mentioned that the size of the surveillance business has picked up. So if you can throw some number to it and any reasons why we are doing well and what could be expected in the future.
Kapal Pansari
Yeah, so the answer is very simple. Surveillance business is a new business to us. We started this vertical just about a year back. So when you start a new business, six months, seven months it takes to kick start. So that it took its own time to kick start now we are, I would still say at 50% of what we can do, but that has started. And second is surveillance market continues to do good from consumption perspective also because every consumer and corporate both are installing the surveillance cameras and camera systems and DVRs, NVRs and so on, so forth.
So one of course demand is up and second for it is for us it’s new. So therefore percentage growth has no relevance because our base was very, very small. All on last Q1.
Vinay Menon
Okay. And any numbers that you can throw to on a quarterly basis, what kind of range? Also what we could be doing from this business.
Kapal Pansari
I think I am not at the liberty to give the detail of a specific brand, but offline you can connect either with me or Himanshusha and we can give you some input. But I can only say that it will be on a yearly basis it will be a three digit figure in crores, much more than the three digit figure.
Vinay Menon
Okay. And so when we say AI solutions, what what all does that like? What all comes under that when we are mentioning that within classes and AI solutions. So any particular thing which you’re trying to mention there just want to have some clarity on.
Kapal Pansari
Yeah. So in AI solutions there are two solutions that we refer to. One is the consumer AI solutions and second is commercial AI solutions. In consumer AI solutions, many simple laptops which are AI enabled, desktops which are AI enabled. Rashi Peripherals has the privilege of having being able to distribute maximum brands and units of AI enabled laptops and desktops. So that’s one we wanted to mention. On the other side, on the commercial side again there are commercial laptops, workstations, servers and then data centers again there we have a decent role to play especially in the commercial laptop and workstation space.
As far as server space is concerned that we have already discussed, it is more deal business. It depends on pick and choose, whoever wants to pick and choose. And it is more driven by the pricing structure and the credit days and the inventory. Then more on the technicalities, especially from the distribution angle.
Vinay Menon
Okay, thank you. And we have added four brands mentioned the name that will be helpful.
Kapal Pansari
Yeah. So these four brands are strategic brands which may not bring big revenue, top line or bottom line currently, but it is very strategic. So to name a few, name the four. The first brand we have started with MSI Gaming Laptops. It is a Taiwanese company and world’s leading gaming company. So only in North India, excluding Delhi, we have started MSI Gaming Laptops second to strengthen our networking business. Because in our current networking business we Are doing mainly active components. We needed some passive component like cables, all that. So we have tied up with a brand called Norden.
It is a British brand with some local manufacturing in in India to support and fill the basket for networking products. Third is Rielo. It is an Italian brand in power. They basically manufacture UPS inverters. Again, they have a factory in India, in North India. So with this we will be able to supply more of the power equipments which are made in India. And third and fourth, last but not the least, there is an accessory brand called Alogic. It is an Australian brand. Again they have some manufacturing in India. So this will complement our leadership position in accessories and peripherals category in the country.
So all these four brands are very strategic. It is complementing to our existing business and we see a good potential in near future for these businesses.
Vinay Menon
Okay, thank you sir for that very detail. After one last question, we are expecting the reference.
operator
Sorry to interrupt, but your audio is breaking.
Vinay Menon
Yeah. Oh, sorry. Is it better now?
operator
It is still not clear, sir.
Sankaranarayanan S
Is it better now?
operator
Sir? Hello?
Vinay Menon
Hello, can you hear me now?
operator
Yes, it is a little better, sir.
Vinay Menon
Yeah. Yeah. Last question is that we are expecting the refresh cycle to come in H2 for PCs and any signs that we can see demand.
operator
Sorry to interrupt sir, but your audio is breaking. May I request.
Vinay Menon
Okay, I’ll come back a minute.
Kapal Pansari
I think I. I got his question so I can answer this. Windows refresh. I think that is your question. In H2. So if you see Q1, the market grew by only about 3% and we are expecting the market to grow in Q2 by about say 10%. So the average is just about 6% in H1. Right. Whereas on the annualized basis we are still expecting the market to grow by 8 to 10%. That means the H2 market will be about 12 to 14% is what is the expectation. And one of the key driver is going to be this holding of the Windows support.
So yes, it will make an impact. But to be very honest, in our country, while our adoption and discussions are on an accelerated path, but when it comes to spending and upgrading, then our speed is relatively lower. So yes, adoption will come, but it may be gradual starting from H2 and then subsequently in the next few years.
Vinay Menon
Thank you. Thank you for. Thank you so much.
operator
Thank you. The next question comes from the line of Bhavin Chera from INAM Holdings. Please go ahead.
Bhavin Chheda
Yeah, good morning sir. Congrats on very good numbers on the overall operations. So just if I miss the opening Part X Nvidia numbers of 1500 crores. You had a strong double digit growth of 1314 percent in this quarter. So what kind of growth we are looking at the entire fiscal.
Kapal Pansari
Yeah. So I think Bhavin bhai, you heard it rightly. If we just exclude that your NMD stock deal then our Q1 to Q1 growth has been 11.4%. And it is spread across multiple brands, products and across all the regions. And even from the go to market strategy our channel business has grown the fastest. Organized retail also has grown faster. And online business there is a degrowth, a mix of all this has resulted in improved EBITDA and EBITDA and pat margins going forward for the entire year. As I said and we’ve been maintaining our stance that our aspiration is to have 2x the growth of the market.
So this year we are expecting the market to grow. Some reports have given 6%, some reports have given 8%. Some reports even have given 9%. So our aspiration continue to have a Double digit or double digit growth and 2x the market growth.
Bhavin Chheda
Okay. And any. So last year I think there was 1450-1500 crores due to the NMDC deal. So any such deals are in the pipeline or and you’re not assuming any growth rate on that front when you say double digit.
Kapal Pansari
Yeah. So I explained this. There are multiple deals in the pipeline in Q2, Q3 and Q4. There are few large deals. There are some mid sized deals also. We are evaluating each and every deal with our dedicated team. And we will take an appropriate business call to pick up the deal. If there is a reasonable ROI at this moment it is little bit very competitive.
Bhavin Chheda
Okay. And can I have a gross debt and net debt numbers as on June 30th. June 30th, end of the quarter.
Rajesh Goenka
June 30th, 1190 crores.
Bhavin Chheda
Thank you. Yeah.
operator
Thank you. The next question comes from the line of Miloni Mehta from Munnar Capital. Please go ahead. Hello ma’. Am.
Miloni Mehta
Some questions are already answered. I just have one question. What kind of growth do we expect from Quick Commerce moving ahead?
Kapal Pansari
Yeah. So I think good question. Very close to my heart. Because this is a new business. At the same time it is also a very challenging business. As I have explained in previous calls, Rashi Peripherals has the first movers advantage on Quick Commerce. Especially because we also have the largest infrastructure amongst distribution companies in India. Currently our aspiration we are doing close to 10 brands in quick Commerce. And you will be surprised to hear that in Quick Commerce which is 15 minutes or 20 minutes delivery. There are customers who are buying products like laptops and printers also.
Printers is a very bulky product. And to answer your questions specifically this year we will have more than. We will double. More than double our business only on the quick commerce space.
Miloni Mehta
Okay, thank you. So that’s it from my end. Thank you. The next follow up question comes from the line of Sankar Narayan from. I thought pms. Please go ahead.
Miloni Mehta
Just a follow up question. So how is our embedded vertical segment doing? Sir?
Kapal Pansari
Yes, it is doing extremely well. We have more than 30, 35% growth on a Q1 to Q1 basis. In fact, I think 38%. Especially because the demand of the automobile again has grown. Previous Q4 the market was slow. So we are. And then we have some good wins project wins also in this. So it’s doing extremely well.
Miloni Mehta
In terms of numbers, can you provide?
Kapal Pansari
We can do that offline specific numbers. Himanshusha can give you the answer. Sure, sir.
Miloni Mehta
Thank you so much.
operator
Thank you. The next question comes from the line of Sana, an individual investor. Please go ahead.
Unidentified Participant
Hello. Thank you. Can you elaborate on the strategic rationale for the disinvestment? Was this a performance driven decision or a part of broader portfolio alignment strategies? Additional how does this affect our future digital or cloud initiatives?
Kapal Pansari
Yeah. So our endeavor to enter into cloud was very clear. And we started with a small investment in a smaller firm so that we can learn how this business is done and how the cloud business is operating. Unfortunately, our expectations from this business are that we will learn cloud and software business and accelerate the growth. Unfortunately, since we could not turn it to profitable over a period of four to five years of investment, we decided to exit and redraw the strategy on the cloud business. While it is a growth and exponentially adoption of cloud strategy, cloud business in the business, corporates and in the general market environment is increasing.
I think it is something that we are continuing to explore how do we expand and that is one of the reasons why software distribution business we started in a different light altogether. However, it is too small mall to talk about it at this stage.
Unidentified Participant
Okay. And one more question I have. Can you please elaborate on the 51% sale of stake in Z Technology, Please.
Rajesh Goenka
So that is exactly the disinvestment in the subsidiary. We held 51% shares only. So entire stake we have sold out.
Unidentified Participant
Okay, sir.
Unidentified Speaker
No.
Unidentified Participant
Then thank you so much, sir.
Rajesh Goenka
Thank you.
operator
Thank you. The next question comes from the line of Atria Paz, an individual investor. Please go ahead.
Unidentified Participant
Good morning, sir. There is a line item in the Annual report which is a disputed tax claim of around 400 crores which sits. As a contingent liability on our balance sheet. So can you please explain how that. Came into being and what is the. Risk to our balance sheet over the long term?
Rajesh Goenka
So a first of all I would like to say that we are fully compliant on all the laws and these contingent liabilities which are disclosed in the balance sheet or contingent liability list are normal show cause notices which are received from GST departments inquiring about the details and you know, reconciliations in the returns being filed and all. And those are replied to the fullest satisfaction of the authorities. And we don’t see any concern in future or any risk coming on the balance sheet.
Unidentified Participant
My next question is on inventory obsolete and risk. Since we always carry so much inventory. On our books, if. Any of them reduces in price or is not sellable. In the market, what is the recourse that distributors like us have?
Kapal Pansari
So we have minimum risk on inventory obstinate. Typically there are three types of risk that we factor in for an inventory. First is the technology risk, second is a competitive risk and the third one is refresh cycle of technological risk. What do I mean by all these three things is that in case of a technology risk is the technology of the brand did not sell in the market at the perceived value or the adoption of technology failed. In situations like this brands typically give us self through support and we pass on those reprice it in the market and we sell them.
The second risk that I talked about is a competitive risk where the brand is positioned at a certain price point and the competition of the brand drops the price or is more aggressive. In those situations the brand reprices it to make it competitive enough in the market and those get sold out. The third risk is on the new technology that comes which therefore what happens any new technology comes the old technology, there’s a price drop and the price drop is announced well in advance to us so that the range of these SKUs and different technologies, different price points continue to operate in the market.
And this doesn’t usually happen only with us but it happens to our down the tier channel markets also. This is part of the usual industry practice. So therefore we have very minimum risk on inventory. However, for the purpose of accounting practice we do certain provisioning for inventories above one year and two years and that is very nominal.
Rajesh Goenka
So actual write backs we never experienced in the future any significant as a prudent accounting practice. What Kapil mentioned that we make the provisions.
Unidentified Participant
Okay, thanks. Those are my questions thank you.
operator
Thank you ladies and gentlemen. We’ll take this as the last question for today. I would now like to hand the conference over to Mr. Kapil Pansari for closing comments.
Kapal Pansari
Thank you everyone for the wonderful questions. I would like to summarize just by saying that the environment was quite challenging in quarter one as we began. However, our team delivered this strong quarter by continuing to focus on a long term strategy. Our key principles of value added distribution, mindset, maximizing profitability, increasing the value for our shareholders while rewarding our people and teams effort with a strategic outlook and agility on our operations drove these quarter numbers. We thank you for your confidence in continuing to participate with Rashi Peripherals and in its journey of growth. We look forward to seeing you again in the next quarter while we end the festive quarter of September 2025.
Thank you very much once again.
Kapal Pansari
Thank you so much. Thank you on behalf of Rashi Perryfields limited that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.