Rashi Peripherals Ltd (NSE: RPTECH) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Kapal Pansari — Managing Director
Himanshu Shah — Chief Financial Officer
Rajesh Goenka — Chief Executive Officer
Analysts:
Unidentified Participant
Vinay Menon — Analyst
Aejas Lakhani — Analyst
Madhur Rathi — Analyst
Jyoti Singh — Analyst
Varun Gandhi — Analyst
Hittesh Goyal — Analyst
Miloni Mehta — Analyst
Amit Agicha — Analyst
Deepak Poddar — Analyst
Bhavin Chheda — Analyst
Amit Khetan — Analyst
Dhruvish Pujara — Analyst
Sankaranarayanan — Analyst
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Rashi Peripherals Limited Q3 and 9 months FY26 earnings conference call hosted by Monarch Net Worth Capital 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 then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Menon from Monarch Network Capital Limited. Thank you.
And over to you sir.
Vinay Menon — Analyst
Good morning everyone and it’s a pleasure to host the management of Rashi peripherals. For their Q3 on call, I’d like to introduce the management. We have Mr. Kapil Kamsari, the Managing Director of Rashi peripherals. We have Mr. Rajesh Goenka, the CEO. And Mr. Himanshushah, the CFO. Now I hand over the Mr. Kapil Pansari for his opening remarks. Over to you sir.
Kapal Pansari — Managing Director
Thank you Vinay. And good morning to everyone. Thank you for joining us in this conference call to discuss our third quarter and nine months ended of fiscal year 2026 earnings. Hope you have had the chance to go through our results, press release and investor presentation which are available on the Exchange and our website. Looking at the global market trends, Global demand for personal computing has regained momentum signaling the start of sustained recovery across both enterprise and consumer segments. During the quarter, shipments grew on account of large scale enterprise refresh cycles, Windows 10, end of support transition and accelerated adoption of AI ready devices.
We believe this represents the beginning of multi year technology upgrade cycle. And rather than a temporary rebound, India is mirroring this and in many ways is outperforming this global trend. The domestic PC market delivered one of its strongest quarter ever in this quarter with shipments growing upwards of 10% year over year. The recent union budget has further strengthened this foundation with strong policy push towards electronics manufacturing, semiconductor self reliance, AI infrastructure and digital capacity creation. With an outlay of around 40,000 crores which is nearly double than that of the initial outlay of 22,999 crores. Higher capital expenditure, targeted incentives for components and semiconductors, support for data center and cloud ecosystems are creating a favorable environment for long term technology investments and domestic value additions.
We believe these measures will structurally increase demand for advanced computing infrastructure across the country. Against this backdrop, our role is evolving well beyond the traditional ITC distribution. At Arpitech, we see ourselves as a technology adoption enabler bridging global innovations with India’s rapidly Expanding Digital Economy we are increasing our focus towards demand creation, taking integrated AI ready and energy efficient solutions to under penetrated geographies. By enabling localized access and execution, this allows us to expand the technology footprint beyond Metros and participate in India’s next wave of digital adoption. Our increasing penetration into AI solutions, embedded systems and semiconductor linked categories not only strengthens our participation in higher value opportunities but also deepen customer engagement.
Today our Pion India Network of distribution serves over 10,000 distribution partners across 700 locations nationwide providing unmatched reach, faster fulfillment and localized service capabilities across the length and breadth of the country. In summary, as computing becomes smarter and more AI centric, we are confident that our solution led approach, nationwide reach and strong partner ecosystem positions us very attractively to capitalize on the accelerated technology adoption across India. Our focus remains on sustainable growth, deeper value addition and consistent long term returns for our stakeholders. With this I now hand over to Mr. Rajesh Goenka, our CEO of the company.
Rajesh Goenka — Chief Executive Officer
Thank you, thank you Kapil Good morning everyone. Let me briefly take you through the key operational highlights for the quarter and nine months ended of the financial year 2026. During the quarter under review, demand conditions remained strong. This was probably one of the best performing third quarter as usually this quarter is followed by a high Q2 seasonal and there is a major dip. But this quarter we witnessed sustained sales momentum particularly as channel partners stocked inventory ahead of expected price increases and driven by expected component shortages. While the industry is witnessing an uptrend in the IT product prices due to global supply constraints and and dollar appreciation, we were able to convert these challenges into opportunities and deliver a 43% YoY revenue growth which was driven by both price and volume growth resulting in improved margin.
One of the best third quarter net profit growth of 132% on a YOY basis. We also continued to expand our product portfolio and market reach during the quarter by introducing new products, new SKUs and further strengthening our distribution partner network. In addition, we also launched a new branch in Sholapur which is now our 55th branch in India. An unprecedented network of branches, service center and warehouses spread across 55 towns of India, enhancing our regional presence and improving coverage in core markets. Overall, our strong performance during the quarter reflects the robustness of our distribution platform and operating model.
We remain focused on addressing a large and structural opportunity of enabling an adoption and deployment of technology across India by ensuring availability, reach, solutions, training and reliable execution at scale. We will continue to strengthen this platform through disciplined planning and execution to drive consistent and sustainable growth across all our Business verticals. Thank you so much everyone. And now I request our CFO Mr. Himanshu Shah to brief you on the financial performance for the period under review. Thank you.
Himanshu Shah — Chief Financial Officer
Thank you Rajesh and good morning everyone. I will now take you through the financial performance for the period under review starting with our standalone performance for the third quarter of financial year 2026. Revenue from operations grew by 47% year on year to INR 3,895 crores. Profit after tax was INR 70 crores, up by 128% year on year with PAT margins at 1.81% for the nine months ended financial year 2026. Stand alone revenue from operation increased 6% year on year to INR 10,966 crores. Profit after tax for the period grew 21% year on year to INR 185 crores with BAT margins at 1.69%.
Moving to our consolidated performance for the third quarter of Financial Year 2026, revenue from operation increased by 43% to 4,030 crores and PAT for the same period was INR 75 crores, registering a growth of 132% year on year with PAT margins At 1.85%. For the nine months ended financial year, consolidated revenue from operations grew 5% year on year to 11,338 crores. Profit after tax rose to 25% year on year to 196 crores with PAT margins at a healthy percentage of 1.72%. Further, following the notifications of the New Labor Code by the Government of India on 21st November 2025, the company has prudently recognized an incremental impact of over 4 crores, primarily on account of increased gratuity obligations related to past service costs and higher leave liabilities arising from the revised definition of wages and enhanced employee benefits.
In terms of segmental performance for the period under review, Personal Computing and Enterprise solutions division contributed 58% of revenues at rupees 6572 crores while lit lifestyle and IT essentials contributed 4767 crores. Rent amounting to 42% on cash flows after periods of outflow in the earlier years, we generated a positive operating cash flow of 134 crores for year to date. On the working capital front, we continue to maintain tight discipline across key parameters. Inventory days increased marginally to 56 days primarily to support strong demand and ensure product availability while remaining within a well controlled range. Debtor days improved to 47 days from 61 days a year ago reflecting stronger collection and tighter credit monitoring while creditors days stood at 43 days in line with our balanced approach to vendor management and payment discipline.
Consequently, working capital days were at 60 days, remaining stable and well aligned with our operating model. On the people front, we incurred 14 crores of ESOP cost year to date provisioning, reinforcing our commitment to attracting, retaining and incentivizing key talent while aligning employee interest with long term value creation. With this, I would like to hand it back to the moderator and open up for question and answer session. Thank you so much.
Questions and Answers:
operator
Thank you very much. We will now begin the question 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, we will wait for a moment while the question queue assembles. Our first question is from the line of Ajaz Laqhani from Unifi amc. Please go ahead.
Aejas Lakhani
Hello.
Rajesh Goenka
Hi.
Aejas Lakhani
Hello.
Rajesh Goenka
Yes, we can hear you.
Aejas Lakhani
Yeah, perfect team. Congratulations on phenomenal execution for the quarter. Couple of questions. Sir, could you first call out what is the percentage of our business that comes from components, given that we’ve seen shortages there and what is the average price hikes that you’re going to see in these components?
Rajesh Goenka
Yeah, so we categorize our businesses into lit and pes. Last year, October, November, December Q3, our lit share was 49%. And our pes, which is predominantly branded desktops, notebooks and workstations, they were at 51%. However, in the current Q3 of 2025, the PAS business has gone up and now it is at 56%. So there is a 5 percentage basis point increase in the PES business in terms of ratio. And to answer your second point component, different products are having different price points. There are some products where there is no price increase at all, especially in products like Motherboard, there are some products where the price increase is between 20 to 30%.
And there are some products like DRAM where the price increase is two times or even three times. So it is very varied.
Aejas Lakhani
Understood. And so given that the AI infrastructure build out is one of the primary reason for chip shortages, you know, because the orders are going to hyperscalers and you know, supply is very inflexible. What would that, what are the implications that that would have on our business in the coming year?
Rajesh Goenka
Yeah, so so far you are right, 100%. That majority of the supplies are going to the hypers, scalars and data centers. As a result, regular consumer and commercial supplies are expected to get constrained. But so far I can tell you that we are not seeing too much of constraint. The only challenge is the prices are going up on a periodic basis. So that is the challenge. But if so far we have been able to plan inventory in advance, so far we have been very effectively been able to promote and sell our products at a higher price across the length and breadth of the country to almost 700 towns of India.
So as a result of this, we have been able to have this 43% growth on a yy basis.
Aejas Lakhani
Understood. Rajeshi, could you also. I mean I have, I mean you’ve spoken about it in the opening comments Kapal said that you’re seeing a good refresh cycle. But my question is that can component shortages really impact the PC refresh cycle? Can it delay the cycle? Because an increase in pricing could have an impact on volumes as well and the entire shortages could become exasperated.
Rajesh Goenka
Yeah, so as I said, at this moment what we are seeing, not really the shortages, but it’s the price prices that are going up. All the products, including notebook prices have gone up by almost 20 to 30% and there would be further price increase. So because of the budget constraints there are a lot of corporates who are expanding their refresh cycle from maybe two years to three years and from three years to four years. That is true. But at the same time the other corporates who wanted to buy notebook maybe in April or mid of next year, they are also now preponding to buy the products right now to avoid that 10 or 20% further price hike because partial hikes have already happened.
So both scenario is happening net to net. We see that numbers would remain consistent but because of a higher average selling price, the revenue should be on a positive trend.
Aejas Lakhani
Understood. So sir, basically if I understand correctly that you know the laptops market is seeing a massive shortage. There is one leg of price hike that is already embedded in prices. Today another one is coming and companies which NHUA has had, you know, a buying pattern which was is getting preponed to earlier purchases and you are benefiting from that entire cyclical uptick.
Rajesh Goenka
Correct? Absolutely. But this is not easy because one is you need to have the appropriate inventory planning which takes months of planning and execution. And second, as the price rise happens, even if the corporates wants to buy, they have limited budget. So you should have that kind of execution skill at the ground level to be able to deliver. Fortunately For Ashe Peripherals, with our now 35 years of experience, we have. I’m not saying expert, but we have mastered that art of planning and execution. Both.
Aejas Lakhani
Completely agree and kudos to you and the team for stellar execution in this. So just one follow up is that see since prices are increasing at such rapid rates, you do not foresee some amount of volume impact because of which the net resultant sales could be flattish in FY27.
Rajesh Goenka
So demand from as I said earlier, demand unit wise in my view would be flattish. It may not degrow because India digitization PC penetration is still very very low and the higher selling price will help us to get the revenue. So overall I am positive. But yes, we need to be alert. We need to plan better, we need to execute better to get this continued success.
Aejas Lakhani
Understood. And sir, given that ASPs are going up your margins, the margin band per se that you earn on distribution products will remain the same. But your per unit profitability is what is increasing and rising. Is that understanding correct?
Rajesh Goenka
Absolutely, absolutely. In distribution, as we always say that margins are normally fixed. So we don’t have a loss, we don’t have a super margin. But then with the economies of scale plus our efficiency, we are able to get some better margin. Which is evident from our Q3 results.
Aejas Lakhani
Understood sir, thanks. And all the best to you and the team.
Rajesh Goenka
Thank you so much.
operator
Thank you. Our next question comes from the line of Madhurati from Counter cyclical Investments. Please go ahead sir.
Madhur Rathi
Thank you for the opportunity. Sir, I wanted to understand can we. Sir, can we expect to maintain this momentum in Q4 or a lot of purchases that were supposed to happen in Q4 were preponed to Q3 and that’s why we might see a flattish or a muted Q4.
Rajesh Goenka
Yes. So I think we already discussed this. As I said, we are looking for continued unit wise consistency and with little bit further price hike the revenue will should continue to grow positively.
Madhur Rathi
Right sir. I also wanted to understand sir are working capital cycle and regarding our cash cash flow from operations. So if I compare to our competitor Reddington, they do working capital turns of close to 10 times on a year versus based on our nine month revenue we are doing maybe six times. I understand that there is a difference between a product to theirs but. So how do we plan to bridge this gap and turn our cash flow from operations positive? Because I think working capital is the only driver for that.
Rajesh Goenka
See for our working capital, if you look at Rashi Peripherals business, this is a business where we have a working capital cycle. Of anywhere between 50 to 60 days comparing with any other peers. Because of the sales mix, we do not really plan based on competition or peers or the industry. What does it business supply chain and sales redundancy is required. Based on that, we plan our working capital cycle in current times. In fact, working capital cycles with rising prices, expected shortages. We plan to increase the supply chain allocations in such a way that sales redundancies are managed much better than anyone else in the industry.
For sure it will not be able to compare with the economies and the cycles of working capital of smartphones. So there is no point in comparing between two different set of industries operating at two different working capital cycles.
Madhur Rathi
Sir, I was trying to understand at what level of working capital cycle reduction can we expect to turn positive our cash flow from operations positive.
Himanshu Shah
See defining a level wherein inventories are always held at a forward looking scenario and the, you know, debtors and creditors as far as financial discipline warranted for this industry net of each other in terms of days in our ecosystem, if we are able to manage our inventories well, which we have been demonstrating for last two quarters, definitely the positive cash flows can be achieved.
Madhur Rathi
Okay, answer just a final question from my end, sir, if I look at our part margins, have a follow up question.
operator
Please rejoin the queue. Thank you. Our next question comes from the line of Jyoti Singh from arian Capital Markets Ltd. Please go ahead.
Jyoti Singh
Thank you for the opportunity and consolation on the good execution. I wanted to understand the question on the margin side. So given Q3 margin of 2.9%. So should we expect 26 to exit margin closer to Q3 level or we are expecting to normalize in Q4 and also wanted to understand this ROC remain in the low team despite margin expansion. So what are aspiration on the ROC side?
Rajesh Goenka
Yeah, so currently business market size, trend, average selling price, all three are in the similar mode. So our expectation is that it will be the similar trend only we are not seeing any major variation.
Jyoti Singh
Okay. And on the ROC side, sir, see.
Himanshu Shah
ROC again is, you know, for our managing our working capital components like where sometimes we have to, you know, increase the borrowings for availing early payment incentives from the vendors and all. So ROC has rosen quite a bit in last three quarters and we expect that in next, you know, two to three years time we will be able to get back to the free public level.
Jyoti Singh
Okay, thank you so much.
operator
Thank you. Our next question comes from the line of Varun Gandhi from Fident Asset Management. Please go ahead. Hi.
Varun Gandhi
Thank you. Congress on also getting the credit upgrade this quarter. So from a corporate finance construct, what do you think is the next step after achieving this credit upgrade?
Himanshu Shah
Sorry, I didn’t get your question. Can you please accept it?
Varun Gandhi
Yes. So we achieved a credit rating upgrade this quarter. Right. So from a corporate finance point of view, what’s the next step? Are we going to increase our borrowings? Are we going to discount our receivables like Redington does? What’s the next step? Just trying to understand the management’s thoughts over here.
Himanshu Shah
So as I mentioned, managing working capital components efficiently is the key ingredient for our business and profitability profiling. So a great rating upgrade which happened in the current year and the borrowing power announcement you are talking about which we got it done last quarter.
Varun Gandhi
Yes, your credit rating upgrade. So now you can have a lower cost of borrowing, right?
Himanshu Shah
Yeah. So. Yes.
Kapal Pansari
So let me add to what Himanshu mentioned is that with rating increase we. Our primary objective was to reduce our cost of borrowing. While distribution business is a working capital driven. So definitely there is an. There is. The more you blow back or deploy working capital, the capacity for revenue growth increases tremendously in the current times. Our objective is to reduce our borrowing cost, maintain the same working capital cycle for an increased revenue portfolio. And that is a challenge that we have taken internally for the organization from a working capital standpoint. So the next steps for credit rating.
Honestly there is no answer for next steps. It is always to increase a notch higher from AA minus to.
Himanshu Shah
So we are already in AA club.
Kapal Pansari
AA club? Yes. So AA club. Obviously we want to go to the next step. But it is primarily to reduce our borrowing costs at this point in time.
Varun Gandhi
So would we. Would we also be, you know, factoring our trade receivables in order to increasing our asset turns and decreasing our capital?
Himanshu Shah
Definitely. If it adds value to the rocs and roes. Definitely. We are open to consider those any.
Varun Gandhi
any. Sort of target debt to equity that the management has
Himanshu Shah
target depends upon the.Level of components at any given date we are at and then accordingly tested.
Varun Gandhi
Any comfort band, Sir, Any number, comfort band or any
Himanshu Shah
at this point not. Will not be able to give any. Assign any number to it.
Varun Gandhi
All right, thank you very much.
operator
Thank you. Our next question come from the line of Hitesh Goyal from Origin Capital. Please go ahead.
Hittesh Goyal
Thanks a lot for taking my question, sir. First of all, a great set of results. Congrats to management. First sir, can you tell us about the Dell business? How much was the Dell revenue in this quarter?
Rajesh Goenka
Dell was pretty small, insignificant. But we’ve had a good start and we are hoping that the next quarter and the next year will be really big. Previous quarter was just a start.
Hittesh Goyal
So it’s not meaningful in this quarter in that sense. Is it going to be a decent number from fourth quarter or from.
Rajesh Goenka
Absolutely. In fact in Q4 also it will be decent and next year it will be substantial.
Hittesh Goyal
Okay. And my second question is on the inventory gain, did you see any inventory gains because of this price hike which is happening?
Rajesh Goenka
Inventory gains?
Hittesh Goyal
Yeah, because of inventory, like old inventory was lying in your system and then price hike happened. So that benefit came through in this quarter.
Rajesh Goenka
rket is that wing from maaeear Normally in distribution, as we’ve been always maintaining that the margins are more or less fixed so we cannot have too much of extra margin. But yes, to some extent we could increase the overall cycle efficiency and also economies of scale advantage which has helped us to improve our overall margin.
Hittesh Goyal
and sir my final questions is on the laptop and desktop issue. because what we are hearing from market is that the new laptops and desktops big shortage in supply because of the ram prices. So you know you are giving a flat volume growth guidance for next year. Is it because you’re confident about your supply is already tied up for next six months or so? Because you know the environment is quite volatile. So just want to understand your thoughts.
Rajesh Goenka
Yeah. So the news is all around the corner that supplies from blah blah will get toned down. And this has been the case since last five, six months already. But we’ve seen the supplies somehow have been able to manage. So my bigger worry is the price increases and hence the unaffordability especially on the B2C consumer side.
More, more than the supply.
Hittesh Goyal
Oh, okay, great. Thank you. All the best.
operator
Thank you. Our next question comes from the line of Miloni Mehta from Monarch Network Capital. Please go ahead.
Miloni Mehta
Thank you for the opportunity and congratulations on great execution. So can you please walk us through the nine month cash flow performance and also share the expectations of how the cash flows be by end of the year.
Himanshu Shah
As I mentioned, the 9 months cash flow was 34 crores positive at this point of time. And here what we expect is if we are able to manage our working capital components in the fasten we have done assigning a number to. It will be too early but ranges can be expected in the same terms.
Miloni Mehta
Okay. And second question is sir, in regards to the UAE subsidiary. So what is the rationale behind it and how do we. Hello. Yeah, yeah, yeah. So what is the rationale behind it and like what are the medium term plans there?
Rajesh Goenka
Yeah. So as you all Know that we already have a Singapore subsidiary from where we are doing business not only to India but also our SAR countries. So as a part of one is the need for execution. Because in SAR countries material pickup is normally preferred from either Hong Kong or Dubai. So at this moment it is more for execution purpose. Once we set up the operations and start expanding, then we look at the business angle.
Miloni Mehta
Okay. And secondly, sir, in terms of like prices increasing these components, what could be the impact once the prices of these rams and SSD start softening? Like what kind of impact can it have it on our margins and demand overall?
Rajesh Goenka
So margin, as I said, not much of an impact to to us. But in terms of demand, what we have come to know right now that there is no softening of these prices in the pipeline. But then last 30 years of cycle has always seen that when there something goes up, it goes down as well. So fingers crossed. We hope that prices become stable. Because stable prices always gives better business and better predictability. So we are hoping for the best that price remain stable rather than going up or down.
Miloni Mehta
Okay, thank you.
operator
Thank you. Our next question comes from the line of amit Tage from H.G. ahva and Company. Please go ahead.
Amit Agicha
Hello.
Rajesh Goenka
Yes.
Amit Agicha
Yeah. Congratulations and for good set of numbers, sir. So my question was related to debt. Like what is the targeted net debt to equity range over the cycle? And what is the current blended cost of borrowing?
Himanshu Shah
0.5 is the debt equity which currently is there. And we expect looking at the business growth and all, we expect to maintain around debt only.
Amit Agicha
And the current blended cost of borrowing.
Himanshu Shah
So cost of borrowing is in the range of 7.5 to 8%.
Amit Agicha
Okay. Since the last question from my side is about competition. Like where does the competition intensity is the most in credit or service?
Rajesh Goenka
Can you repeat your question about competition?
Amit Agicha
Where does the competition intensity is most like pricing or service or credit?
Rajesh Goenka
I think we focus more on ourselves. And as I have started saying that one is very strong business planning which is done months in advance. And second, because of our geographical reach in 55 towns of India and 700 towns where we have our customers, our execution, we continue to strengthen those capabilities by way of CRM and even to some extent AI. And that’s our belief will bring us continued success.
Amit Agicha
I appreciate you answering my questions. I will fall back in the queue. Thank you. And all the best.
Rajesh Goenka
Thanks.
operator
Thank you. Our next question comes from the line of Gaurav Bansali from Augment Enterprises. Please go ahead.
Unidentified Participant
Hello. Yes, so my question was Micron has stopped the crucial consumer Brand. So we being the distributors in India, how, how much will this affect us and will they take a hit in this?
Rajesh Goenka
Yeah, so very valid. That’s the only little bit concerned point that we have since they have declared crucial business as end of life, but they will continue to do Micron business. So yes, we will have hit in the next financial year because until April they continue to do supply. Even today we are getting constant supplies with increased prices. So next financial year crucial definitely will be a dent, but we will continue to do Micron business which is more enterprise class. So we are hoping that this should be able to cover the business loss. If not, we have other backup plan, 1, 2, 3 also to cover it.
Unidentified Participant
Okay, that’s great to hear.
Rajesh Goenka
You hit the nail at the right point.
Unidentified Participant
Thank you so much, sir. And the next question is, sir, with the RAM and SSD prices like basically rocketing to 2x3x in the last quarter. My question is, has that helped us. A lot or that like marginally only?
Rajesh Goenka
So it has obviously helped us to improve not only our top line, but bottom line also to some extent.
Unidentified Participant
Okay, so thank you so much. That’s all from my side. Congratulations as well.
Rajesh Goenka
Thank you.
operator
Thank you. Our next question comes from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah, am I audible, sir?
Rajesh Goenka
Yes, Deepak.
Deepak Poddar
So I joined the call bit late, so pardon me if it’s already been answered. So just wanted to check one thing. Now this 43% growth that we have seen in this. So how much was driven by volume and what was the price increase growth out of this? 43%.
Rajesh Goenka
Yeah, so more than I would say 50% is volume growth and 50% is because of the ASP, which is also supported by the dollar appreciation. So price increase has two parameters. One is the product price increase and second is also the dollar appreciation.
Deepak Poddar
Okay, understood. And when you say, I mean in your press release that because of this price hike a lot of demand was there and people wanted to stock up. So this kind of growth is not repeatable as we go into coming quarters or next year. I mean, how should one look at that going forward?
Rajesh Goenka
Yeah, so I explained this. So right now, of course because of the price hike, already done, an anticipated price hike, our customers are also stocking up the material. But as the message is now spreading to corporates and consumer that there is going to be further price hike, the demand also has started pulling up. So now the entire chain has already started. So as a result we are seeing continuity in business at least for next few quarters.
Deepak Poddar
Okay, so next few quarters you do expect buoyancy in demand because of further price as expected, basically.
Rajesh Goenka
Exactly.
Deepak Poddar
Okay.
Rajesh Goenka
We have not any softness in pricing. There is no indication so far of any softness in the pricing.
Deepak Poddar
And when you say flat volume growth for next year, right. FY20, so what exactly we are meaning? I mean is there any range we are talking about in terms of volume growth.
Rajesh Goenka
So in terms of unit, and that’s our assumption, we are obviously not statistical company. But considering the price hike and unaffordability that could creep in and considering the fact that there could be some supply constraints, we think that unit wise it could be flattish for at least next two quarters. But with the increased price, the revenue will continue to grow.
Deepak Poddar
Correct. And what is the average price hike? I mean, is it in the range of 20, 30%. How should we look at that?
Rajesh Goenka
Currently about 20% price hike has already happened. And next two months similar trend will continue on the hike on the overall product cycle. Means from laptop and desktop perspective. Whereas on other components the price hike is already 50% 100% on even two times already.
Deepak Poddar
Okay. Okay. So ideally, even if your FY20s next year, your volume growth is not there, your revenue growth will still be quite good. Given the realization benefit that you might be getting.
Rajesh Goenka
We are pretty optimistic.
Deepak Poddar
Yeah. Okay. Okay. And just one last small thing. Generally your distribution. Just a small thing. Just a small thing. It will take a minute. So when you talk about distribution margin, it’s is on percentage basis or it’s a fixed spread.
Rajesh Goenka
Normally it is percentage basis. Sometimes we have an exception depending on the size of the product and the indirect cost involved in it.
Deepak Poddar
That’s it. From my side all the way. Best you. Thank you so much.
Rajesh Goenka
Thank you so much.
operator
Thank you. Our next question comes from the line of Madhurati from Countercyclical Investments. Please go ahead.
Madhur Rathi
Thank you for the opportunity. Once again. Sir, I wanted to understand when how do we see our working capital cycle decreasing or cash flow from operations increasing to a positive trend? Because sir, if I see our last 10 years, only two of those years we have been able to showcase a positive cash flow from operations. So I was trying to understand on that front.
Himanshu Shah
See cash flow, working capital cycle optimizing. As explained earlier. Also that you know, working capital components we are managing based on the forward looking business scenarios. And we are trying to optimize those components by keeping the debtors and creditors almost in the range of netting of each other. And inventory definitely is a matter of planning forward looking. Now with that, if the working capital Cycle there are scenarios where, you know, the ups and downs come, but the division range is a standard range. It does not go beyond a certain point or below a certain point.
Either side there is a standard deviation range. What we feel we are operating at optimum levels of working capital cycle applicable to our kind of product, our kind of business model, our kind of customer mix and the, you know, the penetrated infrastructure which we carry for the distribution defining any range of reduction and all will be a two short term scenario which may come or go depending upon business scenarios. However, we are open and open with our analytics that whenever it is required we control the inventory and when it is required we hold the inventory.
For scenarios and current quarter results, you have seen that the optimum utilization has, you know, yielded the results.
Madhur Rathi
Got it. And sir, on our pat margin, sir, we have been constantly delivering our patent margin upward of our 1.5% range. So is this because of the SKU driven nature of the product that we hold versus some of our competitors that we are able to because from our earlier expectations we have been doing much better. So is it because of that? And sir, has something changed post Covid? Because pre FY20 our PAT margins were either 1% or less than that. So I’m trying to understand has something changed that? Are we able to get better terms with our OEM suppliers or principals because of that? We can do higher pat margins.
Rajesh Goenka
Yes. So our product portfolio is enormous. We have multiple product categories, right From a CPU memory to a branded PC to AI data center solutions. And second we have the widest reach by way of 55 branch offices wherein we are able to sell to larger breadth of the customers. So a mix of product and reach helps us to get little bit better margins at times.
Madhur Rathi
Got it sir. And on the software front and enterprise business or how do we see that those two segments scaling up? Maybe your FY27 and FY28.
Rajesh Goenka
Yeah. So enterprise business, we have built a very strong ecosystem. We have taken multiple initiatives in the last three months as well. So we are buoyant and very optimistic for doing extremely good in the enterprise vertical especially.
Madhur Rathi
Got it. So that was from Mindset. Thank you so much and all the best.
operator
Thank you. Our next question comes from the line of Bhavin Cheda from INAM Holdings. Please go ahead.
Bhavin Chheda
Yeah. Good morning sir. Congratulations on excellent set of numbers across both the segment I missed out on the volume and the price growth. I think what you mentioned was half of over 20% volume growth and over 20% price growth in the top line growth. Of 43%.
Rajesh Goenka
Absolutely. Bow and Bhai.
Bhavin Chheda
Okay. And now basically what you’re guiding is. Saying that coming quarters will mostly see price benefits and we won’t see volume. Growth on a yoy basis. Is that the indication? Or it would be different across product. Segments like PCs components and all that.
Rajesh Goenka
Yeah. So components there will be for sure dip. But again there the price increase will offset in branded side we expect the unit to be flattish and price increase will be there. So there will be a benefit there. So that’s what is our anticipation and expectation. Based on our knowledge,
Bhavin Chheda
desktops will see a volume growth.
Rajesh Goenka
No desktop in fact is in a shortage. So desktop will show a degrowth. But notebooks supply at least in this current quarter Q4 is there with increased price. That will be an advantageous situation.
Kapal Pansari
So just to add to what Rajesh Goenka mentioned, if you compare these replies that Rajesh just mentioned, the volume growth will not happen from Q3 to Q4. Quarter over quarter the supplies remains flat. However if you compare from year over year there is already an increase in terms of supplies. So volume growth from year to year will continue to be seen for the next two quarters. While quarter over quarter there may not be any growth in terms of volume in terms of price rise. That is a quarter over quarter scenario that continues to rise. And therefore we say that affordability is the reason why volume growth may not be sustainable in the current times if the prices continue to grow.
So that’s why our internal planning and guidance is to maintain the volumes while prices will give the additional revenue growth. But from a year over year perspective the impact is going to be much larger.
Bhavin Chheda
Right? Yeah. That’s very interesting and a detailed one. Does this quarter and nine months had any large project wins? Because I think last year we had booked almost like 1900 to 2000 crores of that revenue.
Rajesh Goenka
So that is not there in the current fiscal, right? Yeah Bhavanji. So that I think that’s a very pertinent point. I’m happy to share that on a nine month to nine month basis our revenue growth is 5%. But all this growth, even meager 5% growth is without any project order. So last year we had almost 2000 crores of project order vis a vis. This year it is nil. Primarily it was by design because the previous order execution was done but payment collection was delayed. So we just wanted the entire payment along with interest and everything to get collected.
That is all done now. So right now this growth Is without the 2000 crore of last year project business
Bhavin Chheda
Great. And last one for Himanshu. You can share the gross date and net debt numbers.
Himanshu Shah
We will share you offline.
Bhavin Chheda
Okay, no problem. Thank you.
operator
Thank you. Our next question comes from the line of Amit Khetan from Labanum Capital. Please go ahead.
Amit Khetan
Hi, thanks for taking my question. Can you talk about, you know, how you see the pipeline for large deals and how is the competitive intensity in that space?
Rajesh Goenka
The pipeline is decent, but the execution because from the supply side and because of the price increasing, the execution is far slower. For example, you pick up a project today and if it is scheduled to be executed after three months, generally what is happening is one, is the supply gets extended beyond three months. And second, there are price hikes also. So from supplier side also nowadays we are not getting price confirmation valid for six months or nine months because of the price volatility.
So as a result of this, the situation is little bit dynamic. But from demand perspective, there are many projects in the pipeline.
Amit Khetan
Do we expect some conversions to happen in FY27?
Rajesh Goenka
Yes, for sure. Yes, for sure.
Amit Khetan
Got it, got it. And secondly, if I look at your. Base business, excluding the large deals, we’ve grown by about 24% for the first nine months. Right. Should we expect this run rate to continue for Q4? Because your guidance was sort of 15%. Plus on the base business. But we seem to have done much better.
Rajesh Goenka
Yeah. So we hope to continue the similar trend and our guidance was always 15% to 20%. But because of the price increase shortage and hence because of little bit extra stocking, this business has done little bit more than what we had anticipated and it should continue in the coming quarter as well. Got it,
Amit Khetan
Got it. Great. Thanks a lot.
operator
Thank you. Our next question comes from the line of Deepak from Unifi Capital. Please go ahead.
Deepak Poddar
Hello, sir. Thank you for the opportunity. Sir, first question, if you can call out, you know, how much inventory gain did we book in this quarter? I just want to know the total quantum and also the price hike benefit that we saw in DES and NIT segment separately.
Rajesh Goenka
Can we take these numbers offline, Deepak, because these are specific numbers, we’ll have to work it out and communicate to you.
Deepak Poddar
Okay, got it, sir. The second question was around the tertiary demand. See, you have seen demand growth at your end. But I just wanted to understand, is it also translating for the channel as well? Is the end consumer also being able to afford these prices? And hence this is not just talking up of inventory at the channel level and the end customer not being able. To buy this one
Rajesh Goenka
very Very appropriate point. So Q3, you are right. It was more inventory piling up at the channel level. But however, now the price increase implementation has already happened happened. And now virtually every consumer, potential consumer and corporate knows of this impending price hike. So if they were to buy in March to before the year end, they are now preparing preponing the purchases. So we have seen January onwards we have seen good tertiary sales across all product segments.
Deepak Poddar
Understood sir. You know, given this affordability challenge that our channel partner also would be facing, do you expect your debtor days to go up and also because of your procurement challenges your inventory cycle to go up? Just wanted some color on that. And how is competition behaving on both credit to the channel and stocking up of inventory?
Rajesh Goenka
Yeah, so this is a balance that we have to drive. And that’s where our core competitive competency is on play. So far we have been very successful for inventory planning and even execution. All our eyes are on. There is a potential risk of having excess inventory or there is a potential challenge of lengthened debtors. But all our eyes are on it. Our ecosystem we are monitoring on a daily basis. We are confident of being continued momentum.
Deepak Poddar
Any, any sense of the competition here. How has competition tackling this debtor the working capital part. And do you see that you that you could benefit out of this?
Rajesh Goenka
I will not be able to comment about the competition but I can only highlight that Apple to Apple comparison with competition cannot happen because we are a pure ICT value added distributor. We promote and sell only IT products, not smartphones and software and other businesses.
Deepak Poddar
Understood sir, last question you mentioned.
operator
Sorry to interrupt you sir. But if you have a follow up question please rejoin the queue. Thank you. Our next question comes from the line of Dhruvish Pujara from Premji investor. Please go ahead.
Dhruvish Pujara
Yeah. Hi sir. Thanks for the opportunity. So I have one question. So I want to know how does the power dynamics work in a between the OEM and the distributor in a rising price environment? Right. So there is clearly money on the table on a per unit basis. So what stops the OEM from taking that share by like reducing the Gross margin by 100 bits or something like that? So that’s the question.
Rajesh Goenka
See this industry does not have power dynamics between OEM and distribution. In fact distribution partners are an extended arms of all OEMs. We work hand in hand in terms of market mapping, product alignment and technology transitions over a period of time. The terms of trade is not quarterly or monthly negotiable. They are. They are long term contracts and sustained over years. Of our operations. So it does not mean that we opportunistically there are negotiations in terms of price or margins or in terms of any other credit cost. What only discussion happens in case of very large opportunities where economies of scale is very high.
In competitive scale scenario between two OEMs is extremely high. We participate jointly to evaluate deal based and ROE based operations and that is very rare. Till date in FY26 we do not have any such transactions that we’ve executed. Obviously Rajesh mentioned about large deals that will have its implication at some point in time but on a regular distribution day to day basis that does not occur at all.
Dhruvish Pujara
So what are the typical renegotiation intervals?
Rajesh Goenka
Normally renegotiation does not happen but if you are asking me to pinpoint a number then I would say yearly.
Dhruvish Pujara
Good. Thanks a lot.
operator
Thank you. My next question comes from the line of Sankara Narayanand from I thought pms. Please go ahead.
Sankaranarayanan
Good morning sir. Thanks for the opportunity. I joined this call lately, so. Pardon me.
operator
Sorry to interrupt you sir, but can you speak a little louder?
Sankaranarayanan
Am I audible now?
Rajesh Goenka
Yeah.
Sankaranarayanan
Yes. So I’ve joined this call lately. Pardon me if this question’s already been. Answered by any of our participants. So my question is more on the demand side. So in your talks with the oem so what kind of incentives or discounts or volume discounts provided by your oem? Because since if this price increase it will be continuous in upcoming quarters, let’s say from an OEM perspective Will they able to take some of the cost in order to retain the volume demand? Or how should we think about it, sir?
Rajesh Goenka
Currently in this price increase and limited supply scenario the question of discounts do not appear at all. What will only appear? What we work with the OEM partners is to give consumer offers like zero interest EMI so that it becomes more affordable to the consumers. Beyond that in the current scenario there is no discussion. The entire discussion is the price will go up by another 7% 8% next month and again again 5% next month. So that’s the only discussion right now we are having because of the global shortage and uptrend.
Sankaranarayanan
And if you are to compare the current scenario with what’s happening during COVID period. So how do you compare in terms of. Because during that time as well there was a supply issue and there was a good demand as well. So you could able to fully absorb by the end consumer and all the distribution players are able to gain good return metrics and margin during the time. So if you have to compare between those Two scenarios. How would you view the current situation?
Rajesh Goenka
I think both situations were extremely different. In Covid situation the demand was very very high. It was almost 2x and sitting at home everyone wanted to buy whatever was available. So it was a mad scramble to get the products right now in this current scenario there is no scramble to get the products but we are anticipating shortage and price rise. So therefore in Q3 there was no surge in demand. But now Q4 we are seeing that consumers and corporates have started identifying that yes, if I buy after two months I may have to pay another 10 or 15% so they have started procuring so there is no surge in demand as such.
So it’s a both extreme situation. The resultant is of course similar.
Sankaranarayanan
And maybe in the upcoming fiscal year as well we will able to achieve this kind of growth because of price increase and not due to volume red demand.
Rajesh Goenka
Absolutely. I mentioned the same earlier.
Sankaranarayanan
Got it. Thank you sir. Wish you best of.
operator
Thank you. Our next question comes from the line of ASIM from DAM Capital. Please go ahead.
Unidentified Participant
Yeah, hi. So I just wanted some more understanding on the volume growth comment that you made some time back. So I understand QOQ volume may be flat for a couple of quarters but I thought I heard Y O Y there will still be growth at least in the quarters ahead. So does that mean supply is better now versus the same quarter as last year or is it just the preponding bid that you actually wanted to highlight? Hence volume growth might be better on a YOY basis for say Q4 and maybe Q1.
Rajesh Goenka
Yeah, yoy for example Q4 to Q4 the quantity unit wise will continue to grow because that planning has already been done and these plannings are done almost six months in advance. So for at least next one to two quarters unit will continue to grow. Subsequently units will start getting flattish and that’s where the higher selling price will start playing a bigger role.
Unidentified Participant
Okay, but still it would be the end consumer demand or other end demand getting preponed into the earlier quarters because of price rise. That would have been the reason why you planned for volumes so that there will be a YOY growth at least two quarters and then that is one.
Rajesh Goenka
But in any case because of our GDP growth, because of our economy, because of our digital implementation, because of our low PC penetration, in any case 8 to 10% YoY growth was anticipated. So basis that we have already planned those numbers.
Unidentified Participant
Okay, okay. No, I mean these 8 to 10% would be like a long term CAGR basis but in the current environment maybe we’ll have to. I mean maybe this quarter was a super normal quarter in volumes. Then things might come off a bit. Then maybe a couple of quarters, you might see negative volumes. Whatever you can cover from price rises will be the only factor. So I was just. I mean I was just trying to understand the why bit. But I take your point. Thanks. That’s it. From my side. Sorry, were you making a point?
Rajesh Goenka
No. Thank you.
Unidentified Participant
Okay. Okay, sir.
operator
Thank you. Our next question comes from the line of SB Bhai, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity, sir. All my questions have been answered. So there are no further questions. Yeah. Thank you very much.
Rajesh Goenka
Thank you so much.
operator
Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for closing comments.
Kapal Pansari
I would like to thank you all for joining the call today and I hope we were able to address all your queries. If you have any further questions, you can reach out to our IR partners at Valeram.[Ends Abruptly]