Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Rashi Peripherals Ltd (NSE: RPTECH) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Kapal Pansari — Managing Director
Rajesh Goenka — Chief Executive Officer
Himanshu Shah — Chief Financial Officer
Analysts:
Karan Kamdar — Analyst
Miloni Mehta — Analyst
Vinay Menon — Analyst
Hittesh Goyal — Analyst
Aejas Lakhani — Analyst
Unidentified Participant
Deepak Poddar — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to to Rashi Peripherals Limited Q4FY26 earnings conference call hosted by Choice Equity Broking Pvt. LTD. 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 then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Karan Kamdar from Choice Equity Broking. Thank you. And over to you sir.
Karan Kamdar — Analyst
Thank you. Good morning everyone. On behalf of the management team of Prashi Peripherals Ltd. I welcome you to the Q4 and full year FY26 earnings conference call. Joining us today to discuss the company’s performance, we have from the management team Mr. Kapal Pansari, Managing Director, Mr. Rajesh Goenka, CEO and Mr. Himanshu Shah, Chief Financial Officer. Before we begin, we must remind you that the discussion on today’s call may include certain forward looking statements that may involve known and unknown risks, uncertainties and other factors and thus must be viewed in conjunction with the risks that the company faces.
Future results, performance or achievements may differ significantly from what is expressed and implied by such forward statements. I now request Mr. Kapil Pansari to take us to the company’s business outlook and financial highlights after which we will open the floor for Q and A. Over to you sir. Thank you.
Kapal Pansari — Managing Director
Thank you Choice Equity Broking for hosting this call. On behalf of the entire Rashi Peripherals team, I want to thank our shareholders, analysts, partner and well wishers who have made this time with us to be with us this morning. To give you a backdrop of the industry, FY26 has been without exaggeration, the most consequential year for Indian ICT distribution industry in over a decade. Three structural forces converge at the same time and they will continue to define our sector for the next three to four years.
First, India crossed a generational PC milestone. According to IDC, India’s traditional PC market shipped a record 15.9 million units in calendar year of 2025 growing at about 10.2% year on year, the strongest ever year surpassing even the pandemic peaks of 2021 and 2022. Second, the AIPC inflection is real and accelerating. AI enabled notebooks grew 129% year on year. In calendar 2025, Gartner projects AI PCs will cross 50% of all PC shipments globally in calendar year 2026 with India tracking that curve very closely.
The Windows 10 end of support in October 2025 has triggered a multi year refresh cycle. This is not a 1/4 tailwind. It is a structure structural multi year upgrade super cycles and the third component economics turned in distributors favor with memory. DRAM, NAND GPU processors all have sustained pricing firmness through FY26 driven by AI data center demand absorbing global capacities for a distributor with scale, deep OEM relationships and inventory discipline, this environment rewards execution.
IDC has flagged that calendar year 2026 may see a temporary dip of 5 to 10% in PC shipments as the component cost works through the system. We read this not as a headwind but as a normalizing year. After a record run and one where disciplined distributors with strong working capital and balance sheets will continue to take share. Where does Rashi stand in this industry? Is that this ITC industry marks almost about 1.5 lakh crore plus opportunity with roughly 70% concentrated among top players. With India’s PC penetration sits at just about 15 to 20%.
There is enough room for Runway to digitize deepen into as we deeper as the Penetration deepens into Tier 2, Tier 3 and Tier 4 markets with our strategic initiatives that will with our strategic initiative that has been built on Rashi’s strong ICT distribution driven by high volume, anchored on reach, relationship and executions, we are now positioned to look forward. From here on our focus will be on three key pillars. One is expand our high margin and high growth verticals. The second is to evaluate margin expansions in the entire value chain.
And the third is to continue to focus on the core engines of personal computing enterprise and our existing business that will drive the that will fuel the growth for the Raashi’s transformation. We remain confident that with the Indian ICT distribution market growing structurally with our balance sheet bank relationships and execution track record, Rashi is positioned to deliver not just continued above industry average growth but a meaningful differential earning quality for over next three to five years.
I now hand over the call to Rajesh Goenka for his opening speech.
Rajesh Goenka — Chief Executive Officer
Thank you Kapil. Good morning everyone. Let me take you briefly through the operational highlights of Rashi peripherals. During the quarter demand conditions remained healthy across key categories supported by enterprise refreshed demand, improving traction on AI ready devices and higher channel procurement. As the price uptrend continues, we continue to maintain strong execution momentum and benefited from our strong distribution network of 55 city branch offices with 10,000 plus customers in 700 plus towns of India.
We continue to be the leading value added distributors for various AI solutions including the recently launched Nvidia DGX Spark which brings affordability to SMB and corporates and developers which can help these customers to develop agentic AI solutions inferencing and run local LLMs in their office premise we further strengthen our market presence through strategic partnerships and brand additions across multiple technology segments. Our partnership with Dell Technologies enhanced our commercial portfolio especially on the server and the storage space, while our association with Teachment Technologies enabled us to expand into AI powered classroom and digital learning solutions.
In addition, we supported the India launch of Aura Health Rings strengthening our presence in the premium health tech and lifestyle technology segment. We also continue to evaluate selective opportunities in emerging technology areas including the semiconductor ecosystem as a part of our long term growth strategy. As part of our expansion strategy we continue to add our infrastructure by adding three new branches namely in Nanded, Baramati and Sholapur in Maharashtra which Now totals to 55 branch operations, by far the largest and unprecedented, further deepening our reach across the C and D class cities.
We also conducted an 8 city AI boot camp engaging about 2,500 developers and 300 plus CXOs focused on AI infrastructure and real world enterprise use cases reflecting our commitment to accelerating AI led adoption across industries. Finally, we remain committed to building a strong workplace culture and and are proud to have been recognized as a great place to work for for the fifth consecutive time. Thank you so much. Now I hand over to our CFO Mr. Himanshu Shah to take over the financial performance for the period under review.
Himanshu Shah — Chief Financial Officer
Thank you Rajesh and good morning to everyone. I’ll now take you through the financial performance of the period under review. Our consolidated performance for the fourth quarter of financial year 2026 Revenue from operations increased by 51% year on year to INR 4,489 crores. EBITDA increased by 41% year on year with EBITDA margins at 2.95%. Profit after tax was 87 crores registering a growth of 65% year on year with PAT margins of 1.93% for the financial year 2026. Consolidated revenue from operations grew 15% year on year to INR 15,827 crores.
EBITDA increased By 53% to 459 crores with EBITDA margin expanding by 72bps to 2.9%. Profit after tax rose 35% year on year to 282 crores with PAT margins at 1.78% in terms of segmental performance for the period under review. PCD, which constitutes around 58% of our business and LIT contributed 42%. Our cash flows for the period of the as compared to the outflows in the earlier years, we generated a healthy operating cash flow of final 114 crores for the period. On the working capital front, we continued to maintain disciplined control across key parameters while supporting business growth and higher procurement activity during the year.
Inventory days stood at 56 days reflecting calibrated inventory management to ensure product availability across key categories. Debtors were at 46 days in line with higher business volumes and continued expansion across channels, while creditors days stood at 44 days reflecting balanced vendor management and procurement planning. Consequently, working capital days remained well managed at 58 days aligned with the operating requirements of the business. I’m also glad to inform you that the ROCE on an annualized basis has crossed 16% and for the quarter it was 19 plus percent.
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’ll now begin with the question and answer session. Anyone who wishes to ask the question may prestar N1 on the Dustin 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. Participants may press STAR and one to ask the question. First question is from the line of Meloni Mehta from Monarch Capital.
Please go ahead.
Miloni Mehta
Hi sir, Congratulations on great set of numbers. So how much was the top line growth driven by pricing versus volume and moving ahead after this exceptional growth, what would be the normalized growth that we see for FY27 onwards? And secondly, I just want to understand about the semiconductor and AI led business from when can it meaningfully alter the overall margins like over near term and how much can it benefit us?
Rajesh Goenka
Okay Meloni, I think you have asked three questions. I’ll try to answer one by one. So first your question is about the impact of the price on our top line. So as a clarification, the price increase predominantly has started from second half of the financial year. So first half of the year the price increase impact was minuscule, but at the same time second half there was a substantial impact. So H1 whatever growth we had was primarily on account of larger unit sales and more customers. H2 roughly on an average basis if I see the growth has been about 46 47%.
H2 to H2 I would account half of it or at least 20, 22% growth because of the increase in the price. So that’s the answer to your first question. Second question on the upcoming trajectory. So we always maintain that Rashi Peripherals has continued to deliver 20% CAGR for last 20 years. So even if with this year’s overall performance of 15% and if I exclude the one AI project that we did last year then our growth is 31%. But then our average continues to be 20% CAGR. So we are very confident to maintain our trajectory of 20% CAGR in the coming year as well.
And your third question was about semiconductor. I am happy to share with all of you that our semiconductor business we have had 131% growth on a year to year basis. It is trending well, although the base is small. But it is building very strong. And we are having as I said 131% growth last year. But yes, considering the Overall size of 15,800 crores Semiconductor, meaningful impact to our top line and bottom line is few years away. Yeah, Melanie, I hope I have answered all your three points.
Miloni Mehta
Okay sir. Okay. And any like margin impact due to the semiconductor or. Currently it’s not that significant. So like by when do we expect again? Few years from now?
Rajesh Goenka
Yeah, it is few years from now. Because our overall size of the company is. Is 15,800 crores. And semiconductor business is relatively newer, baby. So in few years we’ll have to wait. But we are on a very strong wicket with 131% growth.
Miloni Mehta
Okay, thank you so much. That’s clear.
Operator
Thank you. Participants, a kind request. Please limit yourself to two questions per participant. Next question is from the line of Vinay Menon from Monarch Capital. Please go ahead.
Vinay Menon
Hi sir. Hi. Thank you for the opportunity. A couple of questions. One you mentioned AIPC growing. I just want to understand that, you know, what would you define to be an aipc? Because you know there are multiple definitions in the market. So are you talking about a PC which has an MPU or is it specifically is there anything which you look at to categorize it as an eipc?
Rajesh Goenka
Absolutely. So a PC or a laptop which predominantly has an NPU is identified as an AI PC. But at the same time higher high end processors with GPUs also are identified as AI PCs which can take AI workloads. To give you some idea, currently around 25% of the PCs and notebooks sold in the country are AI PCs. But this is only accelerating. And next one to two years we see multiple growth in this particular segment, which will also drive the average selling price of the notebook further up.
Vinay Menon
Okay, that helps. And just to talk on the overall PC refresh cycle, you know, we saw some kind of a, you know, delay because of, you know, these price hikes. So are you seeing that Demand come in Q4 or you think that will be more in H1 or H2 or 27?
Rajesh Goenka
So this is a very good question, Vinay. When the price hike cycle started around Q3 and early Q4, lot of large corporates ISVs extended their refresh cycle from 3 years to 4 years and 4 years to 5 years. But then the way the price increase is happening now, my observation is the trend is reversing that. Now everyone is realizing that if I delay the purchase by one year, I may have to pay another 30% or 40% more price. So it is better to refresh it right now rather than waiting for one. And that is the reason, as Kapil mentioned, last year we had a record 15.9 million PC sold.
So that now is getting reversed of the refresh cycle. And looks like that refresh cycle will continue to be the. It was normal as in previous years.
Vinay Menon
Okay, that, that helps. And one last thing, on the semiconductor thing, how much we have understood that, you know, in semiconductor, the the number of the working capital cycle is a little stressed and you know, you see 100 plus odd days there. So just that, you know, what, what would be our, you know, working capital there? And is it, is it stretching our working capital a bit? And will it do that in maybe in a few years once the scale is there?
Rajesh Goenka
So while the working capital must be is higher, but at the same time the gross margins are also substantially higher. So in terms of roc, if we look at it, then it is higher than our regular business. So it is not a cause of worry. And at the same time, at this moment we do not require too much of working capital because the size in the overall scheme of thing is still very small.
Vinay Menon
Okay. Okay, one last thing on this.
Operator
Can I please request you to come back? Thank you. Participants, kindly limit yourself to two questions per participant. Next question is from the line of Madhurati from Counter Cyclical Investments. Please go ahead,
Himanshu Shah
Sir. Thank you for the opportunity. Sir, I wanted to understand what has led to. So for lit segment has seen a decent growth this year. So what if you could help us understand what was the price growth here and what is the volume growth here and where do we see the segment going forward?
Rajesh Goenka
Yeah, so first of all, Let me just clarify that the good thing for Rashi Peripherals particularly is that we have a very wide range of products and solutions. So we are not dependent on either on lit or PAs because lit contributes to 42% of our total gross revenue and PS contributes to 58%. So that means there is a very good balance. And I also am happy to share with you that in the LIT category we have grown on a year to year basis at the rate of 24% and in the PES category we have grown at 37% which is obvious because of the higher H2PC demand and because of the higher ASPs.
Himanshu Shah
Right, Right answer. LIT is a better gross margin product. So if you could help us understand can we expect a further if this mix in business increases, can you expect a further gross margin improvement? And second question will be sir, where are we on a software side of business? The software and hyperscaler side of business with so much data center and new cloud companies coming out. So if you could help us understand on that.
Rajesh Goenka
Yeah. So lit we continue to grow almost 2x of the industry. LIT1 Rashi Peripherals market share is very high and second in that category the growth is also not as PS but we tried continue to beat the market and as I said we continue to grow at 2x whereas Pes because of the PC refresh, because of the price going up, the natural the growth opportunity is very is there. So we will continue to have growth momentum in both the categories. But to me it does not appear that we will LIT will be able to take over or come closer to Pesky.
So that’s one. And second question was on your hyperscalers. So if you remember last year that was 202425 we had the privilege of executing India’s first and the largest AI data center very successfully last year we have not done consciously a meaningful business in that segment because we already had a hyper growth of 37% if I just remove that project order. But this year we plan to have growth both in regular business plus in project business and we are in the race to win some of them some of the AI data center projects as we speak.
Himanshu Shah
And sir, do we see our working inventory days coming down with make in India initiatives of this hardware component that is moving to India a lot faster similar to seen in the mobile ecosystem. Do we see our inventory days coming down maybe over the next two to three years because of this shift?
Rajesh Goenka
Yeah. So theoretically there should be some impact of inventory days correction as the MAKE in India grows. But the real Fact right now is that make in India is still very limited. And second we have excluding the project we had a 31% growth on a yoy basis. So when you are having 30% growth in regular business then you need to continuously buy inventory and keep inventory. So these two factors right now are not enabling us to reduce the inventory day but going forward, yes, there is a good chance and scope of improving the inventory days.
Operator
Thank you Madhura. I’ll request to come back for a follow up question. Next question is from the line of Hitesh Goyal from Origin Capital. Please go ahead.
Hittesh Goyal
Thanks for taking my question and congrats to the management for a very good set of numbers. Sir, on Dell part, can you give us numbers? What is the, what is the part of revenues Dell in absolute revenues this quarter and last quarter. Just to see the trajectory.
Rajesh Goenka
I am not in the privilege to give the specific numbers brand wise because even as far agreement we cannot disclose. But only thing I can indicate to you that last year we started midway and we’ve tested waters. Good thing is that we are doing their entire products and solution groups, right? From their PCs to laptops to servers, storage, monitors, everything. And give you an indication it should, it should be a double digit share in our overall top line
Hittesh Goyal
In fourth quarter. You think
Rajesh Goenka
So? I’m talking on the entire year.
Hittesh Goyal
Okay. Because the trajectory, I think it came in second quarter only last year, right?
Rajesh Goenka
Correct. Yeah.
Hittesh Goyal
Yeah. So trajectory
Rajesh Goenka
Low, single digit. But on a yoy basis next financial year we think that it should be close to double digit share. Okay.
Hittesh Goyal
And sir, you also alluded to margin expansion in FY27. Can you explain? You know I didn’t get this. How will you increase the margin in this hyperinflation environment? So can you just give us some.
Kapal Pansari
Yeah. So there are two thoughts, two points to this. The margin expansion business that we are trying to talk about is how do we create a better value chain and value proposition for the organization. Typically when you expand into semiconductors, enterprise businesses, these businesses are not of just supply chain but they are solution driven economics. So when you provide solutions, whether it is related to services, whether it is related to design led sales strategy, they always give you a potential to earn higher margins and that expansion will drive our higher margin portfolios.
Hittesh Goyal
So this is a more of a strategy for two, three years, not like.
Kapal Pansari
Absolutely.
Hittesh Goyal
Yeah. Okay. Okay. Thank you and all the best.
Kapal Pansari
Thanks.
Operator
Thank you. Next question is from the line of Tushar Khan Nelwar from Nexus Equity. Please go ahead.
Karan Kamdar
There’s a bit
Operator
Of background noise. From your line, can you move to a different location please?
Aejas Lakhani
Sure,
Unidentified Participant
Sure, sure. From like next year and year forward, what would be the split between lifestyle and enterprise segments? And if you can give me the volume numbers. Volume and price growth where what would be the share of volume growth and price growth?
Rajesh Goenka
Yes. So as I explained already our last year lifestyle growth lit growth is 24% and pes growth is 37%. So I think similar ratio will continue in the next year also. Again because in lit we have a higher market share that is 1 as far as the price increase is concerned, lit there is no major price increases happening. It is routine price increase only. The price increase is happening and is expected to further increase in the PF category only. And that increase now onwards it is expected on an average should be another 20%.
Karan Kamdar
Thank you. Thank you sir.
Operator
Thank you. Next question is from the line of ages from unifying mutual fund. Please go ahead.
Aejas Lakhani
Yeah. Hi team. Congratulations on a very strong execution. Really speaks about how the organization is set up and is delivering at scale and size. Two questions from my side. First is team, could you call out that from whatever is available publicly. We’re hearing about a lot of these incremental data center opportunities that is coming in the country. Can you just articulate how we should understand FY27 and 28 and your ability to participate in deals that like you have done with the first data center deal, how do you intend to participate in them?
Because we understand that there is a certain capital requirement for such deals and they are definitely accretive. But given the capital requirement of these deals and your learnings from the first deal, how should we really understand how arpitech can participate in them? Thanks.
Rajesh Goenka
So Ajis, I think again this is a very relevant question in this prevailing time. So before I answer your point, I just want to take this opportunity to share with all our investor community that Rashi Peripherals was the first company to execute a 2000 crore 512 server 4000 GPU AI data center at Yota very successfully which included installation as well. We are again the only company distribution company in India which has this kind of expertise of doing basic pre design, ordering, logistics and installation.
So that’s the first point that I want to give you confidence to you on this. Now there are multiple AI related data center and non AI data center projects are going on in the country primarily because of the data sovereignty, primarily because there is a major push from the PMO office. We are there in almost all the projects and we are discussing they are at various Stages of discussions. But then as you rightly mentioned, the size could be very big. Right now as I speak there are funnels of almost 20, 25,000 crores which are under consideration.
I am not very sure whether they can finally get finalized or no. Rashi will pick up proportionate to our capacity amongst these opportunities and obviously not run after everything because they are one capital intensive and second the margins are also lower on this front but then we are there in this in the forefront.
Aejas Lakhani
Understood. So Rakeshi, I hear you but could you give me some incremental color on your thought process because participating in these deals is relevant because of your ability to stitch things together. Right. So it gives you a certain visibility and the presence and these are fast moving items and, and they’re growing quickly. But again like you mentioned, it’s capital consuming with slightly lower margins. So you know, how would you make that trade off between participating in a deal or you know, continuing to use that capital in your regular business per se.
So how do you make these decisions? That’s what I’m trying to get a sense of.
Rajesh Goenka
Yeah. So while we first of all do not compromise on our regular run rate business where we continue to aspire to have 15 to 20% growth and then over and above, I think we currently post IPO we have the capacity to pick up these kind of projects subject to ROIs. So if there is an opportunity where we have a decent ROI then we can pick up these projects as an add on this without compromising our regular run rate growth of 20%. YoY.
Aejas Lakhani
Okay and could you team just call out that, I mean broadly this year from the 15,800 crores of revenue, what’s been the cut between you know the large deals including maybe the spillover of the data center, the enterprise segment and the core distribution business. Could you just give some revenue cuts or color around them? And second could you just lastly could you speak about how the enterprise side of the segment is doing for you?
Rajesh Goenka
Yeah. So last year we did not do any AI large deals. They were all small deals to the tune of 5, 10, 15 crores only. So our 15% growth is without any large deals. And therefore I said if I remove the last to last year yota deal then we have a growth of 31%. And to answer your question on the enterprise piece we are having a very high growth on the enterprise piece which is non AI, particularly driven by Nvidia solutions. One example I shared during my speech about the Nvidia dgx Spark and so on so forth.
So There of course we are having a high growth and the market also is growing exponentially. Exponentially. And third now the price is also very strong uptrend. All three are in our favor.
Aejas Lakhani
Understood team. Thanks and all the best.
Rajesh Goenka
Thank you.
Operator
Thank you. I request all the participants kindly limit yourself to two questions per participant. Next question is from the lion of Sumuk from Corman Capital. Please go ahead. May I request unmute your line and proceed with the questions.
Karan Kamdar
Hi team, can you hear me?
Operator
Yes, yes.
Karan Kamdar
Yeah, thanks for the opportunity. So my question is on the partnership with the St Fin serve. So how does this impact your working capital days going forward and what percentage of your revenue becoming under this working capital? Sorry, supply. And who will be bearing the credit risk on this?
Himanshu Shah
So SPFINSERV is a general finance program which we have onboarded and it is a normal channel finance program without any recourse to us. It is basically to enable the channel partner fraternity to have capacities to buy more without affecting the credit risk.
Karan Kamdar
Okay, so this should actually bring down your working capital because my guess is this is borne by you currently and so no cost.
Himanshu Shah
If we draw the money early then only it is bond buyers which we normally don’t do and it is it are the credit cost or the funding cost is borne by channel partners. So it has no recourse to us, no impact on us and no cost to us. No cost.
Karan Kamdar
Okay, thank you. And on the semiconductor business, who are your predominant customers so far on this line?
Rajesh Goenka
All the large manufacturers in the automobile space, robotic space, IoT space. They are all our customers.
Karan Kamdar
So any exposure to hyperscaler here?
Rajesh Goenka
Hyperscaler is more not on the embedded side, semiconductor side but that is more on the server storage side.
Karan Kamdar
Yeah, that’s it from my side. Thank you,
Rajesh Goenka
Thank you,
Operator
Thank you. Next question is from the line of Nishita from Sapphire Capital Partners. Please go ahead.
Deepak Poddar
Hello. So am I audible? I just had a question on your project business. So you mentioned that if we would have excluded FY25 large deal that we did in project so our growth would have been 31. So how much if you can like how much revenue did we did in FY26 from the project business? If you can say. And how is that going to grow going forward? How much revenue do we see from project in FY27?
Rajesh Goenka
So just a clarification, you have misunderstood when I said 131%. That is only in our semiconductor business. As far as project business is concerned in 2425 we did 2000 crores of project business. However consciously in 2526 we did not do any substantial project business. But in 2627. Plan. Yes, we have plans to get into project business subject to viability and roi.
Deepak Poddar
Okay, okay. And on margin fund, do we get better margins in Punjab?
Rajesh Goenka
Definitely no. And that is why I said that subject to ROI and feasibility we will try to win some project orders. That. That’s the last word I added. That’s the reason.
Operator
Thank you. Next question. Sorry, next follow up question is from the line of Madhurati from countercyclical. Please go ahead.
Himanshu Shah
So thank you for the opportunity. One sir, I wanted to understand on the hyperscaler business. So are there any plans to sell that server storage that what Reddington does? Because it seems that that is a very big business. And these hyperscalers do like generally don’t take a lot of distributors. So two or three distributors at max. So is there any plan to get into that business or how should I look at that?
Rajesh Goenka
So as I said madhur earlier that 24:25 we did the largest order ourselves. And Rashi Peripherals is uniquely placed and has the expertise of doing pre sales, sales, execution, installation and post installation support also. So therefore we have the core strength to cater to these hyperscalers. But at the same time, yes, in the year 2526 we have not picked up any substantial order because non project our business was already growing at 31% on a yoy basis. And especially if you see Q3 and Q4, our brew business grew by 42% and 51% namely so our focus, attention, our capital was more deployed there.
So I want to re clarify that. We are very much capable, we have the experience to do this kind of business and we are looking for opportunities in the coming year.
Himanshu Shah
Right. And sir, you also created one semiconductor subsidy. So if you could help us plans for that.
Kapal Pansari
So the semiconductor subsidiary is created to give higher focus and more optimized operations in this category. So therefore we created the subsidiary to transition from within the group company into the subsidiary. So that partnerships, alliances, team structures and even customer acquisitions can be accelerated.
Himanshu Shah
Okay, got it. So that is from mine. Thank you so much and all the best.
Operator
Thank you. Next follow up question is from the line of Vinay Menon from Mana Capital. Please go ahead.
Vinay Menon
Hi sir. Thanks for the opportunity. Just couple of things. One is this AI boot camp which you have mentioned. If you can give some color on that and you know what could it add to our business that would be helpful.
Rajesh Goenka
Yeah. So basically these AI boot camps we do along with our vendor suppliers all the big AI vendor suppliers I cannot just name in this forum we invite developers, we invite CXOs, we give them use case live experiences how they can use various products and solutions that we have to develop agentic AI solutions, how they can do do rendering. All these training programs we do. And this indirectly then gets into a BOQ or inquiry stage which eventually gets into order. But it’s more of seeding and training program which has a very long lead cycle, usually six months to a year.
Vinay Menon
Okay. And one thing for Himanshu sir, like what could be like Q4 work capitalists, what were they, you know what could be the time going ahead because of all these disruption and shipments, will we see any impact from that?
Himanshu Shah
So the lead time and the delivery times have not affected too much because of the, you know, so called disruption of shipments because our shipments are not rooted through the affected routes. Secondly, the working capital, there’s a minuscule shift because of the change in debtors days to four days. Creditors and inventory does set off each other in terms of incremental working capital.
Vinay Menon
Okay. Okay. So we can, we can expect this rate for FY27 as well or any improvement expected?
Himanshu Shah
Yeah, we can expect around same range.
Vinay Menon
Okay, thank you. Thank you so much.
Operator
Thank you. Next question is from the land of the Paklalwani from Unified Capital. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity. Sir, I had a question on the future volume growth of the company. So today we are benefiting from both price and volume. You said that people are stocking up in the fear of further price hikes. So I want to understand how sustainable, what should be the sustainable volume growth for the company in FY27 and the drivers for this volume growth. If you can explain how the secondary demand for your products are looking like both in LIT and pes. If you can, if you can give a macro picture of how the demand is really shaping up on ground, that will really help.
Kapal Pansari
Thanks Deepak. Let me answer your query for the first part for the secondary sales. I’ll let Rajesh to answer. Please see that currently the industry is an upswing and super cycle of the adoption, price rise and availability. When these things are happening, there is natural tendency to prepone the buying, build up inventory, to sustain the price hikes so that there is an immediate and near term advantage that we can take from these cycles. With AI applications growing, the demand for refresh towards AI PCs will also accelerate as the acceleration for the applications continues to grow.
And in this scenario we are also trying to increase the working capital of inventories so that those opportunities can be expanded. While from a demand perspective we do not see any softness at this point in time while the predictions obviously the affordability will come into picture but we do not see any demand slowing down in the current economics and the scheme of things that we operate upon. However, to answer you that in case you should not only just go by what we are saying, in fact you should look at companies like intel, amd, sk, Hynix, Samsung, Micron, Sandisk of the World Western Digital.
Please study these companies and you will realize the demand cycle is only growing and there is no anticipation of softening of the prices as well. This has never happened in the history of any economic cycle or any distribution or IT hardware industry and therefore we say that is a super cycle and the most opportune time for the industry at any given point in time this softness we are here to stay and we will be the first person to come and tell you about what is the industry cycle looks like when it comes to the secondary PC cycle and the demand at the tier 2 level.
I’ll let Rajesh to answer that question.
Rajesh Goenka
So Deepak, I just want to clarify once again that for which I have already said and I repeat that Rashi peripheral dependency on one product, one brand is minuscule. So lit business 42% of our business comes from lit that business continues as in the past. There is no major variation in the demand or there is no major impact even on the pricing. There is a regular so this 42% of business of our business is unaffected. The remaining 58% business which is psychedelic there there is a price major price increase impact that is coming in and there could be a potential shortage in supply also which should come.
But our guesstimate says and IDC also says that on an entire year basis the unit wise the market size could degrow by 5 to 10%. So even if I assume that the market size of this 58% of the Rashi’s revenue degrows by 10% but the price itself will grow by about 20 25% so net we will continue to have 10 to 15% growth on a as is where basis without any doing any change. But as we continue our momentum with our penetration in newer geography, newer customers and increasing our market share we will be able to maintain our momentum even in this PES category.
And coming to your point on secondary demand of consumer and commercial we think that commercial demand will continue to be strong because of our overall economic situation of the country country but in the consumer there could Be a softness in the H2 of this financial year because of the affordability. Today a laptop a year back was easily available at 30, 35,000 rupees. Today you can’t even get a laptop at 50,000 rupees. But another 15, 20% price rise in six months could make this laptop to 70,000 rupees which could impact the affordability of the consumer.
So in H2 there could be some softness on the consumer demand but that also can be offset. So I am very optimistic. We are already discussing with various vendors and suppliers to have longer EMI schemes. If the current EMI schemes are 6 months or 12 months, maybe we can have a 24 months and 34, 36 months EMI interest free schemes which will trigger the demand. So while there is a some softness could happen in H2 but otherwise there is nothing much to worry about.
Operator
Thank you. The next question is from the line of Dheeraj Kumar Reddy from Alpha xqr. Please go ahead.
Unidentified Participant
Thanks. Thanks for the opportunity. A couple of questions from my side. What is the aspiration in terms of pat margins? I mean I know already we have really expanded quite well in the last 12 years but because we are in a super cycle like you mentioned in the next two, three years, like how do you see the pat margins expanding and what is the aspiration of the management?
Himanshu Shah
So distribution industry has got very finely defined margins and we continue to operate in that. So around the range of 1.5 to 1.75 is the range applicable to this industry. Unless the product mix or the customer mix changes, you know, to a greater extent, we can expect some shift. Otherwise this is the range which we generally advise.
Rajesh Goenka
And I would just quickly like to add that if this is a super cycle then we think that this super cycle will continue for another year or two. And we are very bullish and optimistic on this
Unidentified Participant
Data center deals which you just mentioned, which the company will start to take up. What is a typical margin structure like if you can reiterate and how do you see what is the kind of potential probably in the next one to two years or probably in the next two to three years. If you want to take a medium term view, like what is the extent of revenues Rashi can probably take up?
Rajesh Goenka
So margins. I cannot say this because it is at the end of the day it is an roi. What are the commercial terms, what is the margin, what is the delivery terms? And it varies from project to project. But all I can share from India perspective that as we speak currently there are funnels doing more than 20,000 crores funnels are there. Funnels does not always mean that they will get converted into orders. And that does not always mean that everything will come to Rashi peripherals. But that’s the funnel that is building up.
And this funnel can only will only be increasing in next two years further as AI adoption increases more.
Operator
Thank you. Next question is from the line of Vaibhav Gupta from Bowhead Investment Advisors. Please go ahead.
Karan Kamdar
Yeah. Hi sir. Thanks for the opportunity and congrats on a great set of numbers. Sir, I just wanted to understand with the current price hike environment what is the impact on margins? Is there any negative impact or are they more or less intact?
Himanshu Shah
Margins are intact with the price rise. And in fact the overall profile has little bit bettered only. And which is evident from the numbers delivered and declared. As far as expectations on price size on the margin front, as I mentioned that distribution industry has got very finely defined margins. And we continue to improvise with the operating leverages and volumes which we attain in our growth fund.
Kapal Pansari
So what Himanshu is trying to say is that Rasheepers are earns as a percentage of margin. So when the price rise happens on the percentage basis, absolute value also grows. While on the selling side the value does not grow to that extent. Our fixed cost and our people and operating cost remains the same. So we have an operating leverage advantage
Himanshu Shah
Which is little.
Karan Kamdar
And when we see gross margins of Q4.25 versus Q4.26, how should we see it? Like there is a slight deterioration in margins, gross margin.
Himanshu Shah
It’s not deterioration. We have, you know, some aging. Some aging in slow moving inventory. I would say we have taken additional charge on that and brought down the value of that slow. Slow moving inventory as a prudent accounting practices.
Karan Kamdar
Understood sir.
Operator
Thank you. Next question is from the line of Karan Kandar from Choice Equity Broking. Please go ahead.
Karan Kamdar
Yeah. Hello sir. Sir, I. I understand you have very large distribution network and I believe it’s one of the largest ones in this space. So could you help me understand how the distribution network is our business and what kind of benefits and do we extend to our channel partners and branch managers?
Rajesh Goenka
Can we take this question offline? This is overall business cycle discussion which needs 15 minutes. So if you don’t mind, can we take it offline?
Karan Kamdar
If you could just throw some color. No problem. Thank you. And
Rajesh Goenka
I would also suggest you to go through our investor presentation. There is a dedicated slide on our distribution structure of gte, mt, LFR and online.
Karan Kamdar
Okay. Sure sir. Thank you.
Operator
Thank you very much as are. No further questions. I’ll now hand the conference over to the management for closing comments.
Kapal Pansari
Yeah. Thank you, Karan. To our shareholders, thank you for your continued trust. To our 82 brand partners, thank you for choosing Rashi Peripherals as a distribution partner in India. To our 10,000 plus customers and partners across 700 towns of India, you are why this business exists. And to our family of 1500 plus colleagues, every number that we’re reporting today is a result of your work. Thank you so much. And looking forward to FY26 27 with all of you. Thank you. Thank you very much.
Operator
Thank you. On behalf of Choice Equity Broking Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.