Rashi Peripherals Ltd (NSE: RPTECH) shares rose on Wednesday following the disclosure of its financial results for the quarter ended December 31, 2025. The company’s stock closed at 391.45 per share, representing an intraday increase of 7.26% from the previous close.
Market Capitalization
As of the market close on February 4, 2026, the market capitalization of Rashi Peripherals Ltd is INR 25.80 billion (approximately USD 311 million).
Latest Quarterly Results
Rashi Peripherals reported a consolidated revenue of INR 40.30 billion for the third quarter of fiscal year 2026, a 42.6% increase compared to INR 28.26 billion in the same period last year. Consolidated net profit for the quarter stood at INR 746 million, rising 132.4% from INR 321 million in the corresponding quarter of the previous year.
The company operates through two primary business segments:
- Personal Computing, Enterprise and Cloud Solutions (PES): This segment drove revenue growth through demand for personal computers and the introduction of AI-enabled hardware.
- Lifestyle and Other Product (LIT): This segment includes distribution of components, networking devices, and storage products.
FINANCIAL TRENDS
Business & Operations Update
During the quarter, Rashi Peripherals expanded its regional footprint by opening a new branch in Solapur. The company added new stock-keeping units (SKUs) to its portfolio and expanded its distribution network. Regulatory filings also confirmed the recognition of a INR 41 million incremental impact related to the new Labor Codes notified by the Government of India in November 2025, specifically concerning gratuity and leave liabilities.
M&A or Strategic Moves
The Board of Directors approved the formation of a wholly-owned subsidiary in the United Arab Emirates (UAE) to facilitate international expansion. Additionally, the company completed the utilization of proceeds from its INR 6.00 billion Initial Public Offering (IPO), with funds directed toward debt repayment and working capital requirements.
Q&A Focus Areas
The management’s post-earnings dialogue following the Q3 FY26 results focused on several critical operational and strategic themes:
- Margin Expansion Drivers: Analysts highlighted the 219-basis-point increase in EBITDA margins (reaching 2.95%). Management attributed this surge to a higher contribution from the Personal Computing, Enterprise and Cloud Solutions (PES) segment and improved efficiencies from scaling up to record quarterly revenues.
- Inventory and Pricing Strategy: Leadership noted that partners aggressively stocked up during the quarter to hedge against expected price hikes in components like CPUs and RAM. This “pre-buying” behavior was a primary catalyst for the 42.6% YoY revenue growth.
- AI-Enabled PC Demand: A significant point of discussion was the PC replacement cycle. Management expects the adoption of AI-enabled PCs to drive volume in the coming quarters, particularly within the enterprise sector, where early refresh signals are emerging.
- Strategic Leadership and Global Reach: The session formalized the appointment of Rajesh Goenka as CEO, whose immediate mandate includes overseeing the newly approved UAE subsidiary. This move is intended to replicate the company’s ICT distribution model in international markets.
- Regulatory and Cost Provisions: Management clarified the INR 41 million impact from new Labor Codes and the INR 140 million year-to-date ESOP costs, framing these as necessary investments in talent retention and regulatory compliance.
IPO Proceeds: The call confirmed that 99.7% of IPO funds have been utilized, with the remaining INR 1.61 crore earmarked for fixed asset purchases through fiscal year 2026.