Robust Earnings Performance
Rishabh Instruments Ltd (NSE: RISHABH) reported a strong set of Q3 FY2026 numbers, driven primarily by substantial margin expansion and operational improvements. Consolidated profit after tax surged 161.5% year-on-year to ₹205.1 million, highlighting a significant improvement in earnings quality.
Modest Revenue, Strong Profitability
Standalone revenue grew modestly by 3.1% to ₹610.5 million, but profitability outpaced topline growth as standalone PAT jumped 110.8%. The disparity underscores the company’s success in enhancing cost structures and leveraging efficiencies rather than relying solely on revenue acceleration.
Margin Expansion Drives Performance
A key driver was the 920-basis-point expansion in consolidated EBITDA margin to 17.1%. Management attributed the improvement to sourcing efficiencies, operational upgrades, and better operating leverage. Standalone adjusted EBITDA margin remained robust at 26.3% during the quarter.
Nine-Month Momentum
For the nine-month period, consolidated revenue increased 7% to ₹5,702.8 million, while PAT soared nearly 318% to ₹622.1 million—suggesting that structural profitability enhancements are translating into sustained earnings momentum.
Strategic Exit from Loss-Making Contracts
Strategically, the company is exiting loss-making contracts within its high-pressure die casting (HPDC) business. Although this decision resulted in a planned decline in segment revenue, it materially strengthened EBITDA performance, indicating a deliberate shift toward higher-quality earnings.
Global Expansion Opportunities
Management also highlighted expanding global traction, citing growth opportunities across the Middle East, South Africa, South America, and Southeast Asia. This widening geographic footprint could support long-term revenue diversification while reducing dependence on domestic demand cycles.
Outlook
Taken together, the quarter demonstrates Rishabh Instruments’ evolving operational maturity. By prioritizing margin resilience and pruning underperforming contracts, the company appears to be positioning itself for more sustainable and scalable growth.