Rishabh Instruments Ltd (NSE: RISHABH) Q1 2026 Earnings Call dated Aug. 14, 2025
Corporate Participants:
Unidentified Speaker
Narendra Joharimal Goliya — Executive Chairman
Dinesh Musalekar — Whole Time Director
Vishal Kulkarni — Chief Financial Officer
Analysts:
Unidentified Participant
Pratik — Analyst
Avinash — Analyst
Karan Sanwal — Analyst
Kiran — Analyst
Presentation:
operator
Good day and welcome to Rishib Instruments Limited Q1FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involves risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be on the listen only mode and there will be an opportunity for you to ask questions after the presentation continues. Should you need assistance during the 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. Narendra Ghoulia, promoted and Executive Chairman for his opening remarks. Thank you. And over to you sir.
Pratik — Analyst
Thank you. Shruti. I’m Narendra Golia. And good evening to all of you for joining us on this first quarter of the financial year 26 earnings conference call. I am pleased to inform you that along with me is Mr. Dinesh Muslekha who Director and CEO of the company Vishal Kulkarni, Chief Financial Officer. Then we have Nishant the Doria, additional GM Strategy, finance and Public relations. And we have representatives from sga, our investor relations advisors. The financial results and investor presentation has been uploaded to the stock exchanges and the company’s website. We trust you have had an opportunity to review these documents.
I am pleased to report a strong quarter with consolidated revenue growing by 12.4% on a year on year basis basis and profitability surging more than six fold to 196 million Indian rupees. This performance underscores the resilience of our business model, the operational discipline we’ve implemented and our strategic commitment to long term sustainability. We are seeing encouraging momentum in renewable energy adoption and automation products across many regions. And we anticipate significant demand for both new and existing markets. Our operational scale, innovation focus and market strategy give us confidence that Rishore will continue to be a major growth engine for the group.
India remains a key growth driver raised by supportive domestic policy and strong demand on the international front. Our export operations are well positioned to capitalize on rapidly expanding renewable energy markets in developed as well as emerging economies. A standout Achievement this quarter comes with the successful turnaround of Lumal Alukast. This business has faced several challenging quarters. But through focused execution, disciplined leadership and decisive strategic measures, including targeted pricing adjustments with OEMs, the exit from low margin orders and a strong emphasis on high margin non automotive segments, we returned it to a growth trajectory with double digit profitability.
I’d like to particularly acknowledge the exceptional leadership of our Poland team led by Dinesh in driving this transformation. Despite global macroeconomic and geopolitical challenges such as shifting trade dynamics, economic slowdown and evolving government priorities, we have seen minimal direct impact from tariff related concerns. Our strategic priorities remain clear. Diversify our product portfolio. Continue investing in R and D. Focus on higher margin businesses. Strengthen our global export capabilities. Leverage emerging trends such as defense, adjacent solutions and renewable energy infrastructure. I am pleased to announce our operations structure. Business divisions have now been streamlined into two clearly defined segments to enhance focus and transparency for investors.
First one is the electrical and electronic instruments encompassing products from the earlier business segments. Electrical automation, metering, control and protection devices, portable test and measuring instruments, solar string inverters and others. The second is high precision die casting, delivering precision engineered solutions across diversified industries. This reorganization will sharpen segment level strategies, accelerate innovation and better align us to capture emerging market opportunities. Our leadership team remains agile and resilient across geographies which together with our disciplined execution positions as well to navigate ongoing challenges while investing in future growth. We remain highly confident in Rishabh’s forward trajectory. With clearly defined internal strategies, a robust R and D pipeline and our capacity expansion in India soon to double their production, we are well positioned for sustained and profitable growth ahead.
With this, I will now hand over to Dinesh Muslekhar for his detailed comments and analysis of the results. Thank you.
Dinesh Musalekar — Whole Time Director
Thank you, sir. Good evening, ladies and gentlemen. First of all, we are pleased to report a robust start to quarter one of financial year. With consolidated revenues growing by 12.3% year on year to rupees 1903 million and consolidated EBITDA margin expanding sharply by 950 basis points to 15.9% this quarter. These results reflect the discipline, disciplined execution, operational agility and resilience characteristics of our business model at Rishabh India. Standalone revenues increased by an impressive 17.3% year on year in this quarter, sustained by a strong market demand both domestically and internationally. Standalone EBITDA margins reached a staggering 24.5%, underscoring the value of our enhanced product mix, operational efficiencies and benefit from operating leverages.
Our performance this quarter was fueled by multiple growth drivers, rising export demand and robust domestic order inflow created a balanced and sustainable growth platform. Export business was a key contributor to stand alone revenue growth while margin expansion was supported by strategic focus on high value offerings and rigorous cost optimization. Further, the successful turnaround of our high pressure aluminum die casting business at Lumel Alucast which gained profitability through targeted initiatives. It achieved a remarkable turnaround posting 10.3% revenue growth and returning to double digit EBITDA margin of 10.2% compared to losses in the prior four to five quarters.
An outstanding improvement of 1,600 basis points in EBITDA margin compared to quarter one of financial year 2025. This recovery was driven by cost and process efficiencies, strategic legacy contract cleanups and renegotiations, rigorous cost optimization initiatives that have enhanced operational efficiency and focused portfolio rebalancing. Our strategy now focuses forward to the higher margin non automotive opportunities in the region while regional demand remains subdued, our strengthened foundation’s position as a sustained earnings momentum as we navigate through the rest of the financial year, we may further reduce our EV automotive business share and add some more profitable businesses from other sectors.
This may also result in some ups and downs to our top line in the short period of time. What I mean is in next quarter’s third or fourth, as our fundamentals are strong, we are confident that Lumela Lukas business will be sustainable and profitable business like it was for over a decade before we encountered this EV automotive challenges. So in the long run, in the years to come, it’s going to be a sustainable and profitable business. Revenues at Lumel SA declined by 6.1% compared to year on year last year first quarter. This is influenced by external pressures such as shifts in government spending towards defence.
Because of all the geopolitical things which are going on, the European Unions have started allocating more funds for the defense. I am taking a pause because there is a siren going behind. Despite these near term pressures, Europe’s track record for rebounding in industrial innovation and clean energy gives us confidence in eventual recovery. In this quarter we commissioned a new surface mount technology line to enhance capacity for advanced electronics and secured a significant 5 million multi year contract with a leading German energy sector firm. This contract, running through 2026 marks a major step in our European strategy and underscores our credibility as a high value trusted partner in industrial automation.
Industrial this agreement, based on a tailored engineering solution represents a strategic milestone in our European expansion, signaling trust in our technological proficiency and supporting future growth momentum. We have already started the deliveries under this contract since last month and this should also offset the general drop in sales due to macroeconomics in the European market and help us to further grow our business from the last year’s sales numbers. So Lumel SA, even if you see 6.1% drop, we are pretty confident because we have a strong order book to cover this in the subsequent quarters. To come further, Rishabh India continues to deliver stellar results.
Standalone revenues grew by 17.3% year on year to 618 million Indian rupees supported by improved product mix, strong export flows and stable domestic order pipeline. EBITDA margin stood at 24.5% and PAT surged by 139% year on year to 99 million, highlighting effective operational leverage and the cost control. Our recent capacity announcement include a new SMT line in India which is already attracting interest from major players. These SMT lines are advanced to produce the motherboards of laptops which is supposed to be one of the apex of SMT manufacturing and we have already carried out pilot batch productions and are in discussion with a few major players to continue this business.
The early responses have been very, very promising. Further, our R and D team has brought forward innovative solutions, most notably launching solaruno, a new milestone product in the solar segment that underscores our leadership in clean energy technology. The faster pace of EBITDA growth relative to revenue highlights the benefits of our operational leverage and efficiency drive. Moreover, our capacity expansion in India is progressing rapidly with 2, 5 and 7 storied buildings under construction at MIDC and Trisheela sites in Nashik with expected date of completion of March 2026 poised to double our production capacity upon completion. Further more apart from the above developments, I would like to inform that Mr.
Golia mentioned earlier. We have classified our business operations into two clearly defined segments. To sharpen our strategic focus and enhance transparency, we have restructured our business reporting into two clear segments. First one is Electrical Electronics instrumentation, we call it an EEI and the second one is high pressure aluminum diecasting. In Q1 26 the EEI segment posted 13.8% year on year revenue growth with the ebitda margin near 20%. So this is a strong part of our business and really looking very, very promising, reflecting operational strength and market alignment. Looking ahead, we believe EEI holds significant growth potential supported by a strong innovative pipeline, increasing global adoption of automation and renewable technologies and expanding export opportunities.
We expect this segment to remain a key growth engine for the group. Our streamlined business model, capacity expansion and focus on innovation uniquely position us to capture growth opportunities in the new geographical new geographies as well. This quarter reflects strong execution, strategic wins and positive momentum across our entire group. From the turnaround of Lemel Alukast and the strong performance of Rishabh in India and the launch of Solar Uno and also the landmark contract in Europe, we are delivering on our strategic objectives while building for the future. We remain committed to advancing our product portfolio and innovation agenda with the ambition that new products will contribute 50% of the electronics segment turnover within the next five years.
I extend my heartfelt thanks to our teams and their dedication and to our customers and stakeholders for their trust with this solid start for the financial year 26 we are confident in delivering sustainable, profitable growth in the periods ahead. With this I would like to hand over to Mr. Vishal Kulkarni, our CFO to dwell into financial performance of the group. Thank you for your.
Vishal Kulkarni — Chief Financial Officer
Thank you sir for the detailed overview. Good evening all. Let me just give a brief snapshot on the financial performances. The standalone performance for the quarter one of financial year 26 standalone revenue for the quarter one of financial year26 stood at 618 million rupees compared to 527 million rupees in the same period last year which has registered a year on year growth of 17.3%. The adjusted EBITDA for quarter one of FY26 stood at rupees 152 million reflecting a year on year growth of 100.4%. Here I want to mention that the adjusted EBITDA includes esop expense of INR 9 million for quarter one of financial year 26 and INR 15 million for quarter one of financial year 25.
The adjusted EBITDA margins were at 24.5% compared to 14.4% in the quarter one of last year. The reported EBITDA margins were 23.1% for quarter one of financial year 26. The path for quarter one of financial year 26 stood at 99 million rupees marking a year on year growth of 166.3%. On a consolidated basis, our revenue for quarter one FY26 stood at 1,903 million rupees reflecting a year on year growth of 12.4%. The adjusted EBITDA for quarter one of financial year 26 was 303 million rupees compared to 109 million rupees in quarter one of last year.
The growth is 179.1% year on year. Here also I want to mention that this Adjusted EBITDA for quarter one FY26 includes ESOP expense of 19 million rupees and 33 million rupees. For quarter one of financial year 25. The adjusted EBITDA margins were at 15.9% compared to 6.4% in the quarter one of financial year 25. The reported EBITDA margins were 15% for quarter one of FY26 and 4.5% for quarter one of FY25. The PAT for this quarter stood at 196 million rupees representing a year on year growth of 510% with PAT margins improving by 841 basis points to 10%.
Starting with the company wise. Key financial highlights. The Revenue stood at 460 million rupees for Lumel SA which has down by 6% year on year basis. For Lumel SA, the EBITDA was at 56 million rupees. For this quarter. EBITDA margins were at 12.1% for the quarter and the PAD stood at 27 million rupees for Lumen Alukast. Revenue stood at 754 million rupees. 10% growth on year. On year basis EBITDA was 77 million compared to loss of 46 million last year same quarter. The margins at 10.2% pack for the quarter was 44 million rupees compared to loss of 40 million rupees last year same quarter.
On a consolidated level, we remain net debt free with a strong balance sheet. The net cash and cash equivalents as on 30 June 2025 stand at INR 864 million. With this I shall now leave the floor open for Q and A. Thank you so much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you will press par 2 participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pratik from Shubhla Vil Search. Please proceed.
Pratik
Hello. Am I audible?
Dinesh Musalekar
Yeah.
operator
Yes sir.
Pratik
Greetings everyone. Congratulations on a good set of numbers. In fact, I would like to highlight the diecasting business performance. Kudos to Mr. Muslekar and the team for that. Mr. Muslekar, I just want to understand, you know how sustainable diecasting performance is for the rest of FY26. And since you have already explained the steps taken, you know, to make this Profitable. I just wanted to Understand how does Q2, Q3, Q4 look for the business, for the diecasting business? That’s the first question.
Dinesh Musalekar
Yeah, yeah, Pratik, I was in fact expecting these questions because we asked these questions to ourselves also. So this is very hard question. So I tried to cover that in my speech also. You know, in a very short term I would say we are still not out of the whole rough period we are going through, but in a basis of one year’s time we are through with that. So I will try to elaborate more on that. So what has, what really pulled us down was the automotive business and that too the projects where EV cars were involved in European market.
So EV cars in European market is a big disaster, not so much the other cars. So that’s what we decided to pull out of and we went with all these renegotiation contracts, etc. So most of it is completed and done. But we are also, you know, in the phase out period where all these contracts are going out. We still are supplying and they are going out. So as they fade out. But we are supplying with the negotiated prices which are profitable for us. So this business is going to drop eventually will go out of the funnel by end of this year.
So during this period we are also trying to add more business. So which we are trying to do and we have got some successes with that with some of the electrical division, you know, non automotive customers. We added, we have gone back to our traditional customers like Ebb, Ender, Suzer. We have received some new orders from them or increase in supply. So we are doing that part of it. Then we are also trying to get some, some automotive business which is not connected with EV from other new, total new customers. So this is all lot of activities are happening and they will fall in place eventually because there are very few manufacturing setup with strong fundamentals like us in Europe.
So there is a demand and there is a market, there is a resource available. And we know that we are very competitive in European scenario. So those customers who want to have things made in Europe will come to us. And this is work in progress. Now how fast this new business will get added and how slowly this old business of which is kind of profitable for a period after price correction will go out. So this is something which is happening, both of them are happening. So that’s why when I chose those words also very carefully so we can have some ups and downs in the top line.
But as the fundamentals are very strong and we. It’s just a Matter of time. Whether this becomes kind of really sustainable for good from quarter three, quarter two, quarter four is something which we are always exploring. This is where it stands. I’ve been trying to be very honest and transparent with this. So this is where we are. But if you ask me two years, within two years is it going to be sustainable, profitable? Answer is clear, yes. So one quarter next quarter is that going to be 10.2% EBITDA again or it’s going to be 6 point percent or it’s going to be zero? I really, it’s bit hard for this point of time to answer but we are in a good direction and we are doing that.
So this is, this is where it stands now.
Pratik
Very much appreciated Mr. Nasir. Just two tiny follow ups on this. So at this point of time, what’s the mix of auto and non auto for the diagnostic business and with the new contracts, with the new customers or even the renegotiated contracts, what’s the peak EBITDA margin even after four or five quarters you, you anticipate in this business?
Dinesh Musalekar
Okay, so I mean historically we have had EBITDA from 15 to 19% in high pressure aluminium back casting business with 50% automotive, 50% non automotive. Our target mix is going to be 75% non automotive and 25% automotive. This is our target, but it is not entirely in our control. That’s the benchmark which we are trying to have. So once we achieve that, what we are looking at is about, you know, anywhere between 12 to 16% range of EBITDA which is what we are trying to target. Because when we talk about these EBITDAs of 16 to 19%, the cost of labor was less, the energy costs were less.
So that has changed in last two, three years. So I do not want to project numbers like 19% which we used to have in the past, but anywhere between 10 to 15% is sustainable, achievable EBITDA on this business going forward.
Pratik
Very helpful, Mr. Insulator. My second question is regarding this slowdown in European electronics business. So I heard you that probably this is because of the shifted focus of government from defense manufacturing. And my understanding is that your manufacturing are very long distinction manufacturing. So is it fair to assume that the focus of the government is not going to go back to electronics and electricals, so this slowdown may continue for the coming quarters as well? Is that a fair understanding?
Dinesh Musalekar
No, no, I wouldn’t say that because of course there are two parts to this one. I will address it in a way. See there were some European Union also works with some plan. So they had allocated say 20 billion for euros for you know, investment into upgrading the distribution network. And those kind of. This is government spending, so that trickles down to everywhere. So those kind of spendings they are from say 20 billion they will make it 10 billion and 10 billion they will put on defense. So this is kind of a thing which is happening.
So that will reduce number of projects. But the market is so big, so it makes not so much of difference to us. Now we won this 5 million euro business and we started delivering that. So we have some drop and this is going to compensate that drop. And we may have some percentage of growth also. So with the same customer or similar customer, we are also trying to help some inorganic growth from new sectors, new customers and this will support us. So even though there is a. We have done that in the past, also even during COVID time we had profits and we didn’t suffer so much because it’s all about what is the market share you will get.
So if you are having the same, if you have the same customer base and you are dependent only on the organic growth, then these things matter. Then you are depending more focusing on adding new products, getting new revenue streams, adding new customers or doing new projects for our customers. So these things will offset. So the market is so huge. So Lumel essay. I am not even one bit worried about anything like Lumela Lucas. We are very confident it’s a profitable business. We’ll continue to deliver. In fact you’ll see that Q2 business, Q2 will be much, much different from Q1 for sure.
Pratik
Very comfortable. Am I allowed to just last one question? Sorry if you, if you’re long.
Dinesh Musalekar
Yeah, go ahead.
Pratik
I want you know your opinion of solar inverters so far. So I am sure even in last two, three years we have invested a lot of bandwidth, if not large amount of capital on this business unit. So if you can throw some light numerically how this business is shaping up, what revenues we are seeing in the segment because I can see the full fledged solar value chain players are now entering the space. So in that scenario, how do you look at a competitive landscape for India when the wadis and the premium energies of the world are entering this business?
Dinesh Musalekar
Yeah, so on the solar business, in terms of number, let me say that we are doing about 10 crores, around 10 crores annually currently as we. And with where we are again we were losing money until now. Now we are at we last few few months we are at zero profit, kind of a thing on what we are selling. So and that’s why we are. We were not pushing because we wanted to get this product redesigned so that we become competitive. Not only competitive, we start putting, you know, margins on that. So that fortunately has happened for us now.
And so two product lines which are coming. One is Uno, which is single phase which will fit into the Prime Minister’s solar thing again today. Also we saw some new announcements on that. So there up to 5,5 kilowatt single phase ones. We our model and the product was designed for making hundreds. Now we have redesigned the product for making them in thousands. So this will change the whole thing. So the SMT line and the fully automated production facility, all that we are putting. Then we went from making those with the boxes, metallic boxes, to aluminum die casted like you are like printing more.
So the whole redesign of this product is done. And last month we launched the first beta batch of 25 units into the market. And the results have been very positive. And now we’ll be manufacturing them in hundreds. Now, even if there are other people who entered into this market, believe me, none of them design and manufacture. So we can be a big contract manufacturer for these people because they are getting it done from China. They are importing from China today. We have designed the product where we are. We beat Chinese cost. So this was something which is very, very challenging.
It took longer than what we anticipated. We are ready with that. And the second three phase inverters up to 12 kilowatt. Also we have redesigned and done this. So these two elements. So what I can say is up to 12 kilowatts we are going to be very competitive and will be very aggressive in the market. This will start happening in the coming quarters. So we, we will grow from 10 to maybe 25, 25 to. So every year we can double this. In two, three years we can reach up to 100. But we were slow. We could have sold more inverters but would have created more losses or no profit for the company.
So we were slow. Now once we have that, we will do an ad campaign. It is more like B2C kind of a product when it comes to single phase. So I have got some plans to drive a massive marketing campaign also for that. I was holding back because I don’t want to do it when I don’t have product which will be supporting that with that cost base. So now that we have this will follow up in the coming quarters and we’ll go full throttle on that by second third quarter of this year.
Narendra Joharimal Goliya
This has Been more or less a trend in all our production. Whenever we get technology from Europe or wherever or we develop our the first few years we will make losses, you know, both in terms of volume low. We haven’t developed the purchase base, the vendor base and the technology needs to be refined. But eventually all the products now call it analog panel, meter, call it multimeter, call it transducer. Ended up in a positive numbers for all the models. Dinesh, just as I told you that up to now we are profitable in the 12 kilowatt.
But we still have 25 and 50 kilowatt. 15 for about 15. We have to still do some homework but eventually we will do it and make sure that each and every model is profitable to sell. I just wanted to add
Dinesh Musalekar
absolutely on the R and D is working on the next models now. Now up to 12 kilowatt their working. Now it is for production and ramp up which is going to happen from 12 kilowatt to 50 kilowatt is the second phase where we will look at the cost reduction of existing inverters and do that. And 50 onwards is a R D which we will be carrying out with collaboration with IIT from Mumbai where we will come up with the next generation of high capacity inverter. This is something which may take about a year or so.
So this is. I mean we want to also go step by step. But there is so much of market even up to 5 kilowatt. There is so much of market even up to 12 kilowatt. And then, then we’ll expand more and more.
Pratik
I’m just. I’m just closing. I’m just closing. Audit. I’m just closing. Good wishes to the entire team. Mr. Golia and Mrs. Speaker. Thanks a lot. Those are my questions.
Narendra Joharimal Goliya
Thank you.
operator
Thank you. The next question is from the line of Avinash from Parme Financial Services. Please proceed.
Avinash
Am I audible gentlemen?
Narendra Joharimal Goliya
Yes, clearly.
Avinash
Thank you. Narendraji Dinesh ji Vishal for your opening remarks. I’ll start with you Mil diecast. I have two questions. The first is in our last con call Dinesji, you have alluded that it is very difficult to fill capacity. The new capacity. What is going away with non automotive business. So can you speak about the programs which potentially can come and fill this capacity? You said that the automotive business which is slightly profitable, renegotiated contracts which will go away. So what kind of programs we will be able to fit refill with? Are they short duration, short term contracts as compared to the automotive?
Dinesh Musalekar
Yeah.
Avinash
If you can just talk about this.
Dinesh Musalekar
Yeah. Yeah, I get your point because that’s why I wanted to put a word of caution in that. But see whatever we are going to refill because as we speak I can give some numbers also to comfort if that can be helpful. So in the last four months we have. We have generated RFQs for about 250 parts. And out of this 250 parts we have already sent offers to about 120 parts. This is one side and all the automotive, whether it is automotive, non automotive, all the contract that we negotiate in Lumel Alukast are long term.
We don’t take anything short term and it doesn’t work for any of our customers. I can give you some examples. MRN Mesco is a customer which. Which we are doing about 1 million euro annual turnover. Now we added 1 more million euros of annual turnover with them. So this is one example. Then we are also adding another 1 million and this will be for 10, 10 years supply at least. This is, this is a horizon. And then we are also renegotiating with one of the automotive client for few projects which are not connected with engine type of car.
It can be in any car. This also we are renegotiating and this is, this is, this is under progress. Then we are doing something for suppliers of street LED lights. So street LED lights, those housings are aluminium, high pressure die casting. That’s another one which I can talk about. Then we have this Endosur and Ebb. They have. I had a massive tour with all our existing clients and potential clients and they are also going to use some more additional projects where we have got 40 years of relation with these guys. So those are the things.
And then similar to them there are companies like Yokogawa and other companies are there who are competitors for them. Siemens, ebb, End, Yokogawa and other where they also are coming to us. See what is happening is because of. There’s always a opportunity in every threat or risk we had. All this has created so much of problem for companies like us because we were more resilient. We sustained all of this and we are still marching. Many companies closed down or went bankrupt. So that capacity, you know there is at some point of time there is going to be a supplier consolidation also for the customer.
So those projects also will get relocated. And not everything can go to China, not everything can go to say Romania and other places. There are. There are companies which want to have a supply chain in Europe and closer to them. And even if it is going to be expensive naturally, because we are still there so that will come. So these are all going to be long term things. So I can have my doubts for one or two quarters but one, two years I have no doubts.
Avinash
But can you reasonably now given the kind of visibility we are in the fifth month of the financial year, given whatever visibility you have the best visibility we land this year between 0 to 5% EBITDA margin.
Dinesh Musalekar
Yeah, that’s what we are trying absolutely. Because I do not want to say that we’ll end with 10% EBITDA margin. We will be see at the beginning of the year we said that we will try to have 100 crores of EBITDA generated. 50 coming from Rishabh and 40 coming from Lumel and 10 coming from our other these things. And our target was to make sure that Lumel Alukast is not going to drain, drain, drain what we are accumulating here. So that’s the bottom line. So we want to make it better than that. So what you’re saying is EBITDA 0 to 5 fits into what we are saying now for after, after three months we have 30 crores of EBITDA generated there at the group level.
If we extrapolate that it should be 120. So I’m still not saying 120 is what we are targeting but we are saying that at least 100 is what we are targeting. Anything should be upside from there. We’ll just pause for a few seconds. Okay. Okay.
Avinash
Second question is on the standalone Rishabh business, the India business. So we have seen gross margin of 55% and EBITDA of 24% on an adjusted EBITDA basis. So can you share some qualitative aspect the sustainability of this kind of margin, the one offs and is there some extremely favorable mix in the export orders? So what is the steady state EBITDA margin We should. And gross margin we should understand.
Dinesh Musalekar
Yeah, there has been a significant sustainable shift we have done in the operations in Rishabh. It is reflecting not only in these numbers, in operational numbers also 20% is rock bottom sustainable thing which I can talk to you about it. So what are the things which we have done on a qualitative analysis is reorganization of the whole production processes. Then lot of automation we have carried out. Then we have done renegotiation of our supplier base. We have changed key people in the organization here and there. So in the last quarterly review I had talked about all the few, few few quarters ago I talked about getting some key people in some position.
All that has started resulting very well apart from these numbers which you see our inventories were you know like about six to seven month inventories we are having today. We have got three months of inventory, inventory days if you talk about. So it’s reduced by 50% while our sales has gone up substantially. So this is all coming not because of just something happening. It was happening quarter by quarter, month by month, week by week, very sustainably actually to tell you very honestly there has been no product mix change, nothing is one off case in that this is sustainable thing and whatever changes have been done are very basic fundamentals in production management, quality management, inventory management.
So these are all things which were happening and they started putting results on this thing and we changed a lot of our machineries, upgraded existing two SMT lines, added another new SMT line. Lot of good things have happened to during the last one year and they have started giving results and that is quite sustainable thing and absolutely no doubts on that one.
Avinash
Follow up on this, the SMT9 we have put up so we have some spare capacity which is not being used internally as of now. And we also alluded to some use case from that SMT line. So can you speak about say commercialization. So.
Dinesh Musalekar
So are you talking about EMS business or you’re talking.
Avinash
Right, right, right. So we some laptop.
Dinesh Musalekar
So laptop is one of the things and. But not only the one. So we supply, you know displays for transport system to one of our client as a VM supplier. We supply some PCBs to scientific instruments, big MNC. We do that and then PCBs, laptop, PCBs is a big thing. So here what we have done is we are on a batch of hundred all approved, absolutely no quality issue. Then we got an order for 1000 all done. But these PCB is also involved intel processor. So we have to get clearance from intel. Our client has to get this.
So this is, this is work in progress and I mean to qualify our system and processes to be used as a manufacturer. And here believe me we are competing against some established players in China and so it’s a work in progress. So if that comes we can have one of the SMT line fully occupied for this and then we can have another one because we are also expanding all our building etc so there’s lot of prospect for that. So so far.
Avinash
So when can we expect this the first purchase order for this?
Dinesh Musalekar
From this we already had the first purchase order for 1000 which we did as a regular supply of business. It depends on intel giving us the approval to our client. Intel giving the Approval to our client and after that it will start. So I do not want to speculate it’s going to be next month or 1/4 or I mean it’s some international companies involved in that. So but we, as I said, it’s not only that we have got added two more customers from Pune for this thing. So ems, you have a facility, you have so much electronics manufacturing going on.
So we will fill it with irrespective of this. Today also we are running it more than two shifts. We are running that one and you know like we were running three shifts for two SMT lines before. So we reduced the number of ships to make it two ships for all of them. And we have some capacity available to run all them. All of them, three ships. And it’s something which is work in progress I would say.
Narendra Joharimal Goliya
Not only that government of India has made it mandatory for people to assemble all these things here in India locally. So you know, you cannot now import these from China and just supply it. So that is adding to it. But yes, what Dinesh said is that until intel approves it, we, we have manufactured thousand pieces. That’s not a big issue. But we have to make it in millions, you know. And at that time the approval has to come. It will come. It’s a matter of time. Could be couple of weeks, could be couple of months.
But let us wait and watch.
Avinash
Thanks a lot and all the best for the rest of the year.
Narendra Joharimal Goliya
Thank you.
operator
Thank you. The next question is from the line of Karan Sanwal from Nivishar. Please proceed.
Karan Sanwal
Hello.
Narendra Joharimal Goliya
Yes, yes, go ahead.
Karan Sanwal
Yeah, so we, I wanted to ask like we have experienced good improvement in revenue margins for a standalone business in last few quarters and you know, so wanted to understand like any particular product or signal which contributing to the gaining traction or is it across the products. And also your comments on how sustainable can this.
Dinesh Musalekar
Standalone for which company you are asking? Yeah, yeah, for Rishabh, I think we answered this question. The previous question was also exactly the same. So there was nothing very unusual product mix or anything. This is sustainable and sustainable numbers. These numbers are sustainable for both top line and bottom line because we have done lot of, you know, cost optimization in terms of automation, quality systems management systems, production systems and some changes in people. So a lot of things have been done and it should be good. Our lead times for some of the products were one or two months because we used to have a lot of backlog.
We have reduced it to few weeks, two weeks or three weeks. So customers love it and we get more and more orders and that is also filling our. Our sales revenue. Yeah, it’s. It’s sustainable.
Karan Sanwal
Yeah. And also one question like you talked about, you know inverter business will try to scale it up post this redesigning and all. So any uh, for. Are we in contact with any uh player to know maybe uh you know outpour manufacturing for those or we would be focusing more on our brands only. You highlighted that we would explore outsourcing to any advanced customer that we are now experiencing.
Dinesh Musalekar
Yeah. So first obviously we want to sell it in our brand as much as possible. But if there are stronger bands Indian brands who are looking for OEM manufacturing, we are open for that and we will look at that also as a manufacturing as long as the business is profitable which will make us increase our revenues very quickly.
Karan Sanwal
Understood. That’s it from myself and fundamentally best for the.
operator
Thank you. The next question is from the line of Kiran from Tabletree Capital. Please proceed.
Kiran
Thank you for the opportunity. Many congratulations on a great set of results. Sir, I had a contrasting question. The merging of electrical and electronics in I mean those three divisions is a little disappointing to be honest because I think that gave a lot of granularity. Especially the electrical automation business business which I think grew 50% last year. To combine that into EEI revenue is a little disappointing from my perspective at least. Having said that sir, EEI revenue, I mean 115 crore revenue from a base of 94 crore last year, same quarter there’s a 23% growth.
Could you tell us which segment electric growth Was it electrical automation? Was it metering and control or portable?
Dinesh Musalekar
Yeah Vishal, you want to take that? So it is, it is. It is more on electrical automation and metering. Yeah, metering control and this one. Yeah. Actually solar we didn’t do much. It was very, very mean or even draw less than what we. What was before it was flat. Yeah, it is flattish or downish. Then TMI was also a small increase. The major increase has come from industrial automation and MCP meter and control panels.
Kiran
Got it. Okay. At least on chrome calls if you could just tell those numbers as part of which are the you know discourse that we really go.
Dinesh Musalekar
Yeah, it’s not. We did not prepare those numbers but point taken. Next time on a quarterly basis we’ll keep those numbers also ready. If it’s going to help you and you want to put value to that, we’ll do that. But for this quarter Vishal will send you this details separately.
Kiran
Electronics business 115 crore. Is this run rate like sustainable? Sir, I mean 115 crore. So is it a, is it a fair estimate that we can do at least 450, 460 crore this year or if not more?
Dinesh Musalekar
Yes, yes, yes. The run rate could be better than this because Lumel essay did not contribute in this quarter so much on the, on the top line. So it is going to be same or better.
Kiran
Got it, got it, got it. One of the other questions on electronics itself is our US revenue seems to have stagnated in the 7 to 10 crore range. I know we didn’t declare this quarter but I mean from past data, whatever is collected, it seems we are around 910 crore itself. Are we? I mean do we have any large opportunity because we are exporting from Europe and I mean there is a time situation everywhere else but because we have a large presence in Europe is that an advantage for us to kind of pump a lot of our products into USA from the current 10 crore per quarter revenue?
Dinesh Musalekar
Yeah. So first of all I want to change bit of a perception because this was always reported as a small business. So I will tell you last financial year we did $1,001.2 million. But last to last, last financial year which we closed we increased that to $2 million in USA so there was a 66% growth and for this year from 2 million we are going to be 3.5 to 4. This is the target. So we are doubling million dollars. So there is a steep growth which is planned and we want to see that business growing to about $10 million company very soon.
We are talking about 100 crore company now. Today we are already at 69 million for this quarter. For this quarter we are 70 million INR already for three months. If you want to look at that one separately very soon it will get to a stage where we may have to start putting those numbers in this presentation also. So there’s a lot which is happening and I spent one month in USA now Canada, USA and Mexico to assess what the business opportunities and everything. So I feel that in two, three years time we can put $10 million business there.
We have large customers. Our general manager there has done really good work in last 10 years. So we have a platform which we can leverage to a next level. So this is a work in progress coming to tariff situation. This is also something which we have been exploring internally. Today the tariff from Europe to USA is 15% and the current situation from India to India to USA is 25 plus 25 with lot of unsettling there. So once this whole thing settles down we want to give it a couple of months. I think that it’s my gut feeling all of us have different opinion with so much of dynamics happening by President Trump’s head.
So today it looks like 25 plus 25% but my gut feeling is that India may end up 15% to 25%. That’s my gut feeling. Maybe I, I could be wrong but if it’s, even if it is 25% tariff from India to USA still it is sustainable. We can be very competitive with that tariff also. And then it doesn’t make sense for us to ship it to ship the SKDs to Europe and assemble them there and then ship them from, from Europe because you save 10% on the tariff. But we may spend more than 10% in logistic cost because you have a step, the moment you have a stop shipment it’s more cost.
And also even if we do 20, 30% manufacturing there, the labor cost will compensate. That makes no sense. So if it is like it is, if it is going to remain like 50% as it is then we may look at, you know, doing that. So then we may have some advantage. This is the short term strategy. Long term we can also set up something in Mexico and do there and from there the logistics will be much cheaper across the border. So this is also another. But we need to have, we don’t want to invest in some capex unless we have some volumes to justify.
But us very important market with lot of potential long run. We want to get it to about you know, 100 crore business in three, four years time. So we have, we have a plan and we’re working towards that.
operator
Thank you. Due to time constraint. That was the last question. I now hand the conference over to the management for the closing comments. Over to you sir.
Dinesh Musalekar
Okay, thank you very much to all our investors and also Esga and my team sitting here for all the hard work and also a lot of as lot of this kind of results we could achieve with dedication and work of lot of people. And apart from that I also want to thank for the trust with the investors which we had. We went through some rough period and you guys were with us and supported and we believed in us. So thank you very much for that. With that I would request Mr. Narendra Goliath to give his closing remarks.
Narendra Joharimal Goliya
Thank you everybody. Business is business, things go up and down but you know you have to have long term focus from the management side and long term investment from your side. We know all of you invest because you want your money to grow. And that’s also our intention at the moment, I cannot say that. But if you wait for a few quarters at least this quarter gives you a lot of confidence that your money will grow. Today also there was a circuit on the value and let us see on Monday how the value rises. But for sure it will put a smile on many people’s faces.
So thank you very much for attending this call. Bye bye.
Vishal Kulkarni
Thank you.
operator
Thank you. Management speakers, on behalf of Rishabh Instruments, that concludes this conference. Thank you for joining us and you may now disconnect your lines.