Rishabh Instruments Ltd (NSE: RISHABH) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Narendra Joharimal Goliya — Executive Chairman
Dinesh Musalekar — Whole Time Director
Vishal Kulkarni — Chief Financial Officer
Analysts:
Unidentified Participant
Kartik Giri — Analyst
Kiran Dhanwada — Analyst
Zaki Nasir — Analyst
Ankit Gupta — Analyst
Madhur Rathi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome. To Rishabh Instrument Limited Q3 and 9 month FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all possible 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 the conference call, please signal an operator by pressing Star then see you on a Dashton phone.
Please note that this conference is being recorded. I now have the conference over to Mr. Narendra Golia, promoter and Executive Chairman for his opening remarks. Thank you. And over to you sir.
Narendra Joharimal Goliya — Executive Chairman
Thank you. Good afternoon everybody. Thank you for joining the Q3FY26 earnings conference call of Rishabh Instruments Limited. Joining me today will be Dinesh Muslekar, full time Director. He’s at the moment in Poland but he will join this call. Vishal Kulkarni is the Chief Financial Officer who will also join Nishant Dudoria, additional GM Strategy, Finance and Public Relations. And we have representatives from sga, our Investor Relations advisors. Our financial results and investor presentation have been released to the stock exchanges yesterday and uploaded on the company’s website. We trust you all had an opportunity to review them and make up your questions.
I will begin with a brief overview of the industry and policy landscape, strategic perspective on recent developments. Thereafter, Dinesh will walk you through the operational and financial performance for the quarter. Over the past few days, three important policy milestones have been announced. The conclusion of the India European Union Free Trade Agreement, the Union Budget and the advancement of the India US Trade Arrangement. Collectively, these developments are positive for India’s manufacturing and export ecosystem over the medium to long term. Especially for companies like Rishabh. These policy developments strengthen the manufacturing sources and export market environment. It will improve trade access to the EU US and enhance export competitiveness and create demand visibility while reinforcing India’s manufacturing economics and supply chain efficiencies.
Collectively, these are structural tailwinds that will support sustainable growth, margin expansion and geographic diversification. It will position Rishabh as a creditable India based manufacturing partner, enabling deeper customer relationships and enduring long term progress in the EU and the US markets. Moving towards the Union budget, the government has reiterated its focus on SMEs, labor intensive manufacturing, access to credit and technology adoption aligned with the Vixit Bharat and Atmanirbhar Bharat vision. A key highlight was the proposed ISM 2.0 program for electronic components with an outlay of 40,000 crores, significantly higher than the earlier scheme. This provides strong policy support for electronics manufacturing and allied infrastructure creating a favorable background for long term growth initiatives such as enhanced support for electronic components and manufacturing infrastructure.
Where we fall, improve the supply chain depth, lower input costs over time and encourage localization. Directly supporting Rishabh’s manufacturing led growth strategy. You know, Rishabh is exactly in this space. Together with these measures, strengthen the operating environment, improve cost competitiveness and create long term demand opportunities across energy efficiency measurement and power related segments. We are in energy efficient, we do a lot of work and obviously this helps us on the India US trade developments. The proposed reduction in reciprocal tariffs from 25% to 18% actually from 15 to 18, but 25 was only because of the sanctions they put because we were buying oil from Russia.
But still 18% I think is one of the lowest tariffs they have put on anybody which is still higher than what it was originally, let’s say a couple of years back. But it is one of the lowest tariffs that they are given to any country in the world. So for the reduction from 25 to 18 is a meaningful positive for export oriented manufacturers. This agreement helps us to reduce trade friction and encourages Indian goods. With our established presence in the US through our fully owned subsidiary with the office in Atlanta, we are well positioned to capture incremental demand and scale our export led growth.
Now with the new trade agreements in place, we believe the policy development should create a supportive environment for electronics and engineering goods. It is expected to benefit and create a favorable environment for us over the long term. From long term growth and strategic expansion standpoint, we have also been consciously diversifying our geographic exposure with increasing focus on Africa, the Middle east and other emerging markets where investments in energy infrastructure and industrial capacity remain structurally strong. We are steadily building presence and partnerships in these regions which we believe will become important growth drivers for Rishabh over time.
With all this strategy in place, we continue to deliver solid growth on a quarter to quarter basis and we have achieved annual guidance within nine months. This is remarkable by our team that what we had guided we will do in 12 months we have done in less than nine months. Looking ahead, we are targeting adjusted EBITDA to reach about 115 to 120 crores by the end of financial year 26. Much more than what we committed at the beginning of this financial year. This result is supported by our continued focus on cost optimization, operational efficiencies and margin improvement through an optimal product mix.
We believe these initiatives position us to sustain profitability and growth momentum into the coming FY27. With this, I will now hand over to Dinesh who will walk you through the operational and financial performance for the quarter in detail.
Dinesh Musalekar — Whole Time Director
Thank you sir. Good afternoon and yeah, good afternoon ladies and gentlemen. At the outset I’m pleased to share that our consolidated revenue has grow has grown by 1.3% in Q3 FY26 and 7% in nine months of FY26 on a year on year basis. This performance was supported by healthy order inflow, particularly in the electrical and electronic instrumentation segment. And during this period margin strengthened and profitability improved driven by better raw material sourcing, enhanced operational efficiencies and a more favorable product mix. And also I’m very pleased to inform, as Mr. Goliath said, for the nine month period our consolidated adjusted EBITDA stood at 100.9 crores, already achieving the guidelines within nine months of FY26 which we had outlined at the beginning of this year.
For the whole year we are confident of achieving consolidated adjusted EBITDA of 115 to 120 crore by end of financial year 26 based on our current trajectory and execution plans. As Mr. Gorya also highlighted this already and we assume that the business conditions are good, supportive and going in a good direction with all the policy changes which have been listed by Mr. Golia. We continue to focus on disciplined execution and consistent performance delivery. While revenues in the quarter were below our internal expectations, I would like to highlight the efforts of our team in cost optimization processes and deliver a strong margin performance.
Our leadership team, including recent additions, have been driving focused cost optimization and efficiency initiatives which enabled margin to grow faster than revenues. This reflects the progress we have made in strengthening operational discipline and applying learning from the past challenges. And all these initiatives are sustainable over a longer period of time. For the past six quarters we have seen consistent improvement in margins across both consolidated and standalone businesses. This has been driven by better planning, tighter cost controls and clear focus on profit maximization and we are committed to sustaining this momentum going forward. Our stand alone business in India, Rishabh, delivered revenue growth of 3.1% in Q3 FY26 and 10.6% in nine months.
FY26 on a year to year basis. Growth was primarily driven by exports supported by deeper customer engagements and successful conversion of new business opportunities across key international markets. Margins strengthened meaningfully during the quarter with ebitda margins at 26.3% representing an improvement of 1,375 basis points over the same period last year. This margin expansion translated into 110% year on year growth in profit after tax, underscoring the impact of cost optimization, improved product mix and operational leverage. We remain confident that this momentum will continue through the remainder of the year supported by Healthy order pipeline. Additionally, recent positive policy development including the India EU Free Trade Agreement, progress on the India US trade arrangements and government strong focus on SM MSMEs and electronics manufacturing provide a favorable backdrop for sustained traction across our core business segments.
At Lumel sa, performance during this quarter was in line with our expectations. Revenues grew by 22.4% year on year in Q3 FY26 reflecting steady execution in electrical business, EBITDA margins remained healthy at 25 level 25% level consistent with our earlier commentary, the European market has been relatively subdued with demand softness across industrial automation and power infrastructure partly due to government spending prioritizing priority shifting towards defence. However, we are now witnessing early signs of gradual pickup and we remain confident that the demand will improve as broader economic activities normalize. Beyond Europe, we are actively expanding our footprints across the Middle East, Africa, South America and other emerging markets where we see significant untapped potential.
A dedicated marketing and business development team is focused on these regions and we believe this geographical diversification will support more balanced and sustainable growth over the medium term. Moving to Segment Performance the electrical and electronics instrumentation segment delivered 17.7% year on year growth which is our main growth driver in our business in Q3 with an adjusted EBITDA margin improving to 26.6% above the benchmark of 25% level for the segment. This performance was driven by strength of our product portfolio, a favorable shift in product mix and sustained operational efficiencies supported by recent product launches and expanding geographic reach.
We remain confident that achieving 15 to achieving 15 to 20% top line growth in this segment by year end. On the other hand, in our high pressure die casting segment, the business is undergoing a deliberate and planned transition where we are gradually reducing our exposure to the automotive segment and increasing our focus on non automotive customers. While revenues declined by 29.1% in Q3 FY26 and we expect some near term softness to continue, our priority here remains on managing the business at EBITDA above plus breakeven levels which we view as a positive outcome during this transition period.
We are also actively pursuing new opportunities to replace capacity vacated from legacy automotive contracts given the longer qualifying cycles in aluminium die casting. This transition takes time but we remain confident that it will lead to a more stable business mix and improved profitability over coming quarters. The quality of the opportunity pipeline, ongoing customer engagements and negotiations remain very very strong and we expect these initiatives to progressively translate into volume and improve the segments profitability over a period of time. On the context on the CAPEX front as communicated earlier, work at our Nashik facilities progressing as planned.
The two new multi storied buildings comprising five and seven storied seven floors respectively are currently under development and nearing completion. These facilities will effectively double our production capacity enhancing our ability to cater to rising export demands and supporting the strong long term growth trajectory of our India operations. In solar business we have sharpened our focus and execution and the segment is witnessing healthy demand. With consistent month on month growth this business is now profitable. As you remember we are making losses on this particular segment over a long period of time. Now we started having profits coming out of this business as well.
This business is now profitable at operating level and we see significant long term potential in this segment. Recently we secured new orders for our single phase inverter models and are actively exploring additional opportunities to expand our market presence. For the current year we may end up with around 10 to 12 crores of revenue here but over the next three years we aim to scale this business meaningfully with long term aspiration of sustainable 20 to 50% growth. Initially the growth will be, you know, in the range of 50 to 100%. Later it will taper down to something like 20 to 50%.
This is what we have in mind and we have business plan in place to expand this. The R and D continues to be a key strategic priority for the group team across Lumel, Rishabh and VND are actively working on multiple product development initiatives and these new products launched are expected to be an important driver for the future growth. We have rolled out a five year strategic roadmap aimed at generating incremental revenue of up to 50% of our current electronic turnover driven entirely by introduction of new product lines over a period of time. We have strong pipeline of products under development with a particular focus on expanding into the medium voltage segment.
While we are well established in low voltage products, we move into medium voltage solutions significantly expands our addressable market. Several products are currently at various stages of development and these initiatives are expected to create new growth avenues while leveraging our existing technological strengths and manufacturing capabilities. With the global environment showing early signs of stabilization supported by recent policy developments such as India US Trade agreements and India EU Free Trade Agreement and the Union Budget’s focus on strengthening the domestic manufacturing ecosystem, we see meaningful growth opportunities ahead. Alongside these opportunities in India, we are actively expanding our geographical footprint across the Middle East, Africa, South America and other emerging markets.
We believe these efforts position Rishabh Instruments for steady and accelerated growth over the medium to long term. To conclude, we remain confident in our strategy, execution capabilities and long term growth perspectives. Our focus on margin discipline, cost optimization and stronger product mix combined with continued investment in R and D capacity expansion and geographical diversification position us as well for a sustainable and profitable growth with a supportive policy environment and improving global condition. We believe Rishabh will well placed to create a long term value for all stakeholders. As always, I extend my sincere appreciation to our employees, customers, partners and shareholders for their continued trust and support.
We look forward to delivering a stronger and promising performance ahead and with this I would like to hand over the floor to Vishal to give you more insights into financial performance of the group.
Vishal Kulkarni — Chief Financial Officer
Thank you sir. Good afternoon all. Let me just give a brief snapshot on the financial performances on a consolidated level. The revenue for quarter three of FY26 stood at rupees 1,836 million delivering a 1.3% year on year growth. For nine months FY26 the revenue stood at rupees 5,703 million reflecting a 7% year on year increase over the previous period. The reported EBITDA for quarter three FY26 stood at rupees 314 million marking 119.5% year on year rise with EBITDA margins at 17.1% which is higher than 920 basis points which is 7.9% in Q3FY25 the consolidated EBITDA margins include provision of rupees 39 million comprising rupees 15 million towards ESOP cost and 24 million due to the implementation of the new labor code bill.
For nine months FY26 the EBITDA stood at rupees 932 million up by 189% year on year with margins improving to 16.3% from 6.1% year on year. The pact for quarter three FY26 stood at rupees 205 million increasing by 162% year on year while PAT for nine months FY26 stood at rupees 622 million, a substantial 318% year on year growth. The standalone performance of Rishabh Instruments during quarter three of FY26 the standalone revenue stood at Rupees 611 million compared to Rupees 592 million in the same quarter last year, which is a 3.1% year on year growth.
For nine months FY26 the revenue stood at Rupees 1,888 million reflecting a 10.6% year on year increase. Over nine months FY25 the company reported a strong improvement in profitability. The reported EBITDA for quarter three of FY26 stood at Rupees 129 million rising by 117.7% year on year with EBITDA margins at 21.1% which is higher by 1109 basis points than quarter three of FY25. It includes provision of Rupees 32 million comprising 8 million towards ESOP cost and 24 million towards new labor bill. For nine months FY26 the reported EBITDA stood at Rupees 443 million, a growth of 181.3% year on year with margins at 23.5% compared to 12.3% in the previous period.
The PAT for quarter three of FY26 stood At Rupees 84 million up by 110.8% year on year, while the path for nine months FY26 was Rupees 309 million, registering 113.1% year on year growth. Now I will. Show the Lumal SA performance. The Lumal SA delivered a steady performance during the quarter and the nine months ended of the year. The quarter three FY26 revenue stood at rupees 631 million reflecting a 22.4% year on year increase, while nine months FY26 revenue was rupees 1701 million showing 8.3% year on year growth. The adjusted EBITDA for quarter three FY26 stood at rupees 169 million up by 44.7% year on year and for nine months FY26 the adjusted EBITDA stood at rupees 370 million registering a 18% year on year growth. The EBITDA margins expanded to 26.7% in quarter three, an improvement of four hundred and twelve basis points, while margins for nine months FY26 were 21.8% higher by one hundred and seventy nine basis points on a year on year basis.
The PAT for quarter three of FY26 was rupees 131 million up by 31.6% year on year. And for nine months FY26 the patch stood at repeat 280 million reflecting a 14.4% year on year growth. Now for Lumal Alukast, the revenue for quarter three FY26 stood at rupees 448 million reflecting a degrowth of 29.1% on a year on year basis. For nine months FY26 the revenue stood at rupees 1,806 million down by 5.5% on a year on year basis. The adjusted EBITDA loss for the quarter narrowed to rupees 16 million from a loss of rupees 23 million in the same period last year.
For nine months FY26 the adjusted EBITDA turned positive to Rs. 64 million compared to a loss of rupees 151 million in previous period. The adjusted EBITDA margin stood at 3.5% for the nine months FY26. The PAT for quarter three FY26 remained negative at rupees 28 million compared to a loss of rupee 42 million in previous period. For nine months FY26 the PAT stood positive at rupees 14 million a strong improvement from the loss of rupees 180 million in nine months FY25. On the consolidated level we remain net debt free with a strong balance sheet. The net cash and cash equivalents as on 31st December 25th stand at Rupees 1230 million.
With this I shall now leave the floor open for Q and A. Thank you.
Dinesh Musalekar — Whole Time Director
Yeah. Before. Before we start the questions I want to just make one comment at this point of time. So you know as you are all investors. The level of EBITDA and pat we have are the same which we had in the past when. Before all these automotive crisis happened and when the share valuation was around 600 rupees. So just. Just a. Just an observation and a point which I wanted to make before we start taking the questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may please on the touchdown telephone. If you wish to remove yourself from question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, wait for a moment while the question queue assembles. The first question is from the line of Katik Gulri from Shublab Research. Please go ahead.
Kartik Giri
Hi team. Greetings. I hope I’m audible. I have two questions before I join that the queue Mr. Muslekar about aluminum die casting. So how further low this top line can go, you know, before improving will you be able to help us with some soft guidance H1 27 or H2 FY27 when we’ll again start seeing growth from the Current level of 45 crore Top line in aluminum die casting business and probably better margins also.
Dinesh Musalekar
So as we, you know in this financial year as we spoke before also H1 we still had these automotive clients which were giving us some volume but we had made some correction to their prices in order to have an agreement that until they phase out and all this phase out is unfortunately happened to China nothing has happened in, in, in Europe. So this was a phase out. Now to fill in that we. There’s a very strong engagement with the market both you know, non automotive mostly and also with automotive where we want to you know really look at non, non electrical kind of parts etc.
So this is, there’s a lot of things which are happening there. We are where we are working on three, four big contracts and many, many smaller contracts which are there. But by virtue of the nature it is going to take some time. At the same time if you remember last year we, we had announced that with companies like Mr. Which are into high voltage electrical side of the business and they also need aluminium car. So those projects are launching in, but they are launching in but at the same time we’re losing, we are, we are tapering this, you know, automotive products also.
So in terms of guideline I would say compared to you know about 200 crores, close to 200 crores which we may make this year, next, next coming financier. I can see a dip of about 50 to 60 crores happening there. But what we have done is we have substantially you know taken the cost out of our business in terms of wherever we could optimize the people processes and lot of things we have done and reducing the number of ships and many operational decisions we have taken to reduce that. So for the next year our aim is to keep the, you know, of course there will be a degrowth for one full financial year.
If you look at there can be some upside in the fourth quarter but we don’t see the visibility now. But during this period our target is to keep the ebitda between around 5%. So that’s what we are targeting and after that it will grow because I’m sure that these negotiations which are going on, those things will materialize and we’ll go ahead and also this concept of last man Standing in the line because many, many companies have folded or consolidation has taken place and such things are happening. So that should give us some impetus. And only thing is because tier one, tier two, tier three, all this at this level business is shifted to China on the automotive side.
So that’s, that’s really has hurt us and non automotive it takes time because the volumes are not something of the size and volume of, you know, automotive. So I would say it will take another 3, 4/4 to get to growth trajectory of where we are in terms of top line, bottom line. We, that’s one something which we are controlling so that this doesn’t be a bleed on our electronic business where we are confident of growing 20 to 25% with a healthy EBITDA of 20 to 25% which we have spoken and we are delivering that more or less.
Kartik Giri
So you’re saying probably 5% EBITDA with a little degrowth in the top line in FY27 also.
Dinesh Musalekar
Yes, yes, yes. For the. I mean we can, if we, if we get some. The thing is the launch of this product, you know, launch of the. Even if we sign a contract will launch itself will take you know, six months to one year. That’s, that’s the problem. Whatever we signed last year also they are launching now but they are not as big as the replacement for what we lost.
Kartik Giri
Understandable, understandable. D. The second question is on India business growth. You know I understand our overseas electronics business has grown but India business probably is flattish this flattish this quarter. 59 crore in last year, similar quarter and 61 crores this quarter. So what is the reason behind it. And how soon do you foresee it going in an arena where you know, the power equipment and the segment is growing at a very healthy pace in India. What is the reason for us being flattish?
Dinesh Musalekar
See it’s, it’s because our business is also very much scattered and some of the businesses which come in this are also a project type in nature. So we, we had not so good quarters first and second. Third quarter is good. Fourth also is looking promising. So it is coming up. So that’s a good news because some of the projects, we lost some of the projects but we are regaining those. So that’s one side of it. And then what we are really looking at for the next year is there are new opportunities in India which will be coming out of our.
The product expansion. Like for example CAM Switch is a product line which we are small. We have focused the growth and we started signing more contracts on that That’s a product which will go in every control panel. So that’s one product line. Solar was something which was not really happening so much and we are, we are about to sign some big contracts there. So that should get us some real good growth and test and measurement. TMI instruments was something which were also driven by some projects. So there’s a very healthy strong pipeline. I’m not worried about India because you know few quarters here and there but there’s a strong, the economy is growing, the industry is growing.
We have a lot of opportunities, deep good project pipeline we have and we will, we will expand and we are growing that we are not worried about that. So about you know a year before that we had about 20% coming from India market itself. So this year you know there are some contracts, some organic, you know somewhere where we are selling about 7 crores for our customer. It dropped to about 4,5 crores because this product is connected with the season and some particular product we do not sell as much as we. There were some drops in some pockets but overall there’s nothing to worry.
I mean we will jack it up. So 20% is something which for the next year we have planned for India business itself close to 30%. I mean just to give you based on the engagement that we have with the market and the project pipeline we have in India market. So we are really bullish on India market.
Kartik Giri
Understood. Just one last, last update Mr. Muslekhar Nashik when do you expect that Nashik to generate commercial revenues for us? Because it has been there for some time the capex. When do you expect it to generate. Commercial revenue for us?
Dinesh Musalekar
So the buildings are all. Yeah, yeah. H227 it should start being operational. So that particular facility see at the same time that product development part is also happening which is, which is going to be producer. So it’s not that you know, after that one is for the existing business to expand. Second one is to introduce new one. For example in my speech I spoke about medium voltage segment where we want to introduce this medium voltage current transformers, voltage transformers and potential transform pts and all that. So those products are under development. So those product development and the building will be ready and we will start expanding there.
That’s one and solar also we want to grow more so we need space and all of that. So we are also setting up, you know, fully automated production line so that the production efficiencies will be similar or we beat Chinese. That’s the target. If you want to beat them in the market on price and Other things. So that’s what we are doing. So those things will be there in H2, H2 27 that CapEx will be operational.
Kartik Giri
Very helpful. I’ll join back with you. I have more questions. Thanks a lot.
Dinesh Musalekar
Thank you. Thank you.
operator
Thank you. The next question is from the line of TN D from Table 3 capital. Please go ahead.
Kiran Dhanwada
Thank you for the opportunity, sir, and many congratulations on a very good turnaround in almost all aspects of the business. I know the team has worked very hard. Couple of questions sir, if you could give, I mean Europe has grown in nine months 15%. Could you give some color on where the growth has happened? SLA Lumel is about 15% growth. So if you could give some color and how do you see the growth panning out next year? Next year also are you targeting 15% growth or will it be lower or higher given that a lot of industry led shutdowns in Europe?
Dinesh Musalekar
Yeah. So Kiran, thanks for the compliments. And as you know that it’s always mix of, it’s always a team effort. So one thing which we have seen happening, very positive is we are not working like individual teams in different countries. We’re working like a global team. This is something which is big paradigm shift in the, in the, in the company and also we’re increasing the speed in the company and efficiency and more professionalism. All that is happening. So this is all outcome of that. Coming back to your specific question on Lumel essay in, in Europe.
Yeah, in Europe a lot of it’s not only automotive. Other businesses are also going through, taking through at all and in, in 1 km radius from where we are. We know companies making quarter by quarter losses and scaling down their business 30, 50%, all of that. But none of that is going to affect us because we are very confident because of our strategies that we have. So what are the things which are helping us? So it’s a mix of many things here we have our own products which we sell into the market like our power quality analyzers, core products which we sell into the market and then industrial automation is something which is really strong for us.
So a lot of these companies which are in the process of optimizing their efficiency, the energy and everything so we find opportunity to grow in those segments. That’s one part which is really good for us. Then secondly we have other stream of revenues for Lumel sa for example, we also sell radiation monitoring gates. So these are, these are the things which are installed at airports and harbors or metal where, when the, when, when you move a truck between These detectors if there is any radioactive material or nuclear material it detects. So that’s the technology and that the product we have.
So we make projects out of that. Now with all the, you know, you can say it is like dual use product, military and non military kind of product. So with all the tensions going around in Europe so we see some growth coming in that particular product line. So we recently have inquiries to put them into all the scrap ads where the material is coming and going. Then airports we do ports we do. And border checkpoints also they want to do. This is something which is. Which helps us. Of course it’s a core electronics. It’s also helping to find out, you know nuclear or radioactive material.
That’s one then solar installations we do. Then we also had one this big project for two year supply if you remember. 50 crore single project we won from one of the companies from Germany. One year we supplied and this year we have that order already for end of December and then we are already working on the next projects with them. Then we also make a complete product for some of our clients and there are some new projects which are working on. So on the existing market we have kind of more than our own traditional stream of revenue.
All those auxiliaries which will be done through our own setup and our own R and D and manufacturing capabilities are there. This is one. It’s like thinking bit out of the box and doing all those things. And then apart from that we also are expanding our our exports from Lumel SA Poland to other growing economies like in Middle East. We are trying to be very active because Middle east is turning out to be a new AI and innovation center. Lot of investments are happening in Saudi and Middle east and I’ve had many visits to the customers there along with our team and I see a big potential there.
U.S. and Canada is also another thing where all these data centers which are being put so they need lot of products and we are also developing products to suit those particular markets. So some product which we are developing is particularly targeted for AI data centers in USA because the standards are different, the product requirements are different. So we do all that research and then try to do that. So we are trying to do two things basically market expansion and market penetration. Market penetration by adding new products into existing channels that we have and putting our footprints on new markets.
So recently we added boots on the ground in Mexico to support all our group products. USA we added two more very experienced marketing, sales and marketing managers. So we want to expand in that place. So USA also we had in spite of all of that we have 50% growth in US market this year. In spite of all that, what tariff and everything was there. So and then South America is a market, Africa is a market. So all these markets we are looking at and now what we do is we are leveraging on the sales network that our other companies each, each of the companies are having so that you know, we don’t have to really.
Then it becomes much faster than you know, finding putting resources, putting offices, all of that.
Kiran Dhanwada
Got it?
Dinesh Musalekar
Yeah.
Kiran Dhanwada
No, no, thank you so much sir. Then Europe next year also, you’re looking at 15% at least then given the pipeline that you have.
Dinesh Musalekar
Yeah, yeah, yeah, yes,
Kiran Dhanwada
got it, got it. And from a slightly strategic standpoint sir, next year India is going to grow 25, 30% if I heard it correctly. So this year we’ll end up somewhere around 550 to 580 crore revenue. Given how you’re growing, how long do you think it will take for us to go to thousand crore electronics revenue? I’m just talking about electronics. Alukast will come when it comes.
Dinesh Musalekar
Okay, sure, sure. So you know, if aluminum die casting we didn’t have this, we’d have been talking about thousand crores, you know, this year or next year. I was 100% sure about that. So that’s a different story. But it’s good that you want to focus on this. This is what we are also focusing on. So you know average you can, you, you can take 20 to 25% top line growth for the IE business. So I mean you can, you can do your math and that’s when we will reach.
Kiran Dhanwada
Got it. So we are fairly confident of growing 20, 25% in the electronics business.
Dinesh Musalekar
Yeah, I mean we are not talking about this for a year. We are talking about it, you know, perpetual growth. So that’s, I mean that’s kind of a guideline and we want to do. See the thing is that we are not kind of only R and D company or manufacturing company or a trading company. We have, we have got lots of balls to juggle around. So we introduce products, we introduce markets, we introduce a lot of things we can do. So that’s the guideline and we put resources and whatever is needed to achieve those. It could be in terms of new products, it could be in terms of new markets, it could be in terms of you know, many things and some strategic engagements with some companies.
A lot of things are possible.
Kiran Dhanwada
Got it sir. So one quick clarification on Allukas. Did you say next Year we are. Going to do 150, 160 crore revenue. With 4 or 5% EBITDA market. And the reason I’m asking it is we are already at 6 crore EBITDA on Alukast on a 200 to 20 crore revenue base which is already 3% operating margin. So just wanted to understand are we seeing 150, 160 crore revenue next year at 4% EBITDA margin?
Dinesh Musalekar
Yeah. So that these are very lucid numbers, you know that’s a kind of a broader guideline we are taking. We are telling this is what I see now so it can’t be worse than that. So suppose in next because we are, we have been engaged with a lot of people at very, you know, some of them are at advanced stage. So in couple of weeks time if we sign up some contract and then the launch is like in six weeks, six months time. So some numbers will come in Q3 and Q4. So there’s a possibility of going upside also.
But you know like we don’t, we want to be very transparent, very honest with what we see and share that. So today if you ask me, this is what I see and they can be upside based on how the engagements which we are having with some of our customers are going to turn out
Kiran Dhanwada
perfect. Thank you so much. All the best.
Dinesh Musalekar
Thank you. Thank you.
operator
Thank you Ladies and gentlemen in order to ensure that management is able to address questions from all the participants in the conference please limit a question to two questions per participant. Do you have follow up question? We request you to rejoin the queue. The next question is from the line of Zaki Nasir, an individual investor. Please go ahead.
Zaki Nasir
Sir. Can. Am I audible?
Vishal Kulkarni
Yes, yes you are.
Zaki Nasir
Congratulations on superb quarter Goliathi from you I would like to know how, how do you, how do you see Rishabh three years hence in terms of the combination of Alukast and your electronic business how will the data center AI boom in India and your core markets play up on the total top line and you have guided for a EBITDA of 120 crores for the quarter. So is it a measured guidance? Because as I say you will far outperform that. And also your thoughts on dividend payout to shareholders. Sir, thank you.
Narendra Joharimal Goliya
Yeah, no normally see your last question, I’ll answer first, you know.
Can you hear me?
Zaki Nasir
Yes sir.
Narendra Joharimal Goliya
Yeah. So your last question I will answer first that on the dividend payout we haven’t still worked out, we are internally discussing what is in the best interest of the company One is of course growth, expansion and re employing the capital which we we have and one is rewarding the people who have decided to invest in the company. I will give you an answer. Let me say in course of time. I will not give you this answer today. But coming back to your first question, you know that what is the guidance three years down the line, how does it grow? I think Dinesh has answered.
You see a lot of things are happening in the world, you know, so even when we give a guidance, it is subject respect to all the conditions. Now what does U S do again? Does it again impose? Lot of things are coming in the newspaper. I don’t know how much is true, how much is false, but otherwise Dinesh already mentioned that 2530 growth is not a challenge and we are working much more on the bottom line. You know, you guys normally ask about the top line, which is fair enough. But for us what is important is can we compress the buying, can we adjust our mix to be able to generate more margins, can we increase our exports, can we tie up with some OEMs? You know, we already have some very good OEM business and we just tied up a couple of days back which is also going to become a very important part of our business.
So can we get more such people who will ensure that our top, not only top line but bottom line also grows? Dinesh just mentioned to you about the solar inverter. You know, first time solar inverter business will show a green, you know, that means no red margins and no losses. And it took time, it really took time. But the satisfaction is if you see our new solar inverter, not only the looks but the aluminum casing. And we have been one of the first to give a solar inverter in a aluminum casing. And that aluminum casing, the die, the mold itself cost us about a floor and a half for one size.
And now we are trying to duplicate. So a lot of aggressive decisions we are taking. They will give results, but we also have to be careful that we take a decision, we implement it, get results and then we duplicate that effort in the other direction. So going ahead, the electrical business is also going to do well. Everywhere you see railways, power expansion. These are avenues which continue to grow in the traditional Indian environment. But the new avenue solar for sure, we are very confident of the solar business, emi. We are very confident. We are really trying to become more em.
So what you said, you know, 20, 30% will not be a, a challenge, you know, unless some extreme circumstances happen. Yes sir. And Are you underplaying the full year, Avatar? I think Dinerji always outperforms. So I, I guess going by the run rate, it could be more in the range of 140 than the 120crore he has promised. I, I will leave it to your imagination to say, but you know, it’s only two months away when the quarter ends. You know, we already in February, so February, March. Yes, we always try to do better. But at the same time, believe me, so many things are not sure in our business that even if we commit higher, we don’t want to fall flat on our face.
But even I would say agree with you that results will be slightly better than what Dinesh has forecasted. But then it is good for all you know that if we invest with a little pessimistic view and the results are more optimistic, it gives us a lot of satisfaction rather than the other way around, you know, where we project much higher and we miss it by a small margin. None of us feel good. Definitely not the operating team which, you know, work day and night to make sure that we achieve the result this year. You see, what are the margins? You know, they are really, really, you know, effort is speaking out, you know.
And it is so many things. It is not just the product mix, it is not just the cost reduction, it is not just the export growth. It is not customers who are, we know consciously that they are doing well. We try to support not customers who are doing well, but customers whose products give us margin. We focus on them. So all these things together have brought the results. Why would it not happen again? May not be as much as this year. This year is exceptionally good. Next year we may not as exceptionally good this year.
But still the focus will be there on all these things which I mentioned. But when you say not exceptionally good, there would be a certain amount of growth which will happen, sir. No, no, no growth, sure. When I say exceptionally good means what I mean to say that this year the EBITDA margins have grown by a factor, you know, I mean, they’ve just jumped like anything. Can we jump again next year? I would not jump.
Dinesh Musalekar
I think we are talking the same thing. But just to give some perspective. So last year we had aluminium die casting, big losses. So the growth in EBITDA is like from 60, 60 crores maybe is 120 crores. So it will look like double. But that was because we had a big hole of 20 crores coming out of 19 crores coming out of aluminium die casting. We taking that out on the absolute top Line number, what we are talking is like 20, 25% EBITDA for electrical side of the business and top line. 20 to 25% on the top line year on year is what, what we are talking and we are delivering.
And we also have to understand that it’s not an excel projection because in Europe where we have a lot of business, you make a comparative study with other companies. It’s really something, you know, as Kiran was talking about that point before. So the electronics business also in Europe is many, many companies are suffering with losses with drop in top line. So we are doing a lot of things which are out of the box to add more revenue stream to our businesses and that is what is sustaining us. So with all the markets and uncertain is up and down, we are talking about 20, 25% offline growth.
If we do better than that, it’s good for everyone as Mr. Golia said.
Zaki Nasir
Thank you sir and best wishes.
Dinesh Musalekar
Thank you very much.
operator
Thank you.
Vishal Kulkarni
Thank you.
operator
The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead.
Ankit Gupta
Thank you for the opportunity and congratulations for a great set of numbers for third consecutive quarter. Sir, on the, you know, margin side, especially on the EEI segment, Sir, we have seen a significant jump in this, not just in this quarter but for the past nine months. You know, our margins in the segment have jumped from around, you know, 16, 17% to almost 20%, 24% for the nine months and crossing 26% for the Q3. So going ahead, how should we look at the margins and what has been the reason for such a sharp jump in improvement in margins and how sustainable are these?
Dinesh Musalekar
Yeah, yeah. I mean this is something which I try to touch in my speech also. First of all, I would like to very confidently say that these are sustainable margins because these have not come out of any one of event. They have come out of very systematic improvement in many things. So one is sourcing. Sourcing. We went through a whole rehaul of sourcing which we were doing. So we got about 4, 5% squeezed in our raw material purchase prices over this period. So and it’s all sustainable and going forward. This is one. Second one is we introduced lot of automation in our manufacturing processes especially in, in, in Rishabh, India.
So all those things also reduced our cycle time and cost of manufacturing. That is the second thing. Once you do automation, you reduce headcounts and people become more efficient, your rework becomes less, cost of quality goes down. So a lot of these things are done. So that is the second thing. And then the whole operations structure and team is reorganized. We have, we have always had excellent people and we had some gaps where we, we filled in those gaps with new people and all that is going. So that’s, that’s the next thing which I can say.
And we also did some capex in order to reduce the opex. So like for example you keep on doing calibration so you are doing four units at a time. Now you do 40 units at a time calibration. So you expand your calibration stand and it’s more automated. So you, your you know cost on unit will go down. So such many initiatives are taken. So it’s coming because of a lot of these things that’s on the, what we did within the company and outside also we, you know, wherever it is possible we keep on adjusting our prices by 3 to 5% year on year.
So sometimes in some product segments it’s accepted, sometimes it is not accepted. That’s another thing which we do at the product side. And third thing is product development. So when you do a new product and you add some features you have more possibilities to add more margins to that. So from the product development side also again every product we have we have you know like 350 product groups. So many products if you plot them, some of them are at a flag end of the product life cycle, some of them are at initial stage, some of them are at a mid size which is like a cash cow.
So when you are in the initial stage and at the cash cow level so you can have better margins. So this is also, it’s not only product mix, it’s also where the product you are selling is in its product life cycle. So some of the new products which are introducing, if you are at the initial stage or you know maturity stage of those products then you can have more margin. So there is a combination of lot of things. If it was because of one one time event then I would say it is not sustainable because there are so many things which have been improved in many companies and other thing which we said also is optimization of R and D cost.
So RD teams were working in isolation, now they work in one team. So something which is being developed in Poland is not being developed in India. What is developed in Shanghai is not developed here. So the engineers work as a one big global R and D team. So there is some cross functional teams but there’s no duplication of resources. So with the same resources I have I can do more products. So that’s one example and the same thing with sales organization, with the same set of sales engineers I have, I can sell more now because I use the same resources which are spread over the whole world as global sales and marketing resources.
So those are the things which have been done. So the strategic level, many things are done, operation level, many things are, are done. So again, as we said,
Narendra Joharimal Goliya
and these. Are all sustainable, as Denise said, you know, we have developer automation department now that has become instilled, imbibed in our culture. This year they did calibration automation. Next, next year they will do something else. So this year they reduced, let’s say 20 example, you know, 20 people. Next year again another 20 people will be reduced or the productivity will go up. So these are obvious things. But not every company does it. And we are doing it on a sustainable basis. Not only automation, but you know, we have people all over the world now. We have people in Middle east, we have people in Taiwan, we have people in China selling our products now.
They have been trained to sell multi company products. So going ahead, although originally he was, let me say a Lumal person, but going ahead he will not be a Lumal person, he’ll be a Rishabh group person selling whatever comes to his mind or whatever the customer asked for. So such improvements are being done slowly and steadily and they are bringing results.
Ankit Gupta
On the allocast side if you can, you know, you did highlight that next year we’re looking at 5% EBITDA margins with you know, 60, 65 crore reduction in the top line. But if I do, we have some visibility on how, you know, things will look like in FY28, you know, some model visibility and how will our margin shape out? So we were earlier targeting 10% kind of EBITDA margins FY27, but now we are seeing, you know, 5%. So how should we look at things in FY28 for the Lucas business?
Dinesh Musalekar
FY28 we definitely have to come back to what levels we were this year on the top line. Minimum, at the minimum. And double digit EBITDA is what we should be looking at and that is all achievable.
Ankit Gupta
Okay. So worst case, at least 10% EBITDA is what we should look at.
Dinesh Musalekar
Yeah, yeah, yeah, yeah, yeah.
Ankit Gupta
Okay. And we have some visibility in hand for this. Like some non automotive customers.
Dinesh Musalekar
Yeah, yeah. So we have see the engagement with the market is very high. Not only non automotive and automotive also we are engaging, but we are engaging not with EV products. We are engaging with the parts which are more generic for the car. So those kind of Things we are doing so. But we have been very cautious about it. So there are, there are a lot of engagements which are going on and I’m sure we will, we will, we will crack some of them this year and they will materialize in the, you know, 28. Surely they should be delivering.
Ankit Gupta
Okay, okay. Okay. Thank you.
Dinesh Musalekar
Thanks.
operator
Thank you. The next question is from the line of Madurati from Counter Cyclical Investments. Please go ahead.
Madhur Rathi
So, thank you for the opportunity. Sir, I wanted to understand regarding what is the import duty on our products in US and eu Because I read somewhere that there is no import duty in US for the electrical instrumentation product that we currently supply.
Narendra Joharimal Goliya
No, that was the position before all these things happened. But now Trump has put a flat duty of each country for every product. So from India, no product has remained. As far as I know. If I’m wrong, I’ll correct myself. But as far as I understood and I read now, everything which is exported from India will have a 18% duty. Again, as I said in my speech, it is much lower than other countries. But nevertheless, there’s a 18% duty. So those times where the duty was 0% are gone. I think this is correct. But I’m. I’m always open to correcting myself if you give me a better information.
Madhur Rathi
Got it. Also because of the zero tariffs, or have we been able to capture market share from either the Chinese or some other vendors that were currently supplying to this US and EU market?
Narendra Joharimal Goliya
No, no, we had 50%. See, one thing is, of course people change slowly, you know, because it’s all there in the drawings. People are used to it, the terminal configuration, so it doesn’t happen at the speed at which Trump is changing duties, you know, it will take much more time for things to change. But at the same time, let me tell you that the duties they had put on each and every country, of course India had 50%. So to that extent we were at a disadvantage rather than an advantage compared to China or any other country.
And now of course, we are at advantage since but announcement and it will take some time to sing and do.
Dinesh Musalekar
It is not not in action, not in implement. It is not not even. See, this is all. Unfortunately, Trump runs the country and the whole world by Twitter. So tweet. So it is. There is a lot of things to happen between tweet and the reality. So it will take some time to realize that 18%. And there are lots of ifs and buts about, you know, then whether that 18 +25 connected with Russian while purchase is some Something which is very unclear from both the governments. So there are lots of those ifs and buts there. But we, what we can tell you is Even during this 50% tariff regime, we managed it with our customers.
So our SDI USA business, we grew from 2 million dollar last year to we’ll be closing around $3 million this year. 50% growth we did under this service circumstances. Why we, how we managed it because substantial part of it is during this whole tariff issues, when these tariff issues were going on. So we reduced a little bit of a price and also managed relations with our customers. And this is, this is how we have managed. And once these are all corrected, we will, we will, we will go back to those things as Mr. Goliath suggested.
So there is, you know, tariff is like a big snake. There is a head and there is a big tail. There’s a lot of things which are going on in the, in the logistics and in the, in the product implementation drawings. It’s a big thing. So somebody tweets, nothing changes overnight. It has its own inertia to change. So it will take time to have that. But irrespective of that, our US strategy is very clear. We want to grow there very aggressively. We are doing about $3 million this year. Two years ago it was 1 million, now we reached 3.
Now we want to get it to 5 to 10 in few years time. So we have a very aggressive plan for usa. It’s a big market and in spite of whatever tariffs we have or if the tariffs are lower, it will help us definitely. But even if the tariffs are there, we will manage that business to grow there.
Narendra Joharimal Goliya
I’m sure you are reading the newspaper very carefully but read it once again. You know, India has never said that we will stop importing from China oil. But again and again, again. So you know, he just says something and he believes it is the truth. Whereas India doesn’t accept it. So are we going to stop import the duty? These are all question marks which I, I think we have no answers at the moment. Will it happen? Won’t it happen? I have my own personal doubt whether this reduction of duty to 18 will be ever implemented.
But let us wait and watch, you know, let’s not jump the gun, you know.
Madhur Rathi
Got it. And sir, I wanted to understand. Sir, you mentioned that with the new NASA facility will be moving into. Ma’, am, this is my second question. Ma’. Am. So sir, I wanted to understand regarding the solar inverter and the high end EMS segment like laptop pcb, that will be. That we hope to manufacture from the new facility. So, so I understand sir, these products will be much more high volume. So would the margin profile be similar in the 25% range for these products? Or it would be lower, but that will be compensated by higher volumes. So.
Dinesh Musalekar
Yeah, it’s, it’s, it’s. Right, so the, so those, those EMS business and solar business, relatively lower margin businesses. So that’s why when we, even though we have currently 25, 26% EBITDA, when I tell numbers, I’m very careful, I talk about 20%, that 20 to 25% when we say this is a, this is the gap which I am talking about. So they will definitely increase our top line. They will also improve our roce because the volumes are going to be good. But EBITDA as a percentage, absolute numbers, of course they will increase. But EBITDA as a percentage may dilute by few couple of percentage points.
But at the end of the day as investors you will be looking at, you know, absolute bottom line numbers. I mean that’s something which should be mattering. So it’s a mix of things. You are right. That will dilute by a few percent our EBITDA as a percentage of turnover.
Madhur Rathi
Got it. And sir, what is the minimum ROC that we aim for before adding any new products or moving into any new product segment?
Dinesh Musalekar
See this is something which is. Yeah, so this is next third question. But anyway I will try to answer that. So see the company generally we work on, you know, long term midterm basis. So there is always a big investment which happens like this. These buildings are a big investment. So that is not capitalized. So the moment we capitalize them, our ROC numbers will go down. But after that, once we start adding more business coming out of this. So the incremental investment in that will be very small. Some machine, some, you know, production line, some those kind of things.
So they are not really big. So, so the ROC number if you look at it will dip and then it will keep on increasing for next five years and then it will again. Maybe, you know, once we make another investment that will go like a, like a, you know, graph of a hexa blade. So going up and then going down, going up and going down. This is how it is. So but when we make a product development, so when we are looking at a product development, so we do a ROI calculation on the product development.
Normally we look at a product development ROI investment related to that product in the range of two to four years. So some of them are even one year also. So it depends on whether it is expansion of our existing product in the, in the, within the expansion, within the existing product group, we are just adding one more product or altogether new product. So there are costs involved in not only R and D resources, also investments in terms of molds, in terms of calibration equipment, in terms of certifications. So because our products are also sold in US and European market, so getting all those third party lab type test reports, they’re all expensive.
They are, they sometimes run into the, you know, a few crores. So, so those are all the things which we add up and we do it very systematically, very professionally collecting all the global volume, selling price, cost of manufacturing. What is R and D investment? That is roi. What is opportunity cost if we don’t do this product? So this is all, you know, done very, very in a modern management style.
operator
The last question is from the line of Sapphire Capital. Please go ahead.
Unidentified Participant
Hello.
Narendra Joharimal Goliya
Yeah, yeah, go ahead.
Unidentified Participant
Yeah, so I just wanted some clarification. The 25 to 30% growth that you mentioned. So is that on an overall company level basis or just the EI segment?
Dinesh Musalekar
EI segment that was on EI segment. In fact on aluminium die casting we have projecting bit of a drop in, in the top line, sustaining you know, some low profitability. But that numbers which we are seeing is on ei.
Unidentified Participant
Right. So on overall company level, what growth can we see for FY26 and FY27?
Narendra Joharimal Goliya
I would say don’t mix up the two. See aluminum we have given you a specific number and electrical we are giving you a separate number and keep it like that. You know, the, so different margins are so different that when you add it up you really don’t land up coming to any conclusions. So, so do it as two separate businesses which they actually are, you know, and that will give you a better visibility than when you combine the two numbers.
Unidentified Participant
Okay. Okay, thank you so much.
Dinesh Musalekar
Thank you.
operator
Thank you ladies and gentlemen. Due to the time constant, we’ll take this as a last question. I would not have the conference over to the management for closing comments. Over to you, sir.
Dinesh Musalekar
Okay, Gulasab, I think you can, you can conclude with a vote of thanks and yeah, yeah.
Narendra Joharimal Goliya
So thank you everybody for attending this. Call, asking all the questions, taking full. Interest in the, in the conference and trying to understand the future. As we said in the beginning, we try to give you a very correct position. But aluminum business suddenly, you know, two years ago went into a problem because the business in Europe started shifting to India. I hope no such negative things come. In fact Positive things can always also come and we can have much better growth because make in India. Made in India. The friendship which our politicians have with the world is far better than in all the countries have some enemies. I think India buying that, you know, other than Pakistan and maybe Bangladesh, we don’t have any enemies.
So to that extent we have got very good trade relations. And as a company, Risha plus Lumen, we are learning continuously. We are seeing what policies work, which policies don’t work. Obviously we repeat the policies which have worked. We talked about automation, we talked about placing people in the far away countries, recruiting people in Mexico. All these little, little things we are doing and they are producing results and I’m sure going ahead, you know, we have a similar management and similar outlook. Things will only go from good to better in the future. Although we may have some little hiccups here and there, but by and large we don’t accept expect any hiccups in the coming quarters.
Thank you. Thank you.
operator
Thank you on behalf of Dish of Instruments limited that concludes this conference. Please thank you for joining us and you may now disconnect your lines. Thank you.