Financial Performance Highlights
Rishabh Instruments Limited delivered exceptional financial performance in FY 2025-26 with consolidated PAT surging 292% YoY to ₹823 million. Revenue from operations grew 7.6% to ₹7,751 million while PAT margin expanded 770 bps to 10.6%. The company achieved significant margin improvement with gross margin expanding 390 bps to 62.1% and EBITDA margin expanding 960 bps to 16.3%. ROCE improved 950 bps to 15.2% while the debt-equity ratio improved to 0.11x, resulting in a net cash position of ₹158.67 million compared to net debt of ₹96.93 million in FY25.
Segment Performance and Operational Highlights
The Electrical and Electronic Instruments (EEI) segment grew 17.5% YoY to ₹5,369 million with adjusted EBITDA margin expanding 750 bps to 24.8%. The High Pressure Die Casting (HPDC) segment showed remarkable turnaround with EBITDA of ₹33 million compared to loss of ₹150 million in FY25, improving margins from -5.7% to 1.4%. The company secured a €5 million contract in Germany's energy sector through Lumel SA and a large-scale monitoring project for a Fortune India 500 data center company. Manufacturing expansion at Nashik facility is nearing completion with two new buildings that will more than double instrumentation and electronics production capacity.
Capital Structure and Corporate Actions
The company issued 138,589 equity shares under ESOP Plan 2022, increasing paid-up capital to ₹385.46 million. ESOP expenses totaled ₹31.20 million with 324,589 options exercised during the year. The board recommended a final dividend of ₹2 per equity share, subject to shareholder approval at the AGM scheduled for July 31, 2026. The company pledged assets worth ₹1,657.92 million as security for borrowings, including inventories (₹804.20 million), trade receivables (₹390.27 million), and property, plant & equipment (₹261.59 million).
Accounting and Regulatory Compliance
The company adopted new Ind AS amendments effective April 1, 2025, including classification of liabilities and lack of exchangeability requirements. Implementation of new Labor Codes resulted in incremental expense of ₹24.27 million for gratuity past service cost and ₹2.13 million for leave encashment. The annual report includes compliance with SEBI Regulation 34, audited financial statements, and detailed disclosures on business segments, governance, and ESG initiatives. Contingent liabilities stood at ₹78.15 million, including a ₹65.80 million legal claim from Ambit Energy Private Limited.
Subsidiary Performance and M&A Activity
The group completed purchase price allocation for MICROSYS acquisition, resulting in final goodwill recognition of ₹38.35 million. Subsidiary performance showed Lumel Spółka Akcyjna contributing 24.61% of net assets and 49.28% of profit, while Lumel Alucast contributed 27.37% of net assets but reported (5.06%) loss. Investments in subsidiaries stood at ₹946.53 million with ₹2.85 million impairment recognized on Energy Solutions Labs Private Limited. The company maintains 8 R&D centers across India, Poland and China with 2 global patents and 3 design registrations.
Corporate Governance and AGM Matters
The board comprises 7 directors including 1 executive chairman, 1 whole-time director, and 5 non-executive independent directors. The AGM agenda includes re-appointment of Mr. Narendra Goliya and Mr. Dineshkumar Musalekar (whose designation changes from Whole-Time Director to Managing Director) with revised remuneration of ₹14 million annual salary plus additional EUR compensation. CSR spending exceeded requirements at ₹7.53 million focused on healthcare, women empowerment, and education. The company received credit rating upgrades from CRISIL to BBB+/Stable for long-term debt and A2 for short-term facilities.