This article first appeared on GuruFocus .
Release Date: May 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Rashi Peripherals Ltd ( NSE:RPTECH ) reported a 51% year-on-year increase in revenue for Q4 FY26, reaching INR 4,489 crores.
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The company achieved a 65% year-on-year growth in profit after tax, with PAT margins at 1.93%.
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Rashi Peripherals Ltd ( NSE:RPTECH ) has a strong distribution network with 55 city branch offices and over 10,000 customers across 700 towns in India.
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The company is expanding into high-margin and high-growth verticals, including AI solutions and semiconductor ecosystems.
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Rashi Peripherals Ltd ( NSE:RPTECH ) has been recognized as a great place to work for the fifth consecutive time, highlighting its strong workplace culture.
Negative Points
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The company anticipates a potential temporary dip of 5 to 10% in PC shipments in 2026 due to component cost adjustments.
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Despite the growth in the semiconductor business, its impact on the overall top-line and bottom-line is expected to be significant only in a few years.
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The company faces challenges in maintaining inventory days due to high growth rates and limited impact from Make in India initiatives.
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There is a potential for consumer demand softness in H2 FY27 due to affordability issues as laptop prices continue to rise.
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The margins in the project business, such as data center deals, are lower and capital-intensive, which could impact overall profitability.
Q & A Highlights
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Q: How much of the top-line growth was driven by pricing versus volume, and what is the expected normalized growth for FY27 onwards? Additionally, when will the semiconductor and AI-led business meaningfully impact margins? A: The price increase impact was significant in the second half of the financial year, contributing to about 20-22% growth. Rashi Peripherals aims to maintain a 20% CAGR, consistent with past performance. The semiconductor business grew by 131% year-on-year, but its meaningful impact on margins is still a few years away due to the current scale.
Q: What defines an AI PC, and how is the PC refresh cycle affected by price hikes? A: An AI PC is identified by having an NPU or high-end processors with GPUs. Currently, 25% of PCs sold are AI PCs, and this is expected to grow. The refresh cycle was initially delayed due to price hikes, but now companies are realizing the cost of delaying purchases, leading to a reversal in the trend.
Q: How is the LIT segment performing, and what are the expectations for its growth and margins? A: The LIT segment grew by 24% year-on-year, while the PES category grew by 37%. LIT contributes 42% to the business, and while it offers better gross margins, the PES category is expected to continue its growth momentum due to PC refresh cycles and price increases.
Q: What is the strategy for participating in large data center deals, and how does it affect capital allocation? A: Rashi Peripherals has the expertise to execute large AI data center projects and is actively participating in discussions for future projects. The company will selectively pursue projects based on ROI without compromising its regular business growth of 15-20%.
Q: How does the partnership with SP Finserv impact working capital, and who bears the credit risk? A: The SP Finserv partnership is a channel finance program that does not impact Rashi Peripherals' working capital or credit risk. The funding cost is borne by channel partners, and there is no recourse to Rashi Peripherals.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
