This article first appeared on GuruFocus .
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Revenue (Consolidated):INR 5,102 crores, up 61.9% year-on-year.
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EBITDA (Consolidated):INR 173 crores, up 55% year-on-year, with margins at 3.38%.
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Profit After Tax (Consolidated):INR 105 crores, up 69.5% year-on-year, with PAT margin at 2.05%.
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Profit Before Tax (Consolidated):INR 139 crores, up 73% year-on-year, with PBT margin at 2.72%.
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Diluted EPS (Consolidated):INR 15.25.
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Revenue (Standalone):INR 4,832 crores, up 58% year-on-year.
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EBITDA (Standalone):INR 164 crores, up 50% year-on-year, with margins at 3.38%.
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Profit After Tax (Standalone):INR 97 crores, up 65% year-on-year, with PAT margin at 2.01%.
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Profit Before Tax (Standalone):INR 130 crores, up 65% year-on-year, with PBT margin at 2.69%.
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Return on Capital Employed (ROCE):Approximately 19.5%, the highest annualized since listing.
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Return on Equity (ROE):Approximately 19.8%, the highest annualized since listing.
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Working Capital Days:Tightened to 56 days, with inventory days at 55, debtor days at 41, and creditor days at 40.
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Store/Branch Expansion:Opened two new branches in Udaipur and Dhule.
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Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Q & A Highlights
Q: Can you provide a breakdown of the 62% year-on-year revenue growth in terms of volume, price, and market share gains? What is the outlook for Q2? A: Himanshu Kumar Shah (CFO) explained that of the ~60% growth, 30-35% came from price increases, 5-10% from new products/brands, and 20-25% from increased quantity. He noted that ~10% of the business is attributed to improved market share due to Rashi's wide reach and portfolio. For Q2, the company expects a similar trend to continue, though the pace of price increases is expected to halve, which may slightly dampen the growth rate.
Q: What is the strategic rationale behind the acquisition of VDA Info Solutions and the joint venture with Restar Corporation? How will these contribute to revenue? A: Rajesh Goenka (CEO) stated that the VDA acquisition (67% stake) is strategic, aimed at improving capabilities in design, pre-sales, post-sales, and managed services, moving Rashi up the value chain. VDA did INR850 crores in revenue last fiscal year. Regarding the Restar JV (74% Rashi, 26% Restar), it will focus on advanced image sensing solutions for industrial and automotive applications, providing access to new products, Japanese manufacturers, and design expertise. The CFO added that the JV targets over $100 million in revenue within three years.
Q: How is the current demand environment in India different from the rest of the world, and how sustainable is the growth? A: Rajesh Goenka (CEO) attributed India's stronger demand to the robust economic situation, high focus on digitization, and emphasis on education. He noted that India is almost immune to global shocks. While third-party reports indicate a ~10% reduction in unit market size, rising prices (especially for memory, hard drives, and CPUs) are offsetting the volume decline. The price uptrend is expected to continue through the fiscal year, though the trajectory may slow.
Q: Can you provide a split between consumer and commercial segments? How is the consumer segment reacting to higher prices? A: Rajesh Goenka (CEO) stated that Rashi is a B2B company, but estimates that 30-35% of the business is consumer-centric, with the balance 60-65% being commercial (split between SMB and enterprise). He noted a slowdown in the consumer segment due to affordability, as laptop prices have doubled year-on-year. However, commercial customers have no option but to buy and are even preponing purchases to mitigate expected price gains.
Q: What is the current inventory situation at Rashi and at the channel partner level? Is there a shortage of laptops? A: Rajesh Goenka (CEO) clarified that Rashi's own inventory days are marginally declining relative to sales. However, there is a build-up of inventory at the T2 partner level as they are holding stock to earn double-digit margins in a rising price environment. He acknowledged a general shortage, particularly for entry-level laptops (~50% shortage), but noted that medium and premium notebooks are available if one accepts the price. This is not a major concern given the strong demand.
Q: What is the revenue contribution from the new Dell commercial business? A: Rajesh Goenka (CEO) confirmed that roughly 5% of the business in the past quarter came from the new Dell commercial business, and the company is above its internal target for FY27 regarding Dell.
Q: How is Rashi approaching large AI data center deals, and what is the trade-off with the core run-rate business? A: Rajesh Goenka (CEO) explained that while Rashi has the credentials to execute large AI data center projects, the company prioritized the run-rate business in Q1 due to its higher margins and lower working capital intensity. The company is present in smaller components of these deals (INR20-70 crores) and can scale up participation in the JFM quarter if it decides to, given the strong pipeline of projects.
Q: Why did the gross margin decline slightly this quarter? A: Rajesh Goenka (CEO) attributed the gross margin decline to a change in product mix, with the PES segment (comparatively lower margin) increasing its share. Additionally, a subsidiary hived off in Q1 last year had impacted the comparison. He clarified that the margins are normal for the industry and the product mix achieved.
Q: What is the outlook for FY28, given the strong tailwinds in FY27? Will growth be sustainable? A: Himanshu Kumar Shah (CFO) reiterated the company's 20% CAGR over the last 20 years despite industry ups and downs. He emphasized that the VDA acquisition and Restar JV are long-term strategies for sustained top-line and bottom-line growth. The management is focused on taking advantage of the current situation while ensuring sustained growth in the coming years.
Q: What is the status of the contingent liabilities related to GST matters? A: Rajesh Goenka (CEO) explained that these are reconciliatory show-cause notices, which are prudently shown as contingent liabilities per accounting guidelines. Historically, such notices have been closed for less than 1% of the total liability demanded. The company submits reconciliations to authorities, and no significant liability has been incurred historically.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
