Rishabh Instruments reports 162% YoY net profit growth; Check its capex plan

Synopsis: Rishabh Instruments Ltd’s shares rose 8% as Q3FY26 net profit jumped 162% YoY to Rs. 20.5 crore on EBITDA growth of 120% to Rs. 31.4 crore. Capacity expansions and a 1.5 MW solar rooftop support growth and sustainability.

The shares of this company are engaged in building its core competence in manufacturing, design and development of Test and Measuring Instruments and Industrial Control Products are now in the spotlight after it rose by 8% in today’s session following its Q3 result with 162% of net profit growth.

With a market capitalisation of Rs. 1,705 cr, the shares of Rishabh Instruments Ltd were trading at Rs. 443.30 per share, increasing 8% in today’s market session, making a high of Rs. 458.95, up from its previous close of Rs. 424 per share. 

Q3 Results

Quarter-on-Quarter performance

Rishabh Instruments Ltd’s sales declined slightly by 6%, from Rs. 196 crore in Q2FY26 to Rs. 184 crore in Q3FY26. Profitability showed resilience, with EBITDA decreasing by 6% to Rs. 31.4 crore from Rs. 33.4 crore, and net profit dropping by 7% to Rs. 20.5 crore from Rs. 22.1 crore. Consequently, the EPS declined by 10.0%, reaching Rs. 5.19 from Rs. 5.77.

Year-on-Year performance

On a YoY basis, Rishabh Instruments posted modest sales growth of 2%, from Rs. 181 crore in Q3FY25 to Rs. 184 crore in Q3FY26. Profitability surged significantly, with EBITDA rising 120% to Rs. 31.4 crore from Rs. 14.3 crore, net profit jumping 162% YoY to Rs. 20.5 crore from Rs. 7.81 crore, and EPS increasing 137.0% to Rs. 5.19 from Rs. 2.19. This indicates strong margin improvement and efficient cost management despite flat top-line growth.

Capacity Utilisation and Capex Plans

Rishabh’s manufacturing capabilities have steadily expanded, with total installed capacity increasing from 28.9 million units in 2021 to 38.5 million units by 2025. Actual production is also rising, from 13.3 million units in 2021 to an expected 21.6 million units by 2025. This reflects an improvement in capacity utilisation, which was 46.2% in 2021 and 56.1% in 2025.

To support future growth, the company is enhancing its facilities. Construction at the Nasik facility is near completion, which will double its built-up area with two new buildings, which are one five-storey and one seven-storey, equipped with advanced SMT lines, molding machines, and other modern machinery. 

Additionally, a new state-of-the-art SMT line with online AOI and X-ray inspection will be installed in a clean room to boost both capacity and quality of digital products and EMS operations, particularly for CT, APM, shunts, cam switches, tool room, and plastic injection components.

Rishabh Instruments Limited is an engineering company to design and manufactures Global Energy Efficiency Solutions. It is one of the Global leaders in manufacturing & supply of analog panel meters and low voltage current transformers, with 99% of manufacturing done in-house.

The company offers a diversified product portfolio across Electrical and Electronic Instruments (EEI) and High Pressure Die Casting (HPDC), including I/O converters, temperature controllers, temperature and humidity recorders, analog panel meters, current transformers, rotary cam switches, digital multimeters, clamp meters, and insulation testers. 

The company also caters to telecom, semiconductor, pharma, BMS, FMCG, automotive, railway, utilities, petrochemicals, and solar inverter markets, strategically positioning itself for future growth in innovative and high-demand segments. Some of its clients include ABB, AMPTRON, Siemens, L&T Electrical & Automation, and Hitachi Energy etc.

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