RIR Power Electronics Ltd Q3 FY26 Earnings Analysis

- Revenue grew 36% YoY and 22% sequentially in Q2FY26, indicating strong growth momentum. - Target to achieve ₹800 crore revenue from new businesses and ₹400 crore from existing businesses by 2030-31. - Expect gradual margin improvement supported by cost optimization and better product mix. - Focus on medium and high voltage silicon carbide devices, targeting sectors like Indian Railways, defense, renewables, and grid infrastructure. - EPI wafer revenues targeted at around ₹60 crore next fiscal year, with ~65% exports. - Phase one production expected to start with capacity of 4,000 wafers/month once clean room and reactors are operational (by early 2026). - NSE listing anticipated by March 2026 to broaden institutional participation and enhance visibility. - Long-term growth driven by capacity expansion, technology development, and self-reliance initiatives in power electronics.

- Q2FY26 revenue grew 36% YoY and 22% sequentially, reflecting strong operational momentum. - EBITDA increased 77% YoY with margins expanding by 392 basis points to 17%, driven by better product mix and cost control. - Profit After Tax (PAT) more than doubled YoY with a 105% increase; PAT margin improved by 400 basis points to 11.97%. - EPS for Q2FY26 rose to 0.47 from 0.21 in the corresponding period last year. - Management expects gradual margin improvement in coming quarters supported by cost optimization and stronger demand across sectors. - Revenue guidance ambitious, targeting ₹800 crore from new businesses and ₹400 crore from existing ones by 2030-31, subject to external factors. - Focus on medium and high power silicon carbide devices expected to drive sustainable earnings growth. - NSE listing planned by March 2026 to enhance visibility and institutional participation, potentially supporting future growth.

- Total planned capex is ₹618 crore divided into three parts: epitaxy (EPI), device fabrication, and packaging. - Phase 1 (EPI and packaging) capex around ₹225 crore; 50% grant expected from Odisha government (~₹110-115 crore). - Phase 1 funding partly done via preferential issue of ₹85 crore and debt of ₹30 crore planned. - Phase 2 capex around ₹400 crore; ₹200 crore grant expected from Odisha government; looking to raise ₹100 crore debt and ₹120 crore equity. - Equipment orders require 30% advance; lead time for advanced equipment is about 1.5 to 2 years. - Strategic investors and FIIs are being pursued; discussions are ongoing but no names disclosed yet. - NSE listing process underway, expected by 31st March 2026 or earlier, likely to enhance institutional participation. - Focus on leveraging grants, debt, equity to fund the phases, enabling full capacity and growth.

- For Phase One (capex ~225 crores): - 50% grant from Odisha government (~110-115 crores) - Preferential equity issue completed (85 crores) - Looking to raise debt (~30 crores) to cover remaining funds - For Phase Two (capex ~400 crores): - Expected 200 crores grant from Odisha government - Plans to raise debt (~100 crores) - Plans to raise equity (~120 crores) - Debt negotiations ongoing with two banks to get best terms; finalization expected by end November or mid-December 2025 - Discussions underway with strategic investors including FIIs for equity infusion; no names disclosed yet but expected to add credibility and boost valuation - NSE listing process underway; expected completion by March 31, 2026 or earlier

- The transcript does not explicitly mention the current or expected order book or pending orders as a specific figure. - However, it highlights ongoing strong demand across sectors like industrial processes, renewables, railways, power infrastructure, and defense. - 10,000 silicon carbide devices were delivered to the Indian Navy in the recent quarter, indicating active orders and execution. - The company is progressing steadily with project readiness and talent buildup for its 618 crore INR Silicon Carbide Ecosystem facility. - Phase one of the manufacturing facility expects employment of 300-400 people eventually, reflecting a scaling order pipeline. - The focus is on fulfilling demand through both in-house manufacturing and contract manufacturing via a Taiwan facility. - Overall, the company expects strong growth momentum and increasing orders supported by infrastructure investments and domestic electronics manufacturing growth.