Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects strong growth with an aspiration to achieve double the market growth, targeting 2x the market growth annually. Market growth is projected between 6% and 9% for the year, with the company aiming for double-digit growth and over 11% growth excluding large project deals. EBITDA margins experienced expansion to 3.5% in the recent quarter but long-term sustainable margins are expected in the 2.7% to 2.8% range. PAT margins also improved by 70 basis points, indicating profitability growth alongside revenue. The quick commerce segment is expected to more than double in bus

Any current/future new fundraising through debt or equity?

The transcript does not mention any current or planned fundraising through debt or equity. Gross debt as of June 30 is INR 1,190 crores, with net debt almost the same, but no reference to new borrowings or planned debt issuance. Interest cost increased due to higher working capital investment but no indication of raising new capital. Management discusses working capital and operational efficiencies but no mention of equity fundraising. Overall, no information on future debt or equity fundraising initiatives is provided in the call.

Any current/future capex/capital investment/strategic investment?

The company completed a 51% sale of stake in its subsidiary ZNet Technologies as part of a strategic portfolio realignment after not achieving profitability over 4-5 years. Despite exiting this cloud investment, the company continues to explore and learn how to expand in the cloud and software business sectors. There are no specific mentions of new or upcoming capital expenditure (capex) or large-scale strategic investments in the current quarter. The focus is on strengthening existing businesses with selected strategic brand tie-ups (e.g., MSI gaming laptops, Norden networking products, Riell

Future growth expectations in sales/revenue/volumes?

The company expects double-digit growth in sales/revenue, aiming for about 2x the market growth. Market growth projections vary between 6% to 9%; Rashi Peripherals aspires to outperform with growth around 12% to 14% particularly in H2 FY 2026. Q1 showed 11.4% revenue growth excluding large project deals. Quick commerce business is expected to more than double in size within the current year. Embedded vertical segment grew 30% to 38% in Q1 and is expected to continue strong. Surveillance business is in early stages but shows growth potential with 3-digit crore annual revenue anticipated. Large

Current/ Expected Orderbook/ Pending Orders?

No sizable order was executed in Q1, unlike the previous year's large NMDC Yotta order (~INR 1,500 crores). Multiple large and mid-sized deals are in the pipeline for Q2, Q3, and Q4, with a dedicated team evaluating each deal based on ROI. The company is cautiously optimistic, practicing "careful optimism" when considering participation in large data center and AI-related deals. Certain orders like the government's interest in 10,000 GPUs are likely to get finalized within Q2 and will be open for participation after analyzing margins and ROCE. Q1 focus remained on run-rate business due

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Rashi Peripherals LtdQ2 FY25IT - Hardware

Rashi Peripherals Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹781P/E: 12.4Market Cap: ₹3.0K CrSector: IT - Hardware

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

N/A

0 of 2 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company expects double-digit growth in sales/revenue, aiming for about 2x the market growth.
→Market growth projections vary between 6% to 9%; Rashi Peripherals aspires to outperform with growth around 12% to 14% particularly in H2 FY 2026.
→Q1 showed 11.4% revenue growth excluding large project deals.
→Quick commerce business is expected to more than double in size within the current year.
→Embedded vertical segment grew 30% to 38% in Q1 and is expected to continue strong.
→Surveillance business is in early stages but shows growth potential with 3-digit crore annual revenue anticipated.
→Large deal pipeline exists for Q2-Q4, with cautious participation based on ROI and competitive dynamics.
→The Windows refresh cycle in H2 FY 2026 is expected to drive PC demand and positively impact sales growth.
→Cloud and AI business strategies are under review after disinvestment; growth in digital initiatives will continue to be explored.

Margin guidance

Category 3

→The company expects strong growth with an aspiration to achieve double the market growth, targeting 2x the market growth annually.
→Market growth is projected between 6% and 9% for the year, with the company aiming for double-digit growth and over 11% growth excluding large project deals.
→EBITDA margins experienced expansion to 3.5% in the recent quarter but long-term sustainable margins are expected in the 2.7% to 2.8% range.
→PAT margins also improved by 70 basis points, indicating profitability growth alongside revenue.
→The quick commerce segment is expected to more than double in business this year, contributing to growth.
→The embedded vertical segment is growing strongly, with 30%-35% growth reported in Q1 year-on-year.
→A cautious approach is taken on large deals with competitive ROCEs, and selective participation based on margin and ROI assessments.
→Overall, the outlook is optimistic with a focus on operational efficiencies, customer mix, and strategic growth areas such as surveillance and AI-enabled products.

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Fundraise plans

→The transcript does not mention any current or planned fundraising through debt or equity.
→Gross debt as of June 30 is INR 1,190 crores, with net debt almost the same, but no reference to new borrowings or planned debt issuance.
→Interest cost increased due to higher working capital investment but no indication of raising new capital.
→Management discusses working capital and operational efficiencies but no mention of equity fundraising.
→Overall, no information on future debt or equity fundraising initiatives is provided in the call.

Order book

→No sizable order was executed in Q1, unlike the previous year's large NMDC Yotta order (~INR 1,500 crores).
→Multiple large and mid-sized deals are in the pipeline for Q2, Q3, and Q4, with a dedicated team evaluating each deal based on ROI.
→The company is cautiously optimistic, practicing "careful optimism" when considering participation in large data center and AI-related deals.
→Certain orders like the government's interest in 10,000 GPUs are likely to get finalized within Q2 and will be open for participation after analyzing margins and ROCE.
→Q1 focus remained on run-rate business due to no large deals, but there are multiple opportunities available across the country for large orders.
→Payment collections from previous large deals (Tamil Nadu and Yotta) are mostly complete, aiding working capital normalization.

Capex plans

→The company completed a 51% sale of stake in its subsidiary ZNet Technologies as part of a strategic portfolio realignment after not achieving profitability over 4-5 years.
→Despite exiting this cloud investment, the company continues to explore and learn how to expand in the cloud and software business sectors.
→There are no specific mentions of new or upcoming capital expenditure (capex) or large-scale strategic investments in the current quarter.
→The focus is on strengthening existing businesses with selected strategic brand tie-ups (e.g., MSI gaming laptops, Norden networking products, Riello UPS inverters, ALOGIC accessories) to complement existing offerings rather than large capex.
→The company is also emphasizing operational excellence and cost management to improve EBITDA margins.
→Potential investments may be evaluated selectively in large deals or new verticals such as quick commerce and surveillance, but no concrete capex plans are disclosed.

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