Rashi Peripherals Ltd

- Currently, the company is maintaining a comfortable debt-equity ratio of 0.49x. - Future debt usage will be contingent on business capital needs and opportunity justification. - The company has borrowing capacity available to utilize debt if Return on Capital (ROC) and Return on Equity (ROE) justify fund infusion. - CFO mentioned plans to cautiously test debt instruments like debtor factoring after credit rating upgrade to AA-. - No explicit plans for immediate equity fundraising or large new debt issuances were mentioned. - The focus remains on reducing existing debt burden through positive cash flow and improving working capital management. - Any future capital infusion decisions will be driven by business needs and value creation opportunities.

- Rashi Peripherals has expanded its distribution network with the commencement of two new branches in Maharashtra, specifically in Nanded and Baramati, targeting rapid IT consumption growth in these tier-2 towns. - The company continues to invest in strengthening its presence in tier-3 and tier-4 cities as part of its overall expansion strategy. - There are no explicit mentions of new large-scale capital expenditure projects or strategic investments beyond branch expansions up to Q2 FY'26. - Investments in technology infrastructure include continuous upgrades to their SAP HANA and SAP CRM systems, along with Power BI, ensuring a digitized ecosystem for efficient inventory and sales management. - The company is testing debtors factoring (enabled by their upgraded AA- credit rating) and considering optimal financing options for future growth opportunities. - Participation in sector-specific exhibitions like Electronica Embedded Exhibition indicates focus on embedded and semiconductor vertical growth, which could imply future strategic investments, though these are still evolving.

- Core business is expected to grow comfortably at 15% year-on-year (Page 18). - Excluding large project deals, revenue growth was about 20% year-on-year in Q2, and 16% excluding large deals for H1 FY’26 (Pages 5,7). - Over the long term, the company has maintained a CAGR of 20% for the last 20 years and aspires to continue similarly (Page 7). - Unit volume growth was about 16-16.5% year-on-year, with overall market volume growth of 8% (Page 17). - The company is open for new large projects with a strong funnel for Q3 and Q4 (Page 8). - Increased penetration into AI-led and embedded semiconductor businesses is expected to contribute to growth (Pages 4,13). - Expansion into tier 2 and tier 3 markets with new branches to capture additional opportunities (Page 19).

- The company aims to maintain a net margin of around 1.5% for the long term, reflecting steady profitability. - EBITDA margins have shown stability at approximately 2.6%-3%, with operating efficiencies being continuously optimized. - Revenue excluding large project deals is growing at a healthy 20% year-on-year. - Large projects are being approached cautiously, ensuring ROCE and ROE justify capital infusion, which supports margin sustainability. - Adjusted PAT excluding extraordinary items showed growth of 7.4% for the quarter and 9.7% for H1 year-on-year. - ESOP expenses are expected to be around Rs. 72 million per quarter over the next year, slightly diluting EPS but supporting talent retention. - The company remains optimistic on double-digit revenue growth excluding large deals, with embedded and AI-related segments poised for margin improvement and growth. - Cash flow management and working capital control support sustainable profit delivery.

- Rashi Peripherals has a strong funnel of large projects for Q3 and Q4. - The company is open and ready to take up large projects again, after successfully completing previous large deals like the Yotta project. - For the Dell commercial business, which started revenue booking in Q2, substantial execution and growth are expected in Q3 and accelerated growth in Q4. - The enterprise segment, growing at 30% to 50% year-on-year, is a key focus, with SMBs (companies with 100 to 1500 employees) as primary targets. - The company maintains sufficient bandwidth to manage both run-rate business and large project execution simultaneously. - Ongoing capital constraints in data centers mean Rashi is selective in project participation, focusing on deals with justified returns on capital employed (ROCE). - Overall, Rashi's order book reflects robust pipeline and participation across traditional, enterprise, and new business segments.