RIR Power Electronics LtdQ3 FY26
RIR Power Electronics Ltd Q3 FY26 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹158P/E: 148.7Market Cap: ₹1.4K CrSector: Electrical Equipment
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →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.
Margin guidance
Category 3- →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.
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Fundraise plans
Yes- →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
Order book
- →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.
Capex plans
Yes- →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.
How does RIR Power Electronics Ltd rank vs peers in Electrical Equipment?
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