EEI momentum to drive sustainable growth…
About the stock : Rishabh Instruments Limited is a leading global engineering and energy efficiency solutions provider specializing in the design, development and manufacturing of products that support electrical automation, energy measurement, industrial instrumentation, and precision die-casting.
• Revenue Mix for FY26: Electrical and Electronic instruments (EEI) ~70% and High Pressure Die Castings ~30%.
Q 1F Y2 7 performance : Rishabh Instruments reported Q1FY27 revenue of ₹198.3 crore, up 4.2% YoY, while EBITDA increased 17.3% YoY to ₹33.3 crore, with EBITDA margin improving to 16.8% from 14.9%. PAT was broadly flat at ₹19.4 crore (-1.3% YoY). Revenue growth was supported by Asia (+21.1% YoY) and other markets (+92.3%), partly offset by a 7.9% decline in Europe.
Investment Rationale:
• EEI – led growth provides strong earnings visibility : Rishabh’s EEI business grew 34% YoY to ₹154 crore in Q1FY27, with adjusted EBITDA increasing 69.1% YoY to ₹38.2 crore and margin expanding 515bps to 24.8%. Domestic order bookings increased ~20% YoY, with growth supported by current transformers, energy measurement, data centres, EMS and new products. The company has also expanded its product portfolio, launching ~50 products over the past two years and targeting 15+ new products in FY27, while solar inverter revenue is expected to increase to ₹24–25 crore from ₹8–9 crore last year. Management has retained 20–25% FY27 EEI revenue growth and 20–22% EBITDA margin guidance, providing visibility for sustained high-margin growth.
• Large addressable opportunity with Alucast turnaround providing an additional earnings lever : Rishabh is positioned across structural growth areas such as grid modernization, renewable energy, energy efficiency, industrial automation and AI-driven data centres. The company has already won 4–5 data-centre projects and is quoting for another ~10, while Lumel SA revenue grew 39% YoY and the US business has delivered 30– 50% growth over the past 2–3 years. In parallel, Lumel Alucast revenue declined 41.2% YoY to ₹44 crore in Q1FY27 following the planned exit from low-margin contracts, but management expects adjusted EBITDA break- even by FY27-end as vacant capacity is filled with higher-value orders, with a medium-term pathway to double-digit EBITDA margins. This combination of structural demand opportunities and Alucast turnaround provides scope for both revenue growth and margin-led earnings upside.
Rating and Target Price : We expect Revenue and PAT to grow at 15% and 27% CAGR over FY26-FY28E. We recommend BUY on Rishabh Instruments with a target price of ₹860 per share (based on 25 x FY28E EPS
