RIR Power Electronics Ltd (RIR) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Veritas Reputation): Ladies and gentlemen, good day, and welcome to the RIR Power Electronics Limited Q2 FY '27 earnings conference call, hosted by Veritas Reputation. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Abhishek Savant from Veritas Reputation. Thank you, and over to you.
Abhishek Savant (Veritas Reputation): Uh-huh. Yes. Thank you, and good evening e- everyone. On behalf of RIR Power Electronics, I extend a warm welcome to all participants joining us for the Q7 FY '27 earnings conference call. We appreciate your time and interest in joining us today to discuss the company's performance for the quarter ended September 30, 2026. We truly value your continued interest and support. As you're aware, the financial results for the quarter have already been disclosed to the stock exchanges and are also available on our
Abhishek Savant (Veritas Reputation): Right. Accordingly, today's session is designed to provide deeper insights into our operational progress, industry outlook, and the company's long-term value creation journey. Following the opening remarks by our senior management, we will open the floor for a quick Q&A session. Kindly request you to keep your questions concise and relevant to allow a broader participation. Before we begin, I would like to remind you that some of the statements made in today's discussion may be forward-looking in nature. They are based on the company's current expectations and subject to various risks and uncertainties that could cause actual results and outcomes to differ materially. Joining us on the call today are Dr. Harshad Mehta, Non-Executive Chairman, Mr. N. Ramesh Kumar, Managing Director and Chief Executive Officer, and Mr. Ankit Shah, Chief Financial Officer. With that, I would now like to hand over the call to our Managing Director and Chief Executive Officer Mr. Ramesh Kumar for the update on the financial performance and overview. Over to you, sir.
N. Ramesh Kumar (RIR Power Electronics Ltd): Thank you, Abhishek. Good evening, everyone. Once again, I thank you all for joining us today for RIR Power's Q2 FY '27 earnings call. I'm Ramesh Kumar, Managing Director and CEO, and it is my pleasure to walk you through the company's performance for the quarter ended September 30th, 2026, followed by key operational updates and the outlook going forward. On the standalone basis, revenue from operations stood at 33.98 crores compared to 27.16 crores in Q1 FY '27 making a 25.1% sequential quarter-on-quarter growth. While on year-on-year, revenue grew from 25.64 crores to 33.98 crore, reflecting a 32.5% increase. Adjusted operational EBITDA for the quarter is 5.66 crores versus 4.36 crores in Q2 of FY '26, making it to 29.8% year-on-year growth. Adjusted operational EBITDA margin is slightly decreased to 16.6% compared to 17% last year. This slight drop in percentage EBITDA is mainly due to increase in raw material costs by 2.8% due to geopolitical issues as well as we had couple of good events where we are spent some money, that is Semicon India as Transrail and so many things. So, these we're also added some expenses. So, hence that small gap. Profit after tax came in at 4.45 crores as compared to 3.15 crore reported in Q2 FY '26, a 41.2% year-on-year increase. A PAT margin improved from 11.97% in Q2 FY '26 to 12.5%, reflecting a 53 bps expansion. EPS share for Q2 stood at 56 paisa compared to 47 in Q2 FY '26. Now, going to half-yearly performance, on the standalone basis, revenue from operations stood at 61.14 crore compared to 46.66 crores in H1 FY '26, making a 31.1% sequential year-on-year growth. Adjusted operational EBITDA for H1 is at 10.36 crores versus 7.25 crores in H1 FY '26, making it 42.8% year-on-year growth. Adjusted operational EBITDA margin stood at 16.9% versus 15.5% last year.
Abhishek Savant (Veritas Reputation): I'm sorry sir, you were sounding muffled. Sorry to interrupt, sir. You sounded a little muffled. You were sounding a little muffled. Can you just repeat the last line again?
N. Ramesh Kumar (RIR Power Electronics Ltd): Sorry? Okay. So, adjusted operational
N. Ramesh Kumar (RIR Power Electronics Ltd): EBITDA margin stood at 16.9% versus 15.5% last year irrespective of cost increase as well as other factors. Here margins improved by 140 bps over last year level. Profit after tax came at 7.59 crores compared to 4.89 crores reported in H1 FY '26, making it 55.2% year-on-year increase. Year-on-year increase. Liquidity remains sorry, sorry, I I made Order backlog has improved 38.9% from 31st March '26 closing at 17.4 crores. This increase is giving us confidence for our future quarters. So, liquidity remains comfortable and our balance sheet continues to be strengthened. Looking ahead, we continue to see a strong demand momentum across industrial, power and infrastructure segments, and are expected to maintain a healthy growth and profitability trajectory. Now, I would like to also to take you through few important business updates. As we already said about our Odisha plant, the upcoming facility in Odisha, just to repeat for the new people who have joined, the project will be executed in two phases where phase one consists of epitaxy and packaging and phase two is the fabrication. As we all know, cleanroom construction, infrastructure for sourcing the power supply through 33 kV line has already been completed in quarter one this year. Furthermore, this year in quarter in this quarter, we have completed the erection and installation of state-of-the-art silicon carbide epitaxial wafer manufacturing reactors at our facility. This development marks a significant milestone in the company's plan to establish India's first you know, vertically integrated SiC semiconductor manufacturing facility in Odisha, strengthening its commitment to developing advanced semiconductor manufacturing capabilities in our country. cleanliness facility was also witnessed
Abhishek Savant (Veritas Reputation): Sir, sorry, you are sounding muffled again.
N. Ramesh Kumar (RIR Power Electronics Ltd): Okay. We, from the the cleanliness of this facility was also witnessed by dignitaries of the Odisha state government in September this year. Our facility is expected to commence commercial production upon completion of remaining statutory and regulatory formalities. As mentioned, the key equipment required for SiC epitaxial wafer manufacturing process has been installed. Key electrical connection, utilities, and other associated infrastructure are current, and are in progress. The completion of critical infrastructure elements represents an important step towards operationalizing the facility, thereby delivering India's first SiC epitaxial wafers for domestic and global market. Our focus on new product development in the existing business for railways and power sector will continue to sus- will continue to sustain the current growth trajectory. As I said earlier, the problem is now shifted from the market to manufacturing. And because the order backlog is increased almost doubled, so, to ensure on-time delivery without compromising the quality, continuous improvement in plan by identifying the bottlenecks in the in the operations is is being done. Further, the dividend approved by the shareholders in the preceding annual general meeting have been processed and paid to all the shareholders on the record date. So, for your patient listening, and I would answer any questions. Over to Abhishek.
Harshad Mehta (RIR Power Electronics Ltd): Thank you very much. Yes, Abhishek.
Abhishek Savant (Veritas Reputation): Yeah. So, thank you, Mr. Ramesh Kumar, for sharing the summary of our quarterly results and updates and other operational and development matters. I would now like to hand over the call to Dr. Harshad Mehta, our Non-Executive Chairman, for his comments on the results. Over to you, sir, for your comments.
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