Rashi Peripherals Limited (RP Tech) is a foundational player in India's Information and Communication Technology (ICT) ecosystem, functioning as a national distributor for global technology brands. With over 36 years of experience, the company has established itself as a critical bridge connecting international technology innovation with nationwide access and adoption. Its core mission is to make IT products available in every one of India's 700+ districts. RP Tech operates a sophisticated multi-channel distribution model, ensuring a comprehensive presence across General Trade, Modern Trade, and E-Commerce platforms. This allows it to serve a diverse customer base, including individual consumers, enterprises, MSMEs, educational institutions, and government bodies.

The company's operational scale is extensive, featuring a pan-India footprint of 55 branches, 70 warehouses, and 50 service centers, enabling it to reach over 700 locations and serve more than 10,000 channel partners and B2B customers. RP Tech's value proposition is not limited to logistics; it actively drives technology adoption through channel training programs, solution demonstrations, and pre-sales support. It also provides end-to-end after-sales services, including warranty management and diagnostics, which builds trust and encourages repeat business. The company boasts long-standing relationships with over 82 global technology brands, such as Intel, NVIDIA, Samsung, LG, and Logitech, acting as a trusted partner for market entry, penetration, and long-term brand scaling in the complex Indian market. The business is structured into two primary segments: Personal Computing, Enterprise and Cloud Solutions (PES) and Lifestyle and IT Essentials (LIT), offering a comprehensive portfolio of products and services.

Official Website: http://www.rptechindia.com/

• Quarterly Performance (Q3-FY26 Consolidated)

• Revenue from Operations: Grew by 42.6% year-over-year (YoY) to INR 40,304 million.

• EBITDA: Increased significantly by 453.0% YoY to INR 1,189 million.

• EBITDA Margin: Expanded by 219 basis points (Bps) YoY to 2.95%.

• Profit After Tax (PAT): Rose by 132.4% YoY to INR 746 million.

• PAT Margin: Improved by 71 Bps YoY to 1.85%.

• Diluted EPS: Stood at INR 10.91 per share, a YoY increase of 125.9%.

• Year-to-Date Performance (9M-FY26 Consolidated)

• Revenue from Operations: Grew by 5.0% YoY to INR 113,380 million.

• EBITDA: Increased by 57.9% YoY to INR 3,261 million.

• EBITDA Margin: Expanded by 97 Bps YoY to 2.88%.

• Profit After Tax (PAT): Rose by 24.5% YoY to INR 1,955 million.

• PAT Margin: Improved by 27 Bps YoY to 1.72%.

• Diluted EPS: Stood at INR 28.89 per share, a YoY increase of 21.4%.

• Historical Performance & Ratios

• Revenue Growth: The company has demonstrated strong historical growth, with a 4-year revenue Compound Annual Growth Rate (CAGR) of 32.5% as of FY25.

• Profitability Growth: PAT grew at a 4-year CAGR of 15.4% as of FY25.

• Return Ratios (FY25): Return on Capital Employed (ROCE) was 12.74% and Return on Equity (ROE) was 14.21%.

• Leverage: Net Debt to Equity stood at a manageable 0.50x as of FY25, indicating a healthy balance sheet.

• Working Capital Management

• Working Capital Days: Efficiency has improved, with the working capital cycle reducing from 60 days in 9M-FY25 to 54 days in 9M-FY26.

• Debtor Days: Collection efficiency has improved significantly, with debtor days falling from 61 to 47.

• Inventory & Creditor Days: Inventory days increased from 41 to 56, while creditor days were extended from 42 to 58, helping to manage cash flow.

• Asset Quality: Provisions for doubtful debt and inventory write-offs remain exceptionally low at 0.006% and 0.002% respectively, indicating strong risk management.

The company delivered robust financial performance in Q3-FY26 with significant YoY growth in revenue and exceptional expansion in profitability, supported by improved working capital efficiency.

• Extensive Pan-India Network

• The company operates one of India's largest ICT distribution networks, with 55 branches, 70 warehouses, and reach into over 700 locations. This deep penetration allows it to serve markets beyond major metros, reaching into Tier-2 and Tier-3 cities.

• Strategic Partner for Global Brands

• RP Tech is the national distribution partner for over 82 leading global technology brands. It maintains long-term relationships, with over 20 brand partnerships spanning more than five years, which enhances its credibility and ensures access to a wide range of products.

• Multi-Channel Go-to-Market Strategy

• The company has an integrated presence across general trade, modern trade (including large and small format retail), and e-commerce channels. This diversified strategy provides flexibility, widens customer reach, and mitigates channel-specific risks.

• Value-Added Services and Demand Creation

• Beyond simple logistics, RP Tech actively creates demand through brand-building, channel marketing, pre-sales support, and solution design. This high-engagement model fosters partner loyalty, improves demand visibility, and enables the distribution of complex, high-value IT products.

RP Tech's unique strengths lie in its vast, multi-channel distribution network and its role as a value-added partner that actively creates demand for global technology brands in India.

• Strong Demand Environment

• The operational results for Q3-FY26 indicate that demand remained strong. This was driven by channel partners stocking up in anticipation of future events.

• Supply Chain Factors

• The market is experiencing component shortages, which are expected to cause price hikes. This dynamic prompted proactive inventory building by partners, boosting the company's sales in the short term.

The current industry environment is characterized by robust demand, though it is influenced by supply chain constraints that are leading to anticipated price increases.

• Historical Growth Trajectory

• The company has a proven track record of high growth, evidenced by a 4-year revenue CAGR of 32.5% and a 4-year PAT CAGR of 15.4% as of FY25.

• Strategic Growth Drivers

• Market Penetration: The company plans to accelerate market penetration by expanding its presence in new geographies while strengthening its position in existing markets.

• Portfolio Expansion: A key strategy is to expand into adjacent high-growth product segments and verticals to diversify revenue streams, leveraging its existing channel infrastructure.

• Strategic Partnerships: Forging new alliances with leading global technology brands is a core component of its strategy to enhance product offerings and maintain a competitive edge.

• Solution-Based Selling: The company aims to increase wallet share per partner by upselling and cross-selling through bundled, solution-based offerings, which avoids incremental customer acquisition costs.

Growth is driven by a multi-pronged strategy focused on expanding market reach, diversifying the product portfolio, and deepening relationships with both brands and channel partners.

• Wallet Share Expansion

• The company's broad, multi-OEM portfolio creates a significant opportunity to bundle endpoints, infrastructure, and peripherals for the same customer. This allows it to increase its share of spending per partner without incurring new acquisition costs.

• Emerging Technology Segments

• By leveraging its extensive distribution network, RP Tech has the opportunity to enter emerging, high-potential technology segments. This allows for diversification and captures growth from new technology trends.

• Geographic Expansion

• While the network is extensive, there remains an opportunity to deepen its reach into more of India's 700+ districts, further solidifying its market leadership and logistical advantage.

The company is well-positioned to capitalize on opportunities by leveraging its diverse product portfolio to increase customer wallet share and extending its reach into new geographies and technology segments.

• Network Expansion

• The company continues to enhance its regional presence, as demonstrated by the recent opening of a new branch in Solapur. This improves coverage in core markets and supports further growth.

• Product Portfolio Enhancement

• There is a clear plan to introduce new Stock Keeping Units (SKUs) to broaden the product portfolio and cater to evolving market demands.

• Channel Development

• RP Tech is actively expanding its distribution partner network to improve market reach and support steady volume growth across all regions.

Future plans are centered on a disciplined execution of network expansion, continuous product portfolio enhancement, and strengthening the channel partner ecosystem.

• Q3-FY26 Margin Expansion

• Consolidated EBITDA margins expanded significantly to 2.95% in Q3-FY26 from 0.76% in Q3-FY25, an increase of 219 Bps.

• Consolidated PAT margins improved to 1.85% from 1.14% in the same period, a gain of 71 Bps.

• The improvement was attributed to strong sales growth, which led to better economies of scale and operational efficiencies.

• 9M-FY26 Margin Performance

• For the nine-month period, consolidated EBITDA margins improved by 97 Bps YoY to 2.88%.

• PAT margins for the same period improved by 27 Bps YoY to 1.72%.

• Historical Margin Context

• Historically, consolidated EBITDA margins have fluctuated, recorded at 2.67% in FY23, 2.64% in FY24, and 2.18% in FY25. The 2.88% margin in 9M-FY26 marks a significant improvement over recent full-year figures.

The company achieved significant margin expansion in the recent quarter, driven by strong operational leverage, indicating an ability to translate higher sales into improved profitability.

• Working Capital Intensity

• The business model is inherently working capital intensive. As of 9M-FY26, the company held 56 days of inventory and had 47 days of receivables, requiring significant capital to fund operations. Any difficulty in managing this cycle could impact liquidity.

• Supply Chain Disruptions

• The business is dependent on a steady supply of products from global OEMs. The mention of "component shortages" highlights a key risk, as supply chain disruptions can impact product availability, sales volumes, and pricing.

• Interest Rate Sensitivity

• The balance sheet carries borrowings to fund working capital. Finance costs for 9M-FY26 were INR 776 million (consolidated). An increase in interest rates could pressure profitability.

Key risks are tied to the capital-intensive nature of the distribution business, potential supply chain disruptions from global partners, and sensitivity to changes in interest rates.

• Record Quarterly Performance

• Q3-FY26 marked the company's highest-ever third-quarter sales and its highest-ever quarterly net profit, driven by strong market demand.

• Talent Retention Initiatives

• The company incurred INR 140 million in ESOP costs year-to-date. This investment is aimed at attracting, retaining, and incentivizing key talent to align employee interests with long-term growth objectives.

• Regulatory Impact

• Following the notification of new Labour Codes, the company recognized an incremental impact of INR 41 million due to increased gratuity and leave liabilities, reflecting its compliance with updated regulations.

The company achieved record operational results in the last quarter while making strategic investments in its workforce and adapting to new regulatory changes.