Revenue
Margin
Demand
Guidance
Tone
Event Participants
Executives
3 Ankit Shah, Harshad Mehta, Ramesh Kumar
Analysts
8 Charchit Rustagi, Garvit Goel, Nirmal Kumar, Nishita Shanklesha, Prateek Giri, Richa, Sanjay Garg, Seetharaman C
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹27.16 crores | +29.3% YoY; driven by ~80-85% price pass-through of input cost increases plus volume growth |
| EBITDA | ₹3.98 crores | Q1 FY27; margin improvement from price realization, vendor renegotiation, and cost controls (implied margin ~14.7%) |
| PAT | +80.6% YoY | Profit growth outpaced revenue on operating leverage and margin expansion |
| EPS | ₹0.39 per share | Q1 FY27 |
Geographic & Segment Commentary
- Halol Facility (Domestic & Exports): Low-power devices (LPD) are approaching peak saturation; high-power devices (HPD) are the growth driver, though current HPD business skews toward exports with domestic penetration still low. New product development in the equipment division is being prioritized to drive faster growth.
- Odisha Facility (Epi-wafer production): 33kV power line charged and transformer energized; two epitaxial reactors installed with 4-inch, 6-inch, and 8-inch wafer capability. Epi operations to commence end of Q2 FY27 (September 2026), with 8-inch wafers earmarked for export and 4/6-inch for domestic customers including Indian government labs.
- International: Secured first overseas order for 120 units of 125mm 5kV SCR thyristors; epi-wafer customer discussions ongoing with US and Taiwan firms. Company also developed and delivered an indigenous 25kV, 120,000-amp capacitor discharge trick for defense applications.
- Railways: Showcased railway power electronics solutions at RailTrans Expo 2026, strengthening engagement with India's railway infrastructure ecosystem.
Company-Specific & Strategic Commentary
- NSE Listing: Trading commenced on July 16, 2026, expected to enhance liquidity, broaden the investor base, improve price discovery, and strengthen capital market visibility.
- Board & Leadership Strengthening: Appointed Vivek Patel as independent director (expertise in institutional governance, policy oversight, budgeting); elevated Ankesh Shah from financial controller to CFO.
- Silicon Carbide Strategy: Management is focused on scaling SiC to its full potential; believes SiC technology advances in IP, device processing, and manufacturing are likely to capture the power side of the GaN market within the next 3 years, so no near-term GaN entry.
- Odisha Production Inauguration: Targeting an official inauguration of Odisha production at Semicon India (September 2026), with the Odisha Chief Minister's availability being coordinated.
- R&D Investment: Company maintains an 8-10% of revenue R&D spend; in development are optically-triggered thyristors at 8kV (practical maximum for silicon power devices), up from current 5kV.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Core Business Revenue Run Rate | ₹30+ crores/quarter in FY27; ₹50 crores/quarter in 6-9 months | Halol-only (ex-Odisha); ₹50 crore target contingent on back-end supply chain ecosystem development and factory-level productivity improvements |
| Epi-wafer Revenue | ₹12-15 crores in H2 FY27 | From Q3 FY27 onwards as Odisha epitaxy qualifies; both reactors installed |
| Epi-wafer EBITDA Margin | 20-25% | Higher than existing product margins; SiC products/devices carry better margins |
| FY27 Revenue Growth | 3-4x FY26 growth rate (top line); higher for bottom line | Based on market penetration initiatives and network utilization; management declined long-term revenue commitments |
| FY27 Capex | ₹100-120 crores | Odisha Phase 1 only; Phase 2 capex under discussion, update expected in 1-2 months |
| Packaging Revenue (Odisha Phase 1b) | Q2 FY28 | First phase of second phase; term loan of ₹70 crores applied for funding |
| Epi-yield Target | 85% standard, 90% goal | Dicing/curve losses not fully controllable; defect-side yields targeted |
Risks & Constraints
| Risk | Context |
|---|---|
| Geopolitical / Input Cost Volatility | West Asia disturbances are driving up prices of copper, gold, and silver (used in equipment); only 80-85% of cost increases were passed through in Q1, with older fixed-price orders remaining under pressure. Margin sustainability is partly outside management control. |
| LPD Segment Saturation | Low-power devices have reached near peak penetration in India; growth must now come from HPD (domestic traction still limited) and new equipment products, increasing reliance on successful product development. |
| Odisha Execution & Qualification | Power infrastructure now resolved, but plant machinery installation is still in progress (target completion end-August to mid-September 2026); revenue commencement depends on product qualification and yield achievement, with no committed customer uptake beyond ongoing discussions with US, Taiwan, and Indian government labs. |
| Funding Dependence | Total Odisha capex of ₹618 crores (Phase 1: ₹225 crores; Phase 2: ₹395-400 crores); ₹58 crores government subsidy received with company matching contribution. ₹70 crore bank term loan still pending final sanction (committee meeting pushed to next week), delaying Phase 2 progression. |
Q&A Highlights
Revenue Run Rate & Growth Targets
- Question: Can the core business (ex-Odisha) reach ₹50 crores per quarter given railway/defense opportunities? (Garvit Goel)
- Answer: ₹30+ crores per quarter is achievable in the current year; the ₹50 crore run rate will take 6-9 months, pending supply chain ecosystem development and factory-level productivity improvements. (Ramesh Kumar)
- Question: When Garvit clarified whether he heard "3x revenue" correctly, Ramesh confirmed it was 3-4x the growth rate, not revenue. (Garvit Goel / Ramesh Kumar)
Product Portfolio & Value Addition
- Question: Does the current Halol product portfolio support the ₹30 crore/quarter target, or is more innovation needed? (Prateek Giri)
- Answer: The company needs more high-power device products, where domestic market penetration has been low (most HPD business is from outside India). LPD has reached near-saturation; growth drivers will be HPD in India and new equipment division products. (Ramesh Kumar)
- Question: Is there scope to increase per-product realization by bundling components? (Prateek Giri)
- Answer: Value addition is always the intent, but pushing further price increases on customers is difficult until West Asia issues stabilize. (Ramesh Kumar)
Odisha Plant - Capex, Funding & Status
- Question: What is the status of power, government reimbursement, and funding? (Prateek Giri)
- Answer: 33kV line transformer charged; power available in 1-2 days. Government has provided ₹58 crores subsidy; company contributed ~₹70 crores (plus ₹8-10 crores non-capEx). Second tranche of Phase 1 funding is being arranged. (Harshad Mehta, Ankit Shah)
- Question: What is the bank loan status? (Nirmal Kumar)
- Answer: In-principle approval received; final sanction committee meeting was pushed to next week. Application is for ₹70 crores; bank's internal assessment team was confident of approval. (Ankit Shah)
- Question: Total capex and FY27 budget? (Nishita Shanklesha)
- Answer: Total Odisha capex ₹618 crores; Phase 1 ₹225 crores, Phase 2 ₹395-400 crores. FY27 capex of ₹100-120 crores for Phase 1; Phase 2 funding still under discussion. (Ankit Shah)
Epi-wafer Revenue, Customers & Margins
- Question: Any confirmed customers for epi wafers, and revenue projection for FY27? (Prateek Giri)
- Answer: Approached US and Taiwan customers; Indian government labs have also approached RIR with specs. Targeting ₹12-15 crores from epi-wafer sales in H2 FY27. (Harshad Mehta, Ankit Shah)
- Question: What is the margin profile for epi wafers? (Nishita Shanklesha)
- Answer: EBITDA of 20-25% on epi-wafer sales, better than current product margins. (Ankit Shah)
Margin Sustainability & Pricing
- Question: What drove the Q1 EBITDA margin improvement, and is 15-17% sustainable? (Nishita Shanklesha)
- Answer: Q4 FY26 input cost spike (West Asia) was passed through in Q1 via systematic customer discussions; leaner purchasing, vendor negotiation, and staff redeployment also helped. Sustainability depends on geopolitical environment, but the long-term aim is the 15-17% range. (Ramesh Kumar)
Technology, R&D & GaN Strategy
- Question: What R&D spend and products are under development? (Nishita Shanklesha)
- Answer: R&D spend is 8-10% of revenue. Development includes optically-triggered thyristors currently at 5kV, targeting 8kV (practical maximum for silicon). (Harshad Mehta)
- Question: Any plans to enter GaN? What are epi-wafer yield targets? (Charchit Rustagi)
- Answer: Vertical GaN yields for power applications are not yet proven; SiC is likely to capture GaN's power market in 3 years. Epi yield target is 85% standard, with a 90% goal. Depreciation follows straight-line with 15-year useful life for plant and machinery. (Harshad Mehta, Ankit Shah)
Miscellaneous
- Question: Any update on Richard Electronics' review of 20,000 supplied SiC chips? (Richa)
- Answer: Marketing is following up, but no update received yet. (Harshad Mehta)
- Question: Is the company participating in Semicon 2 (government scheme)? (Seetharaman C)
- Answer: Working on a project proposal; will approach the government once ready. (Ramesh Kumar)
Key Takeaway
RIR Power Electronics delivered a strong Q1 FY27 with revenue of ₹27.16 crores (+29.3% YoY) and PAT growth of 80.6% YoY, driven by 80-85% price pass-through of input cost increases and disciplined cost management. The quarter marked several strategic milestones: NSE listing on July 16, board and CFO strengthening, and the first overseas order for 125mm 5kV SCR thyristors. The Odisha facility received power with epitaxy operations targeted for end-September 2026, positioning the company to generate ₹12-15 crores of epi-wafer revenue in H2 FY27 at 20-25% EBITDA margins. Management guided for ₹30+ crores quarterly revenue run rate in the core business during FY27, rising toward ₹50 crores in 6-9 months, with FY27 revenue growth targeted at 3-4x FY26's growth rate. Key watch points remain West Asia-driven input cost volatility, LPD segment saturation, execution on Odisha qualification and yield targets, and the pending ₹70 crore bank term loan sanction that underpins Phase 2 funding.