RIR Power Electronics Limited, one of India’s notable players in the power electronics and semiconductor industry, announced its Q1 FY26 results on 16th August 2025. The company reported a stable revenue performance compared to the same period last year but witnessed a decline in profitability, mainly due to higher operating costs. Alongside the results, the company highlighted several strategic developments, including approval for NSE listing, government fiscal support for its semiconductor facility, and successful bonus and stock split corporate actions.

Financial Performance – Q1 FY26

The company reported revenue from operations of ₹21.01 crore, which was broadly unchanged from ₹21.05 crore in Q1 FY25. However, the EBITDA declined to ₹2.89 crore from ₹3.37 crore a year earlier. This translated to an EBITDA margin of 13.75%, lower than the 16.02% recorded in the same period last year.

The Profit After Tax (PAT) stood at ₹1.74 crore, compared to ₹2.83 crore in Q1 FY25, marking a significant contraction in profitability. The PAT margin fell to 8.14% from 13.06% in the previous year’s quarter. The company’s Basic Earnings Per Share (EPS) declined sharply to ₹2.26, down from ₹4.06 in Q1 FY25.

Sequentially, the company also saw a dip compared to Q4 FY25, where revenue had been higher at ₹26.46 crore.

These figures indicate that while RIR Power was able to sustain its top line, rising input costs, overheads, and global disruptions affected its bottom line.

Strategic Developments

Despite the muted earnings, RIR Power Electronics announced several forward-looking developments that are likely to shape its long-term growth trajectory.

1. NSE Listing Approval
   The Board of Directors has approved the listing of the company’s equity shares on the National Stock Exchange of India (NSE). Currently listed only on the Bombay Stock Exchange (BSE), this move will enhance liquidity, improve accessibility for retail investors, and potentially expand the shareholder base.

2. Fiscal Support for Semiconductor Facility in Odisha
   A major highlight is the Odisha government’s fiscal support for Phase 1 of the Silicon Carbide (SiC) semiconductor plant being set up in Bhubaneswar. With an overall project cost of around ₹618 crore, this facility is seen as a game-changer for RIR Power. The fiscal subsidy is expected to boost execution timelines and reduce capital burden, enabling the company to position itself as a pioneer in high-performance power electronics.

   This plant will cater to critical sectors such as electric mobility, renewable energy integration, aerospace, railways, defence, and industrial automation, reducing reliance on imports and strengthening India’s semiconductor ecosystem.

3. Bonus Issue and Stock Split Execution
   In July 2025, the company executed a 1:1 bonus issue to reward shareholders. Following this, a 5:1 stock split was implemented, aimed at improving market liquidity and accessibility for small investors.

   These moves demonstrate the company’s intent to enhance shareholder value and encourage wider participation in its growth story.

4. Employee Stock Option Plan (ESOP)
   The company’s board has also initiated the process of formulating an Employee Stock Option Plan (ESOP). This is expected to help attract, retain, and motivate top talent in a competitive industry like semiconductors and electronics.

Management Commentary

Commenting on the results, Dr. Harshad Mehta, Promoter & Chairman of RIR Power Electronics Ltd., noted that Q1 FY26 reflected operational resilience with a stable top line, but margins were impacted due to global disruptions and higher overheads. He emphasized that this quarter should be seen as a strategic investment phase, with benefits expected in upcoming periods.

He further highlighted the significance of the Odisha government’s fiscal support for the SiC semiconductor project, calling it a turning point that will help RIR Power become a leader in India’s high-performance semiconductor space.

The Chairman underlined the company’s focus on cost optimisation, supply chain strengthening, and expansion in domestic and export markets. He also expressed confidence that margins will gradually improve as the company’s recent capital investments start contributing to revenue.

About RIR Power Electronics Limited

Founded as a specialised power semiconductor manufacturer, RIR Power Electronics produces a wide range of products, including:

• Rectifier diodes

• Phase control thyristors

• Inverter grade thyristors

• Power modules and diode bridge rectifiers

• High-power customised rectifiers

• Battery chargers and railway equipment

The company caters to industries requiring high-power semiconductor solutions, with products capable of handling up to 9000V and 6000A.

As of 14 August 2025, RIR Power Electronics had a market capitalisation of approximately ₹1,842 crore on the BSE. With the NSE listing in the pipeline and semiconductor plant execution underway, the company is positioning itself for the next phase of growth.

Outlook

While Q1 FY26 earnings reflect pressure on margins, the company’s strategic initiatives are likely to deliver long-term benefits. The SiC semiconductor project is particularly significant, as India aims to strengthen its domestic semiconductor ecosystem. The NSE listing, bonus issue, and stock split will also likely enhance investor confidence and market participation.

Looking ahead, RIR Power Electronics plans to focus on:

• Expanding its semiconductor capabilities

• Optimising operational efficiency

• Enhancing shareholder value through corporate actions and governance

• Tapping export markets for high-performance power electronics

With these steps, the company aims to become a globally recognised brand in the field of high-power semiconductors, built on innovation, quality, and sustainability.

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