Rashi Peripherals (NSE: RPTECH) EBITDA rises in Q2 FY26 but PAT slips on ESOP cost: What does this mean for the stock’s outlook?

Rashi Peripherals Limited (NSE: RPTECH, BSE: 544119) reported a 4 percent year-on-year rise in EBITDA to ₹1,081 million for the second quarter of FY26, underpinned by strong personal computing and enterprise demand. However, profit after tax fell 15 percent to ₹592 million, primarily due to employee stock option provisioning, indicating pressure on net margins despite top-line momentum.

Revenue for the July–September quarter stood at ₹41,554 million, up 12 percent year-on-year. Yet over the first half of FY26, consolidated revenue declined 8 percent to ₹73,076 million compared to the same period in FY25. Even so, the company’s EBITDA climbed 13 percent year-on-year to ₹2,195 million for the six-month period, highlighting operational efficiency gains despite muted headline growth.

Rashi Peripherals stock closed at ₹332.90 on November 7, 2025, marginally down 0.48 percent. At current levels, the stock trades at an adjusted price-to-earnings ratio of 10.28, with a free float market capitalization of ₹797.43 crore. With the market continuing to value consistent operating margin growth, the divergence between revenue and PAT trends puts investor focus squarely on execution in the upcoming quarters.

How are revenue and profit trends diverging for Rashi Peripherals Limited in the current financial year?

While Rashi Peripherals saw double-digit revenue growth in Q2 FY26, the broader half-year picture reveals a more complex trajectory. For the April to September period, consolidated revenue declined from ₹79,733 million in H1 FY25 to ₹73,076 million in H1 FY26. This drop coincided with a net profit decline of 3 percent to ₹1,209 million, despite higher EBITDA and other income support.

Management attributed the dip in profitability to ESOP provisioning, which weighed on bottom-line performance despite strong operational traction in core verticals. The EBITDA margin expansion suggests improvements in channel mix, cost control, and services-led revenues, especially in premium computing and server infrastructure categories.

Rashi Peripherals Limited has been emphasizing its PES segment—Personal Computing, Enterprise, and Cloud Solutions—as the key driver of this margin resilience. Analysts observing the Indian ICT hardware distribution space view this divergence as a transitional phase, where scaling strategic verticals may initially dampen headline earnings but lay the groundwork for higher-margin revenues in future periods.

What are the key growth levers that supported EBITDA gains for Rashi Peripherals despite topline pressure?

During the quarter, Rashi Peripherals Limited opened new branch offices in Baramati and Nanded, reinforcing its deep regional penetration strategy. The company also signed strategic distribution partnerships with global OEMs such as Dell Technologies and Teachmint Technologies, broadening its technology offerings in computing, cloud, and edtech.

The company expanded its server and storage portfolio, along with accelerating its upstream component distribution in semiconductors, a move aligned with India’s increasing focus on domestic electronics manufacturing under the Production Linked Incentive (PLI) schemes. The PC vertical was a notable outperformer, recording growth at twice the industry average.

Another key differentiator was the scale of its Channel Business Forum (CBF), touted as India’s longest-running ICT channel roadshow. Held across 50 cities, the event engaged over 4,000 channel partners and showcased more than 300 products from leading global brands. This initiative not only deepened customer relationships but also fortified Rashi Peripherals Limited’s positioning as the go-to national distribution partner in a fragmented sector.

What does Rashi Peripherals stock price trend suggest about institutional and retail investor sentiment?

Rashi Peripherals Limited is currently trading well below its 52-week high of ₹454.25 recorded in December 2024, but significantly above its 52-week low of ₹245.15 hit in March 2025. The stock has been range-bound in recent months, reflecting neutral to slightly cautious sentiment among institutional investors.

The current valuation, hovering around a P/E of 10.28, indicates moderate expectations priced in, especially when compared to more richly valued peers in the hardware and IT distribution sector. Market watchers suggest that investors are awaiting clearer signs of sustained PAT expansion and more predictable margin growth before increasing allocations.

Deliverable volume on the exchanges remains healthy at over 65 percent, and the daily volatility sits at 2.14 percent, with annualized volatility of 40.88 percent, suggesting that while traders remain active, long-term conviction is still forming. The free float of ₹797.43 crore, out of a total market capitalization of ₹2,193.80 crore, indicates significant room for institutional flows to scale if operating metrics stabilize in the next few quarters.

How does Rashi Peripherals plan to maintain growth momentum in the second half of FY26?

In its forward-looking statement, Rashi Peripherals Limited’s management emphasized continued focus on AI-integrated and energy-efficient product portfolios, as well as building partnerships across emerging verticals. The PES business is expected to remain the primary growth engine, supported by refresh cycles in Windows 10 and ongoing enterprise modernization.

CEO Rajesh Goenka pointed to expanding demand in premium computing and the enterprise space, enabled by the rising adoption of AI across both consumer and commercial markets. The company also remains committed to channel digitization, inventory optimization, and supply chain agility, aiming to offer value-added services that enhance partner loyalty and gross margins.

Management further reiterated its support for the Digital Bharat and Make in India initiatives, signaling alignment with national priorities around electronics, infrastructure, and digital empowerment. Analysts believe that a sharper focus on bundled solutions, embedded systems, and cloud integration could unlock better operating leverage and potentially offset ESOP-related pressure in the upcoming quarters.

What should investors watch as potential triggers or risks in the months ahead?

From an investor’s perspective, the following near-term triggers could influence sentiment around Rashi Peripherals Limited: monetization of new OEM partnerships, stabilization of PAT growth post-ESOP provisioning, and traction in semiconductor distribution linked to domestic manufacturing projects.

On the risk side, a prolonged topline contraction, delays in capitalizing on recent alliances, or persistent cost-side pressures could dampen forward multiples. Regulatory shifts, changes in import policies for hardware components, or vendor concentration are additional headwinds that investors will monitor.

While the company’s differentiated distribution model, regional scale, and channel-centric ecosystem place it well in India’s tech value chain, execution consistency and balance sheet prudence remain critical to sustaining institutional confidence in FY26 and beyond.

Key takeaways from Rashi Peripherals Limited Q2 FY26 results and market sentiment

• Revenue for Q2 FY26 rose 12 percent year-on-year to ₹41,554 million, while PAT declined 15 percent to ₹592 million due to ESOP provisioning.
• EBITDA for the quarter reached ₹1,081 million, up 4 percent year-on-year, while H1 FY26 EBITDA grew 13 percent despite an 8 percent decline in revenue.
• Operational highlights include new branch launches in Baramati and Nanded, OEM partnerships with Dell Technologies and Teachmint Technologies, and expanded server and semiconductor offerings.
• The PC business grew at twice the market rate, while India’s longest-running Channel Business Forum roadshow reached 4,000+ partners across 50 cities.
• The stock trades at ₹332.90 with a P/E of 10.28 and strong deliverable volumes, suggesting moderate investor optimism pending PAT stabilization.
• Investors are watching how Rashi Peripherals Limited translates AI-led momentum and channel digitization into improved profitability and long-term scale.