Revenue momentum lifted margin, but Rashi remained near the IT sector's bottom
Revenue grew faster than expenses QoQ, while lower tax and other income supported the larger increase in standalone profit.
Filed 05 Nov 2026, 20:10 IST · after market close · Rashi Peripherals Ltd (RPTECH)
Key takeaways
- Standalone revenue rose +18.11% QoQ while expenses grew +17.61%, lifting operating margin by 0.41 percentage points.
- Net profit increased +57.39% QoQ, but other income accounted for 27.08% of pre-tax profit and the tax rate fell 3.27 percentage points.
- At 3.44%, operating margin was 13.54 percentage points below the IT peer median across 68 reporters, ranking fourth from the bottom.
Price around the results
Revenue growth outpaced costs in Q2FY27
On a standalone basis, revenue grew +18.11% QoQ to Rs 5707.48 cr, while expenses rose +17.61% to Rs 5511.16 cr. That narrow cost advantage lifted operating profit +34.26% and expanded operating margin by 0.41 percentage points to 3.44%. The results were filed after market close.
Lower tax and other income boosted profit quality concerns
Interest expense rose +71.49% QoQ, which absorbed part of the operating improvement. Other income contributed 27.08% of pre-tax profit, while the tax rate declined by 3.27 percentage points to 22.08%; both factors helped net profit grow faster than operating profit.
Margin improved sequentially but stayed near the sector floor
Operating margin moved up from 3.03% in Q1FY27 to 3.44% in Q2FY27, marking sequential improvement without establishing a longer multi-quarter direction. Among 68 Information Technology companies that had reported, Rashi's margin was 13.54 percentage points below the 16.98% median and ranked fourth from the bottom.
Expansion broadens the business beyond distribution
Management said the acquisition of a 67% stake in VDA Infosolutions expanded the company into enterprise IT, cloud infrastructure, cybersecurity, system integration and managed IT services. The company also said it formalised a joint venture with Japan-based Restar Corporation for embedded and semiconductor solutions, while expanding branches across Tier 2 and Tier 3 cities. Management said it was continuing the shift from a volume-led distributor toward an integrated technology solutions provider, and had run AI Bootcamps across six cities.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹5,707 cr | ₹4,832 cr | +18.11% |
| Other income | ₹53 cr | ₹17 cr | +206.69% |
| Expenses | ₹5,511 cr | ₹4,686 cr | +17.61% |
| Operating profit | ₹196 cr | ₹146 cr | +34.26% |
| Operating margin (%) | 3.44% | 3.03% | — |
| Interest | ₹47 cr | ₹27 cr | +71.49% |
| Depreciation | ₹7 cr | ₹6 cr | +5.98% |
| Profit before tax | ₹196 cr | ₹130 cr | +50.78% |
| Tax | ₹43 cr | ₹33 cr | +31.33% |
| Net profit | ₹153 cr | ₹97 cr | +57.39% |
| EPS (₹) | ₹23.13 | ₹14.74 | +56.92% |
Operating margin of 3.44% compares with a Information Technology sector median of 16.98% across 68 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company expanded into enterprise IT, cloud infrastructure, cybersecurity, system integration and managed IT services through the acquisition of a 67% stake in VDA Infosolutions.
- The company formalised a joint venture with Japan-based Restar Corporation to establish an embedded and semiconductor solutions business.
- The company expanded branch operations to deepen pan-India reach and last-mile access across Tier 2 and Tier 3 cities and emerging commercial hubs.
New initiatives
- The company conducted AI Bootcamps across six cities to train enterprise partners in accelerated computing, AI workstations and enterprise AI workloads.
- The company continued shifting from a volume-led distributor to an integrated technology solutions provider across distribution, managed services and embedded and semiconductor solutions.
What to watch
- Whether standalone operating margin holds above 3.44%.
- Whether expense growth remains below the +18.11% QoQ revenue growth rate.
- Whether other income's 27.08% share of pre-tax profit and interest growth of +71.49% moderate.