CMP: ₹303.00 | Up 1.19% Today
✍️ By Prashant Marathe | 🗓️ May 27, 2025
📍 At a Glance
Rishabh Instruments Ltd just reported its FY25 audited financials. The Nashik-based electrical instruments maker grew consolidated revenue to ₹7,203 Cr (up from ₹6,897 Cr last year), with ₹301 Cr in profit before tax. But despite a profitable year and rising stock price, the company has not declared any dividend. Instead, it expanded its global footprint by acquiring a SCADA firm in Europe and ramping CAPEX to over ₹760 Cr.
🧾 Quick FY25 Snapshot (Consolidated)
| Metric | FY25 | FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹7,203 Cr | ₹6,897 Cr | 🔼 +4.4% |
| EBITDA | ₹618 Cr* | ₹585 Cr* | 🔼 Est. +5.6% |
| PBT (Profit Before Tax) | ₹301 Cr | ₹510 Cr | 🔻 -41% |
| PAT (Profit After Tax) | ₹212 Cr | ₹398 Cr | 🔻 -46.7% |
| EPS (Diluted) | ₹5.90 | ₹10.61 | 🔻 -44.4% |
| Total Comprehensive Income | ₹361 Cr | ₹614 Cr | 🔻 -41.2% |
| Net Cash from Ops | ₹650 Cr | ₹760 Cr | 🔻 Slight |
| CAPEX Spend | ₹762 Cr | ₹690 Cr | 🔼 +10.4% |
*EBITDA estimated using depreciation and PBT back-calculation.
🧠 EduInvesting Take: “Revenue Up, Profits Down, No Dividend — What Gives?”
- Margin Pressure: Despite revenue growth, the company saw profits nearly halve. Cost inflation, Eurozone headwinds (Poland is key to their ops), and CAPEX on new subsidiaries like MICROSYS spol. s.r.o. hurt short-term returns.
- No Dividend = Cash Hoarding or Smart Strategy?
The company prefers internal reinvestment over payouts. They closed FY25 with ₹900 Cr+ in cash equivalents — so they aren’t broke, just bullish. - Global Play: The European subsidiary MICROSYS expands their SCADA portfolio, targeting industrial automation clients. This may take 2–3 years to reflect in real cash flow.
🌎 Rishabh’s Global Structure (FY25)
| Region | FY25 Revenue (₹ Cr) |
|---|---|
| Asia (Incl. India) | ₹1,885.74 |
| USA | ₹367.59 |
| Europe (ex-Poland) | ₹3,415.45 |
| Poland | ₹1,416.09 |
| Others | ₹118.53 |
Total consolidated revenue: ₹7,203.40 Cr
Poland + Europe = 🔥 67% of biz!
🏗️ Balance Sheet Highlights (Consolidated)
| Metric | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹7,861 Cr | ₹7,810 Cr |
| Equity (incl. NCI) | ₹6,143 Cr | ₹5,637 Cr |
| Cash & Cash Equivalents | ₹900 Cr | ₹507 Cr |
| Inventories | ₹1,617 Cr | ₹1,747 Cr |
| Borrowings (Total) | ₹309 Cr | ₹548 Cr |
Solid deleveraging. Borrowings down ~44%, cash up 77%.
📋 Boardroom Buzz
✅ Appointments:
- 2 new Independent Directors: Mr. Rajendra Bagwe & Mr. V. Subramaniam
- New Auditors:
- Internal: Rajendra P. Shah & Co.
- Cost: Harish Shetty
- Secretarial: KANJ & Co. LLP
🔄 Committee Reshuffle:
- Audit, CSR, Nomination — All got reconstituted with new members.
👀 Looks like Rishabh is professionalizing governance ahead of the next growth wave.
🧮 Valuation Talk
With EPS (FY25) of ₹5.90 and CMP of ₹303, the stock trades at:
📈 P/E = ~51.3x
Expensive? Yes. But remember —
- 40% of business is EU-based, which commands a premium
- High cash reserves + low debt = attractive risk profile
- If MICROSYS or SCADA play clicks, this can de-rate quickly
🔎 Risks & Red Flags
- Sharp decline in profitability — needs a turnaround by FY26
- Poland-heavy dependency amid geopolitical jitters
- Acquisition risk: Will MICROSYS actually deliver growth or become goodwill baggage?
📦 Final Thought
“Rishabh started as a midcap voltmeter — now it’s trying to become a global smart grid.”
The numbers say: stable, global, margin-stressed, but future-facing. It’s not a cheap stock anymore, but it might just be one well-executed SCADA contract away from investor re-rating.
✍️ By: Prashant Marathe
🗓️ Published: May 27, 2025
🏷️ Tags: Rishabh Instruments, FY25 results, global automation play, Nashik stocks, SCADA, MICROSYS acquisition, instrumentation sector, CAPEX heavy stocks, IPO stories, EduInvesting
