Rashi Peripherals Ltd Q3 FY26 – ₹4,030 Cr Quarterly Sales, 131% PAT Jump, Yet Still a 3% Margin Business?

1. At a Glance

If India’s IT hardware market were a kirana store, Rashi Peripherals Ltd would be the wholesaler sitting on sacks of CPUs, GPUs, routers, UPS boxes, and cables — thin margins, insane volumes, and zero glamour.
As of today, the company commands a market cap of ₹2,538 crore, trades around ₹385, and has delivered a ~30% return in the last six months, making late entrants feel very emotionally invested.

The latest Q3 FY26 results (Quarterly Results) came in hot:

• Revenue: ₹4,030 crore (+42.6% YoY)
• PAT: ₹74.6 crore (+131% YoY)
• EPS: ₹11.16 for the quarter
• Operating margin: ~3%

Yes, profits doubled. No, margins didn’t magically turn sexy. This is still a distributor, not Nvidia.
Valuation-wise, the stock trades at a P/E of ~10.5, far below the IT hardware peer median of ~22, which raises a simple question:
Is Rashi cheap, or is the market correctly pricing a low-margin volume machine?

Let’s unpack the carton box.

2. Introduction

Rashi Peripherals is not a startup, not a turnaround story, and definitely not a “new-age tech platform.”
It’s a 36-year-old distribution beast that quietly moves laptops, CPUs, GPUs, routers, and storage devices across 700+ Indian cities while everyone else argues about AI.

Founded in 1989, Rashi sits between global OEMs (Nvidia, Dell, HP, Lenovo, Samsung, Western Digital) and Indian retailers, enterprises, data centres, government departments, and e-commerce platforms.

Their business model is brutally simple:

• Buy in bulk
• Sell faster than prices fall
• Don’t get stuck with inventory
• Pray margins don’t evaporate

Despite razor-thin operating margins, Rashi has scaled