01 — At a Glance
The Tech Distributor That’s Quietly Becoming Your Portfolio’s Dark Horse
- 52-Week High / Low₹410 / ₹245
- Q3 FY26 Revenue₹4,030 Cr
- Q3 FY26 PAT₹75 Cr
- TTM EPS₹37.1
- Annualised EPS (Q1+Q2+Q3)/3 × 4₹34.0
- Book Value / Share₹281
- Price to Book1.21x
- Net Debt / Equity0.50x
- Interest Coverage4.22x
- ROCE14.2%
Flash Summary: Rashi Peripherals delivered Q3 FY26 PAT of ₹75 crore — a shocking 131% spike YoY. Revenue climbed 42.6% to ₹4,030 crore. But here’s the twist: profit margins collapsed from 1.52% (FY25) to 1.72% (9M FY26), with Q3 specifically posting 1.86% — because they were too busy surfing the AI data center wave. The stock trades at 9.2x P/E, down from its December high of ₹410. Your question: is this a breakout, or just inventory-fuelled nostalgia?
02 — Introduction
The Unsexy Business That Connects India to Every Laptop It Buys
Remember that HP laptop you bought three years ago? The printer collecting dust in your office? The SSD that’s somehow still faster than your internet? None of those would have reached your door without Rashi Peripherals — and the company wouldn’t brag about it at a dinner party because distribution is the industry equivalent of the plumbing business. Invisible. Absolutely essential. Profitable in ways nobody wants to discuss in public.
Since 1989, Rashi Peripherals has been the middleman between global tech brands and Indian retailers. They’re not making laptops. They’re not selling directly to consumers. They’re doing something far more crucial: they’re plugging the gap. They buy from Lenovo, ASUS, HP, Western Digital, SanDisk, Samsung, and 76 other brands. They warehouse products. They train salespeople. They handle warranty claims. Then they ship stuff to 10,000+ channel partners across 709 locations in India. It’s boring work. It’s also ₹1,37,727 crore in annual revenue.
The Q3 FY26 story is unusual because usually Rashi’s story is about steady, predictable growth. Instead, they’ve posted a headline number (131% PAT growth) that makes everyone suddenly pay attention. But here’s the caveat: they achieved it partly because of one mega deal — an AI data center order from Reliance Industries. Translation: it’s real profit, but it’s also slightly… borrowed from the future.
The Real Metric (Nov 2025 Concall Insight): Rashi’s management has been very clear — the company is intentionally managing working capital days to stay around 54-60 days. In 9M FY26, it’s at 60 days (up from 54 in FY25). Why? Because they’re prioritizing volume and market share over margin protection. This is a classic distribution company scaling play: sacrifice short-term margin, own the market, then optimize later.
03 — Business Model: WTF Do They Even Do?
They’re The Amazon Logistics For Tech Brands You’ve Never Heard Of
Rashi operates in the ICT (Information & Communication Technology) distribution space. That’s a fancy way of saying: they buy tech products in bulk, warehouse them, sell to resellers, and provide after-sales support. They have two revenue streams: Personal Computing & Enterprise Solutions (PES) — which is 58% of revenue — and Lifestyle & IT Essentials (LIT) — which is 42%.
PES includes servers, data center equipment, enterprise storage, cloud infrastructure, and AI workloads. This is the boring, high-ticket business that actually makes money. LIT includes keyboards, mice, peripherals, gaming gear, and USB cables — the stuff everyone buys impulsively but still needs a distributor to get from China to your local computer shop.
Their business model is asset-light. They don’t manufacture. They don’t directly sell to consumers. They negotiate with OEM brands for pricing, handle logistics, provide warranties, train channel partners, and take a 2.5–3% operating margin on everything. Yes, you read that right — for handling ₹1,37,727 crore in annual sales, they’re making 2.6% on EBITDA. That’s tighter than a yoga instructor’s hamstrings, but at scale, it becomes ₹3,002 crore of EBITDA (9M FY26).
PES Revenue58%Enterprise & Cloud
LIT Revenue42%Lifestyle Products
General Trade~85%Retail Channel
Global Brands82+Principal Vendors
Pro Tip From The Concall (Feb 2026): Management said the large AI data center deal (Reliance project) should normalize in subsequent quarters because it was a one-time, high-volume, thin-margin job. Translation: don’t expect Q3-like 131% profit growth every quarter. But the company also signalled the AI opportunity is “multi-year” — so we might see sustained elevated volumes from 2026 onwards. That’s the real story, not the quarterly pop.
04 — Financials Overview
Q3 FY26: The Quarter That Broke The Pattern (In A Good Way)
Result type: Quarterly Results (Q3 FY26) | Q1 EPS: ₹7.78 | Q2 EPS: ₹9.31 | Q3 EPS: ₹11.16 | Avg (Q1+Q2+Q3)/3: ₹9.41 | Annualised EPS: ₹37.66
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 4,030 | 2,826 | 4,155 | +42.6% | -3.0% |
| Operating Profit | 119 | 21 | 104 | +467% | +14.4% |
| OPM % | 3.0% | 0.7% | 2.5% | +230 bps | +50 bps |
| PAT | 75 | 33 | 59 | +131% | +27% |
| EPS (₹) | 11.16 | 4.83 | 9.31 | +131% | +19.9% |
The Margin Twist (Critical Reading Required): Q3 Operating Profit Margin expanded from 0.7% (Dec 2024) to 3.0% (Dec 2025). That’s not sustainable — it’s the Reliance AI data center deal doing heavy lifting. Full year FY25 OPM was 2.18%. So Q3’s 3% is an anomaly. But here’s the bullish read: the company deliberately took thin margins on that mega deal (because volume and market share), but still reported 3% OPM. That means their core distribution business is humming at 2.5%+ margins now. Management on the concall confirmed they’re “selective” about high-volume, low-margin orders going forward.
💬 If Q3’s 131% PAT growth is due to a one-off Reliance deal, does Q4 become a disappointment? Or will the company’s improved operational capabilities sustain momentum? Sound off below.
05 — Valuation: Fair Value Range
Is ₹339 A Steal For A Distributor With 14% ROCE?
