Rishabh Instruments Limited (RISHABH) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Rishabh Instruments Limited Q2 and H1 FY '26 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements do not guarantee the future performance and involve risks and uncertainties that are difficult to predict. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Mr. Narendra Goliya, Promoter and Executive Chairman, for his opening remarks. Thank you, and over to you, sir.

Thank you. Good afternoon, everybody. Thank you for joining this Q2 FY '26 Earnings Call of Rishabh Instruments Limited. I am pleased to talk to you today from Nashik, where the rainy season is over. We have a very nice chilly weather. I'm sure all of you are having good weather and pleased to announce that with me today, I have Dineshkumar Musalekar, who is our executive Whole-Time Director and CEO; Vishal Kulkarni, he is the Chief Financial Officer. Mr. Nishant Dudhoria, he is the additional GM strategy, finance and PR. And we have representatives from HCA, our Investor Relations advisers. The financial results and investor presentation have been uploaded to the stock exchanges and company's website. I'm sure most of you have had an opportunity to review these documents. And in light of what we will speak, you may want to ask some further clarification, and we'll be happy to give you this. I am pleased to report that our consolidated revenue grew by about 7.7% in Q2 FY '26 and 9.9% in H1 '26 over the year-on-year -- on a year-on-year basis compared to the last year. This was supported by healthy order inflows, new product launches and an improved geographical mix. Our margins strengthen and profitability increased more than fivefold, which is a very good thing to report during the quarter and the half year, driven by improved raw material sourcing enhanced operational efficiencies and a more favorable product mix. Obviously, credit goes to the team who is working individually on all these things I mentioned, raw material sourcing is a very big avenue, and we have been successful in getting results out of that. And of course, other operational efficiencies, automation, all that add up to what we are reporting in this call. The stand-alone Rishabh India business grew by about 12.1% in the quarter. The business continues to gain strong traction in the international market, resulting in a meaningful improvement in both revenues and margins. We expect this momentum to remain sustainable, supported by strong export demand, deeper customer engagement and successful conversion of new opportunities with value accretive margins, which show the strength of our portfolio. Lumel SA say continued to perform in line with expectations, reporting strong sequential growth of 33% in Q2 FY '26 over Q1 FY '26. The business remains well positioned for further improvement, supported by ongoing product diversification, new customer additions and expansion into additional geographies. Lumel Alucast delivered 1% revenue growth in Q2 FY '26, while part of this increase was aided by favorable currency movements, revenues in Polish Zloty reflected a planned 10.7% decline aligned with our strategic decision to exist nonviable low-margin legacy contracts. Several of these contracts concluded during the quarter, enabling us to streamline the portfolio. Consequently, we are working to backfill capacity with high-quality and nonautomotive business. Though the natural onboarding cycle in aluminum die casting requires time we remain confident of strengthening the business mix and improving profitability in the coming quarters. The broader Europe market continues to remain subdued as the region moves through a gradual recovery demand remains soft across industrial automation and power infrastructure and government priorities have shifted towards defense spending, creating temporary constraints in some of our key sectors. However, the situation is significantly more stable compared to last year as energy costs have moderated, supply chains are normalizing and customer decision-making cycles are improving. Though it sounds imperative to say that situation is turning good, some encouraging signs of a more resilient medium- to long-term recovery does not look far-fetched. Our major strategic focus continues to remain on new product pipeline. Over the past few quarters, our team across all group companies have been working in close coordination to accelerate our innovation pipeline, along with along with product development, geographical expansion remains our second major pillar. We have been steadily positioning ourselves into new markets where Rishabh and Lumel brand previously had limited or no presence. Early traction has been encouraging and several geographies are showing strong demand visibility. Lastly, I want to reiterate our deep confidence in Rishabh's long-term growth trajectory. We continuously remain focused on operational excellence, product diversification and expanding our presence in new geographies like Middle East, U.S. and Southeast Asia to ensure sustainable and profitable growth. U.S. obviously has been a challenge for everyone. Likewise for Rishabh, but we have found out a solution between our customers and our office in the U.S. on how to address the issues which Trump has created over the last couple of months. We have been in this industry for decades. And while business cycles come and go, we have consistently a much stronger, more resilient and better positioned. Despite the external changes, we remain firmly committed to our guidance for the year and deliver consistent, sustainable value to all our stakeholders. I hope I have given you correct position of where we are, and I will now hand over the mic to Dineshkumar Musalekar for his opening remarks. Over to you, Dinesh. Please, carry on.

Thank you very much, sir, for that very remarkable opening note. And good evening or rather, good afternoon, ladies and gentlemen. Yes. I am pleased to share that we have had a strong start to the year and have sustained this momentum into the current quarter. As Mr. Narendra Goliya said, our consolidated revenue grew by 7.7% for the quarter. And 9.9% for the half year on a year-on-year basis, supported by healthy order inflow, new product launches and expanded geographical mix. Apart from the top line, our EBITDA for H1 FY '26 stood at INR 618 crores, which is almost close to what we had done in the complete financial year last year. This is in line with our guidance provided at the beginning of the year. And we remain confident of achieving a full year target of INR 100 crores in terms of EBITDA. The performance of FY '26 provides a solid run rate and reinforces our outlook for the remainder of the year. Our stand-alone business delivered a strong performance with revenues increasing by 12.1%, as you heard during the quarter and 14.6% during the first half of the year on a year-on-year basis. This growth was driven primarily by robust export demand that we had, deeper customer engagements and successful conversions of some of the new opportunities which we are working in the last quarters. The stand-alone margin expanded significantly to 26.1% in Q2 FY '26, a year-on-year improvement of 950 basis points. This strong performance was supported by improved raw material sourcing, which we talked earlier, enhanced operational efficiencies, disciplined cost management and favorable product mix and benefits of operating leverage. So it's not just one or two reasons. We have been firing in all the barrels to get this really significant EBITDA level of 26.1% after first half of the year. The stand-alone EBITDA margins have strengthened steadily over the past 6 quarters. From low -- as low as 11.5% to 11.5% in Q1 FY '25 to 26.1% in Q2 FY '26, driven by the above combination and continue to support margin resilience to reinforce our long-term profitable outlook. We also remain very optimistic that this momentum will continue throughout the remainder of the year. And in Lumel SA business, performance is in line with our expectation, showcasing a solid quarter-to-quarter sequential recovery. So if you remember, Q1 of this year, Lumel SA, we had some drop in sales compared to the last year, but we are confident about our order pipeline, and we have grown our revenues by 33.6% in Q2 FY '26 or Q1 FY '26, reflecting a robust and progressive growth. On a year-on-year basis, the revenue grew by 10.4%, we remain strongly positioned for further progress supported by a broader product portfolio, a growing customer base along with entry into new geographies. The business continues to demonstrate healthy profitability with EBITDA margins at 24.4% in Q2 FY '26. So in short, Rishabh is delivering around 26% and Lumel SA, which is our second biggest electronics pillar is also delivering us at 24.4% EBITDA level. In our assessment, European market continued to experience sustained pressure, particularly in electronic automation and power-related segments as government priorities have shifted towards defense spending in the recent quarters. limited public investment infrastructure upgrades and automation has further muted industrial demand, resulting in deferred capital expenditure across Automation segment to mitigate these headwinds, we are intensifying our focus on faster growing markets in Middle East, Southeast Asia, Americas, where demand conditions remain more favorable and offer stronger growth liability. This time I'm talking for Lumel SA, where we are focusing on exporting the products which are manufactured in Lumel SA in Europe to other geographies other than Europe. Moving on the high-pressure die casting business at Lumel Alucast, this segment reported a year-on-year revenue increase of 1% in Indian rupee for the quarter. In terms of its home currency, which is Polish Zloty, revenue declined by 10.7% in Q2 FY '26 and 4.3% in H1 FY '26 in line with our internal expectations. This decline was a direct result of our strategic decision to phase out large loss-making legacy contracts that did not meet our margin thresholds. The exit was deliberate, disciplined and fully aligned with the road map communicated to you earlier. On the profitability front, the improvement has been encouraging. Adjusted EBITDA for H1 FY '26 increased to INR 78 million compared with the loss of INR 128 million in the previous year. reflecting the structural benefit of eliminating nonviable business, tighter cost controls and enhanced operational efficiencies. Q2 FY '26 adjusted EBITDA remained broadly stable, consistent with the expectations given the ongoing transition in this business mix. Further, the planned phaseout of loss-making contracts will temporarily weigh on revenues in the coming quarters, which we have told you repeatedly, and Q3, Q4 may reflect some losses consistent again with our guidance, which we had given earlier, this vacant fungible capacity released due to the exit of legacy contracts is being effectively redeployed towards healthier profitable automotive and some nonautomotive higher-value opportunities. This is what is the work in progress now. This transition is progressing well supported by advanced discussions with global customers and over 50 RFQs are already submitted in the last quarter as the nature of this industry involves qualification, commercial alignment with global OEMs follows a multistage process. And therefore, entry cycles require time from confirmation to delivery. But nevertheless, with a strong and improving pipeline, we expect EBITDA margins to remain positive, a small positive this year for this business. And we'll -- business will encapsulate Lumel Alucast for stronger and more sustainable financial year '27. Moving on the segment-wise performance. The EEI, electrical and electronic instrumentation, which we started reporting you from a few quarters ago, this business has delivered 10.8% growth year-on-year in Q2 with adjusted EBITDA margin exceeding 25%. As I told you before, Lumel SA and Rishabh are two big pillars and both of them are around 25%, reflecting a the strength of our product portfolio, improved product mix and continued operational efficiencies. With sustained momentum from new product launches, the expanding geographical coverage. We remain confident of achieving about 12% to 15% top line growth in this electronics business by end of this year. Further on high-pressure die casting segment, our business is undergoing planned transition, and we are working aggressively to drive new business. We remain confident that the opportunities currently under negotiation will progressively fill the vacated capacity. The ramp-up of these high-margin contracts will also take place in the coming quarters. But the trajectory of pipeline, quality and customer engagement level, all of them remain distinctly, very, very positive for the coming quarters. From an overall group stance, we continue to drive efficiency, enhancement across manufacturing locations from procurement initiatives to cost of cost and manpower optimization, we are consistently working on to improve margins along with productivity gains. For example, the product lead times which were for 2 to 3 months have been reduced to about 2 to 3 weeks now in the last few quarters. Driven by tighter planning and enhanced production workflow, inventory days and quarterly quality-related costs also have declined substantially in all our operations contributing to margin stability. So that's where we can see that the margins which we have been increasing, in particular in our electronics business have been sustainable. On the expansion CapEx in India, is developing well with erection of 2 new 5 and 7 storage building, 50% of this work is executed now, which are expected to be completed by mid of next year. Upon completion of these facilities will effectively double our production capacity, enabling us to meet rising export demands and support stronger growth trajectory of our Indian operations also. Then we also are pleased to report reassuring progress in our solar business. Our recently launched a single phase inverter received a exceptional response at a major industry exhibition. This is the first exhibition where this product was displayed into the industry, generating a very healthier pipeline and the exhibition install itself, we were able to book close to 1,000 orders there. So it was really very well accepted by the industry. And we'll be building our capacity and also take more of this product in the future. The early traction reinforces strong potential for this segment and validate our strategic investment in the renewable energy space. And also on our R&D front, the teams are working progressively as we said that we 5-year product development plan and out of which the energy meters, which are used in Europe, which are called MID meters. We have all been launched and there is a lot of order booking, which is going to happen from European customers for this. And apart from that, medium voltage segment also, we are coming up with a lot of new products, which will be launched very soon in the next financial year. Apart from this, our China operations also has on the verge of launching 5 new products, which will also increase their portfolio around the globe. Overall, this has been a quarter marked by disciplined execution and meaningful strategic progress across the organization. Despite global uncertainties, we continue to deliver steady growth strong margins and improved profitability, underscoring the resilience of our business model and the strength of our teams. More importantly, we remain fully committed to the guidelines provided for the year. The visibility we have on the order book, cost efficiencies, operating leverages and evolving opportunities in newer geographies of Middle East, U.S. and Africa, give us a strong confidence in achieving our stated targets, which were to achieve about INR 100 crores of EBITDA by end of the financial year. As always, I also want to take this opportunity to extend my sincere appreciation to all our employees around the globe and our customers, partners and you guys as shareholders for your continued trust and support. We look forward for delivering a stronger and promising performance ahead. With this note, I would now like to hand over mic to Vishal Kulkarni, our CFO, to discuss group's financial performance in detail. Over to you, Vishal.

Thank you, sir. Thank you for the detailed overview. Good evening, all. Let me just give a brief snapshot on the financial performances. During quarter 2 of financial year '26, stand-alone revenue stood at INR 660 million, compared to INR 589 million in the same quarter last year, which has delivered a 12.1% year-on-year growth. For half year financial year '26, revenue came in at INR 1,278 million, reflecting a 14.6% year-on-year increase over H1 of last year. The company reported a strong improvement in profitability. EBITDA for the quarter FY '26 second quarter was INR 172 million, rising by 19.9% year-on-year. with EBITDA margin at 26.1%. This has 1,075 bps higher than quarter 2 of FY '25. For H1 FY '26, the EBITDA was INR 315 million, a growth of 108.8% year-on-year, with margins at 24.6% compared to 13.5% in the previous period. The PAT for the quarter 2 FY '26 stood at INR 126 million, which has grown by 85.4% year-on-year. while PAT for half year FY '26 was INR 225 million, registering a growth -- year-on-year growth of 113.9%. The stand-alone EBITDA margins have been improving steadily from past 5, 6 quarters due to enhanced operational discipline, improved mix, efficient procurement and the benefits of operating leverage all contributing to stronger and more sustainable profitability. Now the consolidated performance for quarter 2 FY '26, we stood at the -- the revenue we stood at INR 1,963 million, delivering a 7.7% year-on-year growth. For H1 FY '26, the revenue amounted to INR 3,867 million, reflecting 9.9% year-on-year increase over the previous year. The EBITDA for quarter 2 FY '26 was INR 334 million, marking a 220% year-on-year growth with EBITDA margin at 17%, 1,129 basis points higher than 5.7% in quarter 2 of FY '25. For H1 FY '26, EBITDA stood at INR 618 million up by 244% (sic) [243.9%] year-on-year, with margins improving to 16% from 5.1% year-on-year. The profit after tax for quarter 2 FY '26 came in at INR 221 million, which has increased by 475% year-on-year, while PAT for H1 FY '26 was INR 417 million, a substantial 492% growth year-on-year. The consolidated EBITDA margins have continued to strengthen, supported by the successful turnaround of the HBDC business at Lumel Alucast and a growing contribution from the high-margin EEI segment. Now I will give you the company-wise performance. Our Polish entity Lumel SA has delivered a steady performance during the quarter and the first half of the year. The quarter 2 FY '26 revenue stood at INR 615 million, reflecting a 10.4% year-on-year increase, while H1 FY '26 revenue was INR 1,072 million, showing a modest 1.6% year-on-year growth. The EBITDA for quarter 2 FY '26 was INR 150 million, which was up by 33.4% year-on-year. And for H1, the EBITDA stood at INR 203 million, registering a 3.3% year-on-year growth. The EBITDA margins expanded to 24.4% in quarter 2 as an improvement of 421 basis points, while margins for H1 FY '26 were 19% which is higher by 30 basis points on a year-on-year basis. The PAT for Q2 FY '26 was INR 113 million, up by 41.9% year-on-year and for H1 FY '26, PAT stood at INR 150 million, reflecting a 3.7% year-on-year growth. For Lumel Alucast, the revenue for quarter 2 FY '26 stood at INR 590 million, reflecting a modest 1% year-on-year growth. For H1 FY '26, revenue was INR 1,349 million, which has grown by 5.6% year-on-year. The EBITDA loss for the quarter narrowed to INR 1 million from a loss of INR 82 million in the same period last year. For H1 FY '26, adjusted EBITDA turned positive to INR 78 million compared to a loss of INR 128 million last year, with adjusted EBITDA margins at 5.8% for the half year. The PAT for quarter 2 FY '26 remained negative at INR 21 million compared to a loss of INR 99 million last year. For H1 FY '26 PAT stood positive at INR 41 million, a strong improvement from the loss of INR 130 million in H1 FY '25. On the consolidated level, we remain net debt-free with a strong balance sheet. The Net Cash and cash equivalents as on 30th September 2025 stands at INR 121 crores. A healthy cash flow from operations is INR 626 million as of 30th September 2025. With this, I shall now leave the floor open for question and answers. Thank you so much.

[Operator Instructions]. The first question is from the line of Kiran from TableTree Capital.

Congrats, sir, on a great set of results. Awesome turnaround from what we had in the first half of last year. So kudos to you and your team. Sir, I had a couple of questions. One, we -- I mean Lumel SA and other electronic pump and everything else. In H1, we grew about 7% to a total of INR 124 crores. Do you expect a similar run rate for the second half as well? Or do we see a slowdown given the Europe slowdown and everything else, the INR 124 crores could it repeat in H2 as well?

You're talking about Lumel SA?

Yes sir, Lumel SA and the other electronics, I mean basically, the way that I got it is India is about INR 128 crores for H1. Lumel SA and other geographies is INR 124 crores alu die-cast is INR 134 crores H1?

Yes. Yes. Lumel SA, you're absolutely right. The European market is stressed and there's a slowdown and all those things. So we have pretty good confidence of delivering similar numbers for H2 also. We tell that because of a few reasons. Number one is you remember that last year, we declared that there is a INR 50 core order which we picked up from German market, which is under execution and part of this business in Q2 is also coming from there. And that will be there for the -- that supply will be there until end of this financial year and also until December, December 2026. And then, of course, there'll be tender. Again, we may win, we may not win. So that's a separate thing because our customer is doing and then we can get. So there's a big base of that. That's number one. Number two is, as I was mentioning in our presentation of the speech. So we -- what we are doing is we are focusing Lumel SA business, which was like about 40%, 50% was in Poland and about 30% to 40% was in rest of the Europe and only about 10% was outside of the European border. So our engagement in Middle East market, Southeast Asia, India also, I mean, Lumel products also can be sold in India and the U.S. market. This is something which we are working extensively. So I personally also had traveled to all these regions to look at opportunities for all our company's products in every market. So we have kind of created a metric which products we are doing good in which reason and which company products we are not doing good, and we also have our presence there. So we'll be leveraging all of that and in a kind of a metric sales network. This is all happening now. So Lumel SA businesses will expand more in Middle East, America and Southeast Asia. So that should be there. So I don't feel -- I don't have one out of a doubt on Lumel SA numbers, but it's not going to be easy, but we have our plans in place, and we'll get close to what we have delivered in H1.

Just to add to what Dinesh said, we have got many distributed customers. Unlike the aluminum business where it is focused with 6, 7 or maybe 7, 8 major customers the electrical business, both in Lumel and in Rishabh is very well spread out. So although there are a few big orders like Dinesh mentioned about this European order, but otherwise, the business is very, very distributed. And therefore, even if 1, 2, 3 do not deliver or do not pick up what they have done in the last half year. Somebody else does that. So I really see no reason why to doubt the second half, and that has also been -- in fact, last quarter is usually very good. The last quarter is good -- the last quarter, I mean the third quarter will be good for Lumel because that is the year-end normally December. And the fourth quarter is good for India because our year-end is March every year. So that also helps us a little. But otherwise, the product distribution, the new products that we have introduced, all these add up and we should be able to repeat the performance of the first half of the year, if not improve on that.

Absolutely. The diversification is on the geographies, on the products also on the industries also. So it gives us a lot of a lot of buffer, I would say. So if one geography, one product group is not doing, so we can pitch on the other one. So this is absolutely true.

Perfect. Wonder to hear, sir. Second question, sir, margins have dramatically improved both in the electronic business. Of course, die cast has its own challenges. So I'm not asking about die cast, but the electronic business, both in the India space and the Lumel space, India space we delivered in H1 24% EBITDA margin, in Lumel SA we delivered 19%, which is probably the 24%, I don't think we have ever achieved since listing in terms of margins for the year. So what led to these margins? One is raw material procurement that you said in your opening remarks? Is it product mix? And the follow-up question essentially is this margin sustainable? Or this is like a one of big order, high-margin order, and you'll revert that to the 20%, both on India and Europe business.

No, I'll answer that. It's first to answer it in short, yes, it is sustainable because this is not just come out of something, it was systematically planned over last 1 year, particularly in Rishabh. So the whole procurement has been challenged, and we have taken out about 4% to 5% cost out of procurement costs. So this is for good and sustainable. Second thing is on the manufacturing and the operations side, the whole reorganization has been changed, and we have taken some labor cost and also -- and in fact, I would rather say that we did not add additional label for supporting the growth. So that is one systematic system improvement, which is done. And it also reflects from our inventory levels, which had shot up to about 6, 7 months to or 3 to 4 months now. So this is, again -- and then on-time deliveries have improved from 3 to some of the product lines we had about 3 months, and they've all fallen to about 2 to 3 years. So there has been an organizational change, which has taken place. The systems have been introduced. We are more leaner than what we were before. Quality costs have gone down. So many things are there, and there is still a lot to be done. So these numbers which you see from Rishab is sustainable. This is one part of it on the operations side. Second part is, of course, our sales of some of the high-margin products have been bigger. Like we had, for example, we supply PROMOTIC one of our customer in Spain, which has got high margin, and we had a bigger mix of that export going from Rishabh, so that helps a lot. And then we also did not sell too much of EMS and also solar businesses in the first H1 because we are working on optimizing the cost, which has been done. So we leverage those in the coming year. But all said and done, so 20% is anywhere between 20% to 22% is sustainable. Beyond that, will depend on some of the product mix and other things where we don't have too much of a leverage. So I would put that margin enhancement coming from two aspects. One is what is internal, where we have control. Second one is external, where it depends more on the market. Internal things are cost of procurement, our cost of manufacturing basically, operational efficiency and all those things which I spoke. This is all done and it is done for good, and it keeps on improving. Second thing is the product mix. This is more coming from the market dynamics, et cetera. So it has some leverage. So I think overall, 20% give and take, is sustainable for electronic business. This argument is absolutely true for both Lumel SA and Rishabh Electronics business.

Perfect. That was very elaborate. My last clarifying question, sir, we have grown in the EEI business, both put together, like you classify. H1, we grew about 17% in your opening remarks is that anywhere between 12% to 15%, H2, do we see a slowdown or we continue to maintain a similar run rate and will end up at 17%?

Yes. I think we should -- see, we want to be a little conservative in saying that. So we want to have a similar run rate about on the top line, 15% to 17% is what we are looking at. So as we said that top line is more based on our external conditions also, like, for example, U.S. market. Last year, we did $2 million there. So we were targeting for $4 million. So it will be $3 million, still a 50% growth, but we had to readjust it. So there are some things which come up like that because of tariff issues, et cetera. So as Mr. Goliya spoke in his remark, we have ensured that we have a strategy put in place to take care of those kind of things. So overall, I would say, around 15% is what you can really consider. Domestic business in India also we have had some -- some of the tenders and projects which are more seasonal are shifting from 1 quarter to another. So I think we should be around 15%.

The next question is from the line of Prateek Giri from Subh Labh Research.

Greetings. Dinesh good set this quarter. I have one question on growth, which probably you have already alluded to. My other two questions are on CapEx. Do you see -- we have been seeing this fund utilization dragging in our quarterly results for probably past 4, 5 quarters I mean to me, it seems that there has been some delay in the capital expenditure, which we have been doing in enhancing the capacities. So can you help us understand, is it going as per the plan, I mean, have we planned this to drag upon us for so long? Or how is it happening there Mr. Dinesh?

Yes. So there were about INR 70 crores of IPO proceeds, which were for capacity expansion I mean INR 60 crores, around 15, 16 were approximately I'm telling for corporate utilization, which have all been utilized. And then there was about close to about INR 55 crores, INR 60 crores for the building construction. So those buildings, which are -- one 1 is in -- both of them are in Nashik. One is in Satpur F1, where we have our current manufacturing, the other one is at a place which we call as Trishala, which are about a few kilometers, 2 kilometers apart from there. Both these buildings have been constructed more than 50% now, and these buildings are expected to be finished by March, April 2026. So we are at the stage of casting the last tab and inside work is also going on. Lifts are being ordered. So this is all going as per scheduled plan. So to build a construction like that, 1 year is what is minimum needed, and we are doing it in 1 year's time. And after this is done then to make these buildings operational, we may take a few more months. So in short, to tell that, out of that INR 60 crores, which is there, more than 50%, 55% of that approximately, it's already utilized, and the remaining will be utilized most part of it will be utilized by end of this financial year. Some may skip to next financial year. So this is all going as per plan. And everybody, anybody is welcome to come and visit Nashik and see those things maybe in the next presentation, we can put the photos of those building status also if we can give some more details on that. So that is all going as per the plan. There's absolutely no delay or nothing on.

Just to add to what Dinesh said, the starting of the buildings takes a lot of time. One is the planning and one is the approval from MIDC, MIDC approves all the plants. And India being India, the a lot of [Foreign Language] happens and we did not want to start the building without getting the plan approval unnecessary, then we could have some problems. So that really took time. What you say is right that you are hearing this for the last 5, 6 quarters. But the real work has happened in the last, let me say, 6, 7 months, 7, 8 months. Where the RCC, the RCC is complete for both the buildings. Timing is complete, some windows have been put. So a lot of work has been done. But still, there is a cranes to be put in the place lifts are to be installed. Some more work has to be done in the building and then shifting all the production and making sure that all the areas are available. So as Dinesh said, most of the work will be done in this year, but the real value of the construction and the added capacity and all, that will only come in FY '27.

Understood.

[indiscernible] 2027 and subsequently.

No, understood. I'm glad you agreed to the point that probably the IPO happened in September of 2023, if I'm not wrong. And it's already 2 years since we have raised money. So definitely, there is some delay, but I totally get to a point that this is because of the reasons out of our control. My second question...

Go ahead.

Yes, my second question is on the newer pursuits which we had taken -- which we have been taking for the last 2 years. Actually, this question revolves around growth only. Because if you see last 4, 5 quarters, we have been at the run rate of INR 110 crores, INR 120 crores, INR 130 crores per quarter. Last 4, 5 years, definitely, the growth CAGR has been good, but for past 4, 5 quarters, it has been a little subdued. So if you can help us understand when will the efforts start giving us fruits because solar business also, if I see probably the revenue has not picked up materially as it is missing from the PPT. So if you can help us understand how do you look at it...

Are you talking specifically about Rishabh instruments in India, are you talking for the whole group? Just clarify your question.

Goliya, I am talking about our electronics business per se consolidated electronics business?

Yes, yes. So electronics business last quarter was really challenging for Lumel SA and then reflects in the whole this thing. But this year, we have got away from it solar business, you have correctly stated that we had real challenges. China is flooding the Indian market. We were not cost competitive because our technology was from Europe. We had to redo the whole technology. In fact, if any of you are interested, I would really invite you to come and see the work which is done. The whole thing has been made in the aluminum casing, which is very good for heat dissipation, which is very good for cost control, and it is very good for low failure rates. Now all that work has been done up to about 20 kilowatts and above work still to be done. So that is what Dinesh said, we have booked orders for about 1,000 pieces up to 20 kilowatts. You will see the results. It is delayed okay. First thing I accept your observation that solar has not taken off the way we had thought. We had thought that in 2, 3 years' time, we would have substantial growth in the solar business. But we had to take this thing forward. And this is -- I think I told you in one of the earlier conference calls, in every product that we develop, we face headwinds. We face challenges, we face competition. Only thing is we learn from what we are doing and then quickly try to solve that exactly what we are doing in the solar business. that we had a lot of challenges from the Chinese people. They were flooding the market. Government doesn't allow Make in India is compulsory. So they were getting in CKD, SKD full PCBs. But anyway, we are in a real market. So we don't want to c*** about the competition, competition teaches as many things we have learned many things. And now we are back with the vengeance. So yes, it will take another 2, 3 quarters, maybe another 3, 4 quarters, if I can tell you honestly. But solar business will be a very good investment we have made. Similarly, Dinesh talked to you about mid meters. We spent nearly INR 1.5 crore in getting the approval for the European market. And also, we had to do a lot of changes in the product while they were undergoing these steps. All that is done we have the certification. Today, we have started selling it. It hasn't picked up, but for sure, it will pick up. The third is we made energy meters for U.S. market. Even that was a very big project. We went through a lot of approvals. All these things, the approval is even -- I would say, a bigger challenge than the development of the product. Development of the product is a challenge. But bigger than that is getting approvals interpretation of some of the laws which they make, which doesn't come out. I personally visited one of the testing labs in Europe to clear some of the doubts that they had. But anyway, that's all have all the clearance. So this growth will come about what you rightly pointed out that if you see last 4, 5 years, there has been a good growth. But the last 4 or 5 quarters hasn't been that great growth. We have been around 10%, 12%, 13%, 14%, but I'm sure we will come back to our normal growth pattern. And yes, we have to be patient, but you will see it.

Understood. No, no point well taken, Golya, because if you look at the power sector companies, I know we are not directly linked to the transformers, et cetera, but at least we are a part of this value chain. So hitting or rather clocking a revenue growth of at least 12%, 13% is what we can expect. But I get your point. Both the questions are answered. Thanks a lot, and good luck to the entire team.

The next question is from the line of Zaki Nasser from Nasser Investments..

Good afternoon, and big congratulations for a very strong set of numbers. Goliya the question is on it's been 2 years since our issue, and of course, we've seen a few quarters of disturbance. But sir, what would you want to see the company Rishabh as 3 years hence?

Answer very obvious what I'm going to give. But anyway, I will try to elaborate on it. See, growth has to be there. I mean, if you see Rishabh, what we started 30, 35 years ago, today, there has been a steady 25%, 30% CAGR if I take it out, obviously, earlier years was higher. And as we become larger and as we have subsidiaries all over the world, it becomes more challenging to keep up that CAGR. So I would say, realistically, if we plan about 20% and deliver 22%, I'll be very happy. 22% CAGR on the top line and maybe 25% in the bottom line because bottom line, we have more control. There are more things we can do. And obviously, OEs don't increase as fast as the top line increases. So let's say 20% to 22% would be our aspiration to do on the top line and 25% on the bottom line. This year, we delivered much more, but this is an exceptional year. I don't think we would try to achieve that year by year.