Rishi Laser's Malur plant took too long. Profit fell 55%. Now it wants ₹190 cr.
Management admitted a botched plant commissioning hurt FY26 earnings. It's betting a fully operational Malur plant and a Pune recovery will deliver ₹190 crore in revenue this year.
What's new
- FY26 net profit dropped 55% to ₹3.67 cr as the Malur plant's commissioning took far longer than planned.
- Revenue grew 7% to ₹160 cr, but the delayed plant opening ate into margins.
- Tube processing plans are shelved for at least 12 months; Baroda plant is expected to stay flat.
Why this matters
Rishi Laser is a nano-cap that just admitted its own execution failed. The profit hit is real, but the new guidance is specific and aggressive. The bet now is whether the operational fixes at Malur and Pune can turn a 55% profit decline into 20% annual growth. The 9-11% margin target leaves little room for another stumble.
What we're watching
- Q1 FY27 results to see if the Malur plant is running at capacity.
- The pace of export growth toward the 20-25% mix target.
- Any shift in the Baroda plant outlook, now seen as flat.
The full read
Rishi Laser admitted its Malur plant took too long to get running. The delay cost the company: net profit fell 55% to ₹3.67 crore in FY26, even as revenue managed a 7% climb to ₹160 crore. Now, with Malur fully operational and Pune expected to recover, management is guiding for ₹190 crore in revenue for FY27, a 19% jump. The longer-term target is a 20% three-year CAGR, with exports rising from 14% to 20-25% of the revenue mix. The margin guardrail is 9-11% EBITDA. The plan looks credible on paper. The proof will be in the next couple of quarters. One piece has been put on hold: the tube processing segment is shelved for at least twelve months, and the Baroda plant is expected to stay flat. For a nano-cap that just disclosed an execution failure, the next test is whether the new guidance holds.
Questions answered
- Why did Rishi Laser's profit fall so sharply in FY26?
- The commissioning of its new Malur facility took much longer than planned. While revenue still grew 7% to ₹160 crore, the operational delays and associated costs caused net profit to drop 55% to ₹3.67 crore.
- What is the company's revenue target for FY27?
- Management guided for ₹190 crore in revenue for FY27, which would represent 19% growth over the ₹160 crore earned in FY26. The company also set a three-year revenue CAGR target of 20%.
- Why did the company shelve its tube processing plans?
- Management cited 'bandwidth constraints' as the reason for shelving the tube processing segment for at least twelve months. The Baroda plant, where this might have been relevant, is expected to see flat performance.
- What are the company's margin expectations?
- Rishi Laser is targeting EBITDA margins in the 9-11% band. Given the profit pressure in FY26, hitting the upper end of that range will depend on the Malur plant operating efficiently.