Rishi Laser's record revenue hides a 55% profit collapse
Annual profit slumped to ₹3.67 cr despite ₹162 cr in sales. A weak Q4 ended in a net loss as new labour costs and facility charges bit.
— 1 earlier story on Rishi Laser Ltd. →What's new
- Record annual revenue of ₹162 cr, up 7.23%, driven by the Malur plant.
- Full-year net profit collapsed 55% to ₹3.67 cr on higher personnel costs and labour-code charges.
- Q4 swung to a net loss of ₹26 lakh from a ₹3.2 cr profit a year ago.
Why this matters
Rishi Laser is growing its top line but destroying profitability to do it. The 55% profit drop on a 7% revenue gain signals cost inflation that outpaced the new Malur facility's output. The quarterly swing to a loss makes the damage acute.
What we're watching
- Whether the in-house paint shop (June 2026) actually improves margins as management claims.
- Execution on the 20% revenue CAGR target versus the current cost trajectory.
- The durability of export revenue, now 14% of sales.
The full read
Rishi Laser posted record annual revenue of ₹162 crore, up 7.23%, thanks to its new Malur plant. The good news stops there. Net profit collapsed 55% to just ₹3.67 crore, squeezed by higher personnel costs and one-off charges from new labour codes. The fourth quarter was worse: a ₹26 lakh net loss, swinging from a ₹3.2 crore profit a year earlier. For a nano-cap manufacturer, burning profit to grow revenue is a dangerous trade-off. Management is now guiding for a 20% revenue CAGR over three years, leaning on automation and a paint shop starting in June. Exports, at 14% of sales, provide some diversification. The open question is whether the cost explosion is a one-time setup hit or the new normal.
Questions answered
- Why did profit fall so sharply when revenue hit a record?
- The company cited higher personnel costs and exceptional charges related to new labour codes. These expenses grew faster than the 7.23% revenue gain, compressing the bottom line.
- What was so bad about the fourth quarter?
- Q4 posted a net loss of ₹26 lakh, compared to a ₹3.2 crore profit in the same quarter last year. The annual profit of ₹3.67 crore was therefore entirely booked in the first nine months.
- How is the company planning to fix its margins?
- Management is betting on automation and a new in-house paint shop, Phase 1 of which starts in June 2026. They claim this will improve operational leverage and support margin recovery.
- What is the three-year growth target?
- Management has set a revenue CAGR target of approximately 20% over the next three years. The guidance is supported by the ramp-up of the Malur facility and growing exports, which contributed 14% of revenue.
Story so far
All notes on RISHILASE →- 29 May 2026 · 2:35 PM IST Rishi Laser's record revenue hides a 55% profit collapse
- 2d ago Rishi Laser profits slide 55% as Q4 slips into a net loss