Rashi Peripherals Ltd Management Discussions

Economic Overview

Global Economy

The global economy remained resilient in CY 2025 amid geopolitical tensions, evolving trade policies and persistent uncertainty across major regions. Global GDP growth stood at 3.5%, supported by continued technology-led investments, accommodative financial conditions and strong consumer demand. Advanced economies expanded by 1.9%, while Emerging Market and Developing Economies (EMDEs) recorded stronger growth of 4.5%, as key contributors to global economic activity. Growth was enhanced by strong performance in technology-related sectors, improving labor markets and sustained investments in digital infrastructure.

Easing supply chain disruptions and earlier monetary tightening measures reduced inflationary pressures. Global inflation moderated to 4.1%, leading to macroeconomic environment stabilization. However, geopolitical uncertainties, market volatility, trade route and supply chain disruptions posed significant challenges to the economy. Global trade and regional conflicts, further impacted business sentiment and investment decisions in certain markets. Economic activity was accelerated by sustained advancements in artificial intelligence, greater technology adoption, expanding trade and infrastructure investments, ensuring resilience across economies.

Outlook

Global GDP growth is projected to moderate to 3.0% in CY 2026 before improving to 3.4% in CY2027. Advanced economies are expected to grow by 1.7% and 1.8%, respectively. EMDEs are predicted to expand by 3.8% in CY 2026 and 4.5% in CY 2027, supported by sustained investments in Artificial Intelligence (AI), digital transformation, productivity-enhancing technologies and stabilizing financial conditions. Technological innovations, improving services trade and ongoing infrastructure development are expected to support medium-term growth. However, geopolitical conflicts, energy market disruptions, trade fragmentation, supply chain realignments and market volatility may affect the global economic trajectory over the coming years.

Indian Economy

The Indian economy demonstrated strong resilience during FY2025-26 amid persistent global uncertainties, geopolitical tensions and evolving trade dynamics. Supported by strong domestic demand, sustained public capital expenditure and improving investments, India remained one of the fastest-growing major economies globally. Indias real GDP is estimated at 7.7% in FY2025-26, increasing from 7.1% in FY2024-25, indicating the robust domestic economic performance and the positive impact of sustained policy support.

Economic growth was primarily driven by the secondary and tertiary sectors, which registered growth of 8.8% and 9.3%, respectively, while manufacturing expanded by 10.7%, enhanced by accelerated industrial activity and greater investments. Gross Fixed Capital Formation (GFCF) accounts for nearly 32% of GDP and grew by 9.9%, reflecting persistent investment momentum across the economy.

Indias services sector significantly contributed to economic growth and external sector stability. Services exports maintained strong performance during FY2025-26, with exports estimated at USD 348.4 billion during April–January FY2025-26. The share of services exports in GDP increased to 10% during H1 FY2025-26, reinforcing the services sectors role in promoting economic growth and trade stability.

Outlook

Indias economic outlook for FY 2026-27 remains favourable, backed by resilient domestic demand, sustained investment activity and continued policy support. The Reserve Bank of India (RBI) has projected the real GDP growth to reach approximately 6.6%, driven by private consumption, government capital expenditure and improving investments. Robust bank and corporate performance, optimized capacity utilization and sustained credit expansion are expected to accelerate economic momentum amid global uncertainties.

As a key growth driver, the services sector is predicted to drive progress with strong services export, greater digital adoption and continued expansion of technology-driven industries. Urban consumption will benefit from stable employment conditions and sustained momentum in the services sector, while ongoing infrastructure development and policy initiatives will propel long-term support to economic growth. However, global supply chain disruptions, elevated freight and insurance costs, market price volatility, geopolitical tensions and weather-related uncertainties pose significant challenges to the countrys growth trajectory.

Indian GDP Growth Trend

Industry Overview

Information and Communication Technology Industry

Global Market

Technology investments remained a strategic priority for global business in CY 2025 as organizations accelerated digital transformation initiatives to enhance efficiency, strengthen cybersecurity and support data-driven decision-making. Greater adoption of cloud-based architectures, AI, advanced analytics and next-generation communication networks continued to transform technology investments generating sustained demand across the ICT value chain. The integration of these technologies is also creating an increasingly interconnected digital ecosystem, where computing infrastructure, cloud platforms, data centers, cybersecurity and communication networks collectively support enterprise transformation. These trends favored the global Information and Communication Technology (ICT) market which was estimated at ~ USD6.8 trillion in CY 2025.

Surging demand in cloud computing, cybersecurity, data management and intelligent automation solutions was promoted by IT infrastructure modernization and to digital platform transition across enterprises. Cloud computing accounted for the largest market share, recorded at 28.4%, reflecting the sustained shift toward adoption of scalable and flexible computing processes. The emergence 5G infrastructure, increasing usage of connected devices and AI-powered applications further accelerated market expansion. Regionally, Asia-Pacific led the global market with a 38.2% projected revenue share, driven by expanding digitalisation programmes, internet penetration and significant technology investments across key economies. The growing convergence of cloud, connectivity,

AI and cybersecurity is further influencing enterprise technology spending and increasing demand for integrated digital infrastructure.

Worldwide IT spending is projected to reach USD6.37 trillion in CY 2026, registering a growth of 14.2% over CY 2025. The increase is expected to be driven by accelerated investments in AI infrastructure, cloud platforms and high-performance computing. Data center systems are projected to record the strongest growth, with spending estimated at USD822 billion in CY 2026, increasing by 62.5%, while Infrastructure as a Service spending is forecast at USD287 billion, registering a growth of 29.3%. Software and devices are also projected to expand by 15.5% and 9.8%, respectively, indicating broad-based demand across enterprise infrastructure, applications and end-user computing.

The global ICT market is predicted to reach approximately USD 13.1 trillion by CY 2034, registering a Compound Annual Growth Rate (CAGR) of 7.5% during the forecast period. Growth will be facilitated by sustained investments in cloud computing, AI, cybersecurity, Internet of Things (IoT) solutions and digital infrastructure. The AI segment is anticipated to be the fastest-growing category, expanding at a CAGR of approximately 24.6% through CY 2034, strengthened by the rising adoption of generative AI, intelligent automation and machine learning applications across industries. Surging demand for high-performance computing, expanding 5G ecosystems and ongoing digital transformation initiatives across enterprises and governments are expected to market growth. As digital infrastructure becomes increasingly critical to business operations, the ICT industry is expected to support sustained demand for computing devices, enterprise hardware, storage, networking, software and related technology solutions.

Global ICT Market Growth

Source: Data Intelo Report

Indian Market

India s technology ecosystem maintained a strong momentum in 2025, supported by increasing enterprise digitalization, cloud adoption, cybersecurity investments and deployment of next- generation connectivity infrastructure. Organizations accelerated technology modernization to enhance operational efficiency, customer engagement and data-driven decision-making, generating greater demand for ICT solutions, across industries. The Indian ICT market was estimated approximately at USD 155.57 billion in 2025, reflecting the growing importance of digital technologies in accelerating economic activity and business performance. The expansion of digital infrastructure, enterprise technology adoption and government-led digitalisation is also widening technology demand across metropolitan and emerging markets.

As a key growth driver, the IT Services segment, accounted for 54.32% of total market revenue in 2025, underscoring Indias strategic position as a global technology and services hub. Major enterprises registered 63.14% of the net ICT expenditure, facilitated by sustained investments in cloud migration, digital infrastructure and enterprise technology platforms. In terms of industry performance, the Banking, Financial Services, and Insurance (BFSI) sector accounted for 24.54% of market demand, indicating the greater adoption of digital banking, cybersecurity and customer-centric technology solutions. Geographically, technology investments were concentrated across major digital and business hubs, backed by growing data center capacity, expanding 5G networks and increasing adoption of advanced digital technologies across enterprises. At the same time, rising adoption among Small and Medium Enterprises, educational institutions, government departments and businesses in Tier-II and Tier-III cities is creating a broader market for computing devices, peripherals, networking products and enterprise solutions.

The Indian ICT market is predicted at approximately USD 173.26 billion in 2026 and further improving to approximately USD 274.86 billion by 2031, registering a CAGR of 9.67% during the forecast period. Growth is expected to be propelled by greater adoption of cloud computing, artificial intelligence, cybersecurity solutions and digital infrastructure across enterprises and government institutions. The IT Security and Cybersecurity segment is projected to remain among the fastest-growing categories, while Small and Medium Enterprises (SMEs) are expected to increase technology investments as cloud-based solutions improve accessibility and affordability. Sustained investments in AI-ready computing, enterprise modernisation, electronics manufacturing and digital public infrastructure are expected to further strengthen demand across Indias ICT distribution and technology ecosystem.

Allied Industries

Gaming Market

Global

The global gaming market was valued at approximately USD360.43 billion in CY 2025, reflecting continued expansion and reinforcing interactive entertainment as one of the largest segments of the global digital economy. The proliferation of high-performance smartphones, cloud connectivity and digital distribution channels broadened gamings reach beyond traditional users, transforming it into a mainstream entertainment medium. The industrys growth was increasingly underpinned by investments in AI infrastructure, data centers and cloud computing, which supported scalable game development, real-time multiplayer experiences, low-latency content delivery and AI-driven game intelligence.

The growing adoption of AI-powered computing hardware, including high-performance GPUs and AI-enabled PCs, accelerated game development, graphics rendering and personalised user experiences. At the same time, rising digital traffic and online transactions increased the importance of cybersecurity solutions and managed IT services, as gaming companies focused on securing player data, protecting digital assets and ensuring uninterrupted platform availability. Mobile gaming continued to account for the largest share of industry activity, driven by widespread smartphone adoption and improving internet infrastructure across emerging markets.

Regionally, Asia Pacific remained the largest gaming market, accounting for approximately USD166.19 billion in CY 2025, supported by a large user base, robust digital infrastructure, rising investments in AI-enabled and cloud-based technologies, and increasing consumer expenditure on gaming content. The global gaming market is projected at approximately USD407.65 billion in CY 2026 and further expand to an estimated USD1,091.40 billion by

CY 2034, registering a CAGR of 13.10% during CY2026-34. Greater smartphone penetration, expanding broadband connectivity and emerging utilization of digital payment solutions are expected to support sustained market expansion across both developed and emerging economies.

Global Gaming Market Growth (USD Billion)

India

The Indian gaming market was valued at approximately USD4.59 billion in 2025, indicating sustained growth. Mobile gaming remained the dominant segment of the industry, accounting for 84.6% of market revenue in 2025, highlighting Indias smartphone- first consumption pattern. Advertising-supported gaming models contributed 49.2% of total market revenue, supported by a broad and significantly engaged user base. Casual and hyper-casual games accounted for 37.4% of industry revenue owing to their accessibility and mass-market appeal. Demographically, consumers aged 15–24 years accounted for 44.1% of gaming expenditure, indicating the influence of India s digital-native young population on market growth. The growing participation of young consumers in esports, live streaming and gaming-led content creation is also supporting demand for high-performance PCs, monitors and specialised gaming peripherals.

The Indian gaming market is estimated to expand to approximately USD5.37 billion in 2026 and further reach USD17.83 billion by 2035, registering a CAGR of 15.62% during 2026-35. Growth will be driven by the sustained expansion of 5G infrastructure, increasing utilization of cloud-based gaming services and greater penetration of affordable high-performance smartphones.

AI- powered PCs and components market

Global

Artificial Intelligence (AI) is driving the next major upgrade cycle in the personal computing industry through the emergence of AI-powered PCs equipped with dedicated Neural Processing Units (NPUs), alongside CPUs and GPUs, to perform AI workloads locally. These devices enable features such as real-time language translation, intelligent content creation, enhanced cybersecurity, and AI-assisted productivity while reducing dependence on cloud computing. The rapid introduction of AI-enabled processors by Intel, AMD, Qualcomm, Apple, and NVIDIA, combined with Microsofts Copilot + PC platform and the Windows 10 end-of-support, is accelerating enterprise and consumer adoption. Global AI PC shipments were reached 77.8 million units in 2025, representing 31% of total PC shipments, and are expected to increase to 143.1 million units in 2026, accounting for 55% of the global PC market, highlighting the pace at which AI PCs are becoming the industry standard.

The AI PC transition is also creating robust demand across the broader hardware ecosystem, including high-performance GPUs, AI-enabled processors, memory modules, solid-state drives (SSDs), advanced cooling systems, and power management solutions. Worldwide traditional PC shipments are expected to grow by 4.1% in 2025, supported by commercial PC refresh cycles and increasing

AI adoption. Component demand is also expected to strengthen as enterprises and consumers upgrade their computing infrastructure. This trend presents significant opportunities for technology distributors, who play a critical role in enabling product availability, channel development, technical support, and market penetration for global technology brands. As AI adoption expands across industries, AI-powered PCs and high-performance components are expected to remain key growth drivers for the global ICT distribution ecosystem.

India

Indias traditional PC market, comprising desktops, notebooks and workstations, recorded shipments of 4.4 million units in Q1 2026, registering 31.1% Y-o-Y growth. Notebook shipments reached 3.3 million units, increasing by 55.4%, aided by large-scale education procurement and enterprise demand. AI-capable notebook shipments grew by 96.1% Y-o-Y, while premium notebook shipments increased by 70.1%, indicating rising adoption of AI-enabled and high-performance computing devices.

Enterprise demand also strengthened during the quarter, with the enterprise segment growing by 24.2% and workstation shipments increasing by 31.8%, driven by high-performance computing requirements across engineering, design and data-intensive applications. The broader technology-spending environment also

says-artificial-intelligence-pcs-will-represent-31-percent-of-worldwide-pc-market-remains favorable, with Indias IT spending projected to reach USD176.3 billion in 2026, increasing by 10.6% over 2025. Device spending is forecast to rise by 9.9% to USD66.4 billion, supported by enterprise modernisation, replacement demand and increasing adoption of AI-enabled technologies. These trends are expected to strengthen demand for AI-ready PCs, processors, GPUs, memory, storage and other computing components.

Data centers Market

Global

The rapid adoption of artificial intelligence (AI), cloud computing, 5G, and data localisation requirements is accelerating the growth of the global data center industry. As enterprises increasingly deploy AI workloads and migrate to cloud-based environments, data centers are evolving from traditional storage facilities into AI-ready digital infrastructure with significantly higher compute density, power requirements, and cooling capabilities. Nearly 100 GW of new data-centre capacity is expected to be added globally between 2026 and 2030, potentially doubling the industrys existing capacity. The sector is projected to expand at a CAGR of approximately

14% through 2030, supported by hyperscale cloud expansion and increasing AI-related workloads.

The emergence of AI is fundamentally reshaping data center architecture, with facilities increasingly being designed around GPU-intensive workloads, advanced liquid cooling systems, high-speed networking, and sustainable energy solutions. AI accounted for approximately one-fourth of global data-centre workloads in 2025 and could represent nearly half by 2030, as demand shifts from model training towards large-scale inference. Meeting this expansion is estimated to require nearly USD3 trillion of investment by 2030.

The resulting infrastructure build-out is driving strong technology spending. Worldwide spending on data-centre systems is projected to reach approximately USD788 billion in 2026, registering growth of 55.8% over 2025, as hyperscalers scale investments in AI-optimised servers, processors, accelerators and enabling technologies. These developments are expected to generate sustained demand for enterprise servers, storage systems, high-speed networking products, GPUs and processors, power-management equipment and related infrastructure technologies across the global ICT ecosystem.

India

India is emerging as one of the fastest-growing data center markets globally. The domestic market is estimated at approximately USD1.7 billion in FY26 and is projected to reach nearly USD6.8 billion by FY30. Indias share of global data center capacity is expected to increase from around 2-3% in FY26 to approximately 5% by FY30, indicating significant headroom for domestic capacity creation.

Installed capacity in India reached approximately 1.9 GW in FY26, more than doubling from around 778 MW in FY23. A development pipeline of nearly 4.5 GW is expected over the next five years, driven by hyperscale cloud providers, global content platforms and AI-led companies. The industry is also transitioning towards high-density, AI-ready infrastructure to support growing demand from cloud adoption, BFSI digitisation, AI workloads and edge computing.

Indian data center value chain could create an approximately USD 90 billion opportunity by FY2035, extending beyond capacity expansion into power infrastructure, cooling technologies, networking, security, and lifecycle services. Additionally, over USD 120 billion of investments have been committed by hyperscalers, global operators, Indian conglomerates, and domestic data center providers to expand Indias AI and cloud infrastructure.

Only 25-30% of existing data center capacity can potentially be upgraded to support AI workloads, necessitating substantial investments in new AI-native facilities. AI-driven demand is increasing the need for resilient power infrastructure, efficient cooling technologies, and scalable digital infrastructure, positioning data centers as a critical component of future economic and technological growth. These trends are expected to drive sustained demand for enterprise servers, storage, networking equipment, power management solutions, and related ICT products, creating significant opportunities for technology distributors and infrastructure providers across the digital ecosystem.

Semiconductors Market

Global

Semiconductors are the foundation of the global digital economy, enabling technologies across artificial intelligence (AI), cloud computing, data centers, consumer electronics, automotive, industrial automation, and telecommunications. The rapid adoption of AI, high-performance computing, 5G, and the Internet of Things (IoT) has significantly increased demand for advanced logic, memory, and AI accelerator chips. Global semiconductor sales reached approximately USD791.7 billion in CY 2025, registering growth of 25.6% over CY 2024. Logic and memory products recorded the strongest growth, driven by expanding investment in AI infrastructure, data centers and advanced computing applications.

The industry maintained strong momentum into 2026, with global semiconductor sales reaching USD298.5 billion in Q1 2026. As per industry estimates, worldwide chip sales to approach USD1 trillion during the year, indicating sustained demand across AI, cloud infrastructure, connected devices, automotive electronics and other advanced applications.

AI-led investments are reshaping the semiconductor product mix, increasing demand for GPUs, advanced processors, high-bandwidth memory and specialised accelerator chips. At the same time, the growing use of electronics across automobiles, industrial equipment, telecommunications products and edge devices is broadening demand for microcontrollers, sensors, connectivity chips and embedded solutions. These developments are creating opportunities across semiconductor distribution, technical design support, component integration and embedded technology solutions.

India

India is emerging as an important participant in the global semiconductor value chain, supported by policy initiatives aimed at strengthening domestic manufacturing and reducing import dependence. Through the Semicon India Programme, the Government initially allocated 76,000 crore to build capabilities across semiconductor fabrication, assembly, testing, packaging and design. By June 2026, 12 semiconductor manufacturing projects with an investment pipeline of approximately 1.64 lakh crore had been approved, covering fabrication, compound semiconductors and packaging facilities. In addition, 24 semiconductor design projects were being supported under the domestic design ecosystem.

The ecosystem received further policy support through Semicon 2.0, approved in July 2026 with an outlay of 1,27,500 crore. The programme is intended to deepen capabilities across semiconductor design, equipment and materials, indigenous intellectual property, advanced manufacturing and resilient supply chains. India is also targeting a domestic semiconductor market of approximately USD200 billion by 2035.

The growing demand for AI-enabled devices, enterprise infrastructure, electric vehicles, and consumer electronics is expected to further accelerate semiconductor consumption in India. As investments across the semiconductor ecosystem continue to rise, the industry is well positioned to support the countrys digital transformation while creating significant opportunities for technology manufacturers, distributors, and system integrators.

Software and Cyber Security market

Global

The rapid adoption of cloud computing, artificial intelligence (AI), hybrid work models, and digital transformation is driving sustained demand for enterprise software and cybersecurity solutions. Organizations are increasingly investing in cloud-native applications, identity and access management, endpoint protection, and AI-powered security platforms to safeguard critical data and ensure business continuity. Global end-user spending on enterprise software reached USD 1.25 trillion in 2025, reflecting continued investments in AI-enabled applications, cloud platforms, and business automation. Software spending is projected to increase by 15.1% to approximately USD1.44 trillion in CY 2026, as generative AI capabilities become increasingly embedded across enterprise applications and technology platforms.

The expansion of cloud-based operations and AI adoption is also widening the cybersecurity threat surface. Worldwide end-user spending on information security was estimated at USD213.0 billion in CY 2025 and is projected to increase by 12.5% to approximately

USD239.8 billion in CY 2026. Security software is expected to remain the largest and fastest-growing segment, with spending rising from approximately USD105.9 billion in CY 2025 to USD121.2 billion in CY 2026.

The growing use of generative and agentic AI is creating additional requirements for governing machine identities, securing AI workloads and protecting sensitive enterprise data. These developments are expected to sustain demand for enterprise software and cybersecurity products distributed and implemented across the wider ICT ecosystem.

India

Indias software market is expanding as enterprises modernise applications, adopt cloud-based platforms and integrate AI into business processes. Software spending in India is projected to reach approximately USD24.7 billion in CY 2026, registering growth of 17.6% over CY 2025. The increasing adoption of AI-enabled applications, enterprise platforms and modern digital infrastructure is expected to support demand across application software, infrastructure software and associated technology solutions.

Information-security spending in India is projected to reach approximately USD3.44 billion in CY 2026, increasing by 11.7% over CY 2025. Security software is expected to remain the largest and fastest-growing segment, with spending rising by 12.4% to approximately USD1.56 billion. Rising identity-based attacks, cloud-security requirements and compliance with the Digital Personal Data Protection framework are encouraging investments in endpoint protection, security information and event management, identity security and integrated cloud-security platforms.

Managed Services market

Global

The global managed services market is estimated at USD430.56 billion in CY 2026, compared with USD390.21 billion in CY 2025 and is projected to reach USD704.20 billion by CY 2031, registering a CAGR of 10.34% during CY 2026-2031. Growth is being driven by increasing enterprise reliance on external specialists to manage hybrid-cloud environments, cybersecurity operations, networks, endpoints and other critical technology functions. North America represents the largest market, while Asia-Pacific is expected to record the fastest growth through 2031.

The managed services market is evolving from a traditional outsourcing model into a strategic enabler of digital transformation, helping organizations accelerate the adoption of cloud computing, artificial intelligence (AI), cybersecurity, and automation. Enterprises are increasingly partnering with Managed Service Providers (MSPs) to manage critical IT functions such as cloud infrastructure, network operations, cybersecurity, endpoint management, and IT support.

The role of managed services is also expanding beyond cost optimization to become a catalyst for innovation and AI adoption.

Managed services are viewed as a strategic investment by 99% of organisations, with nearly half identifying them as their highest investment priority. Enterprises are increasingly using managed services to improve cost efficiency, address technology debt, bridge specialised talent gaps, accelerate AI deployment, strengthen cybersecurity and support regulatory compliance. As organizations continue to modernize their IT environments and adopt AI at scale, managed services are expected to play a pivotal role in delivering business agility, operational efficiency, and long-term digital resilience.

India

Demand for managed services in India is increasing as enterprises adopt cloud platforms, AI-enabled applications and distributed technology environments while addressing cybersecurity, compliance and specialised talent requirements. The shift is particularly evident across cloud operations, managed detection and response, network management, endpoint support and regulatory compliance. Managed services are increasingly moving from transactional outsourcing towards a strategic model for managing technology complexity, operational risk and enterprise transformation.

The underlying demand environment remains favourable. End-user spending on public-cloud services in India is projected to reach USD17.5 billion in CY 2026, increasing by 28.1%, with Infrastructure as a Service expected to grow by 40.0%. Information-security spending is also expanding, with managed security services forecast to be the fastest-growing security-services subsegment in India. As enterprises scale cloud and security investments, demand is expected to increase for specialised implementation, monitoring, maintenance and lifecycle-support capabilities.

Component Availability and Price Volatility

Rapid growth in AI infrastructure and high-performance computing is increasing demand for GPUs, memory, processors and other critical components, periodically tightening supply and raising procurement costs. Changes in component pricing can also affect the affordability of PCs, servers and enterprise systems and create inventory-management challenges across the distribution ecosystem.

Foreign Exchange Volatility and Import Dependence

A significant share of high-value technology products and critical components continues to be imported or priced in foreign currencies. Fluctuations in exchange rates can increase landed costs, affect product pricing and raise working-capital requirements, while dependence on global supply chains exposes the industry to disruptions in sourcing and logistics.

Company Overview

Established in 1989, (RP tech) has evolved alongside Indias technology transformation journey, establishing a strong presence across the ICT value chain. Over the years, the Company has expanded beyond product distribution to become a key enabler of technology adoption, connecting global technology brands with enterprises, businesses and channel partners through an extensive market access and technology delivery platform. Its diversified presence across computing, enterprise infrastructure, cloud, gaming and emerging technology segments positions it as a growth driver in Indias rapidly growing digital economy.

The Company operates through its Personal Computing, Enterprise & Cloud Solutions (PES) and Lifestyle & IT Essentials (LIT) business verticals, serving a broad spectrum of customer segments. Fostering long-standing relationships with global technology brands, RP tech has strategically strengthened its capabilities in significant growth segments such as AI, enterprise solutions, embedded electronics, semiconductor technologies and digital learning solutions.

Supported by a robust distribution ecosystem, robust backend technology infrastructure and strategic OEM partnerships, the Company has sustained a strong market presence across India. During FY 2025-26, RP tech served more than 10,300 partners and B2B customers through its extensive network while offering a diversified portfolio of over 18,400 Stock Keeping Unit (SKUs) spanning consumer, enterprise and emerging technology categories. Backed by a workforce of nearly 1,600 employees, the Company has delivered a 3-year revenue CAGR of 18.7% and a 3-year PAT CAGR of 31.8%, reflecting the resilience of its robust business model and agility through focused growth initiatives across the evolving ICT landscape.

Rapid Technology Obsolescence and Inventory Risk

Short product lifecycles, frequent technology upgrades and rapid shifts towards AI-enabled devices can accelerate the obsolescence of existing hardware. ICT distributors and channel partners therefore need to closely manage inventory ageing, demand forecasting and product transitions to minimise discounting and working-capital pressure.

Working Capital and Credit Risk

ICT distribution requires significant investment in inventory and receivables, particularly across high-value enterprise and emerging technology products. Rising product values, extended customer credit cycles and fluctuations in demand can increase funding requirements and expose the distribution ecosystem to working-capital and credit risks.

During FY 2025-26, the Company strengthened its growth through expansion in AI, enterprise technology, embedded and semiconductor businesses, added Dell Technologies commercial portfolio, Teachmint for digital learning solutions and supported the launch of Oura smart rings in the Indian market marking its presence in premium smart health gadgets market. These initiatives extended the Companys addressable market and accelerated its participation in emerging technology segments.

Competitive Advantages

Diverse Product Portfolio with Multi-Segment Participation

RP tech has developed a diversified portfolio comprising over 18,400 SKUs across personal computing, enterprise infrastructure, components, storage, networking, lifestyle technologies and emerging technology solutions. This range of offerings enables the

Company to cater to varied customer requirements across consumer, commercial, SMB and enterprise segments while delivering integrated services spanning pre-sales support, solution design, technical assistance and warranty management. The Companys increasing participation in AI, enterprise solutions, digital learning technologies and embedded solutions is instrumental in expanding its addressable market and enhancing its ability to capitalize on evolving technology trends.

Long-Term Relationships with Global Technology Brands

The Companys long-standing relationships with global technology vendors remain a significant competitive differentiator. As of FY 2025-26, RP tech represented 78 global technology brands, reflecting its ability to consistently attract and retain leading technology partners. 23 major brands, associated with the Company for over 5 years, contributed 88% of revenue, while 11 other brands have maintained relationships exceeding 10 years, accounting for 72% of revenue. These enduring partnerships underscore the Companys strong execution capabilities, extensive channel reach and its position as a reliable value-added distribution partner in India.

Extensive Distribution Network and Market Reach

The Company has established one of Indias largest ICT distribution ecosystems, serving more than 10,300 customers and B2B partners through 55 branches, 71 warehouses and a presence spanning over 700 locations nationwide. Its integrated distribution network across general trade, modern trade and e-commerce enables deep market penetration and efficient last-mile delivery across metropolitan, Tier-II and emerging markets. The addition of new branches in Nanded, Baramati and Solapur during the year further strengthened the Companys ability to serve high-growth regions and broaden its market reach.

Strategic Position in Emerging Technology Opportunities

The Company has proactively expanded its presence beyond traditional ICT distribution into high-growth technology domains that are expected to impact the next phase of digital transformation. During FY 2025-26, RP tech strengthened its commercial portfolio through its partnership with Dell Technologies and introduced AI-powered digital learning through its association with Teach mint Technologies. The Company enhanced its semiconductor footprint through new subsidiaries in India and Singapore. These initiatives position the Company for strategic long-term growth in emerging technology adoption trends.

Key Initiatives taken in FY 2025-26

Expansion into Emerging Technology Segments

The Company strengthened its presence in high-growth technology domains, including AI, enterprise infrastructure, embedded solutions and semiconductor technologies. It further expanded its capabilities in AI infrastructure, thereby, accelerating progress in next-generation technology categories to address evolving customer requirements.

Expansion of Distribution Network

The Company consistently expanded its market reach through the establishment of three new branches in Nanded, Baramati and Solapur, strengthening its network spanning 55 branches and reinforcing its presence across Tier-II, Tier-III and emerging markets.

AI Ecosystem Development

The Company conducted an eight-city AI Bootcamp, engaging more than 2,500 developers and over 300 CXOs to promote AI infrastructure adoption and enterprise utilization. The initiative accelerated the Companys progress in the rapidly evolving AI ecosystem while promoting strategic relationships across the technology community.

Electronica Exhibition 2025

RP tech showcased its cutting-edge embedded and semiconductor solutions at Electronica India 2025, highlighting its technological expertise and innovation capabilities. The company also established interactive live demo zones, enabling visitors to gain hands-on experience with Automotive Lighting, Motor Control, Industrial Motor Control, and advanced AI solutions developed by its in-house Embedded Lab. These demonstrations received an overwhelming response from attendees, reflecting strong industry interest in RP techs next-generation technologies. The showcase reaffirmed RP techs growing position as a trusted partner in the embedded and semiconductor ecosystem, supporting Indias vision of becoming a global hub for innovation and advanced technology development.

Financial Performance

Consolidated Statement of Profit and Loss

Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025
I. Revenue from Operations	1,58,273.37	1,37,727.33
II. Other Income	405.50	606.43
III. Total Income (I + II)	1,58,678.87	1,38,333.76
IV. Expenses
a) Purchases of Stock-in-Trade	1,55,091.19	1,32,202.16
b) Changes in Inventories of Stock-in-Trade	(5,541.83)	(1,747.37)
c) Employee Benefits Expense	2,006.73	1,683.14
d) Finance Costs	1,064.94	775.36
e) Depreciation and Amortization Expenses	215.15	172.40
f) Other Expenses	2,129.96	2,586.60
Total Expenses	1,54,966.14	1,35,672.29
V. Profit before Tax and Exceptional Item (III-IV)	3,712.73	2,661.47
Add: Exceptional Item	–	25.96
VI. Profit after Exceptional Item	3,712.73	2,687.43
VII. Tax Expense	889.27	590.27
VIII. Profit after Tax	2,823.46	2,097.16

 

Standalone Statement of Profit and Loss
		( in Mn)
Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025
I. Revenue from Operations	1,51,726.90	1,32,578.07
II. Other Income	398.09	594.79
III. Total Income (I + II)	1,52,124.99	1,33,172.86
IV. Expenses
a) Purchases of Stock-in-Trade	1,48,645.64	1,27,241.64
b) Changes in Inventories of Stock-in-Trade	(5,196.62)	(1,430.96)
c) Employee Benefits Expense	1,942.34	1,590.05
d) Finance Costs	1,053.28	770.24
e) Depreciation and Amortisation Expenses	210.29	156.43
f) Other Expenses	1,979.97	2,236.63
Total Expenses	1,48,634.90	1,30,564.03
V. Profit Before Tax (III + IV)	3,490.09	2,608.83
VI. Tax Expense	875.90	582.57
VII. Profit After Tax	2,614.19	2,026.26

Key Ratios (Consolidated)

Particulars	As at March 31, 2026	As at March 31, 2025	% Change
Current Ratio	1.60	1.67	-4.19%
Debt-Equity Ratio	0.47	0.52	-9.62%
Debt Service Coverage Ratio	0.38	0.31	22.58%
Return on Equity Ratio (%)	14.99	12.74	17.66%
Inventory turnover ratio	6.57	6.82	-3.67%
Trade Receivables turnover ratio	7.95	8.66	-8.20%
Trade Payables turnover ratio	8.36	8.69	-3.80%
Net capital turnover ratio	8.11	8.25	-1.70%
Net profit ratio (%)	1.78	1.52	17.11%
Return on Capital employed (%)	16.02	13.02	23.04%
Return on Investment (%)	14.99	12.74	17.66%

Human Resources

RP tech prioritises its employees as the cornerstone of its long-term success, driving long-term growth. The Company remains committed to fostering a professional, inclusive and collaborative work environment that promotes innovation, continuous learning and skill enhancement. Through a people-centric approach, the Company continues to invest in employee well-being, comprehensive healthcare benefits, capability-building initiatives and engagement programmes aimed at enhancing workplace safety and operational efficiency. During the year, the Company further strengthened its employee-centric practices through development programmes aimed at improving leadership qualities and technology-led learning interventions to equip employees with capabilities required in a rapidly evolving technology landscape.

During the year, RP tech conducted its first Branch Head and Branch Managers Leadership Training, focused on enhancing leadership capabilities, managerial effectiveness and collaboration across the Companys branch network. The programme included structured learning sessions, internal knowledge sharing and leadership development, reinforcing the Companys commitment to building a strong pipeline of capable leaders.

The Companys sustained focus on fostering talent while maintaining a positive workplace culture has received recognition through a Great Place to Work? (GPTW) certification for the fifth consecutive year, indicating its commitment to promote an engaging, empowering and performance-driven organisation. By encouraging a culture of collaboration and consistent improvement, RP tech remains dedicated to build a future-ready workforce, thereby accelerating strategic long-term growth while maintaining strong stakeholder relationships.

1,598

Total Employees as of March 31, 2026.

Corporate Social Responsibility

RP tech remains committed to creating sustainable social impact through focused Corporate Social Responsibility (CSR) initiatives that advance education, healthcare, rural development, sports, and animal welfare. Guided by the belief that inclusive growth is essential to long-term progress, the Company partners with credible institutions to address the needs of underserved communities across India.

In the area of education and literacy, the Company supports Lonavala Schools, Gurukul, Vidya Vinay Sabha, strengthening school infrastructure to improve access to quality primary and secondary education for underprivileged students in and around Lonavala. It also promotes inclusive education through support to the Alliance Club of Pune, Ganeshkhind, contributing to the maintenance of hostel facilities that enable education and vocational training for blind students, particularly from rural areas.

To improve access to quality healthcare, RP tech has supported the development of healthcare infrastructure by contributing to the construction of the Rotary Eye Hospital through the Rotary Foundation (India). The Company has also extended infrastructure support to Shri Radhakishan Mahaveerprasad Pansari Hospital, Ramgarh (Rajasthan) for the development of medical facilities and procurement of critical equipment, enhancing healthcare services in the region.

The Companys rural development initiatives focus on strengthening livelihoods through skill development. In partnership with the Ashok Singhal Memorial Trust in Pune Rural, it supports Gram Udyog training programmes that equip underprivileged communities with vocational skills, fostering entrepreneurship and sustainable income generation. Recognizing the importance of sports in youth development and community well-being, the Company has supported the creation of integrated multi-sports infrastructure in the Shekhawati region of Rajasthan through Ramgarh Parishad, helping nurture sporting talent and encourage physical fitness.

As part of its commitment to animal welfare, RP tech has contributed to the construction and maintenance of shelters at Shri Krishna Gaushala, Udaipur, supporting food, care, and medical facilities for stray and abandoned animals. Through these initiatives, the Company continues to positively impact thousands of individuals while aligning its CSR efforts with national development priorities and its vision of inclusive, sustainable growth.

E-Waste Management

RP tech remains committed to promoting responsible consumption and sustainable waste management through a structured e-waste management framework. In partnership with an authorised recycler, Hulladek Recycling Private Limited, the Company has established pan-India e-waste collection and recycling operations, ensuring the environmentally conscious disposal of end-of-life electronic products in compliance with applicable regulations. To further enhance accessibility and awareness, the Company has introduced the Rashi E-Waste Management App, allowing customers to seamlessly register and track e-waste disposal requests. During the year, Rashi Peripherals also undertook e-waste awareness programmes and collection drives, successfully collecting over 200 kg of electronic waste, reinforcing its commitment to environmental stewardship, circular economy principles while contributing to a cleaner and more sustainable technology ecosystem.

Risk Management and Mitigation

The Risk Management Committee periodically assesses the significant internal and external risks faced by the Company, thereby ensuring the effective operation of necessary frameworks, processes and systems for proactive identification, monitoring and evaluation of such risks. The Companys risk management system primarily encompasses risks arising from technology obsolescence, cybersecurity threats, supply chain disruptions, component price volatility, customer demand fluctuations, market competitiveness, regulatory changes, working capital management and credit risks. The Company consistently reviews and strengthens its mitigation measures to enhance operational excellence and promote sustainable growth, through an integrated approach.

The Board of Directors periodically reviews the risk assessment framework and the mitigation measures to safeguard the Company from the risks that could adversely impact its operations. The terms of reference of the Risk Management Committee and its activities during the year are detailed in the Corporate Governance Report.

Internal Control Systems and their Adequacy

A brief note on internal control systems is enclosed as a part of the Boards Report which forms a part of this Annual Report.

Cautionary Statement

This Management Discussion and Analysis contains certain forward-looking statements relating to the Companys business prospects, growth strategies, objectives and expectations. These statements are based on current assumptions, estimates and information available to the management and are subject to various risks and uncertainties, including changes in market conditions, competitive intensity, economic developments, technological disruptions and regulatory changes, which may cause actual results to differ materially from those expressed or implied.

Readers are advised not to place undue reliance on these forward-looking statements, as they are not guarantees of future performance and involve known and unknown risks and uncertainties. Except as required under applicable laws and regulations, Rashi Peripherals Limited assumes no obligation to revise, update or publicly release any modifications to these statements to reflect subsequent events, circumstances or new information.