Rishabh Instruments Ltd Management Discussions

Global Economic Overview

The global economy exhibited remarkable resilience as it entered 2026. While adjusting to a post-conflict macroeconomic environment, global activity was strongly supported by technology investments, accommodative financial conditions, and the underlying agility of businesses operating across global supply chains. Against this backdrop, the International Monetary Fund (IMF) projects global growth of 3.1% in 2026, accelerating to 3.2% in 2027, establishing a foundation for a sustained, long-term recovery.

Global GDP Growth Estimates and Projections (%)

	2025	2026 Projection	2027 Projection
World Output	3.4	3.1	3.2
Advanced Economies	1.9	1.8	1.7
Emerging Market and Developing Economies	4.4	3.9	4.2

Source: IMF. World Economic Outlook. April 2026

While geopolitical shifts prompted initial adjustments, global trade has remained robust, particularly driven by a brisk expansion in technology-related exports and capital investments. Supply chains have shown significant adaptability, re-routing and stabilising in response to external pressures.

Furthermore, global inflation is expected to peak and ease to 3.7% by 2027, signalling a normalisation of input and energy costs. For companies with a diversified global footprint, this stabilising environment opens substantial opportunities to participate in the ongoing expansion of industrial automation, digital infrastructure, and the energy transition.

Europe remains an important market to monitor, given its industrial base, energy sensitivity and relevance to Rishabhs international business. Euro area growth is projected at 1.1% in 2026. While growth remains modest, the region continues to invest in energy efficiency, grid modernisation, renewable integration, automation and industrial productivity. These areas remain relevant for companies offering measurement, monitoring, control, testing and energy management products.

For Rishabh, which derives a significant share of its business from international markets, the global environment presents a balanced outlook. While near- term demand may remain steady across geographies due to macroeconomic and geopolitical uncertainties, the long-term investment cycle remains firmly supported by structural trends such as electrification, industrial automation, energy efficiency, grid modernization, and renewable energy integration. These drivers are expected to sustain demand for intelligent electrical

monitoring, automation, testing & measurement, and energy management solutions across global industrial value chains.

Indian Economic Overview

India remained one of the more resilient growth markets in FY 2025-26, supported by domestic demand, public investment, infrastructure creation and policy-led manufacturing momentum. Real GDP is estimated to grow by 7.6% in FY 2025-26, compared with 7.1% in FY 2024-25. The growth environment was supported not only by consumption, but also by investment in infrastructure, manufacturing, energy, logistics and digital capacity.

Annual GDP Growth at Constant Prices (%)

Year	Y-o-Y Growth Rate
2023-24	7.2%
2024-25 FRE	7.1%
2025-26 SAE	7.6%

Source: PIE.

Infrastructure spending remained a key driver of industrial activity. The Union Budget FY 2026-27 proposed public capital expenditure of 712.2 lakh crore, reinforcing the Governments continued emphasis on infrastructure-led growth, crowding-in private investment and enhancing productive capacity. This is relevant for electrical and electronic equipment companies because infrastructure expansion increases demand for reliable power systems, measurement devices, protection equipment, testing instruments and automation solutions.

Source: PIB. Union Budget FY 2026-27: Strengthening

Capital Goods Sector. February 5, 2026, p. 1

The policy environment also supported deeper domestic manufacturing. The Electronics Components Manufacturing Scheme outlay was increased to 740,000 crore in the Union Budget FY 2026-27, signaling a policy push to deepen domestic electronics manufacturing capacity. The scheme aims to strengthen the local component ecosystem and position India as a credible hub for advanced electronics manufacturing. This is relevant for companies with electronics manufacturing, SMT capabilities, product testing, and electrical instrumentation and energy management portfolios.

Source: PIB. Electronics Components Manufacturing Scheme. February 5. 2026, p. 1

Indias power and energy transition also continued to create demand for electrical systems and related products. As of March 31, 2026, India had installed 283.46 GW of non-fossil fuel capacity, including 150.26 GW of solar power. Distributed renewable energy from solar contributed 16.3 GW out of 44.61 GW solar

capacity installed during FY 2025-26, including 8.7 GW from rooftop solar. The PM Surya Ghar Muft Bijli Yojana also aims to achieve rooftop solar installations in one crore households by FY 2026-27.

Source: PIB. India Ranks Third Globally in Renewable Energy Installed Capacity. April 8. 2026

Source: PIB. PM Surva Ghar Yoiana Delivers Scale with 26 Lakh Installations and 117.967 Crore Support. March 24.2026

For Rishabh, these structural trends reinforce Indias position as a high-growth domestic market and a competitive global manufacturing hub. Rising investments in infrastructure, electronics manufacturing, renewable energy, rooftop solar, utilities, data centres, and industrial automation are driving sustained demand for solutions that measure, monitor, protect, and optimize electrical networks. This creates long-term growth opportunities across the Companys Electrical & Electronic Instruments, Test & Measurement, Solar Inverters, and Precision Die Casting businesses.

Industry Overview

Energy Efficiency, Automation and Electrical Infrastructure

As industrial activity, electrification and infrastructure investment expand, the need for efficient and reliable electrical systems Is increasing. Indias electricity demand is expected to grow at an average of 6.4% annually through 2030, with the industrial sector contributing around one-third of the increase. This creates a wider requirement for systems that can measure consumption, monitor performance and improve energy efficiency across factories, utilities, commercial buildings and infrastructure assets.

Source: IEA Electricity 2026. Demand Section

The same transition is visible in industrial automation. Global industrial robot Installations stood at 542,000 units in 2024, remaining above 500,000 units for the fourth consecutive year. Asia accounted for 74% of new deployments, compared with 16% in Europe and 9% in the Americas. The data points to a broader shift toward smart manufacturing, predictive maintenance, connected operations and process control.

While this data Is US-specific, it reflects a wider pressure on power systems: higher loads, greater reliability requirements and the need for smarter grid operations.

Source: Deloitte. 2026 Power and Utilities Industry Outlook, p. 1

For Rishabh, these trends reinforce the long-term relevance of its Electrical & Electronic Instruments portfolio. The opportunity extends beyond rising electricity consumption to the growing need for intelligent systems that enable industries and utilities to measure, monitor, protect, and optimize electrical networks driven by increasing investments in electrification, energy efficiency, grid modernization, and industrial automation.

Electronics, Testing and Solar Transition

The growth of electronics, automation and renewable energy is increasing the need for reliable metering, control, and measurement solutions. Global semiconductor sales reached USD 791.7 billion in 2025, an increase of 25.6% over 2024, reflecting stronger demand from computing, memory, Al infrastructure and connected technologies. As electronic systems become more complex, testing requirements are also becoming more critical across design, production, installation, maintenance and field diagnostics.

Source: Semiconductor Industry Association. Global Annual Semiconductor Sales Increase 25.6% to USD 791.7 Billion in 2025. February 6, 2026

This trend directly supports demand for Rishabhs Portable Test & Measurement portfolio. As industries, utilities, renewable energy assets, data centres, and electronics manufacturers focus on asset reliability, predictive maintenance, and power quality, the need for portable instruments that accurately measure voltage, current, power quality, and other critical electrical parameters continues to grow. These solutions support uptime, safety, and energy efficiency across industrial applications.

The solar transition adds another growth layer. According to IEA, global renewable power capacity to increase by almost 4,600 GW between 2025 and 2030, with solar PV representing nearly 80% of the expansion.

Source: IEA. Renewables 2025. Chapter 1: Renewable Electricity, p. 15

Sou rce: International Federation of Robotics. World Robotics 2025 Report, cress release dated September 25. 2025

The shift is equally visible in power infrastructure. Power systems are also becoming more complex. Deloitte projects US peak electricity demand to grow by around 26% by 2035, with data centre demand alone expected to reach 176 GW by 2035, a fivefold increase from 2024.

In India, cumulative installed solar capacity crossed 150.26 GW as on March 31, 2026, including 25.73 GW of rooftop solar. The PM Surya Ghar Muft Bijli Yojana also aims to achieve rooftop solar installations in one crore households by FY 2026-27.

Source: PIB. PIB Press release

For Rishabh, these structural shifts create longterm growth opportunities across its Automation, Metering, Measurement, Solar Inverter, and Electronics Manufacturing businesses. Beyond rising product demand, the opportunity is underpinned by increasing localization, cost competitiveness, supply chain resilience, and the need for high-performance, reliable solutions that support industrial automation, power quality, renewable energy, and critical infrastructure applications

Company Overview and Strategic Positioning

Rishabh Instruments Limited is a global engineering and technology company positioned around the electrical intelligence layer of modern industry. The Companys products and capabilities help customers measure, monitor, control, protect and improve electrical performance across industrial, utility, infrastructure, renewable energy and manufacturing applications.

The Company operates across two broad business areas: Electrical and Electronic Instruments (EEI) and High Pressure Die Casting (HPDC). The Electrical and Electronic Instruments business includes meters, current transformers, transducers, controllers, protection devices, portable test and measurement instruments, solar String and related solutions. These products support critical functions across power distribution, energy management, industrial automation, testing, renewables, data centres and commercial infrastructure.

The High Pressure Die Casting business, operated through Lumel Alucast, provides precision aluminium diecasting capabilities for automotive and non-automotive applications. The business is being repositioned towards better contract quality, cost discipline and a more balanced mix across end-use sectors.

Rishabhs combination is supported by its integrated manufacturing footprint, in-house R&D capability, global customer base and presence across India, Poland, China, the US, the UK and other markets. The Czech Republic company MICROSYS strengthens its software and SCADA capability, enabling the Company to combine hardware and software-led automation solutions.

This positions Rishabh to capitalize on long-term growth opportunities driven by electrification, energy efficiency, grid modernization, industrial automation, renewable integration, advanced testing & measurement, and precision manufacturing. The Companys strategic focus remains on building a more diversified, higher-quality and technology-led business, with Electrical and Electronic Instruments as the core growth engine and High Pressure Die Casting moving through a disciplined reset.

Financial Performance (Consolidated)

Particulars	FY26	FY25	YoY/ Movement
Revenue from Operations (7 million)	7,751	7,203	7.6%
Gross Margin (%)	62.1%	58.2%	390 bps
EBITDA (7 million)	1,264	484	161.1%
EBITDA Margin (%)	16.3%	6.7%	960 bps
PAT (7 million)	823	210	292.0%
PAT Margin (%)	10.6%	2.9%	770 bps
ROCE (%)	15.2%	5.7%	950 bps
Debt-Equity Ratio	O.llx	0.16x	Improved
Net Debt / Equity	Net cash position	0.02x	Improved

Rishabh delivered a solid consolidated performance in FY 2025-26 in a year marked by geopolitical uncertainty and cost pressures across global manufacturing markets. Revenue from operations increased to 77,751 million, while profitability improved at a faster pace, supported by stronger gross margins, better cost absorption and segment-level recovery. Gross margin expanded by 390 bps, EBITDA margin improved by 960 bps and PAT margin increased by 770 bps. The Company also maintained a disciplined balance sheet, with improved return ratios and lower leverage supporting financial resilience.

Segment Review Electrical and Electronic (EEI)

The Electrical and Electronic Instruments segment remained the key contributor to Rishabhs FY 2025-26 performance. Revenue grew by 17.5% to 75,369 million, while adjusted EBITDA increased by 68.5% to 71,330 million. Adjusted EBITDA margin improved by 750 bps to 24.8%.

The segment accounted for 69.3% of FY26 revenue, compared with 63.4% in FY25, reflecting a stronger contribution from the Companys core portfolio of electrical automation, metering, control, protection, portable instruments and solar inverter products.

The improvement was supported by better operating leverage, product mix and continued demand for solutions linked to energy efficiency, monitoring, automation and renewable integration.

High-Pressure Die (HPDC)

The High Pressure Die Casting segment showed improvement in FY 2025-26, despite a softer revenue base. Revenue stood at 72,383 million, compared with 72,636 million in FY25. Adjusted EBITDA improved to 733 million from a loss of 7150 million in FY25, with margin improving from -5.7% to 1.4%.

The improvement reflects the impact of cost optimisation, pricing actions and portfolio correction in the die-casting

business. The segments revenue share reduced to 30.7% in FY26 from 36.6% in FY25, indicating a deliberate shift away from lower-margin business.

The Companys focus remains on improving contract quality, reducing dependence on low-margin automotive contracts and increasing the share of non-automotive and EV-agnostic applications.

Risk Management and Internal Controls
Risk Category	Description	Mitigation Measures
Macroeconomic and Geopolitical Risk	Operations and exports may be influenced by global economic trends, geopolitical developments, trade-related uncertainty and regional market volatility, which can affect demand, pricing and profitability.	Diversifying market presence across geographies; monitoring global developments closely; maintaining focus on cost control and customer diversification
Sectoral Exposure	Prolonged challenges in certain end-use industries, particularly automotive, may affect order volumes and profitability.	Improving customer and contract mix; increasing focus on stable and higher- margin sectors; reviewing legacy contracts to improve business quality
Input Cost and Currency Risk	Volatility in raw material costs, energy prices and exchange rates can impact overall cost structures and margins.	Establishing long-term supply arrangements; improving operational efficiency; adopting pricing measures to manage fluctuations
Technology and Innovation Risk	Evolving customer needs and rapid technological change may affect product relevance and competitiveness.	Maintaining focus on R&D and new product development; strengthening technology partnerships; offering relevant and future-ready solutions
Project Execution Risk	Expansion-related delays or execution challenges in manufacturing facilities may affect production capacity and growth plans.	Planning projects in phases; conducting regular reviews; ensuring timely and efficient capacity enhancement
Regulatory and Compliance Risk	Operating across multiple jurisdictions requires adherence to diverse regulatory frameworks, product certifications and compliance requirements.	Deploying dedicated compliance teams; conducting periodic audits; securing certifications; refining processes to meet legal and regulatory standards
Supply Chain Risk	Supply chain disruptions may affect availability of key components, production timelines and cost efficiencies.	Strengthening supplier networks; enhancing inventory planning; using in- house manufacturing capabilities where feasible to reduce dependency

Internal Control Systems

Rishabh has instituted a comprehensive internal control framework designed to ensure integrity, accuracy and reliability across its operational and financial processes. The system is supported by proactive risk identification, tailored mitigation strategies and regular oversight. Internal checks, supported by periodic audits conducted by an independent agency, help identify anomalies and ensure timely corrective action.

The Company follows defined policies and procedures to ensure compliance with applicable laws and standards. To enhance operational efficiency and data security, Rishabh uses IT infrastructure, automated systems and MIS tools for financial monitoring and cost management.

Any irregularities are escalated to the Management and the Audit Committee for appropriate review and action.

Cautionary Statement

This Management Discussion and Analysis contain statements that may be forward-looking in nature. These statements are based on current expectations, assumptions and business outlook. Actual results may differ materially due to changes in economic conditions, market demand, input costs, currency movements, regulatory developments, geopolitical risks, technology shifts and other factors beyond the Companys control. Rishabh Instruments Limited does not undertake any obligation to update forward-looking statements except as required by applicable laws and regulations.