Rashi Peripherals: Revenue Up 49%, Net Profit Up 121%

RPTECH Rashi Peripherals ( NSE : RPTECH) distributes technology products from 89 international brands including AMD, Nvidia, SanDisk and Google across 728 locations in India. It is expanding into enterprise IT services through a 67% stake in VDA Infosolutions, and into semiconductor distribution through a joint venture with Japan's Restar Corporation. What happened: In Q2FY27, revenue grew 48.8% year on year to Rs 6,185.1 crore. About half of growth came from higher component prices; volume added 10 to 11% and new business 10%. EBITDA surged 112.2% to Rs 220.1 crore at a 3.6% margin. Net profit more than doubled, rising 120.8% to Rs 130.7 crore. Working capital increased by Rs 516 crore from additional inventory purchases. Why it matters: H1FY27 semiconductor revenue was US$40 million, up from US$20 million for all of FY26; management projects 3x to 4x growth. VDA, acquired for enterprise IT and cloud services, contributed under 2% of Q2FY27 revenue but carries margins more than double those of hardware distribution. Management targets 20% of revenue from VDA within a year. What I am watching: Rashi passed on large AI data centre bids in H1FY27 as its core business was growing at 50%. VDA targets Rs 20,000 crore in domestic AI data centre orders. Memory prices are a risk: 30% of H1FY27 growth came from pricing tailwinds, and a DRAM price fall could slow revenue growth. My stance: Rashi trades at 11.6 times earnings, below the industry median of 19.1 times. ROCE is 17.0% and ROE is 14.7%. The discount reflects thin distribution margins. The semiconductor and enterprise IT expansion could re-rate the stock, but neither contributes meaningfully to earnings yet. I do not hold a position in Rashi Peripherals at the time of writing. This is not investment advice.