Rishabh Instruments Share: How Does the Company’s Future Look?

Synopsis: Rishabh Instruments is emerging as a key play on India’s electrification and automation cycle, supported by strong demand in energy management, industrial monitoring, global operations and an improving profitability outlook 

India’s electrical equipment industry is gaining momentum, driven by rising investments in power infrastructure, industrial automation, renewable energy integration and data centre expansion. Demand for metering, control, protection and energy management systems continues to rise as industries focus on efficiency and reliability.

In this backdrop, Rishabh Instruments is well placed with its diversified portfolio spanning electrical automation, measurement devices, solar inverters and industrial solutions, making it a direct play on the ongoing electrification and capex cycle. 

ICICI Direct has initiated a Buy on Rishabh Instruments with a target price of Rs. 520, based on 18x FY28E EPS, while expecting revenue and PAT to grow at 15 percent  and 23 percent  CAGR respectively over FY25–FY28E, highlighting strong medium-term earnings visibility and reflecting confidence in the company’s growth trajectory, profitability improvement and sustained business momentum ahead. 

Investment Rationale: 

Rishabh Instruments’ growth story is increasingly being shaped by its transition toward the high-margin electrical and electronics instruments segment, which is expected to grow at around 20 percent  CAGR over FY26–FY28E, with EBITDA margins exceeding 20 percent . This business is benefiting from strong demand for energy management systems, grid monitoring and industrial power optimisation as electrification gathers pace across sectors. 

India is expected to remain the key growth engine, with the domestic business also projected to grow at nearly 20 percent  CAGR from FY25 to FY28E, supported by industrial capex, renewable integration and data centre expansion. Margins in the India business are expected to improve to around 18–19 percent , aided by better product mix and operating leverage. 

On the broader earnings front, the company is expected to deliver ~15 percent  revenue CAGR, ~22 percent  EBITDA CAGR and ~23 percent  PAT CAGR over FY26–FY28E. Added to this, the turnaround in the European Lumel Alucast business, capacity expansion in Nashik and steady export growth through Lumel SA strengthen the company’s re-rating potential and long-term earnings visibility.

Business segments: 

Rishabh Instruments has built a well-diversified portfolio across five major business segments, giving it strong exposure to India’s electrification, industrial automation and renewable energy themes. Its Electrical Automation segment focuses on real-time monitoring, predictive maintenance and energy optimisation through products such as energy management and SCADA software, I/O modules, converters and temperature controllers, catering to sectors like power, railways, steel, pharma, cement, petrochemicals and data centres.

In Metering, Control & Protection Devices, the company supplies analog panel meters, current transformers, power quality meters and synchronisation units, supporting power generation, transmission and smart grid infrastructure, where it is a global leader in analog panel meters. 

The Portable Test & Measurement Instruments division serves utilities, defence, railways and OEMs with products like digital multimeters, clamp meters, insulation testers and cable fault locators. 

In renewables, Rishabh’s Solar String Inverters (1 kW–50 kW) business stands out as it was the first in India to design and manufacture these systems end-to-end, supporting solar and microgrid applications and through through Lumel Alucast, it also has presence in aluminium high-pressure die-casting, supplying precision lightweight components to automotive, EV, telecom and consumer sectors

Manufacturing capacity: 

Rishabh Instruments has built a strong and highly integrated manufacturing ecosystem that supports its global operations and cost leadership. The company operates five vertically integrated facilities across India, Poland and China, backed by two modification centres in the UK and US and software divisions in India and the Czech Republic. Its installed production capacity stands at 38.5 million units per annum, with 56 percent utilisation in FY25, leaving ample room for future growth. 

A key strength is its 99 percent  in-house manufacturing capability, with only 1 percent  outsourced, enabling better control over design, prototyping, assembly, testing and packaging. This vertically integrated setup helps reduce lead times, improve quality and ensure cost efficiency, while its global facility network allows smooth production shifts during supply disruptions.

Industry overview: 

The electrical automation industry is seeing strong growth both globally and in India, driven by rapid digitalisation, rising focus on energy efficiency, and continued investments in smart industrial infrastructure. Globally, the market was valued at around USD 210 billion in 2024 and is expected to grow to over USD 400 billion by 2033, supported by increasing adoption of industrial automation, power system upgrades, and electrification initiatives. In India, the market stood at about USD 7.57 billion in 2024 and is projected to reach USD 15.96 billion by 2033, growing at a CAGR of 8.6 percent .

This growth is being driven by expanding manufacturing capacity, higher labour costs, infrastructure spending, and supportive government initiatives such as Make in India and PLI schemes. 

Conclusion: 

Rishabh Instruments appears well placed to benefit from the ongoing electrification, automation and energy efficiency cycle, supported by its diversified product portfolio and strong global manufacturing footprint. With an improving business mix, rising domestic demand and recovery in overseas operations, the company has strong medium-term growth visibility. Its presence across high-growth segments such as electrical automation, metering and renewable energy solutions strengthens the long-term outlook, while improving profitability and return ratios add to the positive investment case. 

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