RIR Power Electronics reported a 41.2% jump in net profit to ₹4.45 crore for the September quarter. Despite this growth, the stock dropped to a new 52-week low, as investors seem concerned about shrinking operational margins and rising costs. The company is now preparing for commercial production at its new Silicon Carbide wafer facility in Odisha.
RIR Power Electronics saw its shares slide to a 52-week low of ₹144.68, even as the company reported a robust 41.2% year-on-year increase in net profit for the quarter ending September 30, 2026. The firm’s net profit reached ₹4.45 crore, supported by a 32.5% growth in operating revenue, which rose to ₹33.98 crore. This contrast between rising earnings and a falling share price highlights a cautious mood among investors regarding the company's profitability trends and cost structure.
While the net profit margin improved to 12.50%, the underlying operating efficiency faced challenges. The adjusted EBITDA margin slipped by 36 basis points to 16.65%. This pressure on operating profit is largely linked to higher employee stock option expenses, which impacted the bottom line by ₹1.03 crore during the period. For investors, the takeaway is that higher revenue growth is currently being offset by rising operational expenses, which may temper profit expansion in the near term.
Looking ahead, the company is focused on its expansion into Silicon Carbide (SiC) technology. Infrastructure at its Bhubaneswar manufacturing plant is now complete, and initial inspections by state authorities have been finished. Management aims to begin commercial production in the third quarter of this fiscal year. This capital spending is part of a strategy to move into higher-value power electronics, but it places the company in a phase of heavy investment. Shareholders will be watching closely to see if this facility can ramp up production quickly enough to justify the capital outlays.
The recent stock decline, which has seen the equity lose over 23% of its value in the last month, also reflects broader market caution. Management has explicitly flagged geopolitical risks and general cost pressures as potential headwinds. For a company in the industrial electronics space, these external factors often lead to volatility in input costs. The key monitorable for investors is whether the planned production at the Odisha facility can successfully offset these operational pressures and if margin levels can stabilize as the company scales its new manufacturing capacity.