According to reports from Business Standard, Rashi Peripherals (RPL) announced that Crisil Ratings has reaffirmed its ratings on the bank facilities of the company at 'Crisil AA-/Stable/Crisil A1+'. The rating agency highlighted that the group's business risk profile continues to benefit from its established market position in the domestic IT hardware distribution industry, with the company remaining amongst the top five IT hardware distributors in India. As per Crisil Ratings, the company's strong market position and consistent performance have supported the maintenance of these high credit ratings.
As reported by Business Standard, continued addition of new products, expansion into newer geographies and strengthening of the distribution network have supported sustained growth in scale of operations over the past few years. The company expects revenue to witness further strong growth in fiscal 2027, supported by the acquisition of VDA Infosolutions (VDA), improvement in product diversification and continued expansion of the customer base. The profitability is expected to improve further over the medium term, aided by continued growth in revenue and contribution from VDA, though it remains susceptible to the competitive nature of the IT distribution industry.
According to Business Standard, the financial risk profile remains strong, supported by a healthy net worth of ₹2,033 crore as on 31 March 2026, and comfortable debt protection metrics. The group's liquidity position remains strong, supported by healthy cash accrual generation and adequate financial flexibility. Net cash accruals are expected to exceed ₹400 crore against scheduled debt obligations of only ₹105-106 crore over the near term. Average bank limit utilisation remained moderate at around 77% during the 12 months ended May 2026.
As reported by Business Standard, RPL had free cash and cash equivalents of ₹79 crore as on 31 March 2026, while VDA had cash and cash equivalents of around ₹150 crore, providing additional liquidity support for post-acquisition. These strengths are partially offset by the inherently low-margin nature of the IT distribution business, large working capital requirements and susceptibility to the performance of key principals.
According to Business Standard, the scrip rose 0.71% to currently trade at ₹820.50 on the BSE following the rating announcement. Rashi Peripherals is a distributor of personal computers and notebooks, mobile phones, wearable IT consumables, printers, peripherals, networking products, storage products, UPS and invertors, and also provides after-sales services.
