Rashi Peripherals has emerged as one of the strongest-performing technology stocks over the past year, with its share price rising 157% during the period and 112% so far in 2026, as investors bet on sustained demand for artificial intelligence, enterprise IT infrastructure and data centre investments.
The company says several structural trends, including India's AI adoption, the enterprise PC replacement cycle, expanding data centre investments and rising enterprise technology spending, continue to support its business. It is also increasing its presence in semiconductors, commercial IT distribution and AI-led infrastructure projects to broaden future revenue streams.
The outlook comes as Rashi seeks to expand its market share while improving profitability through higher-value products, operating leverage and a wider customer base across India.
AI, Enterprise IT Spending Support Core Business
Rashi Peripherals is one of India's largest information and communication technology distributors, serving more than 10,300 business customers and distribution partners. It distributes products from 78 technology brands, including Lenovo, LG, JBL, Toshiba, SanDisk, Nvidia, Samsung, Google and Qualcomm. The company says it provides pre-sales support, warranty management and after-sales services through general trade, modern trade and e-commerce channels.
Its Personal Computing and Enterprise Solutions business contributed 58% of FY26 revenue, while Lifestyle and IT Essentials accounted for the remaining 42%. The enterprise business serves government institutions, data centres, banks, financial institutions, educational organisations and IT services companies with products including personal computers, laptops, servers, storage systems and AI solutions. The consumer business focuses on peripherals, gaming accessories, wearables and other technology products.
Management says the ICT distribution industry is benefiting from several long-term drivers, including the end of Windows 10 support, increasing adoption of AI-enabled devices and low PC penetration across India. The company also expects higher memory prices to support revenue growth through increased selling prices in its enterprise business.
Margin Expansion Remains In Focus
Rashi says higher product prices are improving operating leverage because margins are earned as a percentage of product value while fixed costs remain relatively stable. According to the company, EBITDA margin rose to 2.9% in FY26 from the previous year, while net profit margin also improved. Management says margins could continue to expand if pricing remains firm and revenue maintains its historical growth trajectory.
The company says it aims to outpace industry growth over the next three to five years by expanding into new markets and adding customers. It has opened branches in Nanded, Baramati and Solapur, increasing its network to 55 branches serving more than 700 towns.
Management expects some weakness in consumer demand during the second half of FY27 because of higher laptop prices but says commercial demand should remain resilient. It also says the company is working with vendors to introduce interest-free instalment plans to support consumer purchases.
Semiconductor And Data Centre Businesses Expand
Rashi says its semiconductor business is its fastest-growing emerging segment after recording 131% year-on-year growth. The company has established subsidiaries in India and Singapore to expand partnerships, build dedicated teams and acquire new customers in sectors including automobiles, robotics and the Internet of Things. Management says the semiconductor business generates higher margins than its distribution operations, although it may take several years to make a significant contribution to overall earnings.
The company also says it recently partnered with Dell Technologies for commercial IT distribution, which management expects to contribute a double-digit share of revenue next year. Other partnerships include Teachmint Technologies for AI-based education products and the launch of Oura health rings in India.
Rashi says it has expanded its presence in AI data centre infrastructure after completing a Rs 2,000 crore project for Yotta in 2025 involving 512 servers and 4,000 GPUs. Management says it sees a pipeline worth Rs 20,000 crore to Rs 25,000 crore as demand grows for enterprise AI and data sovereignty projects, and plans to bid selectively for projects that meet its return thresholds.
The company also says it is pursuing a strategy to increase revenue from existing partners by selling multiple products from the same technology brand through a single transaction.
ALSO READ: Siemens, ABB And Hitachi Buy This Company's Products. Now Data Centres Are Calling
Financial Performance Improves
Revenue rose 14.9% year on year to Rs 15,827 crore in FY26, supported mainly by 24% growth in the Lifestyle and IT Essentials segment, according to the company. EBITDA increased 53% to Rs 459 crore, while net profit climbed 35% to Rs 282 crore. Rashi also reported positive operating cash flow of Rs 114 crore after recording negative operating cash flow during the previous three financial years. Return on capital employed improved to 16%, while return on equity increased to 15%.
Valuation And Risks
At Rs 761 a share, Rashi Peripherals trades at 18 times earnings, according to the document. The company says investors should monitor slower consumer demand, weaker PC shipments, slow-moving inventory and any decline in memory prices, which could affect both revenue growth and margins.
Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinion of NDTV Profit or its affiliates. Readers are advised to conduct their own research or consult a qualified professional before making any investment or business decisions. NDTV Profit does not guarantee the accuracy, completeness, or reliability of the information presented in this article.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.