Synopsis: A distribution player riding India’s PC and AI hardware boom has surged over 100% in just a few months. But as its stock rallies, big domestic institutions and a well-known ace investor have trimmed their holdings in the latest quarter.
A structural upgrade cycle is sweeping through India’s technology hardware distribution business, driven by the AI PC wave and a broader compute refresh. Stocks tied to this theme have rewarded early investors handsomely this year. One such distributor has turned into a multibagger within months.
Yet the latest shareholding data throws up a signal worth examining closely. The stock has rallied from around ₹350 in early April 2026 to nearly ₹750 as of July 2026, a gain of more than 100% in under four months.
Rashi Peripherals: The Multibagger Story
The company in focus is Rashi Peripherals, one of India’s largest ICT distribution players (International Data Corporation, a global research firm that tracks technology market data like PC and smartphone shipments)
It operates through 55 branch offices across more than 700 towns, serving over 10,000 customers with products spanning personal computing and enterprise solutions (PES) and lifestyle and IT products (LIT), backed by partnerships with 82 brand partners.
Its Q4 FY26 results, reported in mid-May 2026, explain much of the excitement. Consolidated revenue from operations rose 51% year-on-year to ₹4,489 crore, EBITDA grew 41% with margins at 2.95%, and profit after tax jumped 65% to ₹87 crore.
For the full financial year 2026, revenue grew 15% to ₹15,827 crore, EBITDA rose 53% to ₹459 crore, and PAT climbed 35% to ₹282 crore. Annualised ROCE has crossed 16%, and stood above 19% for the quarter.
Management attributes this to a “super cycle” in Indian ICT distribution. According to IDC, India’s PC market shipped a record 15.9 million units in calendar 2025, growing at about 10.2% year-on-year, the strongest ever year, surpassing even the pandemic peaks of 2021 and 2022, and AI-enabled notebooks grew 129% year-on-year.
Microsoft stopped supporting Windows 10 in October 2025, triggered a multi-year refresh wave, while price increases across the personal computing and enterprise segment added another leg to growth.
The company also pointed to newer growth drivers: its semiconductor business grew 131% year-on-year, its partnership with Dell Technologies strengthened its server and storage portfolio, and it continues to be a leading distributor of NVIDIA’s AI hardware, including the recently launched NVIDIA DGX Spark.
With 55 branch offices, over 10,000 customers across 700-plus towns, and management guiding for a continued 20% revenue CAGR, the growth narrative has clearly caught investor attention.
DIIs And Madhusudan Kela Trim Holdings
Here’s where the picture gets interesting. DIIs, or Domestic Institutional Investors, had steadily built their stake from 14.41% in March 2024 to a peak of 18.45% in December 2025. Since then, they have pared it down to 17.45% in March 2026 and further to just 12.68% by June 2026, the most recent quarter for which shareholding data is available.
Ace investor Madhusudan Kela, whose holding (through Madhuri Madhusudan Kela) stayed flat at 2.44% for two straight years, also cut his stake to 1.76% in that same June 2026 quarter.
Interestingly, this isn’t a broad exodus. FIIs, or Foreign Institutional Investors, actually raised their stake sharply, from 0.78% in March 2026 to 3.27% in June 2026. Overall public shareholding also rose, from 17.76% to 20.01%, alongside a jump in the number of shareholders from 43,946 to 52,537. A separate entity, L7 Securities Private Limited, briefly held 1.24% in December 2025 but does not appear in the following quarters.
Should Investors Worry?
Profit booking after a rally of this magnitude is not unusual. DIIs and Madhusudan Kela may simply be locking in gains after the stock more than doubled between April and June 2026, rather than signalling a loss of confidence in the business.
The fact that FIIs sharply increased their exposure in the very same quarter suggests fresh institutional money is stepping in even as older holders exit, which is a fairly normal churn pattern in a fast-moving stock.
That said, a few things are worth watching heading into the rest of FY27. Management itself has flagged that IDC expects a 5-10% dip in PC shipment volumes in calendar 2026 as elevated prices work through the system.
The company’s own long-term PAT margin guidance remains modest, in the 1.5-1.75% range, typical of the low-margin distribution business. After such a sharp run-up, some near-term volatility or consolidation would not be surprising, even if the medium-term growth story stays intact.
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