Synopsis:
The shares of the global semiconductor company gained up to 5 percent in today’s trading session after the government of Odisha approved fiscal support for a semiconductor manufacturing facility.
With a market capitalization of Rs 1,667.88 crore, the shares of RIR Power Electronics Ltd were trading at Rs 217.35 per share, increasing around 1.14 percent as compared to the previous closing price of Rs 214.90 apiece.
Government Initiative
The shares of RIR Power Electronics Ltd have seen positive movement after the Odisha government approved fiscal support for Phase 1 of its Silicon Carbide (SiC) semiconductor manufacturing project. The subsidy will be disbursed pro rata, offering a financial cushion for the company’s expansion in a strategically important sector.
Furthermore, the Rs. 618 crore project, cleared by state authorities last fiscal, has already seen Rs. 65 crore in capex. With Rs. 32 crore in government subsidy approved, this support strengthens the company’s execution capability, enhancing investor confidence and signaling state-level backing for high-tech manufacturing in Odisha.
Additionally, the company’s progress marks a major step toward becoming a key domestic player in high-power semiconductor manufacturing. Its new facility will produce advanced SiC devices for EVs, renewable energy, power grids, and industrial automation, supporting the Make in India initiative and fostering sustainable, high-efficiency technology growth across critical sectors.
Looking forward, the company reported a 23% rise in revenue, increasing from ₹21.57 crore in Q4FY24 to ₹26.46 crore in Q4FY25, indicating strong sales growth. However, net profit declined by 14% to ₹2.55 crore, suggesting rising costs or margin pressures despite the improved top-line performance.
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RIR Power Electronics is strategically targeting global demand in the Silicon Carbide (SiC) space by offering high-performance diodes and modules across power segments. With 60–65% of initial revenue expected from exports, it has already secured interest from global clients in India, Europe, and the US. Its vertically integrated setup, leveraging legacy technology from GE and Harris Corp, gives it a strong technological edge and product depth.
Despite rising competition, including from Chinese players and domestic entrants like SICSAM, RIR remains confident, focusing on premium high-voltage applications beyond 1,200V. Backed by strong R&D, 10% of revenue is dedicated to innovation. The company expects EBITDA margins of 25–28%. High technical barriers further protect its position in power semiconductors.
RIR Power Electronics is ramping up operations with added furnace capacity at its Halol facility, ensuring smooth throughput and eliminating manufacturing bottlenecks. The Odisha plant is on track, with first revenue generation expected by Q4FY26, packaging operations by Q2FY27, and full device fabrication by May 2027. The company targets over 90% capacity utilization by FY30.
RIR Power Electronics Ltd is engaged in developing and delivering products and solutions for its partners and customers across the entire power electronics ecosystem. The Company’s product categories include semiconductor devices, semiconductor modules, and equipment.
Written by Abhishek Singh
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