💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 84.30% YoY to INR 318.16 Cr in FY25. In H1 FY26, revenue reached INR 221.61 Cr (up 111.50% YoY), with Solar EPC contributing 52% (INR 104.46 Cr), Electrical EPC contributing 26% (INR 57.49 Cr), and Electrical Products contributing 22% (INR 49.66 Cr).

Geographic Revenue Split

The company is based in Rajasthan but has significant exposure to Maharashtra, with Maharashtra State Electricity Distribution Company Limited (MSEDCL) accounting for INR 545.84 Cr of the INR 1,035.47 Cr total order book (approx. 52.7%).

Profitability Margins

Net Profit (PAT) margins improved from 8.63% in FY24 to 9.89% in FY25, and further to 9.05% in H1 FY26. Gross margins declined significantly by 1,502 bps from 44.80% to 29.77% in FY25 due to a shift toward lower-margin EPC business lines.

EBITDA Margin

EBITDA margin was 16.73% in FY25, a decline of 304 bps from 19.76% in FY24. In H1 FY26, it further moderated to 15.34% as the company prioritized volume expansion and market share in the Solar and Electrical EPC segments over percentage margins.

Capital Expenditure

Total assets increased by 73% YoY to INR 268.50 Cr in FY25, driven by investments in tangible assets and capital work-in-progress for new manufacturing capacity expansion. Shareholders' funds increased 77% to INR 106.99 Cr.

Credit Rating & Borrowing

Credit rating reaffirmed at IVR BBB-; Stable (Long Term) and IVR A3 (Short Term) as of July 2025. Interest coverage ratio improved to 6.10x in FY25 from 3.95x in FY24 due to higher absolute EBITDA.

⚙️ Operational Drivers

Raw Materials

Specific raw material names like steel or copper are not listed with percentages, but 'input costs' and 'salaries in the Solar segment' are cited as primary drivers of the 304 bps EBITDA margin decline.

Capacity Expansion

The company is expanding manufacturing capacity for electrical solutions; however, it has 'paused and deferred' its solar module manufacturing plans to focus on being a 'solution company' rather than just a product manufacturer.

Raw Material Costs

Gross profit grew only 22.50% (INR 94.73 Cr) despite an 84.30% revenue jump, indicating that raw material and direct project costs as a percentage of revenue increased from 55.2% to 70.23% due to the EPC-heavy mix.

Manufacturing Efficiency

Inventory turnover ratio improved from 12.72 times in FY24 to 17.11 times in FY25, reflecting higher operational throughput and faster movement of electrical products.

📈 Strategic Growth

Expected Growth Rate

111.5%

Growth Strategy

The company aims for a 'Vision 2030' target of INR 5,000 Cr in sales through strategic diversification into Solar EPC, transmission sectors, and Battery Energy Storage (BES) tenders. It is transitioning from a product manufacturer to a 'solutions provider' to address electrocution and electrical theft.

Products & Services

Smart meters, LT/HT distribution boxes and panels, junction boxes, feeder pillars, circuit protection switchgears, and EPC contracts for energy transmission lines and solar power plants.

Brand Portfolio

RMC Switchgears.

New Products/Services

Expansion into Solar EPC (now 52% of revenue) and upcoming forays into the transmission sector and Battery Energy Storage (BES) tenders.

Market Expansion

Targeting government-backed distributed solar schemes like MSKVY 2.0 and RDSS (Revamped Distribution Sector Scheme) across India.

Strategic Alliances

Collaborations with state PSUs and private utilities; recently formed four subsidiaries including RMC Green Energy and RMC Solar Park to execute renewable projects.

🌍 External Factors

Industry Trends

The industry is shifting toward smart metering and renewable energy integration. RMC is positioning itself by securing large solar EPC orders (INR 320 Cr LOA) and participating in the 'electrification renaissance' in India.

Competitive Landscape

Fragmented market with many players of varied capabilities; competition is intense in the EPC segment, leading to margin compression.

Competitive Moat

Moat is built on 30+ years of experience and long-standing relationships with government DISCOMs. However, the moat is challenged by the fragmented nature of the electrical sector and low barriers to entry for bidding.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and clean energy priorities (PM-KUSUM, RDSS). Changes in government taxation or regulations could significantly impact operations.

Consumer Behavior

Shift toward green energy and demand for theft-proof electrical solutions (electrocution prevention) is driving demand for RMC's specialized enclosures and EPC services.

Geopolitical Risks

Exposure to global technology cycles (e.g., shifts from PERC to TopCore/HJT in solar) and availability of domestic cell technology.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by power sector policies like RDSS, Green Energy Corridor, and Domestic Content Requirement (DCR) cell requirements for solar projects.

Environmental Compliance

Focus on sustainability through rural development and clean energy projects (Solar EPC) as a cornerstone of business purpose.

⚠️ Risk Analysis

Key Uncertainties

Execution risk on the INR 1,035.47 Cr order book and potential policy shifts in government schemes could impact revenue by over 50% given the segment mix.

Geographic Concentration Risk

Significant concentration in Maharashtra and Rajasthan; any regional policy change or natural calamity in these states would disproportionately affect the company.

Third Party Dependencies

High dependency on government DISCOMs for order inflows and timely payments; average working capital utilization is high at >90%.

Technology Obsolescence Risk

Risk of rapid changes in solar technology (cell types) and smart meter standards requiring constant R&D and capital reinvestment.

Credit & Counterparty Risk

Receivables are 'elongated' due to the long credit periods taken by government organizations, creating a liquidity risk if collections are further stretched beyond the current ~60-day cycle.