RAPPID - Rappid Valves

📊 NSE: RAPPID 🏢 Engineering 📅 Last Updated: 12/14/2025 11:38

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 42.76% YoY to INR 52.13 Cr in FY25. As of September 30, 2025, the order book of INR 20.19 Cr is split between Marine (Defence) at 40.8% (INR 8.24 Cr) and Non-Marine at 59.2% (INR 11.95 Cr).

Geographic Revenue Split

Primarily domestic (India) with a focus on the Indian Navy and major steel producers. The company plans to commence contract manufacturing for export customers by November 2025 to diversify geographic revenue.

Profitability Margins

Net Profit Margin improved slightly from 11.30% in FY24 to 11.58% in FY25. Operating Profit Margin saw a minor decline from 18.97% to 17.96% during the same period due to operational scaling.

EBITDA Margin

Operating Profit Margin stood at 17.96% in FY25, reflecting stable core profitability despite a 42.76% increase in revenue.

Capital Expenditure

Planned CapEx includes INR 6.73 Cr for new plant, machinery, and software, and INR 0.39 Cr for renovation of the registered office and manufacturing unit.

Credit Rating & Borrowing

Interest coverage ratio improved significantly from 4.94 to 8.36 in FY25. Debt-Equity ratio dropped from 0.89 to 0.19 following a debt repayment of INR 10.50 Cr using IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Steel and alloys (implied by collaborations with major steel producers JSPL and Bokaro Steel) used for valve manufacturing.

Key Suppliers

Jindal Steel and Power Limited (JSPL) and Bokaro Steel are identified as key industry collaborators and material sources.

Capacity Expansion

Expanding manufacturing infrastructure with a new 9,000 sq. ft. store and inventory management facility to enhance operational efficiency and dispatch capabilities.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company maintains an inventory turnover ratio of 3.22 to manage material flow.

Manufacturing Efficiency

Inventory turnover ratio improved slightly from 3.15 to 3.22 in FY25, indicating stable manufacturing throughput.

📈 Strategic Growth

Expected Growth Rate

42.76%

Growth Strategy

Growth will be driven by a three-pronged strategy: expansion into the emerging Compressed Bio-Gas (CBG) sector, commencing export contract manufacturing in November 2025, and pursuing inorganic growth through a dedicated INR 4.00 Cr acquisition fund.

Products & Services

Marine valves for the Indian Navy and shipyards, valves for the steel industry, and specialized valves for Compressed Bio-Gas (CBG) units.

Brand Portfolio

Rappid Valves.

New Products/Services

Specialized valves for the CBG sector and contract-manufactured products for international export markets starting Q3 FY26.

Market Expansion

Targeting the global marine industry and export markets with contract manufacturing starting November 2025.

Strategic Alliances

Collaborations with major steel producers JSPL and Bokaro Steel to secure growth in the industrial valve segment.

🌍 External Factors

Industry Trends

The shipbuilding industry is projected to remain booked for 8-10 years. The CBG business is emerging as a major opportunity in India, where Rappid has already secured contracts.

Competitive Landscape

Operates in a specialized manufacturing niche with high barriers to entry due to stringent marine and defence standards.

Competitive Moat

Moat is built on niche expertise in Marine (Defence) valves and established relationships with the Indian Navy and major steel producers, which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Highly sensitive to the shipbuilding industry cycle, which currently has a positive 8-10 year booking visibility.

Consumer Behavior

Shift toward sustainable energy is driving demand for Rappid's CBG-related valve products.

Geopolitical Risks

Exposure to global trade dynamics as the company begins export operations in November 2025.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Environmental Compliance

Maintains a POSH (Prevention of Sexual Harassment) policy to ensure a safe and respectful work environment.

⚠️ Risk Analysis

Key Uncertainties

Concentrated control under a single promoter poses a governance and continuity risk, potentially limiting flexibility in responding to complex industry challenges.