💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 148.02% YoY in FY25 to INR 321.75 Cr and surged 175% YoY in H1 FY26 to INR 284.19 Cr. The EPC segment remains the core bedrock, while the company is diversifying into the edible oil business to compete with Gokul and BN Agritech.

Geographic Revenue Split

Headquartered in Gujarat, the company is actively expanding its footprint into Andhra Pradesh to secure orders from leading companies similar to ONGC.

Profitability Margins

Net Profit Ratio improved from 8.55% in FY24 to 9.16% in FY25. H1 FY26 PAT margin stood at 9.48%, driven by a 172% YoY increase in PAT to INR 26.91 Cr.

EBITDA Margin

EBITDA margin was 13.56% in FY25 (down 114 bps from 14.70% in FY24). H1 FY26 EBITDA margin was 13.41%, with EBITDA growing 165% YoY to INR 38.07 Cr.

Capital Expenditure

Capital expenditure in FY25 was INR 7.50 Cr, compared to INR 2.57 Cr in the previous year, representing a 192% increase to support growing project execution needs.

Credit Rating & Borrowing

The company describes itself as net debt-free in H1 FY26. Finance costs decreased 19.79% YoY in FY25 to INR 1.49 Cr, despite a debt-to-equity ratio of 0.09.

⚙️ Operational Drivers

Raw Materials

Key materials include steel (CS/SS/Alloy Steel) for piping and structural works, and fuel for logistics and equipment operation. Total purchases (Fuel + Other Expenses) were INR 249.78 Cr in FY25.

Import Sources

Not specifically disclosed, though operations are centered in Gujarat and expanding to Andhra Pradesh.

Key Suppliers

Not specifically disclosed; however, major clients like ONGC, Reliance, and HPCL are central to the procurement and project ecosystem.

Capacity Expansion

Completed 100 projects over 30 years with 17 currently underway. The order book has expanded significantly to INR 4,531.26 Cr.

Raw Material Costs

Total purchases accounted for approximately 77.6% of revenue in FY25. Procurement strategies focus on ironclad cost discipline to maintain EBITDA margins around 13.4%.

Manufacturing Efficiency

Return on Capital Employed (ROCE) was 25% in FY25. The company targets 15-20% sales margins from EPC projects.

Logistics & Distribution

Distribution and logistics are impacted by climate risks such as flooding and heatwaves, which affect worker productivity and execution timelines.

📈 Strategic Growth

Expected Growth Rate

175%

Growth Strategy

Execution of the INR 4,531.26 Cr order book, completion of the INR 957 Cr Epitome order (targeting INR 200 Cr completion soon), and expansion into the Andhra Pradesh market. Diversification into the edible oil retail model is expected to generate 20% profit margins.

Products & Services

EPC-based fabrication, piping fabrication (CS/SS/Alloy Steel), storage tank works, structural erection, maintenance services (ARC), and edible oil.

Brand Portfolio

RBM Infracon.

New Products/Services

Entry into the edible oil business and expanding service capabilities to support energy transition and sustainability goals.

Market Expansion

Targeting Andhra Pradesh for infrastructure projects and scaling the retail edible oil model.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Not disclosed.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable models and energy transition. RBM is positioning itself by expanding service capabilities in high-growth infrastructure segments.

Competitive Landscape

Faces competition from Gokul, Epitome, and BN Agritech in edible oils, and heightened competition in government contracts due to relaxed tendering norms.

Competitive Moat

Moat is built on a 30-year track record, 100+ completed projects, and a 'trusted client base' of Tier-1 private and PSU entities, creating high barriers to entry and switching costs.

Macro Economic Sensitivity

Highly sensitive to India's infrastructure pipeline and government capex push, which drove the 148% revenue growth in FY25.

Consumer Behavior

Growing demand for sustainable models and energy transition is forcing a shift in business strategy toward green infrastructure.

Geopolitical Risks

Conflicts and protectionist policies are identified as risks to supply chains and inflation.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with pollution norms, safety standards, and manufacturing standards for refineries and petrochemical plants is mandatory for its ARC maintenance services.

Environmental Compliance

The company is aligning with sustainability goals and energy transition as part of its FY26 outlook.

Taxation Policy Impact

Effective tax rate was approximately 26.4% in FY25, with tax expenses of INR 10.59 Cr on PBT of INR 40.06 Cr.

Legal Contingencies

The Secretarial Audit Report for FY25 expressed an unmodified opinion; no specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Execution risks including delays in land acquisition, work-front availability, and clearances which may impact project timelines for the INR 4,500 Cr+ order book.

Geographic Concentration Risk

Operations are primarily concentrated in Gujarat, though expansion to Andhra Pradesh is underway.

Third Party Dependencies

High dependency on skilled labor and sub-contractors, with labor availability cited as a current challenge.

Technology Obsolescence Risk

Risk of energy transition requiring rapid adjustments to the core mechanical and rotary equipment service model.

Credit & Counterparty Risk

Trade receivables turnover ratio of 7.38 in FY25, with most bills booked post-half year, indicating seasonal credit exposure.