RULKA - Rulka

📊 NSE: RULKA 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/14/2025 12:30

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 82.68% YoY, reaching INR 54.24 Cr in H1 FY26 compared to INR 29.69 Cr in H1 FY25. Growth is driven by the execution of 36 sites, including 8 DMart outlets and 8 industrial warehouses, across electrical and fire-fighting segments.

Geographic Revenue Split

The company operates as an MEP project contractor all over India; however, specific percentage contribution by region is not disclosed in the available documents.

Profitability Margins

Gross Profit Margin (GPM) improved significantly to 32.47% in H1 FY26 from 26.28% in H1 FY25. Profit After Tax (PAT) margins stood at approximately 2.8% in H1 FY26, with PAT growing 61.75% YoY to INR 1.52 Cr.

EBITDA Margin

Profit Before Exceptional Items and Tax grew by 53.68% YoY to INR 2.03 Cr in H1 FY26 from INR 1.32 Cr in H1 FY25. Core profitability is supported by a 40% rate of ahead-of-schedule project completions, reducing overhead costs per site.

Capital Expenditure

Property, Plant, and Equipment (PPE) and Intangible Assets stood at INR 3.50 Cr as of September 30, 2025, a slight decrease from INR 3.59 Cr in the previous year, indicating minimal recent heavy CAPEX.

Credit Rating & Borrowing

Total borrowings increased to INR 11.15 Cr in H1 FY26 from INR 7.55 Cr in H1 FY25. Short-term borrowings rose 66.63% to INR 10.95 Cr to fund working capital for the expanded order book. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Electrical components (wires, switches), fire-fighting equipment, and MEP supplies. Cost of materials consumed represents 61.01% of total revenue (INR 33.09 Cr).

Capacity Expansion

The company utilizes a technical team of over 120 qualified personnel to execute projects. Expansion is focused on increasing the number of active sites rather than fixed manufacturing capacity.

Raw Material Costs

Cost of materials consumed increased by 74.43% YoY to INR 33.09 Cr in H1 FY26. Procurement is managed through strategic bidding and credentials review to maintain a GPM of 32.47%.

Manufacturing Efficiency

Operational efficiency is highlighted by the completion of 36 sites in H1 FY26. Ahead-of-schedule delivery for 40% of work orders optimizes labor and equipment utilization.

📈 Strategic Growth

Expected Growth Rate

83%

Growth Strategy

Growth is targeted through a significant uplift in order intake, with a total unexecuted order book of INR 144 Cr. Strategy includes deepening presence in new markets, expanding into B2C channels, and aggressive bidding for government institutional tenders.

Products & Services

Electrical contracting, fire-fighting system installation, and Operations and Maintenance (O&M) services including routine inspections and emergency response.

Brand Portfolio

Rulka Electricals Limited (REL).

New Products/Services

Expansion into B2C channels for electrical services is planned to diversify revenue streams beyond B2B contracting.

Market Expansion

Poised to enter new markets and product segments in H2 FY26, leveraging the Class A Fire Service license for national expansion.

🌍 External Factors

Industry Trends

The MEP and fire-safety industry is growing due to stricter safety norms and the expansion of logistics parks. REL is positioning itself as a licensed specialist to capture high-compliance government and corporate contracts.

Competitive Landscape

Operates in the fragmented MEP contracting space but differentiates through technical personnel (120+) and specialized fire-fighting certifications.

Competitive Moat

The Class A License from the Directorate of Maharashtra Fire Service provides a durable regulatory moat, as it allows the company to act as a licensed agency for fire prevention and life safety measures, a requirement for large-scale industrial projects.

Macro Economic Sensitivity

Highly sensitive to the construction and infrastructure cycle in India, particularly in the industrial and retail sectors.

Consumer Behavior

Shift towards organized retail and large-scale warehousing increases demand for professional MEP and fire-safety contractors.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Maharashtra Fire Prevention and Life Safety Measures Act is critical for maintaining the Class A License required for operations.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 25.4% (INR 0.52 Cr tax on INR 2.03 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

High trade receivables of INR 42.85 Cr (representing 79% of H1 revenue) pose a significant credit and liquidity risk if collections are delayed.

Geographic Concentration Risk

While operating 'all over India,' the reliance on the Maharashtra Fire Service license suggests a heavy concentration of high-value fire-fighting projects in Western India.

Third Party Dependencies

Dependent on various clients for new orders; recently secured orders totaling INR 11.26 Cr from 'various clients' in December 2025.

Technology Obsolescence Risk

Risk is low in contracting, but the company is addressing digital needs through 'disciplined project delivery' and technical training for its 120+ personnel.