💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew by 94% YoY to INR 212.46 Cr in FY24 from INR 109.83 Cr in FY23. This was driven by a 144% YoY increase in drilling rig volumes and stable income from spare parts and services.

Geographic Revenue Split

Export sales contribution significantly increased to 36% of total revenue in FY24, up from 12% in FY23, while domestic sales accounted for the remaining 64%.

Profitability Margins

Net Profit After Tax (PAT) for FY24 stood at INR 20.18 Cr. For the six months ended September 30, 2025, the company reported a Net Profit of INR 0.99 Cr on a standalone basis.

EBITDA Margin

PBILDT margin remained healthy at 18.25% in FY24, though it slightly moderated from 19.19% in FY23. Absolute PBILDT grew by 84% YoY due to higher scale and export volumes.

Capital Expenditure

Historical purchase of Property, Plant, and Equipment (PPE) and intangible assets was INR 10.86 Cr as per recent cash flow statements. Future major debt-funded capex is not planned, maintaining a comfortable capital structure.

Credit Rating & Borrowing

The company maintains a positive outlook with interest coverage improving to 7.01x in FY24 from 5.17x in FY23. Total Debt to PBILDT improved to 0.80x from 1.57x YoY.

⚙️ Operational Drivers

Raw Materials

Raw materials consumed (including steel and rig components) accounted for INR 86.99 Cr in FY24, representing approximately 41% of total operating income.

Key Suppliers

Not disclosed in available documents; however, the company maintains a well-developed vendor base for customized engineering requirements.

Capacity Expansion

Current capacity is not explicitly stated in MT, but drilling rig production volumes increased by 144% YoY in FY24 to meet higher export demand.

Raw Material Costs

Cost of materials consumed was INR 86.99 Cr in FY24, up from INR 50.98 Cr in the previous year, reflecting the 94% growth in scale of operations.

Manufacturing Efficiency

Manufacturing efficiency is reflected in the 144% growth in rig volumes and the ability to maintain PBILDT margins above 18% despite a massive scale-up.

📈 Strategic Growth

Expected Growth Rate

18%

Growth Strategy

Growth is targeted through increasing the scale of operations above INR 250 Cr. Strategy involves expanding the export business (which grew from 12% to 36% of revenue), leveraging a dedicated export sales team, and providing customized drilling rig designs for mining and water well sectors.

Products & Services

Designing and manufacturing drilling rigs for mining, water wells, and exploration; sale of spare parts; and providing after-sales services.

Brand Portfolio

Revathi Equipment India Limited (REIL).

New Products/Services

The company focuses on customized designs for customer-specific requirements in the drilling rig segment to capture higher wallet share from private and export players.

Market Expansion

Targeting higher export orders through a dedicated team, which has already tripled the export revenue contribution to 36%.

Strategic Alliances

The company extended a corporate guarantee of INR 94.0 Cr to its group company, Semac Consultants Limited (SCL), in FY25.

🌍 External Factors

Industry Trends

The industry is shifting toward private sector participation and higher demand for specialized mining equipment. REIL is positioning itself by increasing export focus and maintaining high engineering standards to compete with global players.

Competitive Landscape

The company competes with both domestic and international drilling equipment manufacturers, focusing on the 'good business' of advisory and specialized engineering.

Competitive Moat

REIL possesses a durable moat through its 40-year operational track record, robust engineering capabilities for customization, and a well-developed vendor base, which are difficult for new entrants to replicate quickly.

Macro Economic Sensitivity

Demand is highly sensitive to mining activity and water well exploration sectors; growth in these industries directly correlates to rig volume demand.

Consumer Behavior

Private players are demanding shorter lead times, prompting the company to maintain higher inventory levels to remain competitive.

Geopolitical Risks

Increased focus on exports (36% of revenue) exposes the company to international trade policies and geopolitical stability in target export regions.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with the Companies Act, 2013 and accounting standards. The company is also subject to internal financial control audits as per Section 143(3)(i) of the Act.

Taxation Policy Impact

Current tax expense for FY24 was INR 6.48 Cr, with an additional INR 0.88 Cr for earlier years.

Legal Contingencies

The company has extended a corporate guarantee of INR 94.0 Cr to a loss-making group company (Semac Consultants Limited), which is a key monitorable for credit risk.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the exposure to the loss-making group company SCL via a INR 94 Cr guarantee, which could impact the adjusted gearing (expected to reach 1.40x).

Geographic Concentration Risk

64% of revenue is still domestic, with a noted concentration in the domestic customer base.

Third Party Dependencies

Dependency on a well-developed vendor base for specialized components; any disruption could impact the production of customized rigs.

Technology Obsolescence Risk

The company mitigates technology risks through robust engineering and providing customized designs for specific mining and exploration needs.

Credit & Counterparty Risk

Trade receivables decreased from INR 25.15 Cr in March 2025 to INR 7.74 Cr in September 2025, indicating strong collection and high-quality receivables.