Detailed Narrative
Strong Financial Performance in FY26
RBM Infracon reported a landmark FY26, with revenue growing 53% to ₹492.22 crores from ₹321.75 crores in FY25. EBITDA saw a 69% increase to ₹74.10 crores, expanding the margin from 13.6% to over 15%. Profit After Tax (PAT) also grew significantly by 54% to ₹45.28 crores, achieving a PAT margin of 9.2%. Earnings per share improved to ₹39.46 from ₹29.1 in the previous year.
Significant Investment in Capabilities and Asset Growth
FY26 marked the company's biggest year for investment, with the gross block of property, plant, and equipment increasing from ₹24 crores to ₹113.11 crores, an addition of almost ₹100 crores. Total assets now stand at ₹673.47 crores, up from ₹298.66 crores a year ago, and net worth strengthened to ₹187.63 crores from ₹140.88 crores. This growth was funded through a prudent combination of internal accruals and borrowings.
Strategic Entry into Semiconductor Manufacturing with Sujog Global
RBM Infracon has partnered with Sujog Global, a Korean promoter group with semiconductor expertise, to establish a semiconductor manufacturing facility in India. RBM holds a 30% stake in the subsidiary, RBM Semicon, and will primarily focus on building the infrastructure, which is estimated to cost ₹2,000-3,000 crores. An initial investment of ₹600 million is planned for land and basic infrastructure, with revenue from this segment expected to commence in 2029-2030.
Robust Order Book and ONGC Contract Details
As of H1 FY27, the company's order book stands at over ₹700 crores, executable over the next year, providing strong revenue visibility. A key contract is with ONGC for 15-20 years, managing 120 wells. RBM receives USD 5.5 per barrel and retains 66% of incremental production revenue, with a minimum delivery requirement of 550 barrels per month.
Mainboard Migration and Quarterly Reporting
The company expects to complete its mainboard migration from NSE to BSE within 20-25 days, with final approval anticipated in 10-15 days, leveraging its existing NSE listing for an expedited process. Following migration, RBM Infracon plans to commence quarterly results reporting from Q2 FY27, enhancing transparency for investors.
Addressing Auditor's Qualified Opinion and Loans
Management addressed the auditor's qualified opinion regarding ₹107 crores of unbilled revenue, stating that certification from a third party is underway and expected to be completed within the June quarter. The increase in short-term loans and advances to ₹230 crores was attributed to new shutdown projects and advance payments for machinery, with an expectation for normalization as projects conclude.
Cautious Approach to Offshore Drilling and International Expansion
While the government pushes for offshore drilling, RBM Infracon plans a cautious approach due to high bid costs (₹50-100 crores per drill) and the need to build experience. The company aims to gain 5 years of experience onshore before pursuing offshore opportunities, likely through joint ventures. Internationally, a subsidiary in Oman is being finalized to execute Green Ammonia projects, with significant work expected from the Middle East in the coming two years.