RMC

RMC Switchgears Limited reported robust financial results for H1 FY26, with Revenue from Operations reaching ₹221.61 crore, marking a significant 111.50% year-on-year growth over H1 FY25. Profit After Tax (PAT) increased by 97.93% year-on-year to ₹20 crore, while EBITDA rose by 71.46% to ₹34 crore. The company maintained strong financial discipline with a Debt-to-Equity ratio of 0.59 times and a working capital cycle of 60 days, reflecting efficient management amidst growth.

RMC is strategically transitioning to become a Renewables Infrastructure Integrated Player, focusing on four integrated verticals: Electrical Products, Electrical EPC, Solar EPC, and Solar Products. The company's business model is centered on providing solutions to critical electrical industry problems like theft and electrocution. In H1 FY26, Solar EPC contributed 52% (₹104.46 crore) of total revenue, Electrical EPC 26% (₹57.49 crore), and Electrical Products 22% (₹49.66 crore), showcasing a diversified revenue stream.

RMC has deferred its plan to set up a 1 Gigawatt (GW) solar module plant following a detailed review of the policy and technology landscape, including upcoming DCR cell requirements and shifts from PERC to TopCon and HJT technologies. Management stated that entering manufacturing during this transition risks locking into outdated technology and that issuing equity for funding would be value destructive. The company will instead fund its growth through internal accruals, selective debt, and operational cash flows.

The company currently holds a healthy order pipeline of approximately ₹825 crore, which is expected to be delivered over the next 12 months. RMC has actively participated in tenders worth ₹1,500 crore and is L1 in tenders worth ₹70 crore, awaiting the Letter of Award (LOA). Management indicated an order conversion ratio of 30-35% of bids, expressing confidence in securing a good order book for the next financial year and maintaining strong execution capabilities.

RMC's innovative low-tension power distribution system, PulseBox, successfully completed its Proof of Concept (POC) during Q2 FY26. The system is designed to enhance grid safety and deter electricity theft. Samples have been deployed under various states for testing, and negotiations are ongoing, with formal sales velocity expected in six to eight months. The total addressable market for RMC, including transmission, distribution (RDSS Part 2), and solar, is estimated at ₹20 lakh crore, with even a 1% conversion representing a huge opportunity for the company.

RMC has made significant strides in strengthening its human capital and leadership, appointing Mr. Samujjal Ganguly as Business Head of RMC Green and Mrs. Shivani Bairathi as Compliance Officer. Mrs. Neha Agrawal assumed the additional charge of Chief Financial Officer. The company also inducted two senior professionals in its financial and accounts department and implemented an ESOP policy to align employee growth with the company's, ensuring robust oversight and operational rigor as it scales.

The company emphasizes disciplined capital allocation, directing resources towards high-return areas like strengthening its EPC engine, expanding electrical product portfolio, and developing IoT-based solutions. RMC is also taking preparatory steps for migration from the BSE SME platform to the BSE Main Board and listing on the NSE to enhance market visibility and engage with a larger investor pool. The increase in short-term borrowings was attributed to meeting working capital requirements for EPC projects, with the Debt-to-Equity ratio remaining well under control at 0.59 times.