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RMC Switchgears Limited — Q4 FY26 earnings call

Call held 11 Jun 2026

Management summary

RMC Switchgears reported a 26.4% YoY revenue growth to Rs. 401.59 crore for FY26, with Q4 showing a profit recovery to Rs. 9.3 crore. However, overall FY26 profitability was impacted by execution delays, rising input costs, and increased trade receivables leading to negative operating cash flow. The company is strategically pivoting towards technology-led solutions like PulseBox, aiming for profitable and sustainable growth with a current unexecuted order book exceeding Rs. 850 crore.

Highlights

  • Consolidated revenue of Rs. 401.59 crore, representing a growth of 26.4% over the previous year.

  • Company moved from a loss of Rs. 7.07 crore in Q3 to a net profit of Rs. 9.3 crore in Q4.

  • Current unexecuted order book is around Rs. 850 crore plus.

  • Developed PulseBox, a unique IoT-enabled distribution monitoring solution, with completed proof of concept and pilot deployments.

Concerns

  • FY26 profitability was lower than expectations due to product development investments, project execution delays, and input cost pressure.

  • Trade receivables increased from Rs. 148 crore to Rs. 205 crore.

  • Cash flow from operating activities became negative.

  • Older solar EPC orders had to be canceled, reworked, or deferred due to China-linked supply chain disruption and rising input costs.

Key financials

3 periods

Headline

  • Revenue
    ₹401.59 Cr
    YoY +26.4%
  • Trade Receivables
    ₹205 Cr
  • Trade Receivables (Previous)
    ₹148 Cr

Q3

  • Net Loss
    ₹-7.07 Cr

Q4

  • Net Profit
    ₹9.3 Cr

What they filed

Q1 FY27: revenue down 58.0%, net profit down 54.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY24Q2 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue85 105 164 76 241 +184%18 −83%91 −45%32 −58%
EBITDA14 20 16 7 34 +143%-5 −126%10 −38%6 −8%
Net profit7 10 10 3 20 +186%-7 −175%4 −61%1 −55%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Electrical Products (Government)
    30% Share of Segment Revenue
  • Electrical Products (B2B)
    70% Share of Segment Revenue
  • Solar EPC
    100% Share of Segment Revenue
  • Overall B2B Revenue
    5-10 % Share of Total Revenue

Order book

high confidence

Total value

₹850 Cr

as of 2026-06-11 quantified

Execution

Electrical EPC takes 2 years, solar takes 1 year, and product takes 3 months' time.

Pipeline

L1 awaiting loa

Tender pipeline

Cancellations & deferrals

  • deferred: Older solar EPC orders had to be canceled, reworked, or deferred due to input price movements beyond original cost structure.
The order book is comprehensive across all business segments, with significant opportunities emerging from India's power distribution network modernization.

Source: Q&A

Guidance & targets

Revenue

  • Revenue Target Revenue · by 2030 · High confidence ₹5,000 crore
    Basically, the segments which we are working on is definitely towards the, aspirational goal we have for Rs. 5,000 crore, which we had made earlier.

    — Mr. Ankit Agarwal

Revenue Growth

  • Revenue Growth Revenue Growth · by 2030 · High confidence 10x
    So I think now, again, going Rs. 400 crore to Rs. 4,000 crore would be comparatively easier, because as you grow, it becomes much easier, so I think there's some light issues, so please don't mind about being... me being in dark. So, the only thing is, we are talking about 10x, even if not 13x, we are talking about 10x.

    — Mr. Ankit Agarwal

  • Revenue Growth Revenue Growth · by 2030 · Medium confidence 13x
    So, as described by you in earlier calls, going by your word, will there be 13x growth by 2030, with current revenue at 400 crores?

    — Shreyans J

Balance Sheet

  • Balance Sheet Strength Balance Sheet · FY27 · High confidence Better and Stronger
    So, definitely, we look for a better and a stronger balance sheet in FY27.

    — Mr. Ankit Agarwal

Profitability

  • Return on Investment (ROI) Profitability · Year on year · High confidence Increase year on year
    Our objective is not growth at any cost. Rather, our objective is profitable, sustainable, and high-quality growth. An important part of our future strategy is innovation-led differentiation. And I'm very much happy to share that we have already developed a product which is quite unique in its own segment, which is named as PulseBox. It is one example of this direction.

    — Mr. Ankit Agarwal

Business Mix

  • B2B vs B2G Mix Business Mix · High confidence Increase B2B, Reduce B2G
    Sir, we want to increase more of B2B, and we want to reduce B2G.

    — Mr. Ankit Agarwal

Market context

  • Operating Cash Flow Cash Flow · FY27 · High confidence Positive
    And yes, of course, we see a positive cash flow, because as I told earlier that this, the last year is a learning year for us.

    — Mr. Ankit Agarwal

What to watch in Q1 FY27

Positive Operating Cash Flow

FY27
Current Negative in FY26
Target Positive

Why it matters

Management has committed to achieving positive cash flow in FY27, which is crucial for financial health and sustainability.

And yes, of course, we see a positive cash flow, because as I told earlier that this, the last year is a learning year for us. And, we have also... I, I had said that now, we will be not focusing only on revenue or top line, rather we'll be selecting the projects based on the bottom line and the cash flows. So, definitely, we look for a better and a stronger balance sheet in FY27.

Risks & concerns

  • Lower than expected profitability for FY26

    high

    Due to product development investments, project execution delays, and input cost pressure.

    Management acknowledged

  • Supply chain disruptions and rising input costs for solar EPC

    high

    China-linked supply chain disruption, safeguard duty, and higher costs for solar inputs (aluminum, silver) led to order cancellations/deferrals.

    Management acknowledged

  • Raw material price volatility and inflation

    high

    Sheet metal disruptions, WPI inflation at 3.88% (March 2026), and sharp price movements in steel, copper, polymer, and plastic-linked materials added pressure.

    Management acknowledged

  • Deterioration in working capital and negative operating cash flow

    high

    Trade receivables increased from Rs. 148 crore to Rs. 205 crore, and cash flow from operating activities became negative, primarily due to maximum billing in March and government payment cycles.

    Management acknowledged

  • Project execution delays

    medium

    Extended rainfall delayed site-level activity, shifting execution cycles into the second half of the year.

    Management acknowledged

  • Delays in green energy tenders

    medium

    Tenders for green corridor projects in Andhra Pradesh are delayed due to pending central approval.

    Management acknowledged

Q&A highlights

4 direct, 2 evasive
Order Book and Bid Pipeline Direct
Okay, so the current, unexecuted order book is around Rs. 850 crore plus, and the tender pipeline is around Rs. 1,500 crore plus.

Provides key leading indicators for future revenue visibility and potential growth.

Asked by Gunit Singh

Order Book Breakdown by Segment Evasive
I can send you, sir, please email me this question, because right now I don't have it, I will send you.

Management was unable to provide a detailed breakdown of the order book by solar and electrical products, indicating a lack of immediate transparency or readiness on this specific detail.

Asked by Gunit Singh

Increase in Trade Receivables and Negative Cash Flow Partial
Actually, as we have told you, that maximum deliveries of goods were... happened in the month of March because of the issues pertaining through October, when we are talking about H2. So, maximum billing of supply of material happened in the month of March, and you never get money just after the supply.

Addresses a key concern regarding working capital deterioration and explains the timing issue behind increased receivables and negative operating cash flow.

Asked by Gunit Singh

Outlook for Positive Cash Flows in FY27 Direct
And yes, of course, we see a positive cash flow, because as I told earlier that this, the last year is a learning year for us. And, we have also... I, I had said that now, we will be not focusing only on revenue or top line, rather we'll be selecting the projects based on the bottom line and the cash flows. So, definitely, we look for a better and a stronger balance sheet in FY27.

Management explicitly commits to achieving positive cash flow in the next fiscal year, indicating a shift in focus towards profitability and balance sheet strength.

Asked by Gunit Singh

Water Conservation Venture Direct
I think this is... this was in the last presentation. In this presentation, we have deleted this water, because we are not going ahead with the water management now anymore, because we are focusing on energy now.

Clarifies a change in strategic focus, indicating the company is no longer pursuing water management and is concentrating solely on energy-related ventures.

Asked by Ayush Jain

Strategic Collaboration Details Evasive
So, actually, I will not be able to share much information about it due to a trade secret, because, as you can understand, when the technology is underway, and anything, even if it is matured, in our own interest, we should remain quiet on that.

Management declined to provide details on a strategic collaboration mentioned in the corporate presentation, citing it as a 'trade secret', which limits investor insight into future partnerships.

Asked by Shreyans J

Stock Price Dip and 13x Growth Target by 2030 Partial
Sir, I can't say anything on that, because, to be very frank, we have nothing to do with the stock market, or share prices. We are no one to decide anything, sir.

Management explicitly refused to comment on the stock price performance but reiterated confidence in the long-term growth target, separating operational performance from market valuation.

Asked by Shreyans J

PulseBox Competitors Direct
Sir, this is the gap we have identified, and right now, we are the only one.

Highlights the unique market position of PulseBox, suggesting a first-mover advantage in a potentially large addressable market.

Asked by Ravi Kumar

2 min read 6 chapters

Detailed narrative

FY26 Performance and Profitability Challenges

RMC Switchgears reported a consolidated revenue of Rs. 401.59 crore for FY26, marking a 26.4% growth over the previous year. Despite this top-line growth, overall profitability for the year was lower than expectations. This was primarily attributed to product development investments, project execution delays, and significant input cost pressures. The company did, however, show a recovery in Q4, moving from a net loss of Rs. 7.07 crore in Q3 to a net profit of Rs. 9.3 crore.

Working Capital and Cash Flow Deterioration

A key concern highlighted was the deterioration in working capital, with trade receivables increasing from Rs. 148 crore to Rs. 205 crore. Consequently, cash flow from operating activities turned negative. Management explained that this was largely due to maximum billing and deliveries occurring in March, with payments and installations extending into the next financial year. Challenges with government payment processes also contributed to these issues.

Strategic Pivot to Technology-Led Solutions

RMC is undergoing a strategic transition, aiming to be recognized as an electrical infrastructure and technology solutions company, moving away from being solely an EPC player in a 'red ocean market'. The focus is now on addressing utility pain points through innovation and differentiated solutions. This pivot includes a goal to increase the B2B revenue mix and reduce dependence on B2G orders.

PulseBox: A Key Innovation for Grid Modernization

A central element of RMC's new strategy is PulseBox, an IoT-enabled distribution monitoring solution. This product is designed to improve grid safety, reduce electrical theft, lower technical losses, and enhance visibility into distribution infrastructure. The proof of concept is complete, pilot deployments have been undertaken, and discussions with utilities are progressing towards formal specification and tender evaluation. The potential addressable market for PulseBox-type deployment is estimated at 75 lakh transformers, representing an opportunity of over Rs. 50,000 crore.

Robust Order Book and Market Opportunities

The company's current unexecuted order book stands at over Rs. 850 crore, complemented by a tender pipeline exceeding Rs. 1,500 crore. Management sees significant opportunities in India's power sector, driven by government initiatives such as the Rs. 9 lakh crore investment in transmission infrastructure by 2032, RDSS modernization, and the 102 GW requirement for floating solar power. The execution timelines for the order book vary, with electrical EPC taking 2 years, solar EPC 1 year, and product orders 3 months.

Commitment to Profitable and Sustainable Growth

Moving forward, RMC's objective is to achieve profitable, sustainable, and high-quality growth, rather than growth at any cost. This involves better project selection, stronger procurement discipline, improved execution oversight, and prudent capital allocation to increase ROI year-on-year. The company expects to achieve positive cash flow and a stronger balance sheet in FY27, with an aspirational revenue target of Rs. 5,000 crore by 2030.

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