RMC Switchgears reported a 26.4% jump in FY26 revenue to ₹401.59 crore, driven by robust performance in its solar EPC vertical. However, consolidated profit after tax declined 27.3% to ₹22.45 crore, as the company absorbed elevated raw material costs across legacy fixed-price contracts. While margins felt the heat, the company migrated to the NSE and BSE main boards and reported an order book exceeding ₹800 crore. Management is now shifting focus toward improved cash collection and the commercial rollout of its 'PulseBox' smart technology.
RMC Switchgears FY26 Financial Results
Revenue from operations stood at ₹401.59 crore; Profit after tax declined to ₹22.45 crore.
Reader Takeaway: Revenue growth remains strong via solar EPC, while legacy fixed-price contracts and input costs weigh on margins.
What just happened
RMC Switchgears Limited reported its FY2026 financial results, showing a strong topline performance of ₹401.59 crore, up 26.4% year-on-year. Despite the revenue growth, profitability faced headwinds, with profit after tax (PAT) dropping to ₹22.45 crore from ₹30.89 crore in the previous fiscal. The company's EBITDA also saw a 10% contraction.
Why this matters
The divergence between revenue and profit highlights the impact of margin compression. The company reported a decline in gross margins to 23.67%, driven by sustained high prices for copper, aluminium, and steel. Importantly, management chose to absorb these cost spikes on older fixed-price contracts rather than reopening agreements, affecting the bottom line.
The backstory
The company has successfully transitioned from the BSE SME platform to the main boards of both BSE and the NSE as of April 1, 2026. This migration marks a significant milestone in the company's corporate journey. Additionally, the solar EPC segment has emerged as the primary growth driver, contributing 52% of the total revenue.
Risks to watch
Margin pressure remains a key concern as the company continues to work through remaining legacy fixed-price projects into FY2027. Furthermore, operating cash flow turned negative in FY2026, largely due to debtor and retention money pressure. Investors should watch for the effectiveness of new price escalation clauses added to recent bids.
What to track next
The commercial success of the 'PulseBox' smart LT distribution box is a key monitorable. The platform has completed its proof-of-concept phase across ten pilot sites. Additionally, the firm’s ability to convert its ₹800 crore order book into improved cash flow will be critical for performance in the coming year.