RMC Switchgears · risk themes across the available quarters.
Bear-case history
Operating cash flows turned negative in FY26 with trade receivables increasing Rs 57 crore to Rs 205 crore. While management attributes this to Q4 billing concentration, government contract payment cycles inherently lack defined due dates and depend on bureaucratic acceptance processes.
Sharp price movements in aluminium, silver, steel, copper, polymer, plastic, crude petroleum, and natural gas affected solar module costs and EPC margins. Broader commodity inflation (WPI at 3.88% in March 26) continues to pressure procurement costs.
Q3 FY26 demonstrated how monsoon delays, procurement challenges, and supply chain disruptions can significantly impact quarterly performance. Management has not provided specific execution timeline commitments despite 850+ crore order book.
Analyst directly questioned why promoter family is not buying stock given 75%+ decline from highs. Management deflected by saying 'we have nothing to do with the share price' and only promised 'you might see in coming months'—providing no concrete shareholder return strategy.