RMC Q4 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹142.94 Cr
verified against source
Revenue YoY
26.4%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
RMC Switchgears delivered 26.4% YoY revenue growth to Rs 401.59 crore in FY26, driven by infrastructure and EPC execution. However, profitability disappointed due to product development investments (pulse box), project execution delays from extended monsoon in Maharashtra, and input cost pressures from rising aluminium, silver, steel, and copper prices. Solar EPC faced supply chain disruptions and safeguard duty-related cost movements. The company pivoted from Q3 loss of Rs 7.07 crore to Q4 PAT of Rs 9.3 crore through improved execution and tighter cost control. Working capital deteriorated with trade receivables rising from Rs 148 crore to Rs 205 crore, though management attributes this to Q4-heavy billing. The strategic pivot toward technology-led differentiation—centered on the Pulsebox IoT solution for distribution transformer monitoring—represents a meaningful opportunity but faces long utility adoption cycles. Management targets better project selection, improved procurement discipline, and working capital efficiency in FY27, aiming for cash flow positivity without providing specific revenue guidance.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects better performance in FY27 compared to FY26, supported by unexecuted order book of Rs 850+ crore, improved project selection prioritizing cash flows and margins, and execution buffers to mitigate risks faced in FY26.
- Management targets positive operating cash flows in FY27 by focusing on project selection based on bottom line and cash flows rather than top line growth, with H1 expected to realize retention money from completed projects.
- Management remains confident in achieving Rs 5,000 crore revenue by 2030, citing the ability to bid for larger tenders (Rs 700+ crore) at current scale of Rs 400 crore versus limitations at lower revenue bases.
- Company plans to increase B2B share of electrical products (currently 70% of segment revenue) to reduce working capital intensity and improve cash flow generation from government contracts.
Risks flagged
- 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.
Key quotes
- Our objective is not growth at any cost. Rather, our objective is profitable, sustainable, and high quality growth.
- We can't guarantee about the officers or you can't guarantee about the process that is why the government has its own challenges working with the government. Everything is basically under work in progress, the invoices are in WIP unless unless we get the money.
- Smart meter will tell after 30 days. The pulse box will react on the same time and the real time. This whole scenario becomes a very unique scenario where nobody is putting their mind and we are proud that we have addressed this problem.
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