RBM Infra cut its FY27 revenue target by half. It's not the first broken promise.
Six months after guiding for ₹1,000-2,000 crore in FY27 revenue, management now targets ₹700 crore. The main board migration and a railway order have also been delayed or derailed.
What's new
- FY26 revenue ₹492.22 cr, up 53% YoY; EBITDA ₹74.10 cr (margin 15%); PAT ₹45.28 cr; EPS ₹39.46.
- Order book ₹700+ cr executable in FY27 H1, anchored by ₹957 cr EPC contract and ₹3,500 cr ONGC Nanded contract.
- Gross block jumped from ₹24 cr to ₹113 cr (₹89+ cr capex); net worth ₹187.63 cr.
- MoU for ₹10,000 cr OSAT semiconductor facility with Suzhou Global; RBM 30% stake, revenue expected FY30.
Themes from the call
Demand
Order book ₹700+ cr executable in H1 FY27, bidding pipeline ₹3,300+ cr across refineries, ports, power, green energy, mining.
Margins
EBITDA margin improved to 15% from 13.6% YoY; FY27 guided above 10%, FY28 target 25%.
Capital allocation
Gross block expanded from ₹24 cr to ₹113 cr, funded by internal accruals and borrowings; short-term advances ₹111 cr (machinery advances).
Guidance watch
- FY27 revenue target ₹700 cr minimum (upside to ₹1,000 cr).
- FY28 revenue target ₹900 cr with 25% EBITDA margin.
- ONGC contract contribution expected ₹35-40 cr in FY27.
Risk flags
- Credibility damaged: FY27 revenue target halved, main board migration delayed, railway order rebid.
- ONGC execution risk: SRP equipment requires six-month service cycles vs. original 2-3 years, potentially pressuring margins.
- Semiconductor diversification is long-dated (FY30 revenue) and requires ₹10,000 cr capex for 30% stake.
Key quotes
-
"ONGC Nanded is a landmark contract that makes our strategic entry into crude wealth services and upstream value chains."
— Aditya Mani, CEO -
"Dekhiye saab, humne aapko bataya ki mera 700 ka target hai, agar hazaar ho jaye to best hai lekin 700 ka to hum leke chal rahe hain."
— Aditya Mani, CEO
The brief
RBM Infra's FY26 numbers are strong: revenue up 53% to ₹492 crore, EBITDA margin expanding to 15%, and a ₹3,500 crore ONGC contract that transforms the business from project-based EPC to recurring upstream services. The order backlog of ₹700 crore executable in first-half FY27 provides near-term visibility. But the credibility gap is widening. Six months ago, management projected FY27 revenue of ₹1,000-2,000 crore; it now guides for ₹700 crore. The main board migration, previously promised by January or February 2026, is still 20-25 days away. A railway order that was 'within 15 days' is now on hold and undergoing rebidding. These are not one-offs — they are a pattern. The operational execution — scaling from ₹130 crore in FY24 to ₹492 crore in two years, forging an ONGC partnership, and entering a semiconductor venture — is real. But investors underwriting the FY28 targets of ₹900 crore revenue and 25% margins need management guidance to be more than aspirational. The ONGC contract, the Oman order, and the semiconductor MoU give RBM Infra a long runway. But each miss on earlier guidance makes the next target harder to believe.
RBM Infra's operational execution is impressive. Its guidance credibility is not.