Rulka Electricals is chasing ₹50-70 cr orders. Last year it did ₹15-20 cr jobs.
The MEP contractor slashed debt 45% and turned cash flow positive, but the big-order pivot needs a bigger balance sheet.
What's new
- FY25 revenue rose 38% to ₹110 cr, PAT grew 46% to ₹3.29 cr.
- Operating cash flow swung to positive ₹6.12 cr from negative ₹15.04 cr in FY24.
- Order book hit ₹144 cr at year-end, highest in company history.
- New ₹90+ cr fundraise approved to back larger project bids.
Themes from the call
Scale
Management is actively pivoting from ₹15-20 crore projects to ₹50-70 crore orders, a three-fold increase in target ticket size.
Margins
Exit from civil works removed a historical drag, but management deflected questions on a specific EBITDA margin target for FY26.
Capital allocation
A ₹90+ cr fundraise is earmarked for working capital and bank guarantees needed for large-ticket contracts.
Guidance watch
- Management guided for 30-36% revenue growth in FY26, continuing the FY25 trend.
- No specific EBITDA margin target was committed to for FY26, despite confidence in margin restoration.
Risk flags
- The ₹90+ cr fundraise to execute larger orders is shareholder-approved but not yet closed, creating execution dependency on capital.
- Near-term margin pressure from fuel costs and West Asia supply chain disruption expected to persist for three quarters.
Key quotes
-
"We are planning to get orders or having approaching very aggressively to the orders of size 50 crores, 70 crores each."
— Rulka management -
"Our debt has come down to 4.80 crore. Debt-to-equity has improved to 0.13x from 0.26x."
— Rulka management
The brief
Rulka Electricals delivered a clean FY25. Revenue grew 38% to ₹110 crore, cash flow turned positive for the first time in years, and debt fell 45% to ₹4.80 crore. The numbers validate a disciplined exit from low-margin civil works and a tighter focus on core MEP contracting. Now the company wants to get much bigger, much faster.
The strategic pivot is the headline move. Management is actively chasing orders in the ₹50-70 crore range, a three-fold jump from the ₹15-20 crore jobs that defined its past. This requires a bigger balance sheet. The ₹90-plus crore fundraise, already approved by shareholders, is meant to provide the working capital and bank guarantees for these large-ticket projects. It’s a classic growth-versus-discipline test. The balance sheet that just got healthy is about to be leveraged for scale.
The opportunity is real. The company enters FY26 with a ₹144 crore order book, its highest ever, and three new verticals: EHV power transmission, solar EPC, and airport infrastructure. These are structurally larger projects with potentially better margins. The risk is execution. Larger projects mean longer payment cycles and bigger working-capital commitments. The company’s improved cash conversion cycle (97 days, down from 143) will be tested.
Management's confidence is clear, but its specifics are not. The 30-36% revenue growth guide for FY26 is held out, but the EBITDA margin target was dodged. For a company three-quarters through a margin recovery story, the refusal to put a number on it is a signal. The fuel cost and supply chain headwinds are acknowledged, but the three-quarter normalization timeline feels hopeful.
Rulka's balance sheet is finally clean. The next chapter is about whether it can stay that way while chasing jobs five times larger.