RMC Switchgears grew revenue 26% but profit fell 27% in FY26
Revenue crossed ₹401 crore, but net profit slipped to ₹22.42 crore, hit by Q3 project delays and supply chain snags. Order book at ₹850 crore provides visibility; PulseBox reaches tender stage.
— 4 earlier stories on RMC Switchgears Ltd. →What's new
- Revenue up 26% to ₹401.59 crore but profit down 27% to ₹22.42 crore.
- Current order book at ₹850 crore; tender pipeline of ₹1,500 crore.
- PulseBox IoT solution completes proof-of-concept, one utility advancing to tender.
Why this matters
A 27% profit drop on 26% revenue growth signals margin pressure from execution and input costs. The ₹850 crore order book, over 2x trailing revenue, offers a strong forward cushion, but the open question is how much converts to profitable revenue. PulseBox progress is early but could open a new growth vertical if the utility tender materializes.
What we're watching
- PulseBox tender outcome and order conversion from the utility.
- Margin trajectory in Q1 FY27 as supply chain and cost issues ease.
- Order book execution pace and any new large contract wins.
The full read
RMC Switchgears' FY26 results tell two stories. Revenue jumped 26% to ₹401.59 crore, but net profit fell 27% to ₹22.42 crore, pulled down by Q3 project delays, extended rainfall, China-linked supply chain hiccups, and product development costs. The unexecuted order book stands at ₹850 crore, more than two years of revenue at current run rate, with a tender pipeline of ₹1,500 crore. That provides strong top-line visibility, but margin recovery is the open question. The PulseBox IoT solution completed proof-of-concept and one utility is discussing formal tender specs, a step forward from lab testing. Management's aspirational ₹5,000 crore revenue target by FY30 implies a steep CAGR of over 50% and relies heavily on PulseBox scaling and order book conversion. For a ₹331 crore market cap company, the near-term focus is whether the margin decline was a one-off or the start of a trend.
Questions answered
- Why did profit fall despite strong revenue growth?
- Q3 project delays from extended rainfall and China-linked supply chain disruptions, plus product development costs, weighed on margins and dragged full-year profit down 27%.
- What is the PulseBox, and how far along is it?
- PulseBox is an IoT-based distribution monitoring solution. It completed proof-of-concept, and one utility has advanced to formal tender specification discussions, still early stage but moving.
- How does the ₹850 crore order book compare to annual revenue?
- It is more than double FY26 revenue of ₹401 crore, providing strong revenue visibility. But execution risk remains, given the Q3 delays.
- Is the ₹5,000 crore FY30 revenue target realistic?
- Management reaffirmed it as an aspirational target, emphasizing a shift to profitable growth. At current revenue run rate, it implies a 52% CAGR, ambitious and conditional on market expansion and PulseBox scaling.
- What are the key risks to watch?
- Input cost inflation, supply chain vulnerabilities, and conversion of the order book to cash while maintaining working capital discipline. The profit drop shows that revenue growth alone does not guarantee earnings.
RMC Switchgears Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on RMC →- 15 Jun 2026 · 4:49 PM IST RMC Switchgears grew revenue 26% but profit fell 27% in FY26
- 4d ago RMC cuts its Pulse Box market size by 64% and extends order book timelines
- 17d ago RMC Switchgears grew revenue 26% but profit fell 27% in FY26
- 17d ago RMC Switchgears' profit fell 27% even as revenue grew 26%.
- 24d ago RMC Switchgears schedules board meet for FY26 results