RMC Switchgears Powers Ahead: H1 FY26 Growth and Strategic Realignments

RMC Switchgears Limited, a fast-growing player in integrated electrical and renewable energy solutions, has delivered a robust performance in the first half of FY2025-26. The company reported a significant 111.50% year-on-year revenue growth, reaching ₹221.61 crore, driven by accelerated execution across its major business verticals. This impressive top-line expansion translated into a nearly doubled Profit After Tax (PAT), which surged by 97.93% year-on-year to ₹20.05 crore. The management attributes this growth to strong execution and a strategic focus on volume expansion, positioning RMC as a key contributor to India's evolving power infrastructure.

The company's performance was significantly weighted towards its project execution segments. Solar EPC projects emerged as the largest contributor, bringing in ₹114.46 crore, accounting for approximately 52% of the total revenue. Electrical EPC projects followed with ₹57.49 crore, representing about 26% of the revenue. The Electrical Products division contributed ₹49.66 crore, making up the remaining 22%. This segment-wise breakdown highlights RMC's diversified approach and its ability to capitalize on opportunities across the electrical and renewable energy value chain. The growth in Cost of Goods Sold (COGS) to ₹166.78 crore reflects the scale-up of operations and increased raw-material consumption, particularly in EPC project execution.

Strategic Adaptations and Future Outlook

While RMC's profitability grew significantly in absolute terms, the EBITDA margin moderated from 18.93% in H1 FY25 to 15.34% in H1 FY26. Management clarified that this was a conscious strategic decision to prioritize volume expansion and market share in the solar and electrical EPC segments over short-term percentage margins. This approach, aimed at achieving higher absolute profit growth, has translated into stronger cash flows and long-term earnings strength. The company's working capital cycle remains under tight control at around 60 days, providing the agility needed to execute large-scale EPC projects efficiently.

A significant strategic realignment involved the deferral of the proposed 1 GW Solar Module Manufacturing Plant in Jaipur. After a detailed review of the policy and technology landscape, including upcoming DCR cell requirements and global technology shifts, RMC decided that committing large capital to module manufacturing at this juncture was not optimal. This measured approach aims to protect shareholder value and ensure long-term Return on Capital Employed (ROCE) by entering manufacturing at the right time with the right technology. Despite this deferral, the company's investments in land, subsidiary capitalization, and certain equipment remain strategic, forming a future-ready base for when the ecosystem stabilizes.

Innovation and Market Positioning

RMC continues to drive innovation with solutions like the PulseBox, an innovative low-tension power distribution system designed to deter electricity theft and enhance grid safety. The PulseBox successfully completed its Proof of Concept (POC) in Q2 FY26, with utility approvals and commercial negotiations underway, and orders expected within six to eight months. This initiative, along with RMC's strong presence in the smart meter enclosure market, aligns with government programs like the Revamped Distribution Sector Scheme (RDSS), which aims to modernize India's power distribution networks and reduce Aggregate Technical & Commercial (AT&C) losses.

The company is also expanding its electrical product portfolio and strengthening its EPC capabilities across both solar and electrical domains. This integrated business model, where each vertical complements the others, drives sustainable and profitable growth. RMC's commitment to quality, state-of-the-art manufacturing facilities, and a skilled workforce underpins its ability to deliver end-to-end solutions. The company's inclusion in Forbes Asia's Best Under a Billion 2025 list further validates its corporate discipline and execution excellence.

Looking ahead, RMC remains optimistic about the solar manufacturing opportunity, despite the plant deferral, citing strong domestic demand and localization policies. The company is also taking preparatory steps for migration from the BSE SME platform to the BSE Main Board and listing on the NSE, aiming for enhanced market visibility. With a healthy order pipeline and a strategic focus on disciplined growth, RMC Switchgears is well-positioned to continue its journey of powering India's renewable and electrification renaissance, targeting a growth rate of over 30% CAGR in the upcoming 3-5 years and an aspiration of achieving ₹5,000 crore in sales by 2030.