RMC Switchgears first-half revenue falls 43%, PAT drops 48%

RMC Switchgears Limited reported consolidated revenue from operations of Rs 126.05 crore for the half year ended September 30, 2026, down 43% from Rs 221.61 crore a year earlier, while profit after tax fell 48% to Rs 10.40 crore. The September-quarter revenue was Rs 88.91 crore, above the June-quarter figure of Rs 37.24 crore but below the prior-year quarter.

How did RMC Switchgears perform in the first half?

RMC Switchgears recorded lower revenue and profit in the six months ended September 30, 2026. Revenue from operations declined to Rs 126.05 crore from Rs 221.61 crore in the corresponding 2025 period, while total income, including other income, fell to Rs 127.01 crore from Rs 222.21 crore.

Profit before tax declined to Rs 13.37 crore from Rs 26.90 crore as total expenses decreased to Rs 113.64 crore from Rs 195.31 crore. Tax expense fell to Rs 2.97 crore from Rs 6.85 crore, resulting in profit after tax of Rs 10.40 crore compared with Rs 20.05 crore a year earlier.

RMC Switchgears reported earnings per share attributable to equity shareholders of Rs 9.83 for the 2026 half year, compared with Rs 18.63 in the earlier period. There were no exceptional items in either half year. The company reports a single business segment: switchgear engineering and engineering, procurement and construction contracts for the power distribution and transmission sector.

What happened in RMC Switchgears’ September quarter?

RMC Switchgears’ revenue from operations for the quarter ended September 30, 2026 was Rs 88.91 crore, compared with Rs 137.08 crore in the September 2025 quarter. Other income was Rs 0.52 crore, against Rs 0.37 crore a year earlier, while profit before tax declined to Rs 10.50 crore from Rs 21.45 crore.

Profit after tax for the September 2026 quarter was Rs 8.32 crore, compared with Rs 15.96 crore in the year-earlier quarter. Finance costs rose to Rs 5.21 crore from Rs 3.18 crore, and depreciation and amortisation increased to Rs 1.31 crore from Rs 0.87 crore.

The September quarter was larger than the June 2026 quarter, when RMC Switchgears reported revenue from operations of Rs 37.24 crore and profit after tax of Rs 2.08 crore. Profit before tax increased from Rs 2.78 crore in June to Rs 10.50 crore in September, although the latest quarter remained below the September 2025 comparison.

The 2025 comparative consolidated figures were restated by management under Indian Accounting Standards, or Ind AS, and were not subject to limited review, according to the notes. The board approved the September 2026 results on November 14, 2026, following review by the audit committee.

Which costs and working-capital movements affected first-half cash flow?

RMC Switchgears’ cost of materials consumed increased to Rs 104.73 crore in the first half from Rs 95.38 crore a year earlier, despite the revenue decline. Purchases of stock in trade fell to Rs 7.95 crore from Rs 73.28 crore, while the change in inventories of finished goods and work in progress was negative Rs 30.91 crore, compared with negative Rs 1.88 crore.

Finance costs rose to Rs 9.41 crore from Rs 5.69 crore, while depreciation and amortisation increased to Rs 2.61 crore from Rs 1.81 crore. Employee-benefit expense declined to Rs 8.65 crore from Rs 9.89 crore, but other expenses increased to Rs 11.20 crore from Rs 10.94 crore.

Net cash flow from operating activities turned positive at Rs 9.63 crore in the half year ended September 30, 2026, compared with an outflow of Rs 4.68 crore in the prior-year period. The cash-flow statement records a Rs 30.36 crore increase in inventories and a Rs 20.59 crore reduction in trade payables, partly offset by a Rs 23.73 crore increase in other current financial liabilities.

Investing activities used Rs 19.06 crore, compared with Rs 6.78 crore in the earlier half year, including Rs 17.28 crore of net purchases of bank fixed deposits. Financing activities generated Rs 7.58 crore, versus Rs 10.65 crore, and cash and cash equivalents ended the period at Rs 62.39 lakh, down from Rs 2.47 crore at March 31, 2026.

How did RMC Switchgears’ balance sheet and funding change?

RMC Switchgears’ consolidated assets stood at Rs 394.51 crore at September 30, 2026, compared with Rs 366.88 crore at March 31, 2026. Current assets increased to Rs 305.35 crore from Rs 287.18 crore, while non-current assets increased to Rs 89.16 crore from Rs 79.70 crore.

Inventories rose to Rs 48.85 crore from Rs 18.50 crore over the six months, whereas trade receivables declined to Rs 200.61 crore from Rs 205.18 crore. Total equity increased to Rs 141.16 crore from Rs 130.64 crore, including other equity of Rs 130.36 crore compared with Rs 119.88 crore at the March year end.

Total borrowings were Rs 119.70 crore at September 30, comprising Rs 33.52 crore of non-current borrowings and Rs 86.18 crore of current borrowings. At March 31, total borrowings were Rs 103.08 crore, including Rs 13.70 crore of non-current borrowings and Rs 89.38 crore of current borrowings, indicating a shift towards longer-term funding.

RMC Switchgears allotted 5,020 equity shares on May 8, 2026 under its Employee Stock Option Scheme 2024. The shares had a face value of Rs 10 each and were issued at an exercise price of Rs 70 each; equity share capital stood at Rs 10.58 crore at September 30.

Conclusion

RMC Switchgears reported a substantially lower first half than a year earlier, with revenue declining by Rs 95.56 crore and profit after tax decreasing by Rs 9.65 crore. The September quarter improved from the June quarter, while higher materials consumption, finance costs and inventory accumulation accompanied the lower first-half earnings.

What remains unresolved in the filing is the reason for the year-on-year revenue decline, as RMC Switchgears did not provide a separate management explanation. The next disclosure can show whether September-quarter revenue of Rs 88.91 crore is sustained, alongside movements in inventories of Rs 48.85 crore and borrowings of Rs 119.70 crore.