Rulka Electricals in FY26: Growth, a Cash Flow Turnaround, and Bigger-Bid Ambitions

Rulka Electricals Limited is a Mumbai-based MEP project contractor listed on NSE Emerge. The company executes electrical contracting and firefighting systems as its core, while building newer verticals such as Solar EPC, extra-high voltage (EHV) power work, and airport infrastructure.

FY26 was positioned by management as a year of operational strengthening and balance sheet repair. Revenue from operations rose to INR 110.20 crore from INR 79.73 crore in FY25, a 38.2% increase. Net profit for the year increased to INR 3.29 crore from INR 2.26 crore, a 45.8% rise, with FY26 EPS reported at INR 7.72.

The company also highlighted a sharp improvement in cash generation. FY26 operating cash flow was positive at INR 6.12 crore, compared with negative INR 15.04 crore in FY25. Alongside that, management stated total borrowings fell to INR 4.80 crore from INR 8.76 crore, improving the reported debt-to-equity ratio to 0.13x.

What drove FY26 performance

Rulka Electricals attributed the revenue rise primarily to higher execution across electrical, firefighting and broader MEP projects, supported by repeat business and timely delivery. The deck states 65% of revenue came from repeat clients, a point reinforced in the earnings call where management described repeat customers as a key reliability anchor.

Operationally, the presentation notes 36 project sites completed in H1 FY26, including eight DMart outlets and eight industrial warehouses, with around 40% of work orders completed ahead of schedule. Management framed this as evidence of execution capability and improved project discipline.

The financial statements in the deck show that while revenue expanded, the cost base rose in tandem, reflecting the nature of EPC contracting. Cost of materials consumed increased to INR 94.21 crore in FY26 from INR 67.24 crore in FY25. Employee benefits expense rose to INR 7.19 crore, and finance costs increased to INR 1.01 crore.

FY26 snapshot (as presented)

Order book visibility and mix

Rulka Electricals reported INR 137.87 crore of new order intake during FY26 while executing INR 110 crore worth of projects in the year. As of year-end, the unexecuted order book was reported at INR 143.85 crore, which management framed as visibility for the next few quarters.

The presentation provides a sector-style composition for the order book: about 60% electrical works, about 30% firefighting systems, and about 10% EHV, solar and others. This indicates that the near-term execution engine remains the traditional electrical and firefighting portfolio, while the company is still in the early innings of newer verticals.

In the concall, management also discussed active execution breadth, stating that around 32 sites were ongoing at the time, with approximately 25 electrical sites and eight firefighting sites.

The strategic shift: EHV, solar, airports, and larger bids

A key milestone highlighted in the deck is the company’s first EHV order from Mahatransco for 220kV and 33kV network commissioning, stated at INR 5 crore. Management described this as a strategic entry point into power transmission and noted plans to bid for 33kV and 220kV networks and substation projects, alongside capability build-out through a dedicated EHV team.

Solar EPC is positioned as the second growth vector. The presentation says the company entered solar services in 2022-23, executed 450kW plus solar projects, and built a dedicated solar team over two years. During Q&A, management said it was close to closing solar deals and that solar offerings were being presented to existing clients.

The third newer vertical is airport infrastructure. The presentation states that Rulka Electricals has entered airport projects and is working at domestic airports in Mumbai and Lucknow Phase 2 terminal. In the call, management clarified the work as Mumbai VIP terminal entry and Lucknow Phase 2, with turnkey MEP scope.

The most consequential forward-looking change discussed in the concall was the company’s ambition to move up the order-size curve. Management linked a proposed fund raise to the need to support execution of large government projects, citing requirements for bank guarantees and longer payment cycles. In response to investor questions, management stated it is targeting larger order sizes, referencing projects in the INR 50 to 70 crore range.

Balance sheet and working capital signals

The balance sheet as presented shows equity and reserves at INR 37.42 crore in FY26. Current liabilities rose to INR 34.73 crore, with trade payables (MSME plus others) increasing notably to INR 25.56 crore.

On the asset side, trade receivables increased to INR 35.84 crore from INR 26.15 crore and inventories stood at INR 20.59 crore. This underlines that even with the cash flow turnaround, the business remains working-capital intensive.

Management stated that working capital efficiency improved meaningfully, citing cash conversion cycle improvement from 143 days to 97 days during FY26, with improvements in debtor days and inventory days. The company’s ratio slide also shows improvement across several metrics, including asset turnover (1.66x in FY26 versus 1.33x in FY25) and ROCE (12.25% versus 9.41%).

Key takeaways

Rulka Electricals ended FY26 with strong revenue growth, faster profit growth, reduced borrowings, and a clear operating cash flow reversal. The company also reported an unexecuted order book of about INR 143.85 crore with electrical and firefighting still forming the bulk.

The next phase of the story, as described by management, depends on two execution tests. First, whether newer verticals like EHV, solar EPC and airports can scale beyond early wins. Second, whether the company can successfully move into larger government and private orders without allowing working capital pressure to return.

For investors tracking a small-cap EPC contractor, FY26 reads like a combination of clean-up and acceleration. The key monitorables going forward remain order conversion, collections discipline, and evidence of revenue contribution from the higher-margin verticals management has highlighted.