RMC Switchgears Limited — Investor Meet, 15-06-2026: Analysts/Institutional Investor Meet/Con. Call Updates

RMC Switchgears held an Analyst Day on June 11, 2026, to discuss FY26 performance and future strategy, focusing on evolving into an electrical infrastructure and technology solutions provider.

**Financial Performance:**

FY26 consolidated revenue grew 26.4% YoY to Rs. 401.59 crore. Profitability was impacted by product development investments (PulseBox), project execution delays (rainfall impacting Maharashtra sites), and input cost pressures (China-linked supply chain issues, safeguard duties, and rising aluminum/silver prices for solar). Q3 saw a loss of Rs. 7.07 crore, recovering to a Rs. 9.3 crore net profit in Q4 due to improved execution and cost control.

**Management Commentary & Outlook:**

Management emphasized a shift from "growth at any cost" to "profitable, sustainable, and high-quality growth." The focus is on better project selection, procurement discipline, execution oversight, and working capital efficiency. The company aims to evolve into a diversified electrical infrastructure and technology firm with strengths in manufacturing, execution, and technology-led solutions, addressing key utility pain points like safety, theft, and losses.

**Order Book & Operational Updates:**

The unexecuted order book stands at approximately Rs. 850 crore plus, with a tender pipeline of Rs. 1,500 crore plus. The demand environment is seen as robust, driven by power distribution modernization (RDSS phase two) and significant government investments in transmission infrastructure.

**Analyst Q&A Highlights:**

* **Receivables:** Increased trade receivables (Rs. 148 Cr to Rs. 205 Cr) and negative operating cash flow were attributed to a large portion of sales and installations occurring in March, with payments and completion falling into the next financial year. Management expects positive cash flows in FY27 and is prioritizing projects based on bottom-line and cash generation. Approximately 3-5% of receivables are over 6 months old, excluding retention.

* **PulseBox:** This IoT-enabled distribution monitoring solution is designed to improve grid safety, reduce theft, and lower technical losses. POCs are complete, pilot deployments are underway, and discussions with utilities are progressing towards tender evaluation. The addressable market is estimated at over Rs. 50,000 crore. Management believes RMC is a first mover in this specific solution space.

* **B2B vs. B2G:** While B2G (Government) currently forms the bulk of revenue, the company aims to increase its B2B (Business-to-Business) segment to improve debtor days and control.

* **Aspiration:** The Rs. 5,000 crore aspiration by 2030 remains intact, with management highlighting past growth from Rs. 40 Cr to Rs. 410 Cr in four years and believing further scaling is possible due to increased participation in larger tenders.

**Investor Angle:**

Management expressed confidence in achieving their long-term growth aspirations and highlighted a strategic shift towards technology-led solutions addressing critical utility issues. The focus is on disciplined execution and building a performant, solution-oriented company.