A micro-cap firm that’s primarily concerned within the enterprise of Switchgear Engineering, ECI contracts for energy distribution, is within the highlight after the inventory has delivered multi-bagger returns of 8,297.73 p.c to the shareholders in 5 years.
With a market capitalization of Rs. 777.93 crore, the shares of RMC Switchgears Ltd closed at Rs. 739 per fairness share, up by 2.66 p.c from its earlier day’s shut worth of Rs. 719.85.
Inventory’s Return
Over the previous 12 months, the inventory has offered damaging returns of 11.44 p.c. The inventory is presently buying and selling at a reduction of 39.12 p.c from its 52-week excessive of Rs. 1,214.
On October 3, 2025, the shares of RMC Switchgears Ltd traded at Rs. 739, displaying a achieve of round 8,297.73 p.c in comparison with the worth of Rs. 8.80 on October 8, 2020. For instance, if somebody had invested Rs. 1 lakh within the firm’s inventory 5 years in the past, it will have was round Rs. 83.98 lakh.
In regards to the Firm
RMC Switchgears Restricted (RMCSL), promoted by Mr. Ashok Agarwal, traces its origins to 1994 when it was included as RFH Metallic Casting Non-public Restricted. It turned a public firm in 2008, renamed RFH Metallic Casting Restricted, and later rebranded as RMC Switchgears Ltd in 2016.
The corporate was listed on the BSE SME platform in 2017. Primarily based in Rajasthan, RMCSL is engaged in designing and manufacturing sensible meters, LT/HT distribution packing containers, panels, junction packing containers, feeder pillars, and circuit safety switchgears, along with executing EPC contracts for transmission strains and substations. Its manufacturing amenities are positioned at Badodiya Village, Chaksu Tehsil.
Lately, RMCSL has expanded its scope to diversify into the renewable power sector. Over the previous two years, it has established 4 subsidiaries: Clever Hydel Options Non-public Restricted, RMC Inexperienced Vitality Non-public Restricted, RMC Photo voltaic Park Non-public Restricted, and RMC Photo voltaic One Non-public Restricted, reflecting its strategic push into hydropower and photo voltaic power.
The corporate’s product portfolio consists of Meter Field For Vitality Meter, Distribution Field, Junction Field, FRP Gratings, SMC / FRP Chequered, SMC / FRP Sheets, Cable Tray, Feeder Pillars, Pole Mounted Road Mild Containers, FRP V-Cross Arm, Bus Bars.
Order Guide
As of June 1, 2025, RMCSL has an unexecuted order e-book of ~Rs. 1,035.47 crore, about 3.25 instances its FY25 income, offering sturdy income visibility. A significant share of round Rs. 545.84 crore comes from Maharashtra State Electrical energy Distribution Firm Ltd.
The orders, largely backed by escalation clauses, are anticipated to be executed inside 12–16 months, with some together with operation and upkeep contracts of three–25 years, making certain long-term stability.
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Income Segmentation
In FY25, the Electrical Merchandise section contributed Rs. 60.84 crore, forming 19.24 p.c of the topline. This section consists of sensible meter enclosures, feeder pillars, distribution packing containers, and electrical panels. Margins stay reasonable at 10–15 p.c EBITDA, and its contribution to total income is predicted to scale back to round 10 p.c by FY26. Progress might be supported by the continued sensible metering push, T&D upgrades, and RDSS incentives.
The Electrical EPC section was the biggest income generator in FY25, at Rs. 253.72 crore, accounting for 80.21 p.c of the topline. It covers T&D infrastructure, sensible grid, substation automation, and particular electrical initiatives.
With high-margin potential of 20–25 p.c EBITDA, its share is predicted to contribute about 30 p.c in FY26 income. Progress drivers embody Rs. 2.5 trillion in sensible grid investments, better personal sector participation, and the federal government’s Rs. 9.12 lakh crore plan for energy transmission upgrades by 2032.
The Photo voltaic EPC enterprise, although small at Rs. 1.74 crore in FY25 (0.55 p.c of topline), is predicted to develop quickly to about 45 p.c of income by FY26. Centered on ground-mounted photo voltaic, rooftop photo voltaic, and photo voltaic pumps, it operates with margins of 10–15 p.c EBITDA. The section is positioned to profit from India’s 280 GW photo voltaic capability goal by 2030, together with home manufacturing incentives which are anticipated to speed up adoption.
The Photo voltaic Merchandise vertical, protecting photo voltaic module and construction manufacturing is projected to contribute round 15 p.c by FY26. With anticipated margins of 15–18 p.c EBITDA, the section might be supported by India’s 500 GW renewable power capability goal by 2030 and the federal government’s sturdy push for self-reliance within the sector.
Monetary Highlights
The corporate reported income of Rs. 212 crore in H2 FY25, up by 101.90 p.c from Rs. 105 crore in H1 FY25 and 149.41 p.c YoY from Rs. 85 crore in H2 FY24. The corporate reported an working revenue of Rs. 33 crore in H2FY25, up by 65 p.c from Rs. 20 crore in H1 FY25 and 135.71 p.c YoY from Rs. 14 crore in H2 FY24.
The corporate reported web revenue of Rs. 21 crore in H2 FY25, up by 110 p.c from Rs. 10 crore in H1 FY25 and 200 p.c YoY from Rs. 7 crore in H2 FY24. EPS improved to Rs. 20.10 crore in H2FY25 as in comparison with Rs. 9.94 crore in H1 FY25 and Rs. 6.63 crore in H2 FY24.
RMC Switchgears Restricted’s income and web revenue have grown at a CAGR of 40 p.c and 149 p.c, respectively, over the past 5 years. The corporate’s ROCE and ROE stand at 37.2 p.c and 37.5 p.c, respectively, and its debt-to-equity ratio at 0.55x signifies the corporate’s monetary place.
Written By Akshay Sanghavi
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