RMC Switchgears Ltd Q1 FY27 Results

RMC Switchgears' consolidated Q1 FY27 (quarter ended June 30, 2026) revenue fell 55.94% YoY to ₹37.24 Cr from ₹84.53 Cr, while consolidated PAT fell a smaller 48.97% YoY to ₹2.08 Cr from ₹4.08 Cr — profit declining less steeply than revenue lifted net margin to 5.53% from 4.83% a year ago. Sequentially the print looks far worse (revenue -73.95%, PAT -77.53% versus Q4 FY26's ₹142.94 Cr revenue/₹9.27 Cr PAT), but Q4 FY26 was the audited full-year quarter with a typical year-end execution ramp for an EPC/switchgear project business, so the QoQ collapse is largely a high-base/seasonal effect. The YoY read is the meaningful one per our framework, and it shows a genuine, not just sequential, contraction in scale — standalone PAT of ₹1.15 Cr (-54.6% YoY) trailed the consolidated pace, a divergence traced to the six solar subsidiaries noted above.

The margin improvement is real: EBITDA margin (PBT + finance costs + depreciation, over revenue) expanded to roughly 20.8% from about 10.5% a year ago as material and stock-purchase costs fell faster than revenue, though finance costs plus depreciation rose to 14.5% of revenue from 4.3%, capping the PBT-margin gain to 7.47% from 6.45%. This lines up with management's post-FY26 concall framing — FY26 profitability was squeezed by elevated copper/aluminium/solar-component costs, Red Sea-linked procurement premiums and rupee depreciation, and the company said FY27 would prioritise project selection for bottom-line and cash generation over top-line growth alone; this quarter's better unit economics on a much smaller revenue base is consistent with that stated shift, though a 56% YoY revenue contraction goes beyond what selectivity alone would explain. Management has given no quantified FY27 numeric target beyond "better than last year" with buffers for unexpected issues, so against that guidance the quarter reads as mixed/unknown at the one-quarter mark — topline is down sharply, but margin direction matches the stated intent. No sell-side consensus estimates for this stock turned up in a search, so vsStreet is not assessable here. Post quarter-end the company booked meaningful new orders — a PGVCL-led mandate of ~₹344 Cr (reported alongside a related ₹333.8 Cr PGVCL award, likely overlapping components of the same win), plus ₹2.44 Cr from Telangana Discom, ₹5.01 Cr from Genus Power, ₹2.84 Cr for distribution kiosks and a ₹23.6 Cr solar pumping system order — together approaching the company's ~₹357 Cr market cap. The board also approved raising authorised capital to ₹20 Cr from ₹15 Cr and a proposed JV with Continental Petroleum for tender participation; neither affects this quarter's numbers but both bear on execution capacity into Q2/Q3 FY27.

The stock went into the print at ₹305, up 5% over the past month of trading.