RMC Switchgears Secures ₹27.77 Crore Contract from Rajasthan Power Transmission Company

RMC Switchgears has announced a significant contract win, bolstering its position in the electrical equipment sector. The company has received a Letter of Intent (LOI) from Rajasthan Rajya Vidyut Prasaran Nigam Limited for a project valued at ₹27.77 crore.

Contract Details

The contract involves the construction of a 132 kV Grid Sub-Station (GSS) and related transmission lines. Here's a breakdown of the key aspects of the project:

Project Component	Details
Main Construction	132 kV GSS at KAPARDA SEZ, Jodhpur District
Associated Works	- LILO of 132 kV S/C Bilara-Jhalamand Line to GSS, KAPARDA SEZ - Construction of 132 kV S/C Bhawad-Kirmarsariya Line - 01 No. of 132 kV bay each at Bhawad and Kirmarsariya GSS
Scope of Work	Supply of all equipment/materials (except Power Transformer), erection (including civil works), testing, and commissioning
Contract Type	Supply-ETC (Erection, Testing & Commissioning) basis
Project Duration	18 months
Contract Value	₹27,77,69,586.82

Implications for RMC Switchgears

This contract win is expected to have positive implications for RMC Switchgears:

Order Book Strengthening: The new contract enhances the company's order book, providing a foundation for future revenue streams.
Revenue Growth: With a contract value of ₹27.77 crore, this project is anticipated to contribute to the company's top-line growth over the next 18 months.
Sector Positioning: Securing this contract from a state power transmission company reinforces RMC Switchgears' capabilities in the power infrastructure sector.
Execution Capability: The diverse scope of work, including construction, supply, and commissioning, showcases the company's comprehensive project execution abilities.

Market Impact

While the immediate market reaction to this news remains to be seen, such contract wins typically bode well for companies in the capital goods and electrical equipment sector. Investors and market analysts often view such developments as indicators of a company's competitive strength and growth potential.

RMC Switchgears has stated that it will keep the stock exchange updated on any material developments related to this project, as required under SEBI regulations. This transparency is crucial for investors to track the progress and potential impact of the contract on the company's financial performance.

As the Indian power sector continues to expand and modernize, companies like RMC Switchgears that can secure and execute significant infrastructure projects may be well-positioned to capitalize on the growing opportunities in the market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.42%	-11.13%	-27.50%	-27.31%	-32.33%	+3,187.50%

RMC Switchgears Limited , a fast-growing player in integrated electrical and renewable energy solutions, has reported impressive financial results for the first half of FY2025-26. The company's performance highlights its strong position in the Solar, T&D, and Smart Infrastructure sectors.

Financial Highlights

Particulars	H1 FY25 (₹ crore)	H1 FY26 (₹ crore)	YoY Change
Revenue from Operations	104.78	221.61	↑ 111.50%
Gross Profit	40.60	54.83	↑ 35.05%
EBITDA	19.83	34.00	↑ 71.46%
PBT	14.95	26.90	↑ 79.93%
PAT	10.13	20.05	↑ 97.93%
EPS (₹)	9.89	19.26	↑ 94.74%

Key Performance Drivers

The company's remarkable growth can be attributed to several factors:

Strong Execution in Solar EPC Projects: RMC Switchgears has demonstrated exceptional performance in executing Solar EPC projects, which has been a primary driver of revenue growth.
Steady Performance in Electrical EPC and Products: The company has maintained consistent performance across its Electrical EPC and Electrical Products segments.
Operational Efficiencies: Despite increased raw material consumption due to project execution, the company has managed to improve its gross profit through operational efficiencies and timely deliveries.
Strategic Focus on Volume Expansion: RMC has prioritized volume expansion and market share in Solar and Electrical EPC segments, leading to higher absolute profits despite a slight dip in EBITDA margin.

Major Developments

Significant Contract Wins: RMC Switchgears secured major contracts worth ₹61 crore in Solar EPC, ₹59 crore in Electrical EPC, and ₹16 crore in the Products segment.
Backward Integration Strategy: The company is progressing with its 1GW solar module manufacturing plant, a key component of its backward integration strategy. The project is moving forward in phases to ensure technological adaptability and long-term competitiveness.
Recognition: RMC Switchgears was included in Forbes Asia's Best Under a Billion 2025 list, acknowledging its governance, innovation, and execution excellence.

Management Commentary

Mr. Ankit Agrawal, Whole-time Director and CEO of RMC Switchgears Limited, stated, "The first half of FY26 reinforces our belief that RMC's growth is structural, not cyclical. Our strategy of scaling with stability is delivering tangible results; revenue has more than doubled year-on-year, while absolute profitability has expanded sharply."

He further added, "With over ₹1,500 crore in tenders already participated in and some under active evaluation, we look forward to our order pipeline growing in the coming quarters."

Future Outlook

RMC Switchgears is well-positioned for continued growth:

The company aims to achieve over 90% capacity utilization in the coming quarters.
Focus on reducing project turnaround times and enhancing vendor partnerships.
Expansion into water management infrastructure by integrating advanced technologies like IoT.
Continued contribution to India's clean energy goals through solar EPC, green energy projects, and IPP solutions.

As RMC Switchgears continues to strengthen its position in the electrical and renewable energy sectors, investors can expect sustained growth and value creation in the coming quarters.