RMC Switchgears Q2 FY27 Revenue Jumps 238% as Projects Ramp Up
The electrical equipment maker's September quarter revenue soared sequentially, but higher interest costs and a planned rights issue highlight working capital pressures.
RMC Switchgears reported a 238% sequential jump in revenue for Q2 FY27 as major projects moved into execution. Profit rose 400% QoQ, but interest expense more than doubled, reflecting the strain of a large order book on its balance sheet.
For RMC Switchgears, the story this quarter is one of execution finally catching up with ambition. After a sharp contraction in the June quarter, the company’s revenue roared back as large utility projects entered their billing phase, a sign its massive order book is turning into cash.
The numbers show a dramatic sequential recovery. Revenue leapt to ₹126.05 crore from ₹37.24 crore last quarter, a 238% jump. Profit followed, rising 400% to ₹10.4 crore. The net profit margin improved to 8.3%, up 270 basis points.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 |
|---|---|---|
| Period | Sep 2026 | Jun 2026 |
| Revenue (₹ Cr) | 126.05 | 37.24 |
| Profit (₹ Cr) | 10.4 | 2.08 |
| Net Profit Margin | 8.3% | 5.6% |
The order book is the engine
The surge stems from a confirmed unexecuted order book of approximately ₹1,188 crore, as highlighted in the company's Q1 investor presentation. Flash Finance reports this backlog is over three times the company's trailing twelve-month revenue. Major awards, including a ₹333.80 crore contract from Paschim Gujarat Vij Company, are now moving from mobilization to execution.
This project-heavy business model, however, comes with a cost. Interest expense jumped 129% quarter-on-quarter to ₹9.41 crore. Short-term borrowings nearly doubled to ₹89.38 crore in FY26, according to a scanx.trade report, funding the working capital needed to execute these large government contracts.
A rights issue to ease the strain
Management is acting to strengthen the balance sheet. The board has approved a proposed ₹30 crore rights issue, as noted by Flash Finance. This fundraise, representing about 15% of the market cap, is aimed at supporting operations or deleveraging against current debt of ₹103 crore.
The funding need underscores a core tension. While the India switchgear market is forecast to grow at 9.28% annually through 2031, per Datamintelligence, converting that opportunity requires significant upfront capital. RMC’s debtor days stood at 186 in FY26, indicating long collection cycles typical of utility customers.
Key Points
- Revenue rebounded sharply by 238% sequentially as major Electrical EPC projects entered the execution and billing phase.
- Interest expense more than doubled, reflecting increased working capital borrowing to fund the company's large ₹1,188 crore order book.
- The company plans a ₹30 crore rights issue to bolster its balance sheet against rising debt and support ongoing project execution.
- The long-term demand environment remains robust, driven by government schemes like RDSS and transmission expansion outlined in the National Electricity Plan.
Hexa Perspective
The quarter confirms RMC Switchgears can convert its formidable order pipeline into revenue, a crucial step for credibility. The 8.3% net margin, while improved, remains pressured by high finance costs, a structural feature of its government-focused EPC business.
The planned rights issue is a pragmatic move to manage leverage, but the key test is whether operating cash flow can sustainably fund growth. For the momentum to hold, execution must keep pace with order wins without further stretching an already tight balance sheet.
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