A micro-cap company that is primarily involved in the business of Switchgear Engineering, ECI contracts for power distribution, is in the spotlight after the stock has delivered multi-bagger returns of 8,297.73 percent 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 equity share, up by 2.66 percent from its previous day’s close price of Rs. 719.85.
Stock’s Return
Over the past year, the stock has provided negative returns of 11.44 percent. The stock is currently trading at a discount of 39.12 percent from its 52-week high of Rs. 1,214.
On October 3, 2025, the shares of RMC Switchgears Ltd traded at Rs. 739, showing a gain of around 8,297.73 percent compared to the price of Rs. 8.80 on October 8, 2020. For example, if someone had invested Rs. 1 lakh in the company’s stock 5 years ago, it would have turned into around Rs. 83.98 lakh.
About the Company
RMC Switchgears Limited (RMCSL), promoted by Mr. Ashok Agarwal, traces its origins to 1994 when it was incorporated as RFH Metal Casting Private Limited. It became a public company in 2008, renamed RFH Metal Casting Limited, and later rebranded as RMC Switchgears Ltd in 2016.
The company was listed on the BSE SME platform in 2017. Based in Rajasthan, RMCSL is engaged in designing and manufacturing smart meters, LT/HT distribution boxes, panels, junction boxes, feeder pillars, and circuit protection switchgears, in addition to executing EPC contracts for transmission lines and substations. Its manufacturing facilities are located at Badodiya Village, Chaksu Tehsil.
In recent years, RMCSL has expanded its scope to diversify into the renewable energy sector. Over the past two years, it has established four subsidiaries: Intelligent Hydel Solutions Private Limited, RMC Green Energy Private Limited, RMC Solar Park Private Limited, and RMC Solar One Private Limited, reflecting its strategic push into hydropower and solar energy.
The company’s product portfolio includes Meter Box For Energy Meter, Distribution Box, Junction Box, FRP Gratings, SMC / FRP Chequered, SMC / FRP Sheets, Cable Tray, Feeder Pillars, Pole Mounted Street Light Boxes, FRP V-Cross Arm, Bus Bars.
Order Book
As of June 1, 2025, RMCSL has an unexecuted order book of ~Rs. 1,035.47 crore, about 3.25 times its FY25 revenue, providing strong revenue visibility. A major share of around Rs. 545.84 crore comes from Maharashtra State Electricity Distribution Company Ltd.
The orders, largely backed by escalation clauses, are expected to be executed within 12–16 months, with some including operation and maintenance contracts of 3–25 years, ensuring long-term stability.
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Revenue Segmentation
In FY25, the Electrical Products segment contributed Rs. 60.84 crore, forming 19.24 percent of the topline. This segment includes smart meter enclosures, feeder pillars, distribution boxes, and electrical panels. Margins remain moderate at 10–15 percent EBITDA, and its contribution to overall revenue is expected to reduce to around 10 percent by FY26. Growth will be supported by the ongoing smart metering push, T&D upgrades, and RDSS incentives.
The Electrical EPC segment was the largest revenue generator in FY25, at Rs. 253.72 crore, accounting for 80.21 percent of the topline. It covers T&D infrastructure, smart grid, substation automation, and special electrical projects.
With high-margin potential of 20–25 percent EBITDA, its share is expected to contribute about 30 percent in FY26 revenue. Growth drivers include Rs. 2.5 trillion in smart grid investments, greater private sector participation, and the government’s Rs. 9.12 lakh crore plan for power transmission upgrades by 2032.
The Solar EPC business, though small at Rs. 1.74 crore in FY25 (0.55 percent of topline), is expected to expand rapidly to about 45 percent of revenue by FY26. Focused on ground-mounted solar, rooftop solar, and solar pumps, it operates with margins of 10–15 percent EBITDA. The segment is positioned to benefit from India’s 280 GW solar capacity target by 2030, along with domestic manufacturing incentives that are expected to accelerate adoption.
The Solar Products vertical, covering solar module and structure manufacturing is projected to contribute around 15 percent by FY26. With expected margins of 15–18 percent EBITDA, the segment will be supported by India’s 500 GW renewable energy capacity target by 2030 and the government’s strong push for self-reliance in the sector.
Financial Highlights
The company reported revenue of Rs. 212 crore in H2 FY25, up by 101.90 percent from Rs. 105 crore in H1 FY25 and 149.41 percent YoY from Rs. 85 crore in H2 FY24. The company reported an operating profit of Rs. 33 crore in H2FY25, up by 65 percent from Rs. 20 crore in H1 FY25 and 135.71 percent YoY from Rs. 14 crore in H2 FY24.
The company reported net profit of Rs. 21 crore in H2 FY25, up by 110 percent from Rs. 10 crore in H1 FY25 and 200 percent YoY from Rs. 7 crore in H2 FY24. EPS improved to Rs. 20.10 crore in H2FY25 as compared to Rs. 9.94 crore in H1 FY25 and Rs. 6.63 crore in H2 FY24.
RMC Switchgears Limited’s revenue and net profit have grown at a CAGR of 40 percent and 149 percent, respectively, over the last five years. The company’s ROCE and ROE stand at 37.2 percent and 37.5 percent, respectively, and its debt-to-equity ratio at 0.55x indicates the company’s financial position.
Written By Akshay Sanghavi
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