Synopsis: Among the most sizeable order disclosures since its NSE SME listing, Rappid Valves (India) Limited has received an Rs. 18.05 crore contract from BHEL for valve supply across the Indian Navy’s 5 Fleet Support Ships Programme, equivalent to roughly 29 percent of TTM revenue; execution is staggered through FY2027-28, meaning the order will test a working capital position where debtor days have already stretched to 135 from 83 in FY24 and operating cash flow turned deeply negative in FY25.
A valve and component manufacturer on NSE SME moved sharply higher on Friday after disclosing a Rs. 18.05 crore naval defence order from Bharat Heavy Electricals Limited under Regulation 30. The stock was up 17 percent on the filing day.
With a market capitalisation of approximately Rs. 140.05 crore, the shares of Rappid Valves (India) Limited is trading at Rs. 269.75 per share, up 17.23 percent from their previous closing price of Rs. 230.10 apiece. It is trading at a P/E of approximately 18.45.
BHEL has placed an Rs. 18.05 crore order with Rappid Valves for supply of valves and components for the Indian Navy’s 5 Fleet Support Ships (FSS) Programme. The order is domestic in nature, with no promoter or related-party connection to BHEL. Delivery is split across two tranches: the first three ships within approximately one year, and the remaining two by FY2027-28.
At Rs. 18.05 crore against revenue of Rs. 53.23 crore, the contract represents roughly 33.91 percent of annual turnover. BHEL’s role as the awarding entity places Rappid in the tier-2 supply chain of a government-linked shipbuilding programme the FSS vessels are multi-purpose replenishment ships for the Indian Navy. The two-year delivery window means revenue will spread across FY26-27 and FY27-28 rather than booking in a single year.
Revenue at Rappid has grown at a 63 percent three-year CAGR, reaching Rs. 52.12 crore in FY25 and Rs. 53.23 in FY26. Operating margins held at 19 percent in FY25 and the same in FY26. Net profit grew to Rs. 6.48 crore in FY26.
Behind those headline numbers, the working capital profile has deteriorated sharply. Operating cash flow was -Rs. 10.83 crore in FY25 and free cash flow -Rs. 12.51 crore, despite a CFO/operating profit conversion of -100 percent. Debtor days worsened to 170 from 83 in FY24, and working capital days extended from 59 to 233 days in two yeaRs. Borrowings rose from Rs. 8.41 crore in March 2025 to Rs. 17.84 crore by March 2026.
In March 2026, shareholders approved reallocation of Rs. 7.64 crore of IPO proceeds toward working capital, a confirmation that receivables pressure has outpaced original deployment plans. Data also flags that the company may be capitalizing interest costs, a practice that reduces reported financing charges relative to underlying cash burn.
The Rs. 18 crore FSS order, executed over two years, will extend the receivables book before cash converts. Government-linked supply chains through BHEL can carry longer collection cycles. How receivables perform as the order executes will carry more analytical weight than the contract headline alone.
Business Overview
Incorporated in 2002 and listed on NSE SME, Rappid Valves (India) Limited manufactures industrial and marine valves including ball, gate, globe, butterfly, check, and marine-grade configurations in sizes from 15mm to 600mm, serving defence, oil and gas, power, and industrial customeRs.
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