Synopsis:
The power infrastructure sector stock gained traction after bagging a Rs. 59.12 crore Letter of Intent from Jaipur Vidyut Vitran Nigam Limited. The contract, spanning 15 months, will enhance distribution infrastructure in Rajasthan under the RDSS scheme.
A power infrastructure stock advanced sharply in today’s session after announcing a fresh project win that will bolster its already strong order book. The counter rose as investors cheered the new order inflow and the visibility of sustained revenue growth in the near term.
RMC Switchgears Limited, with a market capitalization of Rs. 799.51 crore, opened at Rs. 735.30 against a previous close of Rs. 735.85. The stock touched an intraday high of Rs. 771.80, marking a gain of 4.9 percent.
What’s the News?
The company has secured a Letter of Intent worth Rs. 59.12 crore from Jaipur Vidyut Vitran Nigam Limited (JVVNL). The scope of the contract involves the development of distribution infrastructure for the segregation of 11 KV mixed feeders at Tonk Circle of Jaipur Discom in Rajasthan.
The project will be executed under the Revamped Reforms-based and Results-Linked Distribution Sector Scheme (RDSS) on a turnkey basis. The execution timeline has been set at 15 months from the effective date of the contract, including survey and approvals. This project strengthens the company’s order book and is expected to positively contribute to revenues and growth.
Expanding Order Book Visibility
As on June 1, 2025, the company’s unexecuted order book stood at approximately Rs. 1,035.47 crore, which is about 3.25 times its FY25 revenue. Notably, orders worth Rs. 545.84 crore are outstanding from Maharashtra State Electricity Distribution Company Limited.
With most contracts backed by escalation clauses and expected execution within 12 to 16 months, along with operation and maintenance agreements extending from 3 to 25 years, the company enjoys long-term revenue visibility.
Also Read: Infra stock jumps after receiving ₹13 Cr order from Telecommunications Consultants India
Financial Snapshot
In the six months between September 2024 and March 2025, sales rose from Rs. 105 crore to Rs. 213 crore, an increase of 102.9 percent. Operating profit improved from Rs. 20 crore to Rs. 33 crore, higher by 65 percent. Profit before tax climbed from Rs. 15 crore to Rs. 28 crore, up 86.7 percent, while net profit jumped from Rs. 10 crore to Rs. 21 crore, reflecting growth of 110 percent.
On a year-on-year basis, comparing March 2024 to March 2025, sales increased from Rs. 85 crore to Rs. 213 crore, registering growth of 150.6 percent. Operating profit surged from Rs. 14 crore to Rs. 33 crore, up 135.7 percent. Profit before tax advanced from Rs. 9 crore to Rs. 28 crore, a rise of 211.1 percent, and net profit grew from Rs. 7 crore to Rs. 21 crore, higher by 200 percent.
About the Company
Incorporated in 1994 and headquartered in Jaipur, RMC Switchgears Limited operates in the switchgear engineering space. The company manufactures energy meter boxes, distribution and junction boxes, FRP gratings, SMC/FRP chequered sheets, cable trays, pole-mounted street light boxes, FRP v-cross arms, and bus bars.
It also undertakes engineering, construction, and installation contracts in the power distribution and transmission sector. Formerly known as RMC Switch Gears Limited, the company adopted its current name in July 2016.
Written By Manan Gangwar
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