Synopsis:
RM Drip & Sprinklers Systems is in focus after reporting strong year-on-year growth in Q1FY26 revenue and profit, despite a sharp sequential decline.
A small-cap company that manufactures micro irrigation systems came into the spotlight after declaring financial results for Q1FY26. Check the article below to know about their performance.
With a market capitalization of Rs. 1,898.85 crore, the shares of R M Drip & Sprinklers Systems Ltd were trading at Rs. 760.15, down by 0.55 percent from its previous closing price of Rs. 764.35. The stock has reached an intraday low of Rs. 735.80 in today’s trading session
Q1FY26 Results
R M Drip & Sprinklers Systems Ltd reported Rs. 30.48 crore in revenue for the first quarter of FY26, a 79.19 percent increase over the Rs. 17.01 crore for the same period in FY25. However, it decreased by 36.57 percent as compared to Rs. 48.05 crore in Q4 FY25.
The operating profit for Q1 FY26 stood at Rs. 8.78 crore, down by 41.35 percent from Rs. 14.97 crore in Q4 FY25, and rose by 205.92 percent from Rs. 2.87 crore in Q1 FY25.
The consolidated net profit for the first quarter of FY26 was Rs. 5.31 crore, which was 48.19 percent lower than the Rs. 10.25 crore reported in the previous quarter and 212.35 percent higher year over year than the Rs. 1.70 crore in Q1 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 2.13 in Q1 FY26 from Rs. 0.68 in Q1 FY25.
Also Read: Microcap IT stock jumps 5% after company announces ₹143 Cr IPO launch
About the company
Founded in 2004, RM Drip and Sprinklers Systems Limited designs and produces micro irrigation systems and components, offering farmers support with system design and installation. The company also acts as an OEM supplier for other irrigation firms and operates a wide dealer network across several Indian states. Starting out with job work, it gradually expanded its operations, went public in 2017, set up new facilities in Sinnar, and has steadily grown within the micro irrigation industry.
At the movement company is trading at a price-to-earnings (P/E) ratio of 79.4x which is higher than industry average of 22.3x. A return on equity (ROE) of about 39.7 percent and a return on capital employed (ROCE) of about 44.7 percent demonstrate the company’s financial position. Its debt-to-equity ratio stands at 0.32, showing low leverage in the company.
Written By Akshay Sanghavi
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.