RMC Switchgears Wins ₹23.64 Cr Solar Pump Order From MAHAVITRAN Under PM-KUSUM

Synopsis: RMC Switchgears Limited has been awarded a Letter of Award (LoA) worth Rs 23.64 crore by MAHAVITRAN (Maharashtra State Electricity Distribution Co. Ltd.) for the supply, installation and maintenance of off-grid solar water pumping systems under the PM-KUSUM B Scheme. The five-year contract increases the company’s renewable energy order book and strengthens its presence in the fast-growing solar irrigation segment in India.

RMC Switchgears Limited has just released a major operational update directly to the stock exchanges. It wins a multi-crore mandate to implement green energy to power rural farmlands. This strategic move not only expands the company’s order pipeline, but also gives a highly predictable stream of revenue for half a decade. Public market observers are caught completely by surprise.

Shares of RMC Switchgears Limited were trading at Rs. 295.35, down 0.76 percent from the previous close of Rs. 297.60. The stock opened at Rs. 297.60, touched an intraday high of Rs. 307.45 and a low of Rs. 289. The company currently commands a market capitalization of Rs. 312 crore.

What happened?

RMC Switchgears has received a Rs 23.64 crore Letter of Award from MAHAVITRAN for the design, manufacture, supply, transportation, installation, testing and commissioning of 3 HP, 5 HP and 7.5 HP off-grid DC solar photovoltaic water pumping systems (SPWPS) at identified farmer locations in Maharashtra. Also, the project includes a five-year comprehensive warranty, repair and maintenance services and a Remote Monitoring System (RMS), which makes it a long-term service contract rather than a one-time equipment supply.

The order has been issued under the “Magel Tyala Saur Krushi Pump” Yojana and PM-KUSUM Component-B Scheme to reduce the dependence of farmers on diesel-powered irrigation pumps and promote solar-powered alternatives. It will be a five-year contract, and the equipment installation will include ongoing service responsibilities.

Why does this matter?

This project is not a traditional product order but gives RMC Switchgears the opportunity to be involved in the entire value chain from manufacturing and installation to long-term maintenance and remote monitoring. This increases transparency of execution and offers opportunities for recurring service revenue during the term of the contract.

The order also strengthens the company’s position in the government-backed solar infrastructure ecosystem, where rural electrification and clean-energy initiatives drive demand. As PM-KUSUM rolls out in the states, the successful execution of such projects could make RMC eligible for future public-sector tenders while growing its renewable energy portfolio.

This utility order provides a strong fillip to the active order book base for RMC Switchgears. On the mathematical side, the move of the core hardware portfolio into multi-year recurring green energy service agreements should add a very positive layer to the company’s long-term top-line revenue and structural growth prospects.

Financials

The company reported a strong recovery in Q4 FY26, with revenue rising to Rs 142.94 crore, a 285.9 percent QoQ increase from Rs 37.04 crore in Q3 FY26. However, revenue remained 13.7 percent lower YoY compared to Rs 165.66 crore in Q4 FY25. The turnaround was reflected in profitability, with the company reporting an operating profit of Rs 17.60 crore, compared to an operating loss of Rs 4.54 crore in Q3 FY26, and also improving marginally from Rs 16.67 crore in Q4 FY25. The operating profit margin (OPM) improved to 12.31 percent, compared to 10.06 percent in Q4 FY25, reversing the negative 12.26 percent margin reported in the previous quarter.

The company reported a profit before tax (PBT) of Rs 12.95 crore, recovering sharply from a loss of Rs 9.46 crore in Q3 FY26, although it was 5.8 percent lower YoY than Rs 13.75 crore in Q4 FY25. Net profit stood at Rs 9.27 crore, compared to a net loss of Rs 7.07 crore in Q3 FY26, while remaining broadly stable against Rs 9.85 crore reported in Q4 FY25. Consequently, EPS improved to Rs 8.76 from negative Rs 6.70 in Q3 FY26, remaining close to Rs 9.33 in the corresponding quarter last year.

Over the longer term, the company has delivered a 3-year sales CAGR of 47 percent and a 3-year profit CAGR of 24 percent, reflecting healthy business expansion despite recent quarterly volatility. Its balance sheet remains supported by ROCE of 22 percent and ROE of 19 percent, while maintaining a current ratio of 1.32. The company carries a debt-to-equity ratio of 0.81, indicating moderate leverage alongside healthy returns on capital.

Industry Analysis

India’s irrigation sector is experiencing a structural shift from diesel-based pumps to solar-based irrigation systems due to increasing diesel prices, groundwater conservation and lowering the power subsidy burden on state governments. The companies are not only selling solar panels but are doing more turnkey solar pump projects that include the manufacturing of the equipment, installation and long-term maintenance. This change creates revenue opportunities beyond product sales. As governments continue to fast-track the deployment of solar pumps in rural India, RMC Switchgears is well-placed to leverage this transition, with its footprint in solar EPC and electrical infrastructure.

About the Scheme

The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) Scheme is one of the flagship renewable energy schemes of India, promoting solar-powered irrigation. Component B offers financial support to farmers for setting up standalone off-grid solar pumps to cut fuel expenses, decrease reliance on electricity, and enhance access to dependable irrigation.

RMC Switchgears Limited manufactures electrical infrastructure products such as switchgears, electrical enclosures and distribution equipment and is expanding its footprint in the renewable energy space through EPC projects, solar power systems and solar water pumping solutions. The company delivers turnkey projects for power distribution and clean energy infrastructure to utilities, government agencies and industrial customers

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