Company Overview

Revathi Equipment India Limited (BSE: 544246, NSE: RVTH) submitted its Annual Report for FY 2025-26 to BSE and NSE pursuant to SEBI Regulation 34(1), approved by the Board on 22nd May 2026.

Financial Performance

Consolidated Results (₹ in crores):

  • Revenue from Operations: ₹139.44 (FY25: ₹178.53) - Decline of 21.9%
  • Net Profit: ₹13.37 (FY25: ₹20.18) - Decline of 33.75%
  • EPS: ₹45.12 (FY25: ₹65.79) - Decline of 31.4%

Revenue Breakdown:

  • Sale of Drills: ₹52.93 (37.96%) vs FY25: ₹86.50 - Decline of 38.81%
  • Sale of Spares: ₹80.56 (57.77%) vs FY25: ₹84.01 - Decline of 4.11%
  • Geographical Split: Domestic 66.06% (₹92.11 crore), Exports 33.94% (₹47.33 crore)

Balance Sheet Position:

  • Total Assets: ₹267.71 crores (Previous: ₹238.41 crores)
  • Short-term borrowings: ₹67.65 crores - Increase of 88.3%
  • Trade receivables: ₹61.06 crores - Increase of 142.8%
  • Inventories: ₹71.94 crores

Key Financial Ratios

  • Debt Equity Ratio: 0.48 times (FY25: 0.29) - Increase of 65.1%
  • Current Ratio: 1.72 times (FY25: 1.79) - Decline of 3.7%
  • Inventory Turnover: 1.99 times (FY25: 2.44) - Decline of 18.6%
  • Return on Net Worth: 9.5% (FY25: 16%) - Decline of 40.6%
  • Operating Profit Margin: 13% (FY25: 21%) - Decline of 38.1%

Subsidiaries & Investments

The company has two wholly-owned subsidiaries:

1. Revathi Drilling Solutions LLP: Revenue ₹10.94 crore, PAT ₹1.20 crore

2. Global Essential Mining Supplies LLP: Revenue ₹0.05 crore, Loss ₹(0.13) crore

Significant investments include ₹14.78 crores in compulsory convertible preference shares and ₹22.36 crores in debentures through PMS.

Management & Governance

Management Changes:

  • Mr. S Sundarasamy resigned as Independent Director (7th Nov 2025)
  • Mr. Natarajan S Iyer appointed as Non-Executive Independent Director
  • Post-year end: CFO and Company Secretary resigned (June-August 2026)

Credit Rating Action:

CARE Ratings downgraded long-term/short-term bank facilities from CARE BBB+; Stable/CARE A2 to CARE BBB; Stable/CARE A3+ due to operational challenges.

Significant Transactions

  • Corporate Guarantees: ₹134.00 crore (FY25: ₹94.00 crore) provided to Semac Construction Limited (promoter group company)
  • CSR Expenditure: ₹0.53 crore spent on education, healthcare, and environmental sustainability initiatives
  • Related Party Transactions: Interest received from Semac Construction Limited (₹0.04 crores) and various transactions with subsidiaries

Risk Management

Key risks identified include customer concentration, working capital challenges, corporate guarantee exposure, raw material volatility, and geopolitical economic volatility. The company faces significant interest rate risk (all ₹67.65 crore borrowings at variable rates) and foreign currency risk with unhedged exposures of USD 10,04,272 in receivables.

Audit & Compliance

Auditors: S S Kothari Mehta & Co. LLP provided unmodified audit opinions without qualifications. One subsidiary's financials were management-certified rather than audited as it didn't meet audit threshold under LLP Act 2008.

Compliance Status: Company complied with SEBI Listing Regulations and Companies Act requirements, with minor delays in filing financial results (1-day delay in two quarters).

Corporate Actions

No dividend recommended for FY26 as surplus intended for business growth. AGM scheduled for 25th September 2026 via video conferencing.