Financial Performance Overview
RMC Switchgears Limited reported mixed financial results for FY26, with consolidated revenue growing 26.4% to ₹401.59 crore but net profit declining 27.3% to ₹22.45 crore. The company experienced significant balance sheet expansion with total assets increasing 35.2% to ₹366.88 crore, accompanied by an 82% rise in borrowings to ₹103.08 crore. Cash flow from operations turned negative at ₹(11.60) crore compared to positive ₹11.53 crore in the previous year.
Regulatory Compliance Issue
On September 4, 2026, the company issued a corrigendum to its FY25-26 Annual Report under Regulation 34 of SEBI LODR Regulations. The correction addressed two key issues: replacement of the inadvertently included Regulation 33 auditor's report with the proper Statutory Auditor's Report under Section 143 of Companies Act 2013, and revision of the employee particulars annexure to include top ten employee remuneration disclosures as required under Section 197 of the Companies Act. The corrected report was made available on the company website and submitted to stock exchanges.
Audit and Governance Matters
The auditor, Rakesh Ashok and Company, issued an unmodified opinion with no key audit matters identified. However, they noted reliance on other auditors for 3 subsidiaries whose financial statements represented significant portions of group operations (₹136.92 crore in total assets, ₹205.06 crore in revenue). The company adopted Indian Accounting Standards (Ind AS) for the first time with transition date of April 1, 2024, availing the deemed cost exemption for property, plant and equipment.
Operational and Structural Developments
The company operates through three verticals: Electrical Products (24% of revenue), Electrical EPC (24%), and Solar EPC (52%). Notable developments include deconsolidation of Intelligent Hydel Solutions Private Limited due to loss of control from share pledge agreements. The board recommended seeking shareholder approval for increasing authorized share capital from ₹15 crore to ₹20 crore and various related party transactions with subsidiaries.
Upcoming Corporate Events
The 32nd Annual General Meeting is scheduled for September 11, 2026, with agenda items including ratification of cost auditor remuneration, approval of non-executive director remuneration, and authorization for loans/guarantees to subsidiary companies. The company emphasized that the corrigendum has no impact on financial statements, auditor's report, AGM notice, or voting rights of members.