RMC Switchgears hits the roof on bagging LoA worth Rs 320 crore

RMC Switchgears was locked in the upper circuit of 5% at Rs 574.65 after the firm received a letter of acceptance worth Rs 320 crore from the Rajasthan Govt for a 50 MW rooftop solar system installation across state buildings in Jaipur and Dausa.

Under this contract, RMC will handle the design, supply, erection, and commissioning of rooftop solar projects on state government and government undertaking buildings in Jaipur and Dausa.

The project will be executed under the hybrid annuity mode (HAM), ensuring long-term financial stability.

Additionally, RMC will manage the operation and maintenance (O&M) of the solar installations for the next 25 years from the date of commissioning.

This order represents a one-time revenue opportunity of Rs 229 crore, with recurring revenue of Rs 91 crore over the next 25 years from O&M services, establishing a steady long-term income stream for RMC throughout the project's lifecycle.

Ankit Agrawal, CEO and whole-time director of RMC Switchgears, said, This LOA marks a significant step in RMC's journey towards expanding its Solar EPC footprint and supporting Rajasthans ambitious clean energy transition. With the state committed to powering all government and public sector buildings with solar energy, this project underscores our ability to deliver large-scale, sustainable solutions.

It also reinforces the strategic rationale behind our investment in solar module manufacturing, ensuring better execution efficiency and long-term value creation. As we continue to scale our renewable energy portfolio, this project brings us closer to realizing our Vision 2030 goals while contributing meaningfully to Indias renewable energy objectives.

RMC Switchgears is primarily engaged in the business of switchgear engineering and ECI contracts for the power distribution/transmission sector.

On a full-year basis, the company's consolidated net profit jumped 26.8% to Rs 14.89 crore in FY24 as against Rs 11.74 crore posted in FY23. Revenue from operations surged 37.8% to Rs 172.63 crore in FY24 as compared to Rs 125.27 crore recorded in FY23.

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