RBM Infracon Ltd Q4 FY2026 Concall Summary

Key Takeaways

• Revenue doubled, margins expanded: Revenue grew 53% to ₹492 crores and PAT grew 54% to ₹45 crores, while EBITDA margin expanded from 13.6% to over 15%, showing the business can scale with discipline.
• Supply-chain disruption masked even stronger output: Iran-Israel conflict delayed critical machinery deliveries in H2; management estimates the refining segment alone could have delivered 50-60% more output without those headwinds.
• The order book just got redefined: A ₹957 crore Epitome Industries contract, the largest ever, plus the landmark ONGC Nandej production-enhancement entry, signal a structural step-up in project scale and complexity.
• A semiconductor bet is now on the table: The Sujog Global JV for an OSAT facility is early-stage and capital-light for RBM today, but it introduces a multi-year, subsidy-dependent, execution-heavy ambition that will eventually need equity.
• What to watch next quarter: Whether the ₹107 crores of unbilled revenue actually clears in June, the mainboard migration approval lands, and any concrete update on the Big Four consultant onboarding for the semiconductor project.

Performance & the Supply-Chain Drag

• Top-line and bottom-line both up over 50%: Revenue hit ₹492 crores and PAT reached ₹45 crores, continuing a trajectory that has quadrupled the business from ~₹130 crores in FY24.
• Margin expansion alongside growth: EBITDA rose 69% to ₹74.10 crores, with margins moving from 13.6% to over 15%, a signal that the company is pricing and executing better even as it scales.
• H2 was materially held back by geopolitics: The Iran-Israel conflict and broader Middle East tensions disrupted global supply chains, delaying delivery of critical machinery. The team re-sequenced work to protect client commitments, but management believes the refining segment alone lost 50-60% of potential output.
• One specific casualty was an edible-oil refinery: Parts specifications were upgraded to higher-technology components requiring European sourcing; war disrupted shipping routes and Indian alternatives lacked API certification. The company is currently running on rented equipment at a cost of ₹15-16 crores.
• Capital investment hit an all-time high: Gross block jumped from ₹24 crores to ₹113.11 crores, an addition of nearly ₹100 crores in plant, machinery and equipment in a single year, funded through internal accruals and borrowings.
• Balance-sheet expansion reflects project prep: Loans and advances rose to ~₹350 crores on machinery advances and raw-material purchases, including steel inventory bought to lock in rates. Fixed assets grew primarily through land acquisition in Mumbai and Jamnagar for refinery-related work and a labour camp.

Aditya Jay Bajrang Mani: "EBITDA grew by 69% to ₹74.10 crores, with EBITDA margin expanding from 13.6% to over 15% – a clear sign that we are scaling with discipline, not just speed."

ONGC Nandej: The Upstream Entry

• A landmark contract that changes the revenue mix: The ONGC Nandej production-enhancement contract marks RBM's strategic entry into crude oil services and the upstream value chain, moving beyond its traditional EPC and O&M base.
• Production has nearly doubled in a year: Output rose from 450 barrels to 800 barrels, helped by favourable USD movement and crude rates. The field needs careful nurturing and ramp-up takes 2-3 years.
• The contract structure rewards incremental output: RBM receives USD 5.5 per barrel with a minimum delivery of 70 cubic metres (~550 barrels) monthly. For incremental production, ONGC retains 34% and RBM retains 66%, creating a direct incentive to maximise output. Two new wells have already been drilled incrementally.
• Gas monetisation is the next leg: The company currently burns gas but expects to begin selling it in a couple of months, adding a new revenue stream once oil production is stabilised.
• A seasonal challenge exists: For about 4 months during cold weather, crude does not flow freely and requires significant chemical treatment; the remaining 9 months are favourable.
• Rig investment under consideration: RBM may bring its own rig in 5-6 months, which would be a major expense but could improve control over the drilling programme. The plan is to drill 5 wells with workover already completed per ONGC guidelines.

Order Book & Competitive Positioning

• The Epitome Industries win resets the scale ceiling: At ₹957 crores, it is the largest single contract in company history and represents a major step up in project scale and complexity.
• Recurring revenue base is broadening: Ongoing annual rate contracts with Nayara, Yara Fertilizers, RIL and multiple other clients provide a strong, visible revenue floor.
• Competition thins out above ₹500 crores: Management observes that bidding for ₹100-300 crore projects attracts high competition, but above ₹500 crores the competitive field shrinks significantly, a dynamic that favours RBM as it graduates to larger projects. The company already placed a bid of ₹2,300 crores in one process.
• International presence is taking shape: Operations have been established in the Middle East and South Africa. A Green Hydrogen order worth 0.13 crore Omani Riyals was concluded with ACME CleanTech Energy for its Duqm, Oman project, with more packages expected. The company is also bidding for O&M platforms in Oman for OQEP.
• One near-miss and one non-award: RBM was L1 for a Jhansi railway tender but the tender has not been formally awarded due to a re-inspection objection raised by a competitor. The Kakinada order went to another party.

Jay Bajrang Mani: "If you bid for ₹100–300 crore projects, competition is high. If you go above ₹500 crores, competition decreases significantly."

The Semiconductor OSAT Venture

• A JV with Sujog Global for an OSAT facility: RBM has signed an agreement with Sujog Global, whose principals have 15-20 years of experience in hybrid bonding. RBM holds a 30% stake, with 20% of that being allocated to bring in corresponding capital. RBM's role is civil and infrastructure work: building, MEP, electrical, and power. Technology and engineering come from the semiconductor partners.
• The venture is headed by a Korean promoter group: The group is led by the former CEO of Samsung Asia, though management declined to disclose the name, saying it will be revealed in due course. The Indian entity Sujog Global has been established for 3-4 years and was chosen as the MOU counterparty over a direct Korean entity.
• A separate subsidiary has been registered: RBM Semicon will house the venture, with promoters holding 70% and the partner holding 30% in that entity.
• The capital call is years away, not months: Management frames the project as a ₹2,700 crore total cost, with RBM's 30% stake requiring capital only after 3-4 years when the building is complete and the project is substantially de-risked. At that point, banks and investors are expected to support the stake. An initial ₹60 crores will go into land and basic infrastructure.
• Government subsidies are part of the plan: Based on the qualifications of the Korean promoters, management expects the government to extend subsidies. The choice between Gujarat and Uttar Pradesh will depend on which state offers the stronger subsidy package.
• A Big Four consultant is being onboarded: EY has provided a feasibility report and an offer for end-to-end consultancy; KPMG and PwC are also in discussions. A detailed project report and business plan will be prepared once the agency is finalised. Management declined to share unvalidated top-line projections for the OSAT plant, saying they will only release numbers once a Big Four firm validates them.
• Revenue from the construction contract is distant: The project timeline is 3-4 years, with construction revenue expected around 2030.

Jay Bajrang Mani: "Assume the total project cost is ₹2,700 crores. Once 70% of the project is built and de-risked, the bank and investors will support our 30% stake. We do not have to contribute that capital today – we have to deliver it after 4 years."

Balance Sheet, Audit & Governance Items

• Unbilled revenue of ₹107 crores drew an audit qualification: The auditors raised a qualified opinion because third-party certification was not completed in time. Management states it will be cleared in June, with the delay attributed to the certifying party's timeline.
• Warrant utilisation also drew an audit comment: Auditors noted they could not verify utilisation of funds raised through warrants because their staff did not submit supporting data in time. Management later rectified this and filed the utilisation certificate on NSE.
• Warrants have been concluded, not extended: The warrants issued two years ago were concluded and the ₹580 warrants were withdrawn; no new warrants have been issued. A relevant filing was made on NSE.
• Short-term loans and advances rose again to ₹230 crores: After management had previously indicated these would decrease, the increase was driven by two shutdown projects received (Yara Fertilizer, Nayara Energy), a few more projects, and funds drawn for ONGC well workover.
• Mainboard migration is imminent: The company expects final approval in 10-15 days, with the process accelerated because RBM is already NSE-listed and moving to BSE, where 90% of approvals are already in place. Quarterly reporting will begin from Q2 following migration.
• No equity dilution in the near term: Management stated no dilution is planned in the next six to eight months; after that, capital will be needed to move the semiconductor project forward. A 4-5 month window exists for any fundraising, and communication will follow once the company moves to the main board.

Outlook & Structural Opportunity

• FY27 revenue target is ₹700 crores, with an aspirational goal of ₹1,000 crores: This builds on the current order book, ONGC ramp-up, and international expansion. FY28 and FY29 targets are ₹900 crores and ₹1,120 crores respectively.
• Profitability is expected to improve: Management is quoting tenders at higher margins and is focused on margin expansion through quality work at better rates, though it declined to give a precise forward EBITDA margin projection.
• The macro setup is favourable: India is targeting refining capacity of 450 MMTPA by 2030, and ONGC has committed capex of ₹1.5 lakh crores over 5 years. Government thrust on city gas distribution, petrochemicals, and equipment manufacturing plays to RBM's core competencies.
• The Middle East pipeline looks strong: Management expects so much work in the next two years that the company will be stretched for people, with enquiries coming from across the region. The Oman subsidiary formation is slightly delayed but will be completed in a couple of days.
• Green hydrogen and solar are early-stage bets: The company is taking first steps in green hydrogen and solar infrastructure, with the ACME CleanTech order in Oman as a proof point.
• Offshore drilling is not on the near-term agenda: Bid costs are too high; management plans to build experience over the next 5 years and then pursue offshore in a JV.

Jay Bajrang Mani: "These numbers are not just numbers – they prove our faith in our thousands of employees, hardworking clients, and stakeholders. I am proud that we have grown this business four times in two years."

Guidance & Commitments

Key Metrics