RVTH - Revathi Equip
📢 Recent Corporate Announcements
CARE Ratings has downgraded Revathi Equipment India Limited's long-term rating to CARE BBB (Stable) and short-term rating to CARE A3+ following a sharp decline in financial performance. The company reported an operating loss (PBILDT) of ‑₹1.39 crore in 9MFY26, with total operating income falling 33.97% to ₹75.30 crore. The downgrade reflects a slowdown in export markets due to geopolitical issues and reduced domestic orders from coal mine operators. While the company maintains adequate liquidity with ~₹100 crore in cash and investments, high client concentration and group company exposure remain significant risks.
- Long-term bank facilities rating downgraded from CARE BBB+; Stable to CARE BBB; Stable.
- 9MFY26 operating income moderated to ₹75.30 crore, representing a 33.97% decline.
- Reported a net loss (PAT) of ₹0.73 crore in 9MFY26 compared to a profit of ₹20.18 crore in FY25.
- Inventory days increased to 187 days in FY25, resulting in an elongated operating cycle of 162 days.
- Client concentration risk surged with the top five customers accounting for ~88% of sales in 9MFY26.
Revathi Equipment India Limited reported a weak performance for Q3 FY26, swinging to a standalone net loss of ₹1.68 crore from a profit of ₹0.20 crore in the same quarter last year. Revenue from operations declined significantly by 27% year-on-year to ₹30.73 crore. The nine-month performance also showed a sharp downturn, with a net loss of ₹0.73 crore compared to a profit of ₹10.84 crore in the previous year. Total expenses for the quarter exceeded total income, leading to a negative Earnings Per Share (EPS) of ₹5.48.
- Standalone revenue from operations fell to ₹30.73 crore in Q3 FY26 from ₹42.30 crore in Q3 FY25.
- The company reported a standalone net loss of ₹1.68 crore for the quarter versus a profit of ₹0.20 crore YoY.
- Nine-month (9M) revenue dropped to ₹75.30 crore from ₹114.04 crore in the prior year period.
- Quarterly EPS turned negative at -₹5.48 compared to ₹0.65 in the corresponding quarter of the previous year.
- A new subsidiary, Global Essential Mining Supplies LLP, was incorporated during the current fiscal year on April 5, 2025.
Revathi Equipment India Limited has announced the successful passage of a special resolution to appoint Mr. Natarajan S Iyer as an Independent Director via postal ballot. The resolution was approved with a significant majority, receiving 99.36% of the total votes cast. Out of 18,56,658 total valid votes polled, 18,44,810 were in favor and 11,848 were against. The promoter group provided full support with 100% of their 18,43,942 votes cast in favor of the appointment.
- Special resolution for appointment of Mr. Natarajan S Iyer passed with 99.36% majority
- Total voter turnout represented 60.54% of the company's 30,66,943 outstanding shares
- Promoter group cast 18,43,942 votes, all of which were in favor of the resolution
- Public non-institutional investors cast 12,716 votes, with 11,848 (93.17% of that category) voting against
- The e-voting process concluded on January 10, 2026, with 6,617 eligible shareholders as of the cut-off date
Revathi Equipment India Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period ended December 31, 2025. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests were processed and securities were listed on the stock exchanges. It also verifies that physical certificates were mutilated and cancelled as per regulatory requirements. This is a standard procedural filing and does not impact the company's financial or operational standing.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Issued by Registrar and Transfer Agent (RTA) MUFG Intime India Private Limited.
- Confirms dematerialization requests were processed within prescribed SEBI timelines.
- Confirms physical security certificates were mutilated and cancelled after verification.
- Ensures the register of members has been updated with depository names as registered owners.
Revathi Equipment India Limited (RVTH) has announced the closure of its trading window for designated persons and their relatives starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the results are officially announced. This is a standard regulatory procedure for listed companies in India.
- Trading window closure effective from January 1, 2026
- Closure pertains to financial results for the quarter and period ended December 31, 2025
- Restriction applies to Designated Persons and their immediate relatives
- Window to reopen 48 hours after the declaration of financial results
Revathi Equipment India Limited (RVTH) has notified the exchanges regarding the closure of its trading window for designated persons and their immediate relatives. This closure is effective from January 1, 2026, in anticipation of the financial results for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the official declaration of these results. This is a standard regulatory procedure under SEBI (Prohibition of Insider Trading) Regulations, 2015.
- Trading window closure begins on January 1, 2026.
- Closure is related to the financial results for the quarter and period ending December 31, 2025.
- Trading restriction applies to all Designated Persons and their Immediate Relatives.
- The window will reopen 48 hours after the financial results are declared to the public.
Revathi Equipment India Limited has issued a postal ballot notice to seek shareholder approval for the appointment of Mr. Natarajan S Iyer as an Independent Director. The proposed appointment is for a five-year term effective from November 7, 2025, to November 6, 2030. Additionally, the company is seeking a special resolution to allow Mr. Iyer to continue his directorship after he reaches the age of 75 on October 10, 2029. Shareholders can participate in the remote e-voting process which concludes on January 10, 2026.
- Appointment of Mr. Natarajan S Iyer as Independent Director for a 5-year term starting Nov 7, 2025
- Special resolution required for continuation of directorship beyond age 75 (attained Oct 10, 2029)
- Remote e-voting period runs from December 12, 2025, to January 10, 2026
- Cut-off date for voting eligibility was set as December 5, 2025
Financial Performance
Revenue Growth by Segment
Total Operating Income (TOI) grew by 94% YoY to INR 212.46 Cr in FY24 from INR 109.83 Cr in FY23. This was driven by a 144% YoY increase in drilling rig volumes and stable income from spare parts and services.
Geographic Revenue Split
Export sales contribution significantly increased to 36% of total revenue in FY24, up from 12% in FY23, while domestic sales accounted for the remaining 64%.
Profitability Margins
Net Profit After Tax (PAT) for FY24 stood at INR 20.18 Cr. For the six months ended September 30, 2025, the company reported a Net Profit of INR 0.99 Cr on a standalone basis.
EBITDA Margin
PBILDT margin remained healthy at 18.25% in FY24, though it slightly moderated from 19.19% in FY23. Absolute PBILDT grew by 84% YoY due to higher scale and export volumes.
Capital Expenditure
Historical purchase of Property, Plant, and Equipment (PPE) and intangible assets was INR 10.86 Cr as per recent cash flow statements. Future major debt-funded capex is not planned, maintaining a comfortable capital structure.
Credit Rating & Borrowing
The company maintains a positive outlook with interest coverage improving to 7.01x in FY24 from 5.17x in FY23. Total Debt to PBILDT improved to 0.80x from 1.57x YoY.
Operational Drivers
Raw Materials
Raw materials consumed (including steel and rig components) accounted for INR 86.99 Cr in FY24, representing approximately 41% of total operating income.
Key Suppliers
Not disclosed in available documents; however, the company maintains a well-developed vendor base for customized engineering requirements.
Capacity Expansion
Current capacity is not explicitly stated in MT, but drilling rig production volumes increased by 144% YoY in FY24 to meet higher export demand.
Raw Material Costs
Cost of materials consumed was INR 86.99 Cr in FY24, up from INR 50.98 Cr in the previous year, reflecting the 94% growth in scale of operations.
Manufacturing Efficiency
Manufacturing efficiency is reflected in the 144% growth in rig volumes and the ability to maintain PBILDT margins above 18% despite a massive scale-up.
Strategic Growth
Expected Growth Rate
18%
Growth Strategy
Growth is targeted through increasing the scale of operations above INR 250 Cr. Strategy involves expanding the export business (which grew from 12% to 36% of revenue), leveraging a dedicated export sales team, and providing customized drilling rig designs for mining and water well sectors.
Products & Services
Designing and manufacturing drilling rigs for mining, water wells, and exploration; sale of spare parts; and providing after-sales services.
Brand Portfolio
Revathi Equipment India Limited (REIL).
New Products/Services
The company focuses on customized designs for customer-specific requirements in the drilling rig segment to capture higher wallet share from private and export players.
Market Expansion
Targeting higher export orders through a dedicated team, which has already tripled the export revenue contribution to 36%.
Strategic Alliances
The company extended a corporate guarantee of INR 94.0 Cr to its group company, Semac Consultants Limited (SCL), in FY25.
External Factors
Industry Trends
The industry is shifting toward private sector participation and higher demand for specialized mining equipment. REIL is positioning itself by increasing export focus and maintaining high engineering standards to compete with global players.
Competitive Landscape
The company competes with both domestic and international drilling equipment manufacturers, focusing on the 'good business' of advisory and specialized engineering.
Competitive Moat
REIL possesses a durable moat through its 40-year operational track record, robust engineering capabilities for customization, and a well-developed vendor base, which are difficult for new entrants to replicate quickly.
Macro Economic Sensitivity
Demand is highly sensitive to mining activity and water well exploration sectors; growth in these industries directly correlates to rig volume demand.
Consumer Behavior
Private players are demanding shorter lead times, prompting the company to maintain higher inventory levels to remain competitive.
Geopolitical Risks
Increased focus on exports (36% of revenue) exposes the company to international trade policies and geopolitical stability in target export regions.
Regulatory & Governance
Industry Regulations
Operations must comply with the Companies Act, 2013 and accounting standards. The company is also subject to internal financial control audits as per Section 143(3)(i) of the Act.
Taxation Policy Impact
Current tax expense for FY24 was INR 6.48 Cr, with an additional INR 0.88 Cr for earlier years.
Legal Contingencies
The company has extended a corporate guarantee of INR 94.0 Cr to a loss-making group company (Semac Consultants Limited), which is a key monitorable for credit risk.
Risk Analysis
Key Uncertainties
The primary uncertainty is the exposure to the loss-making group company SCL via a INR 94 Cr guarantee, which could impact the adjusted gearing (expected to reach 1.40x).
Geographic Concentration Risk
64% of revenue is still domestic, with a noted concentration in the domestic customer base.
Third Party Dependencies
Dependency on a well-developed vendor base for specialized components; any disruption could impact the production of customized rigs.
Technology Obsolescence Risk
The company mitigates technology risks through robust engineering and providing customized designs for specific mining and exploration needs.
Credit & Counterparty Risk
Trade receivables decreased from INR 25.15 Cr in March 2025 to INR 7.74 Cr in September 2025, indicating strong collection and high-quality receivables.