RBM Infracon Limited (RBMINFRA) Earnings Call Transcript & Summary

[Audio Gap] With that, I would now like to invite Mr. Jaybajrang Mani, the MD of RBM Infracon, to share his opening remarks. Mr. Mani, the floor is yours.

Thank you. [Foreign Language]

Thank you, [ Bajrang ], sir, and good afternoon, everyone. As [ Bajrang ] sir has already mentioned, the financial year 2026 has been a landmark year for RBM Infracon. I will now walk to through the detailed financial performance, the key business drivers, our order book and our priorities going into financial 2027. On a consolidated basis, here are the headlines number for the full year ended on 31st March 2026. Revenue from the operations grew from 53% to INR 492.22 crores against INR 321.75 crores in the financial year 2025. EBITDA grew from 69% to -- 69% to INR 74.10 crores, with EBITDA margin expanding from 13.6% to above 15%, a clear sign that we are scaling with discipline, not just speed. Profit before tax stood at INR 61.97 crores, up to 55% from INR 40.06 crores. Profit after tax grew from 54% to INR 45.28 crores, with a PAT margin of 9.2%. Earnings per share improved to 39.46 from [ 29.01 ] last year. To put this in perspective, just 2 years ago, in financial year 2024, our revenue was approximately INR 130 crores. We have nearly quadrupled the size of this business in 2 years while protecting and improving margins. This is a result of deliberated strategy built across our 6 verticals that is EPC, O&M, turnarounds of plants, crude well services and annual rate contract, along with projects that we are executing with our different clients. I want to be very candid about the challenges we faced this year. That is the Iran Israel conflict and border Middle East tension disrupt our global supply chains. We have faced delay on delivery of critical -- certain critical machineries, particularly in second half. Our team responded with majority resequencing work funds, managing client commitment and ensuring no project or relationship suffers permanently. Even against these headwinds, the second half delivered revenue of INR 208.22 crores, with a PAT margin of 18.36. Importantly, the same geopolitical environment reinforce our long-term opportunity. Higher energy security focus is driving upper stream investment by ONGC. Higher refinery throughput translates to more frequent turnarounds and maintenance cycles. For the financial year 2026 was our biggest year ever of investment in capabilities. Our gross book -- gross block of property, plant and equipment has grown from INR 24 crores to INR 113.11 crores, an addition of almost 100 per O&M plant, machinery and equipment in a single year. Our balance sheet has grown rapidly. Total assets now stand on INR 673.47 crores as of 31 March 2026, against INR 298.66 crores a year ago. Net worth has also strengthened to INR 187.63 crores from INR 140.88 crores. We have funded this growth through a prudent combination of internal accruals and borrowings, and we remain committed to conservative financial posture as we scale. As of the first half of financial year 2027, our order book stood at over INR 700 crores executable over the next 1 year among the strongest value visibility position in our history. Let me highlight the key components that we have driven. First of all, the epitome industries, that is INR 957 crores, our largest ever single contact representing a major step up in the project is scale and complexibility. The second one is ONGC [indiscernible]. The production enhancement contract. This is a landmark contract for the RBM, which makes our strategic entry into the crude well services and upstream value change. We are proud of this relationship and see significant long-term potential here with the ONGC and the major PSCs of India. ARCs, our ongoing ARC with Naira, Yara Fertilizers and RILPMD and NMD and multiple clients is recurring revenue pace and deal. The international presence, through some of the major known companies, we have established operations in Middle East and some of the South Africa as well to maintain and grow our -- maintain or grow our turnovers and revenues. The structural opportunities before us is substantial and well defined. India is targeting refining capacity of 450 MMTPA by 2013, whereas ONGC has also committed a CapEx of INR 1.5 lakh crore over 5 years. The government has -- the government trust on city gas distribution, petrochemicals and making India equipment manufacturing all play directly to our core competencies. We are also taking major first step in [indiscernible] such as green hydrogen and solar infrastructures, where our EPC and O&M expertise give us a natural right to participate as the energy transition gather pace. Overseas of our operations, we have concluded an order of order [indiscernible] OMR 1.3 million with [indiscernible] green ammonia, green [indiscernible] project as [indiscernible]. We are incorporating with a JV with a local partner in Oman in the next few days. We are expecting a few more package from this project. We're also binding for new more platforms of [indiscernible] in Oman for OQEP with the same package. So moving forward to our priorities in the financial year 2027. Our major focus will be very clear and very sharp. Our priority is flawless, ensure delivery of the current order book. This is how we earn the next order. We have made significant capital investment in financial year 2026. For financial '27 is the year to maximize utilization and return on that base. The ONGC [indiscernible] is a bit ahead. We intend to build on this relationship and expand our footprints in upstream services as well. We will continue to grow our presence across South Asia and the Middle East. Our upcoming safety culture has won us recognition from their line, [ Naira, Yara and Tyson ] group also. We will not read this for any short-term gains. Okay. We delivered 53% of revenue growth and 54% of profit growth in the financial year 2026, but more importantly, we have built this order book, the equipment base, the people and the client relationship to sustain this journey for years to come. On behalf of Bajrang Mani sir and the entire RBM Infracon family, I want to thank our clients for their continued trust; our employees for their relentless commitment; our Board for their wisdom and guidance; and you, of course, our shareholders and analysts, for your continued faith in our history. We will now open for the floor -- we will now open the floor for questions. Thank you.

The first question we have from Mr. Harsh Ramuka.

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Okay, sir, to related parties short term loans or exactly, [indiscernible]?

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My name is [ Peter Ayir ]. I'm the President of this company. And you asked the right question actually. The [indiscernible] is a team of semiconductor expertise having 22, 20 years of experience in the semiconductor technology, in a large -- I would say, advanced semiconductor technologies. So we have signed an agreement with them for the technology, and we have issued inquiries to big 4. We have received offer from one of the big 4 companies, I would say EY, for end-to-end consultancy in establishing this implementation of this project. We are discussing with other partners also like KPMG and PwC. Once we have -- we can [indiscernible] any of these big 4 companies in the coming weeks. This is the status.

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We have investment partners, actually we are exploring. There are investment partners who are ready to join hands with us. And we -- in this particular, if you really look at our filing, we have a 30% stake in this project. And some of the stake, actually, we are diluting. So we have investors. We are finally seeing something. And -- but this is very early stage. Any semiconductor project, it is going to -- so our -- this is a very early stage, and we will have information, we will update the information in the coming -- probably coming months.

All right. Sir. And just last question. Sir, there was also one qualified opinion by the auditors regarding unbilled revenue of one...

[indiscernible] please. There are both [indiscernible] of semiconductor technologies signed with the government of India, none of them having our kind of technology, that is hybrid bonding. And in the next 5 years also, we don't see whatever MOU signed with the government of India. We don't see this kind of technology coming to India. This is -- this will be used for the high-end AI applications. And so we have done our due diligence, and we are going ahead with this project, but we are going slowly because actually, we want to have -- we want to onboard any of these big 4 companies, probably KPMG or PwC or EY.

Got it, sir. Got it. Sir, just last question. Sir, auditors had raised one qualified opinion regarding INR 107 crores on unbilled revenue. Sir, like why are we recognizing unbilled revenue? And why need we're not waiting for it to be recognized in the next half?

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So sir, competition, [Foreign Language]

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Okay. [Foreign Language]

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Next in queue here, Jayanti Dangiji.

Hello? Can you hear?

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I appreciate your simplicity and clear and heart to heart open and heart to heart discussions. We're very proud of you taking growth to our next level. Sir, 8 question [Foreign Language]

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Another question. Loans and advances [Foreign Language]

Yes, sir?

Loans and advances [Foreign Language]

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Okay. [Foreign Language]

20 days, 20 days. [Foreign Language]

Next, we have Mr. Ankur C.

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Okay. Okay. Okay. Sir, the other question is as structure ONGC deal [Foreign Language]

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Okay. Sir, just you declared the other [Foreign Language]

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Okay. So sir, [Foreign Language]

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Okay. So sir, can you please join the queue, Ankurji, for other questions?

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Next in line, we have Mr. Atul Kumar.

Yes, sir. Am I audible?

Yes, sir.

Yes, sir, maybe 2 question mainly [Foreign Language]. So is it that approval, sir, [Foreign Language]

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And also, sir, we had taken shareholder approval on 5th of February. [Foreign Language]

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Sir, also, your time line as exchanges the approval [Foreign Language]

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Okay, sir. And sir, I have a bunch of questions on that facility -- OSAT facility we are going to set with [indiscernible] Global Private Limited. So on that, sir, [indiscernible] mentioned 90 days due diligence we filed it on 18th of April. So, sir -- so do see like what are you planning to do? And what due diligence is [Foreign Language]. So what sort of expectations we have in terms of the due diligence outcome [Foreign Language]?

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Okay. So Mira, actually, it's a very exciting opportunity. Sir, being a shareholder of your company, I was really happy to see this genomic diversify semiconductor field [Foreign Language] So sir, the follow-up question that I had, the RBM experience, [Foreign Language] so how will we contribute in this whole project like [Foreign Language]

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Amara contribution [Foreign Language]

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Okay. And sir, 30% [indiscernible] stake [Foreign Language] $1 billion to roughly [indiscernible] 30% will be...

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Okay. And sir, then [Foreign Language]

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Okay. And one last question, sir, I have on this. [Foreign Language]

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Okay. And sir, one last thing, [Foreign Language]

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Next, we have Mr. Abhishek Shah.

[Foreign Language] auditors, maybe but they were not able to verify your utilization of funds through warrants?

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Okay, okay. [Foreign Language]

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Next, we have Mr. Ankur C.

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Next we have Mr. Varun Ahlawat.

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You're on mute Mr. Varun, if you're speaking. Next, we have Mr. Jayanti Dangi.

You already [indiscernible] discussed.

Mr. Atul Kumar?

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Once it is established, then you're managing the people like you need a lot of people in there.

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So sir, infra line [Foreign Language]

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So power will also be part of Infra project?

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Mr. Atul Kumar?

Yes, sir. Sir, my question [Foreign Language]

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[Foreign Language] We have 2 options. One is in UP and other one is in Gujarat. So we want to decide based on their reporting.

Yes. Sir, actually, yes, I mean, I think that will be very helpful whenever that comes because you would also see a lot of investors are curiously asking about that. So once we have the detailed plan, I think coffee question [Foreign Language]

So once we onboard or any other agency, we will update you.

Sir, any time line by when we can have the detail?

We are discussing. We have -- no, that's what actually -- we are discussing with the multiple agencies like EY. EY has already given their offer. So we are waiting for KPMG and PwC to respond. So probably, we are expecting the response this week or early next week. That number we will analyze -- sir, this is a value project [indiscernible] slow because in evaluating the technology, people and also other parameters, [indiscernible] have whichever government is going to give us a good kind of subsidy. And as of now, UP is in our list, but still we are evaluating.

Okay. That's good, sir. And also, sir, since it's a very big project, right? So whenever we start operation after 3 years or 4 years, is there any idea like what sort of total top line we can have [indiscernible] 30% share. So put us a idea of stem [indiscernible] 8 billion project has top line when the plant is operational.

Sir, we have a draft leasing at business plan, but we are not -- we are waiting for EY to set the pay. So then only we can release it. Actually once -- that's what I can tell. We have to wait for some time so that these people, any of these big 4 come on board, and then they release it actually. So rather than we giving some numbers and all, these are the people who are already established or implemented this kind of project. So we are ready for them to get it.

Okay, sir. And sir, one last question [Foreign Language] established career. So do we already have some orders from Middle East for that subsidiary [indiscernible].

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Or sir, would there be exactly any come overs, civil and infra?

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And in terms of opportunity, sir, just a Middle East [indiscernible] subsidiary [Foreign Language]

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Yes. Okay. Makes sense, sir. Last thing, sir, revenue guidance from a FY '27 roughly up [indiscernible] [ 700 ]. [Foreign Language] out of 700 total?

Sir, [Foreign Language]

Okay. And sir, one last question. Since some [Foreign Language]

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Q1 come direct quarterly or Q2 should start cutting it?

Q2 [Foreign Language]

Mr. [indiscernible]?

Sir, I just had one question. What sort of like since we have so many moving pieces and things coming in. So I just wanted to understand, going forward, what sort of margin profile will we be having like FY '27, FY '28 '29? Just a brief idea, a ballpark could help.

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Sir, I was just asking for EBITDA margins range like [indiscernible].

EBITDA margin, 25%.

By FY '28?

'28.

And sir, '27 was [indiscernible]?

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Understood. Sir, FY '26 is [indiscernible].

Yes, sir.

Mr. Harsh Ramuka?

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Okay. Or RBM infra [ 20% 30% ] stake record, also RBM Semicon [Foreign Language]

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Okay. [Foreign Language]

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[indiscernible] is a friend company, but it is head by ex-CEO of Samsung Asia.

What's the name?

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Mr. [ Ram Marila ]?

I have a couple of questions, and if we can answer in English, that will be really helpful. Question number one is last 6 months or so, we are not seeing any sizable orders in all procured. Any reason for that? That's number one. And number two is, in the previous conference call, right, I think last year, you did mention that you guys have tendered for another big order in [indiscernible], something similar to when do you see kind of order that you are expecting that you have tendered for it. I'd like to see if there is any progress made towards that? If you can answer these 2 questions, that will be really helpful.

No, we have submitted our bid for the high-end high-value projects. But some of actually is, I think the one bid was delayed. The finalization is delayed, which is coming up in the southern part of India. And second bid, actually, we couldn't get it, maybe priced out. But we have -- there are a lot of order pipelines actually close to INR 3,300 crores, different in the stages. Some refineries and port and power plants and green energy mine. We have almost, I would say, 7 or 8 segments total [indiscernible] around INR 3,354 crores to it [indiscernible]. So we are expecting, yes. Some of the projects actually to the tune of INR 4,000 crores, which we expected, but it didn't -- it was delayed. The reason is still delayed.

Okay. Any -- I mean, can you elaborate a bit more on the [indiscernible] I mean [indiscernible] [ Pradesh ] order that you were quoting on last time?

We didn't get this produced. Actually someone...

Last question we have from Mr. [indiscernible]

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[Foreign Language] loan and advances means?

Loan and advances [Foreign Language]

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350 is regarding machines?

Yes, machines or machinery, raw material [Foreign Language]

Okay. Fixed asset measure increased while [Foreign Language] a major expansion were fixed assets maybe?

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Okay. [Foreign Language]

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Okay. Next, we have Mr. [ Ram Marila ]. Last question.

Yes. So one last question. So I would like to see if you have any next round of fund rising anytime soon?

Sir, maybe fund raising [Foreign Language]

Okay. [Foreign Language]

Yes, yes.

Any concluding remarks from your end from the management before we end the call?

[Foreign Language]

Thank you, sir. Thank you. We appreciate your remarks. Thank you, everyone, for joining today's earnings conference call for RBM Infracon. Thanks for your interest in the company. We acknowledge your participation. And should you have any further queries or require any additional information, feel free to reach out to us at IR at Partners. Wishing you a pleasant day ahead. Goodbye.

Thank you, sir.

Thank you.

Thank you, everyone.