RMC Switchgears Surges After Bagging ₹200+ Crore Orders from Jaipur Discom
Mumbai, February 3, 2026 – Shares of RMC Switchgears Ltd (BSE: 540358) are in focus today after the company announced it has secured major Letters of Intent (LOI) worth a combined ₹200.86 crore from Jaipur Vidyut Vitran Nigam Limited (JVVNL), a Rajasthan state power distribution company.
The Big Win: Power Infrastructure Upgrades
The two orders are part of the central government’s Revamped Reforms-based and Results-linked Distribution Sector Scheme (RDSS), aimed at strengthening and modernizing India’s power distribution network.
- Dholpur Circle Project: Valued at approximately ₹116.48 crore, this contract involves the development of distribution infrastructure for the segregation of 11 KV mixed feeders.
- Jhalawar Circle Project: Worth about ₹84.37 crore, this work pertains to similar infrastructure development for segregating 11 KV mixed load feeders.
Both projects are to be executed on a turnkey basis, meaning RMC Switchgears will be responsible for the entire project lifecycle from design to commissioning. The company has stated that work on both must commence within 15 days of the LOI award.
Market Reaction and Financial Snapshot
While today’s official price data is awaited, the company’s stock has been trading at levels significantly below its 52-week high, presenting a potential value opportunity for some investors.
- Current Market Cap: ~₹431.54 Crore
- P/E Ratio: 10.47 (suggesting reasonable valuation)
- 52-Week High/Low: ₹998.00 / ₹300.00
The receipt of orders equivalent to nearly 47% of its current market capitalization is a substantial development. In its regulatory filing, the company stated, “The receipt of this LOI further strengthens the Company’s order book and is expected to contribute positively to the Company’s revenue and growth prospects.”
Analyst & Investor Takeaway
This twin order win is significant for RMC Switchgears for several reasons:
- Credibility Boost: Securing large-scale orders from a state government discom under a national scheme reinforces the company’s execution capabilities and reputation in the power T&D (Transmission and Distribution) sector.
- Revenue Pipeline: The ₹200+ crore inflow will directly boost the company’s financial performance over the project execution period, providing clear revenue visibility.
- Sectoral Tailwinds: The company is positioning itself as a key beneficiary of the ongoing RDSS scheme, which envisages massive investments in distribution infrastructure across India to reduce losses and improve efficiency.
The Bottom Line: RMC Switchgears’ latest contract win is a strong positive trigger that could redefine its growth trajectory for FY26 and beyond. Investors and market watchers will now keenly observe the company’s execution timeline and margins on these prestigious projects. The stock, currently trading far from its peak, may see renewed investor interest based on this improved fundamental outlook.
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