RattanIndia Enterprises Ltd Q2 FY26 – Tech Circus With Drones, EVs & E-Commerce; ₹2,124 Cr Sales, ₹-397 Cr PAT, 18% YoY Growth But Still Bleeding!
1. At a Glance
RattanIndia Enterprises Ltd (REL) — the poster child of “new age, old school drama” — has reported another quarter where its revenue rockets but profits vanish faster than a free Amazon Prime trial. The company clocked ₹2,124 crore in sales for Q2 FY26, up 18% YoY, but ended with a loss of ₹397 crore, a brutal -64% decline versus last year. Market cap stands at ₹6,515 crore, with the stock hovering around ₹47.1, down 6.6% in the last 3 months.
Despite owning buzzwords like EVs, drones, e-commerce, and fintech, the bottom line still screams “beta testing phase.” The company’s OPM sits at -4.7%, and EPS at -₹3.04, ensuring analysts stay awake at night.
ROE at 9.59% and ROCE at 12.7% are surprisingly decent — as if the financial statements themselves are trolling us. With promoter holding of 74.8% and debt of ₹1,110 crore, REL continues its transformation from a power company of yesteryears to a tech conglomerate of tomorrow — one quarterly loss at a time.
2. Introduction – The Great Pivot from Power to Pixels
Once upon a time, RattanIndia was about thermal power, boilers, and balance sheets. Today, it’s about “tech-led future readiness” — corporate-speak for “we’re throwing everything at the wall to see what sticks.”
Under the leadership of Rajiv Rattan, the company’s strategy reads like an episode list of Shark Tank India — e-commerce (Cocoblu), EVs (Revolt), fintech (Neotec), and drones (NeoSky). If that sounds ambitious, remember, even Elon Musk started with PayPal before landing rockets.
But REL’s transformation is as entertaining as it is erratic. One quarter, it launches an electric bike; next, it’s selling jeans on Amazon; and somewhere in between, it’s teaching people to fly drones. The company has become a buffet of modern tech themes — EV, fintech, AI, D2C — yet none seem to have reached dessert.
Still, you can’t deny the hustle. With revenue up nearly 7,863 crore (FY25) and a 3-year sales growth of 689%, RattanIndia has clearly moved beyond just “powering India.” It’s now “empowering headlines.”
But does that make money? That’s like asking if Shark Tank pitches make profits — eventually, maybe.
3. Business Model – WTF Do They Even Do?
Let’s decode this tech thali. REL currently operates through four spicy verticals — and each deserves its own reality show:
(i) E-Commerce (Cocoblu & Neobrands) Cocoblu Retail sells everything from consumer goods to karma via Amazon. With 136 fulfillment centers, it’s like Amazon’s unofficial cousin who insists they’re “co-founders.” Neobrands focuses on fashion, launching Fyltr (smart casual), Pump’d (athleisure), and Inkd (denim) — basically, clothes for people scrolling LinkedIn about “founder journeys.”
(ii) Electric Vehicles – Revolt Motors The jewel in the crown — or at least the lithium in the battery. REL owns 100% of Revolt, India’s first AI-enabled electric motorcycle brand. Revolt claims 100% localization, 65 stores across 59 cities, and even a Nepal expansion (because who doesn’t want silent bikes in the Himalayas?).
(iii) Fintech – Neotec Enterprises Digital lending via the “Win” and “wefin” platforms — paperless, fast, and full of promise. From personal loans to insurance, it’s the modern version of your neighborhood financier, just with a better UI.
(iv) Drones – NeoSky India REL’s drone arm is the coolest in the lot. With DGCA training licenses and models like L40 cargo drone (40kg capacity) and TACT-XL surveillance drone (90-minute endurance), NeoSky is building the next “Swiggy for the skies.” In FY25, it even partnered with the Karnataka Government to train 500 youths and supply 60 drones.
In short, REL’s business model is “Tech Everything.” The real question is: can it make all these toys profitable before the investors lose patience?
4. Financials Overview
Metric (₹ Cr)
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
2,124
1,801
2,313
+18.0%
-8.2%
EBITDA
-436
-237
+609
-84.0%
N.A.
PAT
-397
-242
+502
-64.4%
N.A.
EPS (₹)
-2.87
-1.75
+3.64
-64.0%
N.A.
Commentary: From +₹502 Cr PAT in June 2025 to -₹397 Cr in September — that’s a ₹900-Cr swing worthy of a rollercoaster IPO. Revenues rose 18% YoY, but the losses ballooned faster. The EBITDA flipped from +₹609 Cr to a negative ₹436 Cr. Basically, every line item in this P&L is giving us trust issues.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
a) P/E Method: EPS = -₹3.04 → P/E not meaningful. So, let’s instead imagine normalized EPS using past profitable quarters (~₹1.3). If industry P/E ~44 (per peers like Nykaa, CarTrade), fair value = ₹1.3 × 44 = ₹57. Range: ₹40–₹60 (educational only).
b) EV/EBITDA Method: EV = ₹7,491 Cr; EBITDA = -₹369 Cr (FY25). Negative EBITDA makes EV/EBITDA nonsense, but if FY26 turns EBITDA-positive (~₹300 Cr annualized from best quarter), implied EV/EBITDA = 25×. Range: ₹35–₹55 per share.
c) DCF (Simplified): Assume FCF margin stabilizes at 5% on ₹8,000 Cr sales with 10% growth, 12% WACC → PV ≈ ₹6,000–₹7,000 Cr, i.e. ₹43–₹50/share.
📘 Fair Value Educational Range: ₹40 – ₹60 per share. (This is for educational purposes only, not investment advice.)
6. What’s Cooking – News, Triggers & Drama
2025 was peak season for RattanIndia’s “Corporate Universe Expansion.”
Revolt Motors went international, launching showrooms in Nepal and rolling out its 50,000th motorcycle by June 2025.
