R M Drip & Sprinklers Systems Ltd Q2 FY26 – From Default Notices to Drip Dominance: ₹11 Cr PAT, 221% Profit Jump, and a 62x P/E Madness!

1. At a Glance

There are multibaggers, and then there’sR M Drip & Sprinklers Systems Ltd (RM Drip)— the irrigation company that went fromloan defaultstostock market royaltyfaster than monsoon memes go viral. As ofNovember 2025, the stock trades at₹79, commanding a₹1,975 crore market cap, aP/E ratio of 62.8x, and more optimism than a startup pitch deck.

InQ2 FY26 (Sep 2025), RM Drip reportedsales of ₹61.66 croreandPAT of ₹10.96 crore, marking awhopping 221% YoY profit growth. Operating margins stayed strong at26.65%, and the company flexed anROCE of 44.7%andROE of 39.7%— numbers that would make even blue chips blush.

But wait — this isn’t all roses. Promoter holding is just21.1%, debtors are sitting pretty at300 days, and the company still owes the ghosts of itsSBI defaults. So, is RM Drip a redemption arc or a rerun of “Micro-Irrigation: Scam Reloaded”? Grab your coconut water; it’s going to get juicy.

2. Introduction

In the world of smallcap drama,RM Driphas more plot twists than a daily soap. Incorporated in1996, it spent years manufacturing micro irrigation systems — the unsung heroes of agriculture — before deciding that its true passion was spicing up investor portfolios.

This is the same company that once had auditors frowning and bankers sighing. Default on statutory dues? ✅. Loan repayment delays? ✅. CFO resignations? ✅. And yet, here it stands, valued at nearly ₹2,000 crore with afive-year return of 73%andone-year rally of 158%. It’s like that student who used to bunk classes but now gives TED Talks on productivity.

The market clearly believes in second chances. Withsales growth of 108%andprofit growth of 281% (TTM), RM Drip is no longer the underdog — it’s the headline act. But let’s be real: when a company with₹31 crore annual PATis valued at₹1,975 crore, even its sprinklers are spraying optimism.

3. Business Model – WTF Do They Even Do?

RM Drip makes irrigation sexy. The companydesigns, manufactures, and installs micro irrigation systems— the pipes, drippers, and filters that help farmers save water while growing more crops. Think of it as “plumbing for plants,” but with better margins.

Their product line-up sounds like an engineer’s fantasy catalog:

• Drip Irrigation:Online Drip Openable Threaded Dripper, Flat Drip Smart Line, and Pressure Compensating Dripper.
• Sprinkler Systems:RM Sprinkler, RM Mini, and Micro Sprinkler.
• Filters:Plastic Disc Filters, Sand/Gravel Media Filters, Fertigation Tanks, and Hydro-cyclone Filters.

They also supply to big OEMs (Original Equipment Manufacturers) and partner withGreaves Cotton Ltdfor distribution — because even irrigation needs a little corporate glamour.

Revenue is largely fromproduct sales (96%), with “Other Income” barely sprinkling in 4%. Their dealer network spansMaharashtra, MP, Gujarat, Karnataka, UP, Bihar, and Jharkhand, i.e., regions where both farmers and politicians talk a lot about “pipeline projects.”

4. Financials Overview

Standalone Quarterly Comparison (₹ in Crores)

If you multiply thelatest EPS (₹1.26)by four, you get anannualised EPS of ₹5.04, implying aP/E of 15.7xon fundamentals — way below the stated62.8x, suggesting the market is still adjusting post share-split.

Commentary:

• Revenue doubled, profit tripled, and still, promoters are missing in action.
• OPM dipped slightly QoQ but remains elite at 26.65%.
• Looks like the company finally found its “drip” — of profits.

5. Valuation Discussion –