Rapicut Carbides Ltd Q2 FY26 – The Tungsten Turnaround Nobody Saw Coming (and Maybe Still Can’t Believe)
1. At a Glance
Once upon a time in Ankleshwar, a company decided that playing with Tungsten Carbide was more fun than playing with profit margins. Welcome to Rapicut Carbides Ltd, the 48-year-old smallcap warrior that manufactures precision carbide tools for mining, metal cutting, and industrial applications — and occasionally, for testing investors’ patience.
At ₹119 a share and a market cap of ₹63.7 crore, Rapicut sits at that sweet spot between “undervalued gem” and “value trap with good intentions.” The company just posted its September 2025 quarter results, clocking ₹15.82 crore in sales and ₹1.25 crore profit, a 366% jump over the same quarter last year. If that sounds like a miracle, that’s because it is — especially for a company whose ROCE is -6.11% and ROE stands at -11.8%.
The stock is up 33% in 3 months and 56% in 6 months, but long-term holders are still haunted by its “-3.76%” one-year return. With debt-to-equity at 0.33, the balance sheet isn’t terrifying, but the income statement? Let’s just say it’s had better days.
Still, after United Wolfram Pvt Ltd backed out of their merger in September 2025, Rapicut is once again a solo performer — ready to show that it can grind hard metals and market cycles alike.
2. Introduction
In a world obsessed with EVs, AI, and fancy fintech apps, here’s Rapicut — still proudly making tungsten carbide buttons and drill inserts. It’s not glamorous, but neither is your dentist, and both use precision tools.
Founded in 1977, Rapicut Carbides has weathered more economic storms than your average PSU. Its products find their way into mining rigs, oil drills, and machinery that could probably outlast most Indian startups. Yet, somehow, profitability keeps playing hide and seek.
The company’s FY25 wasn’t exactly a blockbuster — sales of ₹41.99 crore, loss of ₹2.33 crore, and negative OPM of -2.50%. But Q2 FY26 (Sep 2025) gave investors something to cheer: a 10.37% OPM and a long-lost positive PAT.
It’s the financial equivalent of an underdog finally hitting the gym. Whether this newfound fitness lasts is anyone’s guess, but for now, the quarterly results scream: “Main zinda hoon!”
So what’s behind this mini-turnaround? A mix of operational efficiency, luck, and perhaps, the universe finally feeling bad for Ankleshwar’s tungsten wizards.
3. Business Model – WTF Do They Even Do?
If you think Rapicut makes car parts, think again. They make the things that make car parts.
Their business revolves around tungsten carbide products — the material so tough it laughs at steel. From drill bits and cutting tools to wear-resistant parts, Rapicut’s products are found deep underground (literally — in mines) and across factories making everything from steel tubes to jute machinery.
They’ve got five main product categories:
Mining Products like drill inserts, nozzles, and bits — basically the bling for machines that dig holes.
Wear Parts such as seal rings and eyelets — think of these as the armor pieces of industrial setups.
Metal Cutting Tools — 2000+ variants, because variety is the spice of cutting metal.
Intermediates like tungsten and carbide powders, the magical dust that becomes everything else.
Finished Tools for high-pressure control valves and pneumatic valves, serving oil, gas, and engineering sectors.
Their manufacturing base in Ankleshwar, Gujarat produces around 150 MTPA of tungsten and carbide products. It’s a small but specialized setup.
In essence: if it cuts, drills, grinds, or smashes, there’s a good chance Rapicut had something to do with it.
4. Financials Overview – The Quarter That Shocked the Carbide Community
Let’s line up the quarterly numbers, because this time, they actually look presentable:
Source table
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
15.82
8.95
10.38
76.8%
52.4%
EBITDA
1.64
-0.12
-1.12
—
—
PAT
1.25
-0.47
-1.41
366%
188%
EPS (₹)
2.33
-0.88
-2.63
365%
188%
From a company that regularly scored negative OPMs, this is practically a resurrection. Operating margin jumped to 10.37%, and net profit finally looked like a number worth mentioning.
It’s too early to pop champagne, but at least they can stop serving chai with tears.
5. Valuation Discussion – Fair Value Range (Educational Only)
Let’s play valuation math:
Method 1: P/E Method Annualized EPS = ₹2.33 × 4 = ₹9.32 Industry P/E = 33.4 👉 Fair Value Range = ₹9.32 × (15–25) = ₹140 – ₹233
Method 2: EV/EBITDA Method EV = ₹70 Cr EBITDA (TTM) ≈ ₹0.04 Cr (FY25 was poor, but using latest qtr annualized ~₹6.5 Cr) EV/EBITDA = 10–12 reasonable for small-cap manufacturing 👉 Fair Range = ₹65–₹78 Cr EV → ₹120 – ₹140 per share
📜 Disclaimer: This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
June 2025: Rapicut announced a merger with United Wolfram Pvt Ltd, which would have raised promoter holding to a jaw-dropping 91.69%. Investors briefly thought this was Rapicut’s “second coming.”
September 2025: United Wolfram withdrew. Cue dramatic background score.
