RBM Infracon Ltd Q2 FY26 – The Case of the Vanishing Cash Flow and the Overactive Press Release Desk

1. At a Glance

There’s a difference between “high growth” and “hyperventilating growth.”RBM Infracon Ltd, incorporated in 2013, claims to be an EPC player serving refineries, oil & gas, and green energy — but its numbers look like they were drafted by someone with a caffeine overdose. The company reported Q2 FY26 revenue of ₹284 crore and PAT of ₹26.9 crore, an eye-popping YoY growth of 175% and 172% respectively.

Sounds heroic, right? Until you notice the operating cash flow — a dismal₹–3 crore in FY25, after₹–52 crorethe previous year. The company made ₹46 crore in profit but couldn’t generate even a whiff of cash. Meanwhile, thestock trades at ₹471(P/E 10.2x, ROE 24.8%) — a “value” trap that’s down 45% in one year.

It has a ₹4,745 crore order book, a ₹349 crore ONGC oilfield contract, and a ₹200 crore green hydrogen plan.But for a company with only ₹476 crore market cap and ₹36 crore debt, that sounds more like ambition on steroids than arithmetic.

2. Introduction – Enter Detective Balance Sheet

Imagine walking into an office that smells of welding gas and PowerPoint perfume. The walls have certificates, but the floor has red flags. Welcome to RBM Infracon Ltd — where every quarter is an action thriller, every press release is a victory parade, and every rupee of cash hides behind a contractor invoice.

The company’s numbers are growing faster than sense: ₹83 crore sales in FY23 → ₹130 crore in FY24 → ₹322 crore in FY25 → ₹284 crore in just the first half of FY26. Either they found a magical printing press for orders, or someone discovered a shortcut to EPC heaven.

But there’s a pattern detectives love —profits rise, but cash disappears.That’s when you stop reading results and start reading between the lines.

So grab your magnifying glass. Let’s see what this EPC drama is really made of.

3. Business Model – WTF Do They Even Do?

RBM’s official description sounds like a mechanical engineering textbook married a sales brochure. They claim to do “engineering, execution, testing, commissioning, operation & maintenance” for refineries, cement plants, and petrochemical sites. Translation:they’re contractors who build and maintain stuff for bigger contractors.

A) EPC Division – The Main PlotlineThis is where they fabricate, erect, and maintain steel structures, tanks, and pipelines. They also provide services like painting, insulation, scaffolding, and “turnaround shutdowns.” They’ve reportedly done 14 such shutdowns for Reliance, Nayara, and Yara Fertilisers — impressive, if true.

B) Oil & Gas Exploration – The Unexpected TwistOut of nowhere, they bagged a ₹349 crore contract from ONGC to enhance oil production at the Nandej field. A 15-year deal, with 19 workovers already increasing flowing wells from 33 to 51. Sounds big. But ask yourself — does an EPC contractor suddenly become an oil producer overnight? That’s like a plumber getting a government tender to run a water park.

C) Green Hydrogen – The Subplot Everyone Adds NowadaysPartnered with Greenzo Energy India Ltd to set up a ₹200 crore, 15 MW hydrogen plant in Gujarat. Beautiful buzzwords, zero timelines. The “investment” sounds like it’s still in press release form — no cash outflow visible, no asset created yet.

4. Financials Overview – The Smoking Gun

Detective Commentary:The revenue tripled. Margins stayed “perfectly round” at 13%. Profit jumped 172%. Conveniently neat. But you know what didn’t move? Cash from operations. That stayed negative, like a dead battery in a new car.

If we annualize the EPS, it’s ₹106.6 — which makes the P/E absurdly low at 4.4×. So either the market is blind, or investors smell something cooking in the EPC kitchen.

5. Valuation Discussion – The Illusion of Cheapness

Let’s calculate fair value range — with one hand on the calculator and the other on the lie detector.

a) P/E Method:EPS