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1 — At a Glance
Revathi Equipment India closed FY26 with revenue of ₹139.44 crore, down from ₹178.53 crore a year earlier — a 21.9% contraction that the CARE rating rationale attributes to weaker exports and a shift by Coal India toward mine-developer-operator procurement. Net profit landed at ₹13.37 crore against ₹20.18 crore in FY25.
The number worth pausing on: operating profit for the full year came to roughly ₹17 crore, while other income sat at ₹13.11 crore. Nearly as much profit arrived from interest, dividends and investment gains as from drilling rigs. Add that the entire year’s operating profit essentially materialised in the March quarter (₹18.34 crore) after three quarters of near-zero-to-negative operating results, and the shape of FY26 becomes clear: a back-loaded, non-operating-assisted rescue of a headline number.
A CFO resigned in June 2026, CARE downgraded the credit rating in February, and receivables more than doubled. A company reporting steady profit for six years, wearing a lot underneath the profit line.
Does a ₹13 crore other-income cushion tell you about the drilling business, or about the treasury sitting next to it?
2 — Introduction
Revathi Equipment India Limited was incorporated in 2020, but the drilling business it houses is far older. Per the CARE report, drilling operations first commenced in 1977, ran under Revathi Equipment Limited, and — through a June 2023 NCLT-approved scheme — were demerged into the present entity while the leftover design-and-construction business stayed behind as Semac Consultants Limited. REIL listed on the exchanges in September 2024.
That family tree matters, because the two halves never fully separated. Corporate guarantees still flow from the listed drilling company to the group construction entity — a thread that runs through this year’s rating action.
FY26 was a step down on almost every operating line. Revenue fell 21.9%, production dropped from 22 rigs to 17 (per the disclosed insights), and capacity utilisation slid to 28% on an installed base of 60 machines. The recent corporate moves in the record: a CFO resignation effective 30 June 2026, a February 2026 credit downgrade, and the April 2025 incorporation of a wholly-owned LLP, Global Essential Mining Supplies.
3 — Business Model: WTF Do They Even Do?
They build machines that make holes. Big ones. The product line, per the company’s portfolio disclosure, runs from blast-hole drills (heavy rotary rigs for open-pit coal, limestone and ore) through jackless drills, water-well drills, hydro-fracturing units, exploratory rigs, and the ever-reliable spares-and-accessories drawer.
Here’s the tell the model doesn’t hide: the company describes itself as assembly-oriented. Per the CARE report, REIL doesn’t manufacture critical parts — motors, jacks, hydraulic systems, electronics — but assembles imported and vendor-supplied components. A drilling-rig maker that outsources the drilling-rig internals.
The revenue mix has quietly rotated. Per the disclosed bifurcation, drills fell from 69% of FY24 revenue to 48.5% in FY25, while spares climbed from 26.7% to 47%. When your machine sales halve as a share of the top line and your spares business nearly doubles to fill the gap, the aftermarket is carrying the showroom.
And then there’s the customer list. The company derives 62.5% of domestic sales from Coal India, per its disclosures; CARE notes top-five customer concentration rose to ~88% in 9MFY26. Geographically, FY25 was 62% India, 38% exports — with exports down from ₹76.70 crore to ₹68 crore, an ~11.2% slide the company attributes to trade disruptions.
A model that depends on one buyer, imports its own guts, and leans on spares to keep the lights on. Every dependency is somebody else’s decision.
4 — Financials Overview
Figures are consolidated in intent but drawn from the standalone data sheet, in
