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Revathi Equip. Ind. Overview

1. Business Overview

Revathi Equipment India Ltd. (RVTH) is engaged in the design, manufacture, and sale of drilling equipment and accessories. Its core product offerings include blast hole drills primarily used in open-cast mining operations (for coal, iron ore, limestone, etc.), water well drilling rigs, and other specialized drilling machines. The company also generates revenue through the sale of spare parts, consumables, and providing after-sales service and support for its equipment, ensuring operational uptime for its customers. It makes money by selling its high-value capital equipment and subsequently providing ongoing maintenance and parts.

2. Key Segments / Revenue Mix

While the company primarily operates within a single business segment of manufacturing and selling drilling equipment, its revenue streams can be broadly categorized as:

Equipment Sales: This forms the bulk of the revenue, derived from the sale of new blast hole drills, water well drills, and other drilling machinery.

Aftermarket Services & Parts: This includes the sale of spare parts, consumables, and revenue generated from maintenance services, repairs, and technical support. Specific percentage breakdowns are not consistently disclosed as separate segments in detail but aftermarket revenue provides a more stable, recurring income stream compared to lumpy equipment sales.

3. Industry & Positioning

Revathi Equipment operates in the heavy industrial equipment sector in India, specifically serving the mining, construction, and water exploration industries. This industry is characterized by high capital intensity, cyclical demand linked to economic growth and government spending on infrastructure, and the need for robust after-sales support. RVTH has a long-standing presence in the Indian drilling equipment market, particularly for blast hole drills used in large open-cast mines. With Schwing Stetter India (a subsidiary of Schwing GmbH, Germany – a global leader in concrete machinery) becoming a strategic investor and co-promoter, RVTH benefits from potential technological synergies, market access, and operational expertise, which could enhance its positioning against both domestic and international competitors.

4. Competitive Advantage (Moat)

Established Brand & Customer Relationships: RVTH has a long operational history and an established reputation for manufacturing reliable drilling equipment, particularly in the Indian mining sector, leading to strong relationships with key customers.

After-Sales Service Network: A reliable and extensive service network for heavy machinery is crucial for customer retention and repeat business, which RVTH has built over decades.

Strategic Partnership/Technical Collaboration: The significant stake and co-promoter status of Schwing Stetter India provides access to global technology, manufacturing best practices, and potentially broader market reach (including exports) through Schwing's international network, strengthening its competitive standing.

Specialized Expertise: Focus on specific drilling equipment has allowed them to build deep expertise in design, manufacturing, and application within challenging environments.

5. Growth Drivers

Increased Infrastructure Spending: Government focus on large-scale infrastructure projects (roads, railways, ports) and mining sector development drives demand for heavy equipment.

Domestic Mining Growth: Renewed emphasis on domestic coal and mineral production, coupled with liberalization in the mining sector, can lead to increased capital expenditure by mining companies.

Water Infrastructure Projects: Projects related to groundwater exploration and management will drive demand for water well drilling rigs.

Exports: Leveraging the global network and technical expertise of Schwing Stetter India could open up new export opportunities for RVTH's specialized equipment.

Technological Upgrades & Modernization: Demand for more efficient, automated, and environmentally compliant drilling solutions will drive replacement cycles and new purchases.

6. Risks

Cyclical Demand: The heavy equipment industry is highly cyclical and sensitive to economic downturns, commodity price fluctuations (especially for mining clients), and changes in government policies/spending.

Intense Competition: The market faces competition from both domestic players and international manufacturers, potentially leading to pricing pressures.

Raw Material Price Volatility: Fluctuations in steel and other input material prices can impact manufacturing costs and profit margins.

Technological Obsolescence: Failure to innovate or adapt to new drilling technologies and automation trends could impact market relevance.

Reliance on Key Sectors: Over-reliance on the mining and infrastructure sectors exposes the company to specific sectorial risks and policy changes.

7. Management & Ownership

Revathi Equipment India Ltd. was historically promoted by the B.P. Agarwal Group. In 2021, Schwing Stetter India Pvt. Ltd., a subsidiary of the German-based Schwing GmbH, acquired a significant stake and became a co-promoter of RVTH. This strategic change brings in global industrial management experience and strengthens governance. The ownership structure now reflects a blend of the original promoter group and the strategic investor, Schwing Stetter India, which is known for its strong presence in the concrete equipment industry globally.

8. Outlook

Revathi Equipment is positioned to benefit from India's sustained focus on infrastructure development and domestic mining. The strategic investment and technical collaboration with Schwing Stetter India offer significant tailwinds, providing access to advanced technology, potential export markets, and improved operational efficiencies, which could drive growth and strengthen its competitive position. However, the company operates in a cyclical industry, highly susceptible to economic slowdowns, commodity price volatility, and intense competition. Its performance will be closely tied to government policies impacting mining and infrastructure, as well as the ability to effectively integrate with Schwing Stetter's global ecosystem and adapt to evolving technological demands in drilling equipment.

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Revathi Equip. Ind. Key Financials

Market Cap ₹198 Cr.

Stock P/E 9.8

P/B 1.6

Current Price ₹645

Book Value ₹ 409.8

Face Value 10

52W High ₹1289

Dividend Yield 0%

52W Low ₹ 486.1

Revathi Equip. Ind. Share Price

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Volume
Price

Revathi Equip. Ind. Quarterly Price

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Revathi Equip. Ind. Peer Comparison

Revathi Equip. Ind. Quarterly Results

#(Fig in Cr.) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Net Sales 56 108 52 20 42 65 22 23 32
Other Income 2 2 4 3 -0 3 4 4 3
Total Income 58 110 56 23 42 68 26 27 36
Total Expenditure 44 86 43 18 38 50 22 24 32
Operating Profit 13 24 12 5 4 18 4 4 3
Interest 1 2 2 2 3 3 2 2 3
Depreciation 0 0 0 0 0 0 1 1 1
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0
Profit Before Tax 12 22 10 3 0 14 1 0 -0
Provision for Tax 3 4 2 0 0 5 0 -0 1
Profit After Tax 8 17 8 3 0 9 1 0 -1
Adjustments 0 0 0 0 0 0 0 0 0
Profit After Adjustments 8 17 8 3 0 9 1 0 -1
Adjusted Earnings Per Share 27.1 56.7 25.9 8.8 0.7 30.4 1.9 1.4 -4.6

Revathi Equip. Ind. Profit & Loss

#(Fig in Cr.) Mar 2024 Mar 2025 TTM
Net Sales 212 179 142
Other Income 9 10 14
Total Income 221 189 157
Total Expenditure 173 149 128
Operating Profit 48 40 29
Interest 6 11 10
Depreciation 1 2 3
Exceptional Income / Expenses 0 0 0
Profit Before Tax 41 28 15
Provision for Tax 10 8 6
Profit After Tax 31 20 9
Adjustments 0 0 0
Profit After Adjustments 31 20 9
Adjusted Earnings Per Share 0 65.7 29.1

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -16% 0% 0% 0%
Operating Profit CAGR -17% 0% 0% 0%
PAT CAGR -35% 0% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -27% NA% NA% NA%
ROE Average 18% 24% 24% 24%
ROCE Average 26% 30% 30% 30%

Revathi Equip. Ind. Balance Sheet

#(Fig in Cr.) Mar 2024 Mar 2025
Shareholder's Funds 107 126
Minority's Interest 0 0
Borrowings 2 1
Other Non-Current Liabilities 0 1
Total Current Liabilities 129 110
Total Liabilities 238 238
Fixed Assets 8 38
Other Non-Current Assets 9 3
Total Current Assets 221 197
Total Assets 238 238

Revathi Equip. Ind. Cash Flow

#(Fig in Cr.) Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 8 13
Cash Flow from Operating Activities 44 28
Cash Flow from Investing Activities -31 -36
Cash Flow from Financing Activities -8 -4
Net Cash Inflow / Outflow 6 -12
Closing Cash & Cash Equivalent 13 1

Revathi Equip. Ind. Ratios

# Mar 2024 Mar 2025
Earnings Per Share (Rs) 0 65.73
CEPS(Rs) 0 71.04
DPS(Rs) 0 0
Book NAV/Share(Rs) 0 411.5
Core EBITDA Margin(%) 18.6 16.79
EBIT Margin(%) 22.11 21.65
Pre Tax Margin(%) 19.16 15.54
PAT Margin (%) 14.61 11.3
Cash Profit Margin (%) 15.18 12.22
ROA(%) 13.07 8.49
ROE(%) 29.99 17.56
ROCE(%) 34.22 25.72
Receivable days 58.36 60.43
Inventory Days 133.5 149.42
Payable days 130.76 131.11
PER(x) 0 14.43
Price/Book(x) 0 2.31
Dividend Yield(%) 0 0
EV/Net Sales(x) 0.06 1.81
EV/Core EBITDA(x) 0.27 8.02
Net Sales Growth(%) 0 -15.97
EBIT Growth(%) 0 -17.73
PAT Growth(%) 0 -35.01
EPS Growth(%) 0 0
Debt/Equity(x) 0.3 0.29
Current Ratio(x) 1.72 1.79
Quick Ratio(x) 1.11 1.17
Interest Cover(x) 7.49 3.54
Total Debt/Mcap(x) 0 0.13

Revathi Equip. Ind. Shareholding Pattern

# Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 63.86 63.84 63.84 63.84 63.84 63.91 63.91 63.91
FII 0.04 0.06 0.04 0.04 0 0 0 0
DII 0.03 0.01 0 0 0 0 0 0
Public 36.07 36.09 36.11 36.11 36.15 36.09 36.09 36.09
Others 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100

Revathi Equip. Ind. News

Revathi Equip. Ind. Pros & Cons

Pros

  • Company has a good return on equity (ROE) track record: 3 Years ROE 24%
  • Company has reduced debt.
  • Company is almost debt free.

Cons

  • Debtor days have increased from 130.76 to 131.11days.
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