Ravindra Energy Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Ravindra Energy Ltd trades at ₹156, in a confirmed uptrend and 10 weeks into that stage. That is +3.8% against its own 200-day average. It sits at 60% of a 52-week range of ₹122 to ₹178. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (2 weeks and counting).

Today the stock is in a confirmed uptrend — week 10 of stage 2, confirmed. At ₹156 it trades +3.8% versus its 200-day average and sits at 60% of its 52-week range (₹122–₹178).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +619% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (2 weeks and counting; last ahead the week of 2026-08-28) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Ravindra Energy Ltd's story is not scored yet against the markers our research file set on 19 July 2026. Where it sits in its own cycle: EARLY_EXPANSION_TO_MID. Still open: A stabilization in working capital days and a halt to the increase in total debt, combined with promoters ceasing to dilute their stake.

Our read, 19 July 2026. Margin expansion is overshadowed by balance sheet deterioration, rising debt, and declining promoter stake.

From the numbers. PE is at the 54th percentile, down from peak, tracking earnings expansion.

From the price. Price stage 2, week 10 — above its 200-day line, relative strength falling.

From the research. Margin expansion is overshadowed by balance sheet deterioration, rising debt, and declining promoter stake.

🚨 Where they disagree. PE is at the 54th percentile, down from peak, tracking earnings expansion.

What is proven. Margin expansion is overshadowed by balance sheet deterioration, rising debt, and declining promoter stake.

What is not proven yet. A stabilization in working capital days and a halt to the increase in total debt, combined with promoters ceasing to dilute their stake.

🚨 What would change our mind. A stabilization in working capital days and a halt to the increase in total debt, combined with promoters ceasing to dilute their stake.

🚨 Layer 1 read, 22 August 2026 — DROP. Sales down a quarter, profit down 93% — the debt-funded assets now cost more than they earn. Ravindra Energy sold Rs 119.97 Cr of goods in the June 2026 quarter against Rs 162.64 Cr a year earlier, a 26.2% fall, and net profit collapsed from Rs 22.79 Cr to Rs 1.64 Cr. The operating business genuinely improved — operating profit rose 37% — but the costs of the expansion swallowed it: interest more than doubled to Rs 12.28 Cr and depreciation to Rs 10.65 Cr because borrowings went from Rs 224 Cr to Rs 502 Cr, while the near-zero tax rate normalised to 24.5%. Customers are also paying more slowly, with debtor and inventory days stretching from 35 to 45, and promoters have sold down from 74.99% to 58.26% over two years with no explanation on record — this company holds no earnings…

What would change Layer 1’s mind. A September 2026 quarter showing revenue back above roughly Rs 160 Cr with net profit above Rs 15 Cr — that is, the asset base finally producing a top line big enough to cover its own interest and depreciation — together with the promoter stake stabilising. Concretely: if the roughly Rs 11.7 Cr gap between pre-tax and net profit turns out to be a one-off rather than a recurring minority or exceptional charge, and revenue reverses its two consecutive year-on-year declines, the contraction ground…

The test written in advance. A stabilization in working capital days and a halt to the increase in total debt, combined with promoters ceasing to dilute their stake. — the thesis as written as stated by the next result.

The test written in advance. Deteriorating working capital profile — Deteriorating working capital profile Debtor days expanding beyond thirty days in the next half. by the next result.

The test written in advance. Significant increase in debt — Significant increase in debt Debt levels continuing to rise without corresponding operating cash flow generation. by the next result.

What the company does. Ravindra Energy has seen an operating recovery with margins expanding significantly over the last year. However, this growth is being funded by a substantial increase in debt and rising working capital days. The recent reduction in promoter shareholding adds a layer of caution to the durability of this turnaround.

🚨 What the surface reading misses. The surface reading is: growth funded internally The research reads it further: Working capital expansion is absorbing cash, driven by higher debtor and inventory days.

🚨 What the surface reading misses. The surface reading is: promoters exiting The research reads it further: Promoter stake reduced significantly, likely due to dilution from a capital raise or open market selling.

Lever 1 · Operating leverage — BUILDING. Operating margin expansion driven by gross margin tailwinds. What proves it keeps working: Operating Margin Expansion. It stops working if Input costs rise sharply or pricing power diminishes, reverting gross margins.

Sources: our stock research file (19 July 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Ravindra Energy Ltd reported ₹120 Cr of revenue in the Jun 26 quarter, −26.2% year on year. Over 10 years it has compounded at 1.0% a year. The last full year, FY26, came in at ₹543 Cr. The last four reported quarters add to ₹501 Cr.

FY26 revenue came in at ₹543 Cr (+117.2% on the year), capping 10 years at 1.0% compound. The latest quarter (Jun 26) printed ₹120 Cr, −26.2% year on year.

Pace check: the last four quarters averaged +192.3% growth against the decade's 1.0% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +28.2% over the last 4 quarters against +128.5%/yr over the last 8 — rolling over.

FY26-Q3. Revenue and margins remained robust, indicating steady execution. The gross margin profile remained strong, supporting the operating leverage.

FY26-Q4. The company reported stable revenue compared to the previous quarter, maintaining its operating margins at solid levels. This quarter confirmed the higher margin plateau established earlier in the year, although working capital metrics began to stretch.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Ravindra Energy Ltd's operating margin is 31.8% in the Jun 26 quarter, +14.6 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −39.0% to 26.0%. The current quarter is running above every full year in that window.

Why this happened. The company has experienced significant margin improvement, with operating margins expanding substantially over the past year, directly supported by gross margin gains.

The latest quarter's operating margin is 31.8%, +14.6 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −39.0%–26.0%.

Why the margin moved: operating margin went +14.6 pp year on year while gross margin went +19.9 pp — the gain came mostly from the gross line: input costs and pricing.

FY26-Q3. Revenue and margins remained robust, indicating steady execution. The gross margin profile remained strong, supporting the operating leverage.

FY26-Q4. The company reported stable revenue compared to the previous quarter, maintaining its operating margins at solid levels. This quarter confirmed the higher margin plateau established earlier in the year, although working capital metrics began to stretch.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Ravindra Energy Ltd earned ₹1.6 Cr of net profit in the Jun 26 quarter, −92.8% year on year. Full-year FY26 profit was ₹81.0 Cr. That is 1.4% of the quarter's revenue. The same quarter a year earlier earned ₹22.8 Cr. 1 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹1.6 Cr, −92.8% year on year. On the full year, FY26 printed ₹81.0 Cr (+268.2%).

🚨 Why profit moved: revenue contributed −26.2% and the margin +14.6 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +763.5% vs revenue +192.3%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q3. Revenue and margins remained robust, indicating steady execution. The gross margin profile remained strong, supporting the operating leverage.

FY26-Q4. The company reported stable revenue compared to the previous quarter, maintaining its operating margins at solid levels. This quarter confirmed the higher margin plateau established earlier in the year, although working capital metrics began to stretch.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 304% of Ravindra Energy Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹172 Cr of operating cash against ₹81.0 Cr of profit. After ₹473 Cr of capital spending, ₹−301 Cr was left as free cash.

FY26: operating cash of ₹172 Cr against reported profit of ₹81.0 Cr, leaving free cash of ₹−301 Cr after ₹473 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 304% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 304%: the cash cycle tightened 100 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 14.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Ravindra Energy Ltd's cash conversion cycle runs 30 days in FY26, down from 130 days in FY21. Capital spending ran ₹726 Cr over the last 3 years. At FY26 sales of ₹543 Cr each day of that cycle holds about ₹1.5 Cr, so roughly ₹45.0 Cr sits inside the business at any moment.

FY26: debtors at 27 days, inventory at 18 days — roughly 0.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 30 days, tighter than FY21's 130.

The full loop: cash goes out to suppliers and production on day 0; stock waits 18 days to sell; customers pay about 27 days after that; and suppliers themselves are paid at 15 days — netting out to the 30-day cycle.

In money terms: at FY26 sales of ₹543 Cr, each day of the cycle holds about ₹1.5 Cr — so the 30-day loop keeps roughly ₹45.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹726 Cr over the last 3 fiscal years against ₹52.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹22.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Ravindra Energy Ltd earns a ROCE of 16% in FY26. That is up from a trough of −45% in FY19. Return on invested capital clears the cost of that capital by −3.6 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 14.9% net margin on 0.48× asset turns.

FY26 ROCE is 16%, recovered from a FY19 trough of −45% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 14.9% net margin × 0.48× asset turns × 2.67× balance-sheet leverage ≈ 19.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 8.4% − 12.0% = a −3.6 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Ravindra Energy Ltd carries total debt of ₹555 Cr against shareholder equity of ₹440 Cr as of Mar 26, a debt-to-equity of 1.26. On the annual view that ratio went from 0.78 in FY22 to 1.26 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹555 Cr against shareholder equity of ₹440 Cr — a debt-to-equity of 1.26. On the annual view, debt-to-equity went from 0.78 (FY22) to 1.26 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 16.7 points of Ravindra Energy Ltd over 8 quarters, the biggest move on the register. That takes promoters to 58.3% of the company. Foreign institutions moved +3.2 points over the same window, to 3.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −16.7 points over 8 quarters to 58.3%; Foreign institutions: +3.2 points over 8 quarters to 3.3%; Domestic institutions: +3.0 points over 8 quarters to 3.0%.

🚨 Why the register moved: promoters drove it (−16.7 points), absorbed on the other side by foreign institutions (+3.2 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Ravindra Energy Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Ravindra Energy Ltd trades at 51.8× P/E, mid-range by its own standards (69th percentile). Its long-run median P/E is 38.9×, measured across 10.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 51.8× is mid-range by its own standards (69th percentile), against a long-run median of 38.9× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +273.4% against a +0.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +25.1%/yr price move, ~+35.1%/yr came from earnings growth and ~−10.0 pp from the multiple (compressing); over 10y, of the +14.8%/yr price move, ~+17.3%/yr came from earnings growth and ~−2.5 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 27 August 2026 price, Ravindra Energy Ltd was paying for profit growth of about 28.8% a year. Today the market pays 51.8× P/E, the 69th percentile of its own 11-year range.

What the two numbers say together. The multiple is full against its own past, and the growth the price is paying for is the whole of what a buyer is backing.

How to hold this number: it is a reading of one day's price, taken on 27 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Ravindra Energy Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE lifting at 14.6% — the per-curve reads carry the story. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

57.7/100 — rank 6 of 19 in Capital Goods - Electric General · 93% evidence confidence

Ravindra Energy Ltd scores 57.7 out of 100 against the 19 companies it is compared with in Capital Goods - Electric General, ranking 6. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 27.2 + 13.6 + 8 + 8.9 = 57.7. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Frequently asked questions