­Extensive experience of the management, established track record of operations and reputed clientele
RSSIPL was incorporated in 1991, thus the company has an operational track record of around three decades in industrial machinery segment. The second generation of Goel family, Mr. Prayas Goel (Managing Director) and Mr. Prerak Goel (Director) have an experience of over two decades in the same line of business. The long track record of operations and extensive experience of the management has helped the company create an established market position in the waste-water management segment and develop healthy relationships with its customers and suppliers. The company caters to reputed clientele which includes names like Jubilant Life Sciences Limited, Lupin Limited, Grasim Industries etc. Apart from this, company also caters to government entities like ONGC and Indian Navy as well.

Growing scale of operations
The revenue of the company grew by ~17 percent to Rs. 408.06 Cr in FY2025 from Rs. 348.15 Cr in FY2024, majorly on account improved sales in the manufacturing segment. The operating margins also stood improved at 10.50 percent in FY2025 from 8.47 percent in FY2024 due to decline in expenses and  efficiency in operations. Similarly, PAT margin stood at 4.69 percent in FY2025 from 3.28 percent in FY2024. Further, the company has generated a revenue of Rs. 160 Cr in H1 FY2026. However, the operational profitability stood lower at 4.16 percent.

Healthy financial risk profile
The financial risk profile of the company is marked by growing networth, low gearing and adequate coverage metrics. The tangible networth stood at Rs. 138.57 Cr on March 31, 2025 post profit accretion. Further, the gearing continues to remain below unity at 0.68 times in FY2025 (0.79 times in PY). Similarly, TOL/TNW and Debt-EBITDA levels remain moderate at 1.61 times and 2.14 times respectively in FY2025.
The coverage indicators stood adequate with interest coverage ratio (ICR) at 3.27 times and debt service coverage ratio (DSCR) at 2.14 times in FY2025.

­­Intensive working capital operations
The operations of the company are working capital intensive, evident from high gross current assets (GCA) of 279 days, primarily driven by inventory (114 days) and receivables (153 days) in FY2025. The company is required to maintain adequate stock of inventory due to the trading segment and project based business structure. For the manufacturing segment, payment is received in tranches - (15% on advance, 10% on drawing submission, 35% before dispatch, 30% post-dispatch / completion of commissioning and 10% on submission of performance bank guarantee). For O&M and trading segment, the company provides a credit period of 60-90 days. Further, high quarter end revenue booking also contributes to elevated receivable period on the year end.

Presence in a highly competitive industry
RSSIPL operates in the wastewater treatment sector, which is marked by strong competition from both domestic and international players. The high level of competition restricts pricing flexibility and places pressure on profitability. Despite these challenges, the company’s established presence, proven execution capabilities, and relationships with reputed clients provide support and help mitigate the risks associated with operating in such a competitive environment.