Shares of RDB Infrastructure & Power Ltd. witnessed a significant rally, scaling a fresh 52-week peak during Wednesday's trading session. The surge followed a strategic corporate announcement aimed at diversifying the company's business operations into the renewable energy space.
Strategic Move into Solar Energy
The company's board has given its approval to subscribe to 70% of the equity share capital of Solar Agro-Parks Private Limited. This move marks a decisive step for RDB Infrastructure as it seeks to establish a foothold in the solar power sector. According to a regulatory filing, the company will subscribe to 7,000 equity shares of ₹10 each, aggregating to a total investment of ₹70,000.
It is important to note that the subscription amount for these equity shares is yet to be infused. The acquisition is described as a strategic initiative to expand and diversify business operations, with a specific focus on solar energy, pursued through the tender bidding process. Solar Agro-Parks was incorporated on 31 December 2025, with an authorised capital of ₹10,00,000 and a paid-up capital of up to ₹1,00,000.
Financial Performance: A Mixed Quarter
The company's recent quarterly results for Q2 FY26 present a contrasting picture. On the profitability front, RDB Infrastructure reported a net profit of ₹3.05 crore. This represents a 13% sequential growth from ₹2.72 crore in Q1 FY26 and a substantial 79% year-on-year jump from ₹1.70 crore in Q2 FY25.
However, revenue from operations saw a sharp decline, coming in at ₹18.50 crore. This figure marks a steep 73% drop quarter-on-quarter from ₹67.56 crore and a 43% decrease year-on-year from ₹32.48 crore. A key positive was the improvement in operational efficiency. EBITDA rose to ₹4.87 crore, up 17% QoQ and 57% YoY.
Consequently, EBITDA margins expanded markedly to 26.3%, a significant rise from 6.2% in the previous quarter and 9.5% a year ago. This margin expansion was aided by better cost absorption and reduced expenses, with total expenses declining sharply to ₹18.55 crore in Q2 from ₹65.53 crore in Q1.
A Stellar Multibagger Journey
The stock has cemented its reputation as a multibagger, delivering exceptional returns to its long-term investors. Despite market volatility, the shares have risen by over 46% in just one month and gained 38.50% over the last six months.
The long-term performance is even more staggering. From a five-year perspective, the RDB Infrastructure share price has multiplied investor wealth by a whopping 3,662.37%. The stock, which is listed exclusively on the BSE, touched a 52-week low of ₹35 on September 5, 2025, before its recent climb to the high of ₹71.50.
This strategic diversification into renewable energy is expected to create new revenue streams and support future topline growth, potentially writing the next chapter for this high-performing stock.
