Rectitude Holdings Ltd Financials
Rectitude Holdings Ltd (RECT) reported $39.7M in revenue for fiscal year 2026, up 22.0% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 4 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Revenue growth is being converted into earnings, but working-capital expansion—not capital expenditure—is the dominant mechanic weakening cash conversion.
By FY2026, revenue reached$39.7M even as gross margin narrowed to32.2% , so growth has not come from improving unit economics. Operating margin recovered from FY2025 to8.3% while SG&A fell in absolute dollars, pointing to fixed-cost absorption rather than richer gross economics.
Net income of
Assets expanded substantially while liabilities stayed broadly stable, indicating the balance-sheet expansion was not primarily debt-funded. FY2026 debt-to-equity was 0.1x and the current ratio was 2.5x, combining modest leverage with greater short-term coverage than FY2024.
Financial Health Signals
Scored against operating companies for FY2026. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Rectitude Holdings Ltd's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Rectitude Holdings Ltd has an operating margin of 8.3%, meaning the company retains $8 of operating profit per $100 of revenue. This strong profitability earns a score of 66/100, reflecting efficient cost management and pricing power. This is up from 5.1% the prior year.
Rectitude Holdings Ltd's revenue surged 22.0% year-over-year to $39.7M, reflecting rapid business expansion. This strong growth earns a score of 73/100.
Rectitude Holdings Ltd carries a low D/E ratio of 0.14, meaning only $0.14 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 94/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.53, Rectitude Holdings Ltd holds $2.53 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 70/100.
Rectitude Holdings Ltd's operations used $1.7M of cash, and capex of $153K added to the outflow, for a free cash flow shortfall of $1.8M. This results in a cash flow score of 27/100.
Rectitude Holdings Ltd earns a strong 12.8% return on equity (ROE), meaning it generates $13 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 71/100. This is up from 9.0% the prior year.
Rectitude Holdings Ltd scores 3.13, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Rectitude Holdings Ltd passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Rectitude Holdings Ltd used $0.60 of operating cash (-$1.7M OCF vs $2.8M net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely.
Rectitude Holdings Ltd earns $32.66 in operating income for every $1 of interest expense ($3.3M vs $101K). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Rectitude Holdings Ltd generated $39.7M in revenue in fiscal year 2026. This represents an increase of 22.0% from the prior year.
Rectitude Holdings Ltd's EBITDA was $3.8M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 81.1% from the prior year.
Rectitude Holdings Ltd reported $2.8M in net income in fiscal year 2026. This represents an increase of 67.2% from the prior year.
Rectitude Holdings Ltd earned $0.19 per diluted share (EPS) in fiscal year 2026. This represents an increase of 58.3% from the prior year.
Cash & Balance Sheet
Rectitude Holdings Ltd recorded an outflow of $1.8M in free cash flow in fiscal year 2026, representing a cash shortfall after capex. This represents a decrease of 489.4% from the prior year.
Rectitude Holdings Ltd held $4.7M in cash against $3.1M in long-term debt as of fiscal year 2026.
Not reported for fiscal year 2026.
Margins & Returns
Rectitude Holdings Ltd's gross margin was 32.2% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 1.5 percentage points from the prior year.
Rectitude Holdings Ltd's operating margin was 8.3% in fiscal year 2026, reflecting core business profitability. This is up 3.2 percentage points from the prior year.
Rectitude Holdings Ltd's net profit margin was 7.0% in fiscal year 2026, showing the share of revenue converted to profit. This is up 1.9 percentage points from the prior year.
Rectitude Holdings Ltd's ROE was 12.8% in fiscal year 2026, measuring profit generated per dollar of shareholder equity. This is up 3.8 percentage points from the prior year.
Capital Allocation
Rectitude Holdings Ltd invested $153K in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 66.6% from the prior year.
Not reported for fiscal year 2026.
Not reported for fiscal year 2026.
RECT Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q2'26 | Q4'25 | Q2'25 | Q4'24 |
|---|
Not reported in any period shown, so not listed: Revenue, Cost of Revenue, Gross Profit, R&D Expenses, SG&A Expenses, Operating Income, Interest Expense, Income Tax, Net Income, EPS (Diluted).
RECT Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q2'26 | Q4'25 | Q2'25 | Q4'24 |
|---|---|---|---|---|---|
| Total Assets | $37.7M-1.0% | $38.1M+17.1% | $32.5M-1.4% | $32.9M+29.8% | $25.4M |
| Current Assets | $26.7M+2.7% | $26.0M+27.1% | $20.4M+9.9% | $18.6M+5.9% | $17.5M |
| Cash & Equivalents | $4.7M+2.2% | $4.6M-10.8% | $5.2M+66.5% | $3.1M+20.2% | $2.6M |
| Inventory | $6.3M-9.8% | $7.0M+23.7% | $5.6M+18.6% | $4.8M+2.4% | $4.6M |
| Accounts Receivable | $12.0M+17.2% | $10.3M+19.4% | $8.6M-13.5% | $9.9M+16.3% | $8.5M |
| Total Liabilities | $15.9M-6.5% | $17.1M+21.2% | $14.1M-4.7% | $14.8M+1.4% | $14.6M |
| Current Liabilities | $10.6M-8.4% | $11.5M+27.6% | $9.0M+1.4% | $8.9M-5.5% | $9.4M |
| Long-Term Debt | $3.1M+9.7% | $2.8M+17.7% | $2.4M-21.3% | $3.1M+12.2% | $2.7M |
| Total Equity | $21.7M+3.5% | $21.0M+14.0% | $18.4M+1.4% | $18.2M+67.9% | $10.8M |
| Retained Earnings | $13.2M+5.9% | $12.5M+24.6% | $10.0M+4.1% | $9.6M+15.5% | $8.3M |
Not reported in any period shown, so not listed: Goodwill.
RECT Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | Q4'26 | Q2'26 | Q4'25 | Q2'25 | Q4'24 |
|---|
Not reported in any period shown, so not listed: Operating Cash Flow, Capital Expenditures, Free Cash Flow, Investing Cash Flow, Financing Cash Flow, Dividends Paid, Share Buybacks.
RECT Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | Q4'26 | Q2'26 | Q4'25 | Q2'25 | Q4'24 |
|---|---|---|---|---|---|
| Current Ratio | 2.53+0.3x | 2.250.0x | 2.26+0.2x | 2.09+0.2x | 1.86 |
| Debt-to-Equity | 0.140.0x | 0.130.0x | 0.130.0x | 0.17-0.1x | 0.25 |
Not reported in any period shown, so not listed: Gross Margin, Operating Margin, Net Margin, Return on Equity, Return on Assets, FCF Margin.
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Where Rectitude Holdings Ltd Ranks
Frequently Asked Questions
What is Rectitude Holdings Ltd's annual revenue?
Rectitude Holdings Ltd (RECT) reported $39.7M in total revenue for fiscal year 2026. This represents a 22.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Rectitude Holdings Ltd's revenue growing?
Rectitude Holdings Ltd (RECT) revenue grew by 22.0% year-over-year, from $32.6M to $39.7M in fiscal year 2026.
Is Rectitude Holdings Ltd profitable?
Yes, Rectitude Holdings Ltd (RECT) reported a net income of $2.8M in fiscal year 2026, with a net profit margin of 7.0%.
What is Rectitude Holdings Ltd's EBITDA?
Rectitude Holdings Ltd (RECT) had EBITDA of $3.8M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Rectitude Holdings Ltd have?
As of fiscal year 2026, Rectitude Holdings Ltd (RECT) had $4.7M in cash and equivalents against $3.1M in long-term debt.
What is Rectitude Holdings Ltd's gross margin?
Rectitude Holdings Ltd (RECT) had a gross margin of 32.2% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.
What is Rectitude Holdings Ltd's operating margin?
Rectitude Holdings Ltd (RECT) had an operating margin of 8.3% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.
What is Rectitude Holdings Ltd's net profit margin?
Rectitude Holdings Ltd (RECT) had a net profit margin of 7.0% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.
What is Rectitude Holdings Ltd's return on equity (ROE)?
Rectitude Holdings Ltd (RECT) has a return on equity of 12.8% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.
What is Rectitude Holdings Ltd's free cash flow?
Rectitude Holdings Ltd (RECT) recorded an outflow of $1.8M in free cash flow during fiscal year 2026. This represents a -489.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Rectitude Holdings Ltd's operating cash flow?
Rectitude Holdings Ltd (RECT) recorded an outflow of $1.7M in operating cash flow during fiscal year 2026, representing cash used by core business activities.
What are Rectitude Holdings Ltd's total assets?
Rectitude Holdings Ltd (RECT) had $37.7M in total assets as of fiscal year 2026, including both current and long-term assets.
What are Rectitude Holdings Ltd's capital expenditures?
Rectitude Holdings Ltd (RECT) invested $153K in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.
What is Rectitude Holdings Ltd's current ratio?
Rectitude Holdings Ltd (RECT) had a current ratio of 2.53 as of fiscal year 2026, which is generally considered healthy.
What is Rectitude Holdings Ltd's debt-to-equity ratio?
Rectitude Holdings Ltd (RECT) had a debt-to-equity ratio of 0.14 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Rectitude Holdings Ltd's return on assets (ROA)?
Rectitude Holdings Ltd (RECT) had a return on assets of 7.4% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.
How does Rectitude Holdings Ltd's liquidity compare with its operating cash outflow?
At the end of fiscal year 2026, Rectitude Holdings Ltd (RECT) held $4.7M in cash, cash equivalents and investments, and reported an operating cash outflow of $1.7M over that year. Dividing the one by the other, the reported balance equals about 34 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.
What is Rectitude Holdings Ltd's Altman Z-Score?
Rectitude Holdings Ltd (RECT) has an Altman Z-Score of 3.13, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Rectitude Holdings Ltd's Piotroski F-Score?
Rectitude Holdings Ltd (RECT) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Rectitude Holdings Ltd's earnings high quality?
For every $1 of reported earnings, Rectitude Holdings Ltd (RECT) used $0.60 of operating cash (-$1.7M OCF vs $2.8M net income). Earnings that no cash stands behind rest on accounting accruals, which cannot be repeated indefinitely. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Rectitude Holdings Ltd cover its interest payments?
Rectitude Holdings Ltd (RECT) has an interest coverage ratio of 32.66x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Rectitude Holdings Ltd?
Rectitude Holdings Ltd (RECT) scores 67 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.