Synopsis: A power engineering company has secured fresh domestic orders worth Rs 34.37 crore spanning grid modernisation and transmission infrastructure projects. Beyond strengthening its order book, the contracts reinforce the company’s presence in two critical segments of India’s evolving power distribution and transmission network.
As India’s electricity network continues to modernise, utilities are increasingly investing in smarter distribution systems and reliable transmission infrastructure. Reflecting this trend, Rajesh Power Services Limited has secured two new domestic contracts from state power utilities in Gujarat and Rajasthan, further expanding its presence across power distribution and transmission projects.
Shares of Rajesh Power Services Limited were trading at Rs 874.9, up by 0.54 percent from the previous close of Rs 870.2. The stock opened at Rs 856.05, touching an intraday high of Rs 880 and a low of Rs 856.05. The company currently commands a market capitalisation of Rs. 1,566 crore.
Rajesh Power Bags Rs 34.37 Crore Power Infrastructure Orders
Rajesh Power Services has received two domestic orders aggregating Rs 34.37 crore (including taxes) in the normal course of business. The larger contract, valued at Rs 21.57 crore, has been awarded by Paschim Gujarat Vij Company Limited (PGVCL) for SCADA readiness and rectification of Ring Main Units (RMUs), along with a comprehensive maintenance contract covering the Bhavnagar, Jamnagar, and Rajkot circles. The project is scheduled to be executed within 12 months.
The company has also secured a Rs 12.80 crore turnkey contract from Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPNL) for converting the existing 220kV Jodhpur–CHB transmission line into an underground cable system, including the installation of a monopole. The project carries an execution timeline of nine months.
Why These Orders Matter
While the combined order value strengthens near-term execution visibility, the nature of the contracts is equally significant. The PGVCL project focuses on enhancing SCADA readiness and upgrading ring main units, which are essential for improving grid automation, reducing outages, and enabling more efficient monitoring of electricity distribution networks. The accompanying maintenance component also provides sustained execution opportunities beyond the initial implementation phase.
Meanwhile, the RVPNL contract expands the company’s footprint in high-voltage transmission infrastructure through the underground cabling of an existing 220kV line. Underground transmission systems improve network reliability, minimise transmission disruptions, and optimise land usage, making them increasingly relevant as urbanisation and power demand continue to rise.
Together, these contracts demonstrate Rajesh Power’s ability to execute both distribution modernisation and transmission infrastructure projects for state-owned utilities.
The company reported a strong performance in H2 FY26 (Mar 2026), with revenue increasing 30.4 percent YoY to Rs 990 crore in H2 FY26 from Rs 759 crore in H2 FY25. On a sequential basis, revenue grew 55.2 percent from Rs 638 crore in H1 FY26 to Rs 990 crore in H2 FY26, reflecting strong business momentum during the second half.
Operating profit increased 29.9 percent YoY to Rs 113 crore in H2 FY26 from Rs 87 crore in H2 FY25 and rose 34.5 percent sequentially from Rs 84 crore in H1 FY26. However, operating margin remained broadly stable at 11 percent in H2 FY26 compared with 11 percent in H2 FY25, while moderating from 13 percent in H1 FY26, indicating that higher revenue growth was accompanied by a proportionate increase in operating expenses.
Net profit rose 31.7 percent YoY to Rs 79 crore in H2 FY26 from Rs 60 crore in H2 FY25 and increased 36.2 percent from Rs 58 crore in H1 FY26. EPS improved to Rs 44.14 in H2 FY26, compared with Rs 33.58 in H2 FY25 and Rs 32.24 in H1 FY26, reflecting strong earnings growth during the period.
The balance sheet expanded significantly during FY26, with total assets rising to Rs 927 crore from Rs 526 crore in FY25, while reserves increased sharply to Rs 373 crore from Rs 238 crore, strengthening the company’s net worth.
Borrowings also increased to Rs 127 crore in FY26 from Rs 56 crore in FY25 to support business expansion, resulting in a debt-to-equity ratio of 0.33, which remains at a comfortable level. The company maintained a healthy liquidity position with working capital of Rs 98.9 crore, cash & cash equivalents of Rs 65.4 crore, and a current ratio of 1.21.
It continues to deliver strong profitability with ROCE of 48.6 percent and ROE of 42.6 percent, while achieving an impressive 3-year sales CAGR of 99 percent and 3-year profit CAGR of 173 percent, highlighting robust long-term growth.
Industry Outlook & Insight
India’s power sector is witnessing sustained investment in grid modernisation, underground cabling, smart distribution networks, and transmission infrastructure to support rising electricity demand and the integration of renewable energy.
Government utilities are increasingly upgrading ageing electrical assets while deploying digital monitoring systems to improve grid reliability and operational efficiency.
Against this backdrop, Rajesh Power Services’ latest order wins reinforce its positioning in two high-priority segments of the power value chain. Beyond the immediate revenue contribution, successful execution could strengthen its credentials with state utilities, enhance its track record in complex electrical infrastructure projects, and improve its prospects of securing similar contracts as power network upgrades continue across the country.
Rajesh Power Services Limited provides engineering, procurement, construction (EPC), operation and maintenance, and turnkey solutions for power transmission and distribution infrastructure. The company undertakes projects across substations, transmission lines, underground cabling, and grid modernisation for utility and industrial customers.
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