Synopsis: Rajesh Power Services has secured a Rs 75.05 crore turnkey order from Rajasthan Rajya Vidyut Prasaran Nigam Limited for a GIS substation and associated transmission line at Pal, Jodhpur, adding to its order book as it pursues aggressive FY27 growth targets.
India’s power transmission and distribution sector continues to see steady capital spending from state utilities as grids are upgraded to handle rising electricity demand and renewable integration. Rajasthan, like Gujarat, has been active in awarding GIS substation and transmission line contracts, giving specialised EPC players an opportunity to diversify beyond their core geographic markets.
Rajesh Power Services shares last traded around Rs 849.75 on the BSE, with a market capitalisation of approximately Rs 1,530 crore, against a 52-week range of Rs 750.00 to Rs 1,639.00. Readers should confirm the live quote before publishing, given the stock is trading during market hours.
What’s the News?
Rajesh Power Services Limited informed the BSE on July 27, 2026, that it has received an order from Rajasthan Rajya Vidyut Prasaran Nigam Limited for a 132/33 kV, 2×50 MVA Gas Insulated Switchgear substation at Pal, Jodhpur, along with an associated transmission line.
The order is structured as a turnkey contract, covering survey, supply of all equipment and material, erection including civil works, and testing and commissioning. The Company said the order was received in the normal course of business, domestically awarded, with no related-party interest involved.
The contract carries a broad consideration of Rs 75.05 crore, inclusive of taxes, and is to be executed within 18 months. The Company disclosed the order details in line with SEBI’s Regulation 30 disclosure requirements and the relevant master circular on materiality thresholds.
Financial & Business Analysis
This single order adds a modest but meaningful increment to Rajesh Power’s unexecuted order book, which stood at Rs 3,326 crore as of March 31, 2026, split roughly 71% distribution and 29% transmission. As a transmission-linked substation and line contract, this Rajasthan order likely adds to the smaller of those two buckets.
The 18-month execution timeline sits within the Company’s stated typical project cycle of 18 to 24 months for transmission and distribution EPC work, a cadence management has attributed to its underground cabling approach, which faces fewer right-of-way regulatory hurdles than conventional overhead transmission projects.
On the Company’s underlying financial position, FY26 revenue rose 52% year-on-year to Rs 1,628 crore, with EBITDA up 59% to Rs 197 crore at a 12.1% margin, and profit after tax up 48% to Rs 143 crore at an 8.8% margin, broadly in line with management’s stated target range of 11-12% EBITDA and 8-9% PAT margins.
Return ratios were strong, with management citing an annualised return on capital employed of 43.65% and return on equity of 35.26% in the second half of FY26, alongside a conservative debt-to-equity ratio of 0.31, suggesting the balance sheet has capacity to fund working capital needs as the order book grows.
For context on scale, this Rs 75.05 crore order represents a small fraction of the Company’s FY26 order inflows of Rs 2,743 crore and its FY27 target of Rs 4,000-5,000 crore in fresh inflows, meaning its significance lies more in geographic and client diversification than in materially moving overall order book size.
Industry & Strategic Analysis
Winning an order from a Rajasthan state transmission utility is notable given that roughly 85-90% of Rajesh Power’s order book has historically been concentrated in Gujarat, with management having previously indicated an aggressive push to shift that mix toward an 80/20 split by winning more business outside its home state.
The Company’s addressable market commentary points to a large opportunity set, with Gujarat’s state transmission utility capex alone estimated at Rs 9,000-10,000 crore annually and a wider addressable opportunity across states pegged at Rs 14,000-15,000 crore, suggesting orders like this Rajasthan contract are an early sign of that geographic expansion strategy taking hold.
Competitive intensity in this niche EPC segment remains relatively contained, with management citing only four to six competitors in distribution and three to four in transmission, a dynamic that has supported the Company’s stated ability to maintain stable margins through price escalation clauses that pass through commodity cost increases such as aluminium and copper.
Company Overview
Rajesh Power Services Limited is an Ahmedabad-based engineering, procurement and construction company specialising in power transmission and distribution infrastructure, including underground cabling, GIS substations and medium-voltage current-carrying systems. The Company has also recently entered battery energy storage system development in Gujarat and is expanding capability toward higher-voltage 400 kV and eventually 765 kV GIS projects.
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