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    Rajesh Power

    544291
    Utilities·14 Nov 2025
    Management Summary

    Rajesh Power Services Limited delivered a strong H1 FY26 performance, marked by significant revenue and profit growth, driven by robust project execution and substantial order inflows. The unexecuted order book provides healthy revenue visibility. However, the company acknowledges challenges related to cash flow management due to industry-specific working capital requirements and ROW issues in transmission projects.

    Highlights

    5

    • Revenue grew by an impressive 104% to ₹638 crore in H1 FY26, driven by well-planned project execution and a diversified order book.

    • EBITDA increased by 126% to ₹84 crore, achieving an EBITDA margin of 13.16% in H1 FY26.

    • PAT increased by 99% to ₹59 crore, with a PAT margin of 9.22%, reflecting strong operational performance.

    • Order inflow surpassed ₹2,200 crore in just six months, demonstrating robust execution strength and customer trust.

    • The unexecuted order book surpassed ₹3,500 crore, providing strong revenue visibility for the next 18-24 months.

    Concerns

    2

    • Cash flow from operations appears slightly negative due to the nature of the EPC business, involving significant retention money, security deposits, and performance guarantees.

    • Transmission projects, particularly overhead lines, continue to face Right-of-Way (ROW) challenges, which can impact execution timelines.

    What Changed2

    vs Q4 FY26

    Guidance items8 → 5 (-3)Risks discussed5 → 3 (-2)

    Key financials

    Single quarter

    10 metrics
    1. 01Revenue₹638 Cr+104%YoY
    2. 02EBITDA₹84 Cr+126%YoY
    3. 03EBITDA Margin13.2%
    4. 04PAT₹59 Cr+99%YoY
    5. 05PAT Margin9.2%

    Order Book

    high confidence

    Total Value

    ₹ 3,500 crores

    as of 2025-09-30

    quantified

    Inflow this qtr

    ₹ 2,200 crores

    Execution

    roughly 18 months to 24 months

    Composition

    Mix2 segments
    • Power Distribution76.0%
    • Transmission24.0%

    Share of order book by segment

    Pipeline

    qualified rfp

    low hanging pipeline of ₹2,000 crore, expecting to reach ₹5,000 crore

    "The unexecuted order book of ₹3,500 crore is executable over the next 18-24 months, with a strong pipeline of ₹5,000 crore expected in the coming months."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Liquidity

    Liquidity disclosed

    Cash flow from operations appears slightly negative due to retention money, security deposits, and warranty/performance guarantees.

    Guidance & targets

    5
    CategoryTargetPriority
    Growth
    CAGR across all key metrics
    40%
    		Medium
    Order Inflow
    Order inflow for full year
    ₹5,000 crores
    		Medium
    Order Book
    Expected closing unexecuted order book
    ₹4,500 crores
    		Medium
    Banking Limits
    Enhancement of banking limits
    ₹400 crores
    		High
    HKRP Performance
    HKRP top line growth
    double digits
    		Medium

    Order book execution velocity

    next quarter
    Current₹3,500 crore unexecuted order book
    TargetProgress towards 18-24 month execution timeline

    Why it matters

    To assess the company's ability to convert its strong order book into revenue efficiently.

    So, basically, our INR 3,500-crore order book consists of a mix of various projects, which have a start date and then a completion schedule of roughly 18 months to 24 months.

    How to verify

    order_book.execution.timeline_months

    Risks & concerns

    3
    RiskSeverity

    Cash flow blockage due to working capital requirements

    Cash flow from operations appears slightly negative due to retention money, security deposits, and performance guarantees inherent in the EPC business model. — Management acknowledged

    medium

    Right-of-Way (ROW) challenges for transmission projects

    Slowdown in overhead line transmission projects is primarily related to ROW challenges, though projects are broadly on track. — Management acknowledged

    low

    Limited competition in 400kV GIS segment due to government policy

    Government policy restricts participation from countries sharing a border with India, limiting competition to a few leading MNCs like Siemens, Hyosung, Hitachi, and Toshiba. — Management acknowledged

    low

    Q&A highlights

    8

    “So, basically, our INR 3,500-crore order book consists of a mix of various projects, which have a start date and then a completion schedule of roughly 18 months to 24 months.”

    Provides clarity on the expected revenue recognition period for the current order book.

    asked by Raman KV

    2 min read5 chapters

    Detailed Narrative

    01

    Strong H1 FY26 Financial Performance

    Rajesh Power Services Limited reported robust financial results for H1 FY26, with revenue growing by an impressive 104% to ₹638 crore. EBITDA saw a 126% increase, reaching ₹84 crore, translating to an EBITDA margin of 13.16%. Net Profit after Tax (PAT) also surged by 99% to ₹59 crore, achieving a PAT margin of 9.22%. These figures underscore the company's strong operational execution and strategic growth initiatives.

    02

    Significant Order Book and Pipeline

    The company achieved a remarkable order inflow of ₹2,200 crore in the first six months of FY26, contributing to an unexecuted order book exceeding ₹3,500 crore. This order book is expected to be executed over the next 18 to 24 months, providing strong revenue visibility. Management anticipates a full-year order inflow of ₹5,000 crore and projects the closing unexecuted order book for FY26 to be around ₹4,500 crore, indicating sustained growth momentum.

    03

    Strategic Expansion and Market Diversification

    Rajesh Power is actively expanding its geographical footprint beyond Gujarat, with successful entries into states like Rajasthan, where the order book now stands at ₹200-250 crore. The company is also executing projects in Uttarakhand and exploring opportunities in Madhya Pradesh, Orissa, and Jharkhand. This diversification strategy aims to leverage growing infrastructure spending across India and reduce regional concentration risk.

    04

    Focus on High-Voltage Segments and Smart Grid Solutions

    The company has made a significant breakthrough by entering the 400 kV gas-insulated substation (GIS) segment, positioning itself for larger multi-central power grid projects. Additionally, its partnership with HKRP Innovations Limited focuses on smart-energy management solutions, including SCADA systems and IoT-based tools. This strategic focus on advanced technologies and higher voltage segments enhances its capabilities and market reach.

    05

    Working Capital Management and Funding Plans

    Despite strong operational performance, cash flow from operations appears slightly negative due to the inherent nature of the EPC business, which requires significant retention money, security deposits, and performance guarantees. To support its ambitious growth targets, the company plans to enhance its banking limits from the current ₹270 crore to ₹400 crore, which is expected to be sufficient for executing future orders without immediate fundraising.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.