Rajesh Power

Rajesh Power Services Ltd. concluded FY26 with a robust unexecuted order book of ₹3,326 crores as of March 31, 2026, providing strong revenue visibility. The power distribution segment accounted for 71% (₹2,365 crores) and the power transmission segment for 29% (₹961 crores) of this book. During FY26, the company recorded significant order inflows of ₹2,743 crores, driven by consistent wins across government, utility, and private sector projects. The company also maintains a substantial pipeline of approximately ₹5,700 crores, including bids awaiting results and other qualified opportunities.

The company delivered a strong financial performance in FY26, with total revenue growing 52% YoY to ₹1,628 crores. EBITDA increased by 59% YoY to ₹197 crores, achieving a healthy margin of 12.1%. Net Profit After Tax (PAT) also saw a significant rise of 48% YoY to ₹143 crores, resulting in a PAT margin of 8.8%. The company's net worth expanded by 53% YoY to ₹406 crores, and it maintained a comfortable debt-equity ratio of 0.31, reflecting efficient capital deployment and financial discipline.

FY26 marked a strategic milestone with Rajesh Power's entry into the Battery Energy Storage Systems (BESS) segment. The company signed a 65 MW / 130 MWh standalone BESS project in Gujarat, awarded by GUVNL, aimed at enhancing grid flexibility and optimizing peak demand. This project is targeted for completion by September 2027 and is expected to generate annual revenue of ₹14-15 crores, with a targeted IRR of 10-12%. This entry is viewed as a strategic move to understand the BESS ecosystem for future EPC project opportunities.

Rajesh Power identifies a Total Addressable Market (TAM) of approximately ₹14,000-15,000 crores, with significant opportunities in Gujarat's GETCO (₹4,000 crores) and distribution (₹5,000 crores). The company is actively pursuing geographic diversification beyond Gujarat, targeting transmission projects in states like Rajasthan, Uttarakhand, Maharashtra, Orissa, and Jharkhand. Management aims to shift the order inflow mix towards 80% from Gujarat and 20% from other states in the near term, while maintaining a revenue growth guidance of 40% CAGR for the next 2-3 years.

The company successfully executed and commissioned several key projects in FY26, including 132 kV GIS substations in Jodhpur and Jaipur, and RDSS schemes in Gandhinagar and Ahmedabad. These projects strengthen its credentials in gas insulated substations, underground cabling, and turnkey grid infrastructure. Operational data indicates a 70-80% improvement in interruption duration due to MVCC and underground installations, highlighting the economic benefits. Employee costs are expected to become more efficient as the scale of revenue increases, with project managers handling more projects without a proportional increase in staff.

While trade receivables saw a temporary jump to ₹350 crores in H2 FY26 due to high March billing, management expects normalization within 45-60 days. The company has also successfully negotiated better credit terms with vendors, extending payables, and manages retention money effectively against bank guarantees, indicating no significant working capital stress. In its specialized segments of underground cabling and GIS substations, Rajesh Power faces limited competition, with 4-6 players in distribution and 3-4 in transmission, allowing it to maintain strong capabilities and pursue higher voltage projects up to 400 kV, with aspirations for 765 kV.