Power & Instrumentation Wins ₹7.14 Cr Add-On Order From AVVNL; Total Contract Value Stands ₹75.36 Cr

Synopsis: Power and Instrumentation (Gujarat) Limited has received an additional work order worth ₹7.13 Cr from Ajmer Vidyut Vitran Nigam Limited (AVVNL), increasing the total contract value under the RDSS Scheme to ₹75.36 Cr. The project involves development of power distribution infrastructure in Rajasthan and is scheduled to be completed within 180 days, strengthening the company’s near-term revenue visibility.

Shares of Power and Instrumentation (Gujarat) Limited, with a market capitalization of Rs.229.8 crore, are trading at a price of Rs.109.54 i.e. 3.02% up from its previous closing price of Rs.106.33. The stock touched an intraday high of Rs.110.60 and a low of Rs.106.15. It is trading at a P/E ratio of 15.92.

Power and Instrumentation (Gujarat) Limited has announced, through a regulatory filing dated May 28, 2026 under Regulation 30 of the SEBI (LODR) Regulations, that it has secured an additional work order worth ₹7,13,69,325.90 (approximately ₹7.13 Cr) from Ajmer Vidyut Vitran Nigam Limited (AVVNL).

This add-on order comes in continuation of the original ₹68.22 Cr contract awarded in October 2025, taking the aggregate contract value to ₹75,35,69,325.90 approximately ₹75.36 Cr including applicable taxes.

The scope of work involves the supply, erection, installation, testing, and commissioning of materials and equipment for the development of distribution infrastructure under the feeder segregation program of 11 KV mixed feeders at the Dungarpur Circle of Ajmer Discom, Rajasthan.

The project is being executed under the Government of India’s Revamped Reforms-Based and Results-Linked Distribution Sector Scheme (RDSS) on a turnkey basis against tender number AVVNL/RDSS-FS/DPR/TN-162.

The company has clarified that the contract is purely domestic in nature and does not involve any related-party transaction or promoter group interest. The execution timeline for the project has been fixed at 180 days from the issuance of the award letter.

WHY THIS ORDER MATTERS

The RDSS scheme is one of India’s largest power distribution reform initiatives aimed at reducing aggregate technical and commercial (AT&C) losses while improving the reliability and efficiency of electricity distribution networks across the country.

For infrastructure and power equipment companies, RDSS-linked projects offer long-term visibility through government-backed spending and multi-year execution opportunities. In this context, the repeat business from AVVNL in the form of an add-on order reflects positively on PIGL’s execution quality, delivery standards, and client confidence.

While the ₹7.13 Cr addition may appear modest in isolation, it represents a meaningful enhancement of nearly 10.5% over the original ₹68.22 Cr contract value. For a small-cap infrastructure player like PIGL, such incremental order additions can materially improve revenue visibility and order book strength.

Importantly, the 180-day completion timeline indicates that a substantial portion of the project revenue is likely to be recognised within the first half of FY27, potentially supporting near-term earnings growth and cash flow visibility.

RDSS: A MASSIVE SECTORAL TAILWIND

India’s Revamped Distribution Sector Scheme carries a total outlay exceeding ₹3 lakh crore and is aimed at modernising electricity distribution infrastructure, reducing AT&C losses, and improving power supply efficiency across states.

For companies like PIGL, RDSS creates a multi-year growth runway supported by government-backed spending. Securing repeat work under this scheme positions the company as a credible execution partner not only for AVVNL but potentially for other Rajasthan discoms and state electricity boards implementing similar feeder segregation and grid modernisation projects. If execution remains timely and efficient, it could improve the company’s qualification strength for larger future tenders across the power distribution segment.

PEER COMPARISON

Within the broader power infrastructure ecosystem, PIGL operates as a relatively small-cap player compared to larger listed EPC and transmission companies such as KEC International Limited and Godawari Power and Ispat Limited.

However, smaller companies often experience sharper earnings and stock-price sensitivity to incremental order wins because even mid-sized contracts can materially impact revenue growth rates and execution visibility. This makes order-book expansion particularly important for emerging infrastructure companies like PIGL.

KEY RISKS INVESTORS SHOULD WATCH

RDSS projects are typically awarded through competitive bidding, which can place pressure on operating margins. Rising input costs for materials such as copper, aluminium, cables, and electrical equipment could affect profitability if cost escalation is not adequately managed.

Additionally, turnkey infrastructure projects are working-capital intensive. Efficient debt management, timely receivable collection, and execution discipline will remain critical as the company scales larger government contracts. Execution delays due to supply-chain bottlenecks, approvals, or project-level challenges may also affect revenue recognition timelines.

Power and Instrumentation (Gujarat) Limited is an ISO 9001:2008 certified company operating under the GroupPower initiative and is engaged in the supply, erection, installation, testing, and commissioning of power distribution infrastructure and instrumentation systems.

Headquartered in Ahmedabad, the company has built a pan-India operational presence across major cities including Mumbai, Delhi, Pune, Goa, Indore, Kochi, and Raipur. Its core business largely revolves around executing government-backed electrical infrastructure and power distribution projects across India.

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