Rajesh Power Services Q1 Update: Revenue Reaches ₹437 Cr; Order Book Climbs to ₹3,741 Cr

Synopsis: Rajesh Power Services shared Q1 FY27 business updates, reporting Rs. 436.62 crore in revenue, a Rs. 3,741.79 crore order book, two large new project wins, and an improved credit rating outlook.

India’s power transmission and distribution sector is undergoing rapid modernisation as state utilities shift toward underground cabling, GIS substations, and grid reliability upgrades to support rising electricity demand. This creates sustained order opportunities for specialised EPC contractors capable of executing complex transmission and distribution infrastructure projects across states.

Shares of Rajesh Power Services Ltd, with a market capitalization of Rs. 1,552 crore, were trading at Rs. 862, up 1.81 percent from the previous close of Rs. 846.65. The stock touched an intraday high of Rs. 869.50 and a low of Rs. 844.30. The company is currently trading at a P/E ratio of 11.29, while its 52-week range stands between Rs. 750 and Rs. 1,639.

What’s the News?

Rajesh Power Services Limited disclosed its Q1 FY27 business updates on July 16, 2026, reporting unaudited revenue from operations of Rs 436.62 crore for the quarter ended June 30, 2026. The company’s unexecuted order book stood at Rs 3,741.79 crore, including L1 positions, as of the same date.

Among the key highlights, the company marked its entry into Odisha by winning one of its largest transmission segment projects, valued at Rs 211.68 crore, from Odisha Power Transmission Corporation Limited. The scope covers construction of a 220 kV underground transmission cable connecting the Mendhasal grid substation with the Chandaka B gas insulated substation.

Separately, Rajesh Power secured an order worth Rs 653.12 crore from Paschim Gujarat Vij Company Limited for underground power distribution work. The project involves converting existing 11kV high tension and low tension overhead lines into underground cable networks with ring main systems across Bhavnagar, Anjar, Junagadh, and Porbandar circles in Gujarat.

The company also received a credit rating outlook upgrade, with its long-term rating revised to CRISIL A-, Positive, from a prior Stable outlook, while the rating itself was reaffirmed. This reflects improving confidence in the company’s execution track record and balance sheet strength as its order book expands.

Financial & Business Analysis

The addition of new orders worth Rs. 864.80 crore significantly enhances Rajesh Power’s revenue visibility, especially considering that the order inflow is nearly twice its reported Q1 FY27 revenue of Rs. 436.62 crore. The Odisha project also marks a strategic milestone by expanding the company’s presence beyond its traditional Gujarat market.

The company’s unexecuted order book of Rs. 3,741.79 crore, including L1 positions, represents around 2.3 times its FY26 revenue of Rs. 1,628 crore, providing strong multi-year execution visibility and supporting sustained growth over the next few years.

Rajesh Power has demonstrated exceptional financial growth in recent years. Revenue surged from Rs. 285 crore in FY24 to Rs. 1,628 crore in FY26, reflecting a three-year sales CAGR of nearly 99 percent. Net profit also increased sharply to Rs. 138 crore in FY26 from Rs. 26 crore in FY24, translating into a three-year profit CAGR of around 173 percent.

The company continues to maintain industry-leading profitability metrics, with FY26 ROE and ROCE standing at 42.6 percent and 48.6 percent, respectively. Operating margins have remained relatively stable at around 11 – 12 percent despite rapid scaling of operations, indicating strong execution capabilities and cost discipline.

The recent revision in CRISIL’s outlook to ‘Positive’ from ‘Stable’, while reaffirming the A- rating, is another important development. An improved credit profile could lower borrowing costs and enhance the company’s ability to secure working capital funding, which remains crucial for executing large EPC projects simultaneously.

However, investors should continue monitoring cash flow metrics. Despite robust earnings growth, the company reported negative operating cash flow of Rs. 41 crore and negative free cash flow of Rs. 43 crore in FY26, largely due to higher working capital requirements associated with rapid business expansion. Although working capital days improved substantially to just 7 days and cash conversion cycle declined to 22 days in FY26, sustained execution of large projects may continue to require significant funding support.

Since the company has currently disclosed only revenue and order book figures for Q1 FY27, the upcoming quarterly results will be important to assess whether profitability and cash flow trends remain consistent alongside the strong order inflows.

Industry & Strategic Analysis

India’s transmission and distribution EPC sector is entering a structural growth phase, driven by rising electricity demand, renewable energy integration, urbanisation and government initiatives aimed at strengthening grid reliability and reducing technical losses.

State utilities are increasingly shifting toward underground cable networks, GIS substations and modern distribution infrastructure, creating substantial opportunities for specialised EPC contractors with proven execution capabilities.

Rajesh Power appears well-positioned to benefit from this trend due to its strong expertise in extra-high-voltage underground cabling, GIS and AIS substations, and turnkey transmission and distribution projects. The company’s successful entry into Odisha diversifies its geographic exposure and reduces dependence on Gujarat, while also creating opportunities for repeat business with OPTCL.

At the same time, the Rs. 653.12 crore PGVCL order reinforces Rajesh Power’s strong relationship with Gujarat utilities, which have been aggressively undertaking underground cabling and network modernisation projects. Continued state-level infrastructure investments and grid strengthening programs are expected to provide a healthy order pipeline for established players over the medium term.

With a strong order backlog, improving credit profile, high return ratios and increasing geographical diversification, Rajesh Power is strategically positioned to capitalise on India’s multi-year power infrastructure investment cycle, although efficient working capital management will remain critical as project execution scales further.

Company Overview

Rajesh Power Services Limited is a specialised EPC contractor in the power transmission and distribution sector, offering turnkey execution of GIS and AIS substations, extra high voltage power cables, transmission lines, and distribution systems. The company serves government and institutional customers across India, with over five decades of operating history.

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