Rajesh Power Q1 Revenue Hits ₹436.62 Cr as Order Book Expands to ₹3,741.79 Cr

Market snapshot: Ahmedabad-based power infrastructure and EPC contractor Rajesh Power Services Limited announced its Q1 FY27 business updates, posting an unaudited revenue from operations of ₹436.62 crore. The company's unexecuted order book, which includes contracts with L1 status, stood at a robust ₹3,741.79 crore as of June 30, 2026. This significant backlog ensures multi-quarter revenue visibility as the company accelerates its grid-modernization and underground cabling projects across key regions.

Data Snapshot

• Revenue from operations for Q1 FY27 reached ₹436.62 crore on an unaudited basis.
• The unexecuted order book, including L1 status contracts, reached ₹3,741.79 crore as of June 30, 2026.
• The company secured its largest-ever home state utility contract of ₹653.12 crore from PGVCL on July 9, 2026.
• The company made a geographic entry into Odisha by winning a ₹211.68 crore contract from OPTCL on June 17, 2026.

What's Changed

• The unexecuted order book expanded to ₹3,741.79 crore as of June 30, 2026, marking an increase of ≈12.5% QoQ (derived: ₹3,741.79 crore vs ₹3,326 crore as of March 31, 2026).
• Geographical diversification escalated through a entry into the eastern market of Odisha, securing a ₹211.68 crore transmission project.

Key Takeaways

• Robust multi-quarter execution runway established by an outstanding backlog of ₹3,741.79 crore.
• High win rate in home state (Gujarat) reinforced by a ₹653.12 crore underground cabling contract from PGVCL.
• Geographical de-risking underway with the successful entry into Odisha's transmission cable network market.
• Positioned as a major beneficiary of central schemes targeting the reduction of AT&C losses and urban utility upgrading.

SAHI Perspective

Rajesh Power Services is demonstrating high-velocity business execution. The ≈12.5% expansion in its order book in just three months shows that its bidding pipeline is converting into real orders rapidly. Crucially, the company's geographical diversification into Odisha marks a major transition away from its historic Gujarat focus, helping to mitigate regional concentration risks.

Market Implications

The utility infrastructure sector is experiencing a significant tailwind under central mandates like the RDSS. Municipalities and state DISCOMs are aggressively funding the transition of overhead lines to underground systems. Specialists with a proven track record, such as Rajesh Power, are securing massive ticket contracts, driving an industry-wide shift toward high-reliability grid equipment and EPC players.

Trading Signals

Market Bias: Bullish

Rajesh Power's Q1 FY27 revenue of ₹436.62 crore combined with a burgeoning backlog of ₹3,741.79 crore provides excellent near-term fundamental visibility. Recent contract inflows of over ₹860 crore further strengthen the company's growth trajectory.

Overweight: Power EPC, Power Infrastructure, Electrical Equipment

Trigger Factors:

• Timely execution and milestone billing on the ₹653.12 crore PGVCL contract over the 18-month timeline.
• Sustaining historical EBITDA margins within the 11-12% bracket amid commodity price shifts.
• New project wins in adjacent utility spaces like SCADA systems or high-voltage GIS substations.

Time Horizon: Near-term (0–3 months)

Industry Context

The power transmission and distribution (T&D) sector in India is experiencing a strong capex cycle. The emphasis is on grid stability, underground cabling for storm-prone urban areas, and lowering power distribution losses. These factors have significantly expanded the domestic bidding pipeline, benefitting specialized contractors who maintain robust working capital and technical expertise.

Key Risks to Watch

• Receivables and payment clearance cycles from government-owned state DISCOMs and utility corporations.
• Squeezes on EPC margins from raw material fluctuations, specifically copper and aluminum, if contracts lack price-escalation clauses.
• Execution and ground deployment delays arising from local regulatory or municipal permission bottlenecks in congested urban circles.

Recent Developments

During the quarter, Rajesh Power won a ₹211.68 crore underground transmission project from OPTCL, marking its foray into Odisha. More recently, on July 9, 2026, the company announced its largest-ever municipal utility contract of ₹653.12 crore from Paschim Gujarat Vij Company Limited for underground cabling, RMS installation, and GIS mapping.

Closing Insight

Backed by an expanding ₹3,741.79 crore order book, Rajesh Power is rapidly converting high sectoral tailwinds into tangible revenue growth. Investors should watch the company's execution efficiency over the next 18 months, as timely completion will remain the crucial driver of bottom-line realization.

High Performance Trading with SAHI.