Rajesh Power Secures Turnkey Order Valued At ₹363 Crore From PGVCL

Market snapshot: Rajesh Power Services Limited (RPSL) has secured a fresh domestic turnkey contract valued at ₹362.82 crore (rounded to ₹363 crore in the news alert) from Paschim Gujarat Vij Company Limited (PGVCL). This award covers the conversion of the existing overhead high-tension and low-tension lines into a reliable underground cable network with a ring main system in the Jamnagar circle. The turnkey project has been awarded in the normal course of business with an execution window of 24 months.

Data Snapshot

• The company secured a turnkey contract from PGVCL worth ₹362.82 crore.
• The company reported an unexecuted order book of ₹3,741.79 crore as of June 30, 2026.
• Consolidated revenue from operations for FY26 stood at ₹1,627.94 crore, up 51.85% YoY.

What's Changed

• Unexecuted order book grew to ₹3,741.79 crore as of June 30, 2026, reflecting a quarterly increase of ≈12.5% (derived: ₹3,741.79 crore vs ₹3,326 crore as of March 31, 2026).
• CRISIL Ratings revised its credit outlook on the company's long-term bank facilities to Positive from Stable, while enhancing the rated bank loan facilities to ₹363 crore from ₹263 crore on July 14, 2026.

Key Takeaways

• Robust Revenue Visibility: The new ₹362.82 crore turnkey contract adds to the company's massive order backlog, providing a predictable revenue runway for the next two fiscal years.
• Consolidated State Presence: This win reinforces Rajesh Power's dominance in home-state utility upgrades with PGVCL, highlighting a high success rate in tender-based infrastructure contracts.
• Grid Modernization Tailwind: Continuous structural upgrades by state utilities converting overhead cables to underground systems in tier-2 cities provide a steady macro pipeline.

SAHI Perspective

The ₹362.82 crore order from PGVCL is a massive execution validation for Rajesh Power's underground cabling capabilities. Coming on the heels of several large-scale wins earlier in the fiscal year, the company continues to establish a formidable market share in Gujarat's grid modernization infrastructure. While home-state utility concentration remains high, their specialized execution capability in high-voltage turnkey projects mitigates typical margin dilution seen in standard civil EPC environments.

Market Implications

With state discoms consistently investing in loss-reduction projects, grid infrastructure and cabling players are seeing strong tailwinds. This order confirms that public sector utility capex remains highly resilient. For Rajesh Power, this translates into elevated asset utilization and robust top-line momentum over the next 24 months.

Trading Signals

Market Bias: Bullish

The addition of a ₹362.82 crore contract, combined with a Positive outlook revision from CRISIL and a solid backlog of ₹3,741.79 crore, underscores exceptionally strong operational momentum.

Overweight: Power Infrastructure (EPC), Electrical Equipment

Trigger Factors:

• Execution milestones on the Jamnagar cabling network
• Official filing of Q1 FY27 results to confirm margin sustainability

Time Horizon: Near-term (0-3 months)

Industry Context

India's power transmission and distribution (T&D) sector is undergoing structural upgrades to improve distribution efficiency and weather-proof networks. Overhead to underground conversion projects are key priorities for discoms like PGVCL. Rajesh Power operates in this competitive, bid-driven landscape, where maintaining stable EBITDA margins of 11-12% is critical for translating large order books into cash flows.

Key Risks to Watch

• High concentration risk with Gujarat discoms, leaving the company vulnerable to state policy shifts.
• Execution challenges such as local municipal permissions and right-of-way issues could strain execution timelines over the 24-month horizon.

Recent Developments

Recent developments include securing a ₹75.05 crore RVPNL substation order on July 27, 2026, a ₹40.58 crore turnkey cabling order from PGVCL on July 22, 2026, and a massive ₹653.12 crore underground power distribution order from PGVCL on July 9, 2026.

Closing Insight

Rajesh Power's consistent flow of high-value cabling contracts demonstrates strong execution capability and institutional trust. Backed by an upgraded rating outlook from CRISIL and an expansive order book, the company is fundamentally well-positioned to ride India's T&D modernization wave.

High Performance Trading with SAHI.