Rajesh Power Services Secures ₹864.8 Crore In Q1 Project Wins

Market snapshot: Rajesh Power Services Limited has reportedly secured a new contract valued at ₹34 crore (as stated in the source alert; not independently verified). While this specific contract remains unverified, the company's broader operational momentum is exceptionally strong, having recently announced Q1 FY26-27 business updates featuring substantial new project wins and an expanded order book.

Data Snapshot

• The company reported unaudited revenue from operations of ₹436.62 crore for Q1 FY26-27.
• The unexecuted order book stood at ₹3,741.79 crore as of June 30, 2026, providing high revenue visibility.
• New project wins secured during the first quarter of FY26-27 totaled ₹864.8 crore.

What's Changed

• The unexecuted order book grew to ₹3,741.79 crore as of June 30, 2026, reflecting an increase of approximately 12.5% QoQ (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.

Key Takeaways

• Robust Revenue Visibility: With an order book of ₹3,741.79 crore against trailing annual revenues, the company secures stable long-term growth.
• Geographical Diversification: The company successfully entered the Odisha transmission market with a large project win of ₹211.68 crore from OPTCL, reducing its historical 95% revenue concentration in Gujarat.
• Strong State Client Relationships: Secured ₹653.12 crore in underground power distribution orders from PGVCL, highlighting its dominant positioning in Gujarat's state utility upgrades.

SAHI Perspective

Rajesh Power's transition from a Gujarat-centric EPC player to a multi-state operator is materializing. Historically, the company relied on Gujarat for nearly 95% of its revenues. The entry into Odisha with a ₹211.68 crore transmission project represents a successful geographical pivot. Furthermore, the massive order-to-market-cap ratio indicates aggressive scaling, though the core operational challenge remains executing these complex projects within tight margins amidst competitive bidding.

Market Implications

The accelerating shift towards underground cabling and GIS substations by state DISCOMs is creating high-margin opportunities for specialised EPC contractors. This structural transition supports steady order inflows for technically capable contractors, helping offset pricing pressures from competitive tender processes.

Trading Signals

Market Bias: Bullish

Supported by strong order book expansion to ₹3,741.79 crore and massive Q1 FY27 project inflows of ₹864.8 crore. Combined with CRISIL's outlook revision to Positive, the financial and operational visibility remains strong.

Overweight: Power Infrastructure, EPC Construction

Trigger Factors:

• Execution timeline updates for the major ₹653.12 crore PGVCL project
• Further order inflows from non-Gujarat state utilities
• Margin performance in upcoming Q1 FY27 detailed earnings release

Time Horizon: Medium-term (3-12 months)

Industry Context

India's power transmission and distribution sector is undergoing rapid modernisation. Under initiatives like the Revamped Distribution Sector Scheme (RDSS), state-owned DISCOMs are aggressively converting overhead networks to underground cable systems to reduce AT&C losses and improve grid reliability. This provides secular tailwinds for players like Rajesh Power Services, though execution capabilities and raw material price stability remain critical.

Key Risks to Watch

• Execution Risks: Delays in project implementation can lead to cost overruns, impacting profitability.
• Raw Material Cost Inflation: Volatility in copper and aluminum prices could compress EPC margins on fixed-price contracts.
• Working Capital Requirements: Infrastructure projects require substantial bank guarantees and capital, potentially stressing liquidity if execution cycles stretch.

Recent Developments

Rajesh Power Services disclosed its Q1 FY26-27 business update on July 16, 2026, highlighting ₹436.62 crore in revenue and a ₹3,741.79 crore order book. Earlier in July, the company secured orders worth ₹653.12 crore from PGVCL. Additionally, CRISIL Ratings revised the outlook on the company's long-term bank facilities to Positive from Stable on July 13, 2026.

Closing Insight

Rajesh Power is capitalizing on the power grid modernization wave. While execution remains the key metric to watch, its expanding multi-state order book and improved credit profile position it well for the next phase of growth.

High Performance Trading with SAHI.