Rajesh Power Services Limited: Powering Ahead with Robust H1 FY26 Performance and Strategic Expansion

Rajesh Power Services Limited, a prominent integrated Turnkey EPC player in India's power transmission and distribution (T&D) sector, has announced an impressive financial performance for the half year ended September 30, 2025 (H1 FY26). The company demonstrated significant growth across key financial metrics, reinforcing its position as a vital contributor to India's energy infrastructure development. Revenue from operations surged by 104% year-on-year to ₹637.82 crore, while EBITDA (excluding other income) witnessed a substantial 126% increase to ₹83.93 crore. Profit After Tax (PAT) also saw a remarkable jump of 99%, reaching ₹58.78 crore. These figures underscore the company's strong operational execution and strategic initiatives.

The robust financial results are a testament to Rajesh Power Services Limited's well-planned project execution and a diversified order book. The company's core business revolves around providing end-to-end solutions in the power T&D sector, including EHV Cables & Transmission Lines, EHV Substations, and MV/HV/LV Distribution Systems. Furthermore, its Operations, Engineering & Maintenance (OEM) business, covering EHV Substation Operation & Maintenance and LT & HT systems Operations & maintenance, continues to contribute significantly. The company's expertise spans the entire voltage spectrum, from low-tension cables (1.1 kV) to extra-high voltage underground cables up to 220 kV, a unique capability that enables it to qualify for major power transmission and distribution projects across India.

Strategic Growth and Market Expansion

Rajesh Power Services Limited is not just focused on current performance but is actively shaping its future growth trajectory through strategic initiatives and geographic expansion. A significant highlight includes the signing of multiple Memorandums of Understanding (MoUs) with the Government of Gujarat at the Vibrant Gujarat Regional Conference 2025. These MoUs, valued at ₹4,754 crore, are aimed at converting overhead High Tension (HT) lines into underground cable networks across Gujarat. This initiative is expected to create over 33,000 employment opportunities and substantially strengthen the state's power infrastructure.

The company has also made a strategic entry into the 400 kV Gas Insulated Substation (GIS) segment, securing landmark orders worth ₹278 crore. This move significantly enhances its capabilities in high-voltage GIS and positions it to participate in multi-central power grid and state-level projects. Furthermore, Rajesh Power Services Limited secured new turnkey orders worth ₹922 crore from Uttar Gujarat Vij Company Limited (UGVCL) for converting 11kV HT overhead networks into underground cable systems and installing 11kV MVCC across various UGVCL circles, further solidifying its presence in distribution modernization.

Innovation and Financial Health

Innovation is a cornerstone of Rajesh Power Services Limited's strategy. The company holds a 25.48% stake in HKRP Innovations Limited, an innovative entity specializing in Smart Energy Management solutions. HKRP offers IoT and SCADA solutions for Smart Grid and Smart RE sectors, including advanced systems for feeder management, solar energy data management, and GIS mapping. HKRP closed FY25 with approximately INR 170 crore in top line and 18-20% PAT margins, with expectations for double-digit growth this year, backed by an order book of INR 350-400 crore. This investment underscores Rajesh Power Services Limited's commitment to driving power sector innovation through technology.

Financially, the company maintains a healthy balance sheet. Its Debt-to-Equity ratio stood at a low 0.26 in September 2025, reflecting prudent financial management. CRISIL Ratings has also upgraded the company's bank facilities to 'CRISIL A-/Stable' for Long Term and 'CRISIL A2+' for Short Term, indicating improved financial health and creditworthiness. The unexecuted order book, including L1 orders, stands at a robust ₹3,502 crore as of September 30, 2025, providing strong revenue visibility for the coming periods. The management anticipates achieving a CAGR of around 40% across all key metrics over the next few years, driven by a well-diversified order book and strategic project execution.

Outlook and Commitment

Rajesh Power Services Limited is actively expanding its geographic footprint beyond its core market of Gujarat, with successful entries into Rajasthan and Uttarakhand, and ongoing projects in Madhya Pradesh, Orissa, and Jharkhand. This expansion strategy aims to capitalize on the vast opportunities presented by the Indian government's ambitious plan to enhance power transmission infrastructure, with a total capital expenditure of ₹9.12 lakh crore earmarked by 2032. The company's focus on quality, operational efficiency, and sustainable growth, coupled with its commitment to timely project delivery, positions it as a trusted partner in India's energy transition journey. The management remains confident in its ability to sustain strong growth, deliver value to stakeholders, and contribute significantly to building a smarter, more resilient power infrastructure for the nation.