Rajesh Power FY26: Fast execution, rising scale, and a wider platform

Rajesh Power Services Limited closed FY26 with another year of sharp scale-up in its core transmission and distribution EPC franchise. Total revenue for FY26 stood at 1,627.94 crore, up 51.85 percent from FY25. Operating profitability expanded faster than revenue, with EBITDA excluding other income at 197.16 crore, up 59.14 percent year on year, and an EBITDA margin of 12.11 percent versus 11.56 percent last year. Profit after tax rose to 143.20 crore, up 49.19 percent, with a PAT margin of 8.80 percent.

The second half of the year kept that pace. H2FY26 revenue grew 30 percent year on year to 990.12 crore. EBITDA excluding other income increased 31 percent to 113.22 crore, while maintaining an 11.44 percent margin. PAT rose 26 percent to 84.42 crore. Management attributed the H2 performance to project execution supported by a diversified order book, alongside cost control that reduced employee and other expenses as a share of activity.

A key point for investors is that Rajesh Power is now operating at a very different scale than it did two years ago. Revenue rose from 285 crore in FY24 to 1,628 crore in FY26. Over the same period, ROCE improved to 43.65 percent in FY26 from 31.42 percent in FY24, and the balance sheet shows net worth growing to 406.17 crore as of 31 March 2026.

Execution momentum across distribution and transmission

Rajesh Power’s execution track record sits at the center of the equity story. The company positions itself as a turnkey EPC specialist with end-to-end capability across design, engineering, procurement, execution, and commissioning. It operates across EHV, HV, MV, and LV underground cable systems, transmission lines, and substations, and it also provides fault detection, rectification, and O&M services.

The company’s cumulative execution record indicates the depth of its distribution business and the growth of its transmission footprint. In power distribution, it has executed and is executing 14,500 plus ring main units, 6,200 plus distribution transformers, 51,000 plus kilometers of MVCC, and 10,500 plus kilometers of LT cables. In power transmission, it has executed and is executing 16 plus gas insulated substations, 100 plus air insulated substations, and 2,550 plus kilometers of EHV cable.

FY26 execution highlights underline the range of work. Completed projects included a 132 kV GIS substation under RVPN, a traction substation for Indian Railways at Lalgarh, multiple substation projects in Rajasthan, and GIS bay equipment work for GETCO. On the distribution side, network strengthening milestones included 350 feeders installed, 4,000 plus ring main units installed, 1,200 distribution transformers installed, and 1,300 kilometers of cables laid.

This emphasis on underground cabling and distribution-linked EPC is also presented as a structural advantage. The company frames this work as right-of-usage with minimal right-of-way exposure, typically reducing delay risk relative to conventional transmission projects. It also highlights execution cycles of 18 to 24 months, which can matter for both working capital rotation and the ability to recycle capacity into fresh orders.

Financial profile: scaling with returns and a steadier capital structure

FY26 shows a company that is scaling while still reporting high returns. ROCE improved to 43.65 percent and ROE remained strong at 35.26 percent. Debt to equity stood at 0.31 in FY26 versus 0.29 in FY25, materially lower than earlier years when leverage was closer to 1.0.

The profit and loss statement shows the expansion is operationally led. Revenue from operations rose to 1,627.94 crore in FY26 from 1,072.07 crore in FY25. Finance costs declined to 10.90 crore in FY26 from 15.02 crore in FY25, even as the business scaled, suggesting better funding efficiency or mix. Profit before tax after exceptional items rose to 195.64 crore from 122.41 crore.

The balance sheet reflects the cost of growth and the nature of EPC working capital. Total assets increased to 942.43 crore from 556.97 crore in FY25. Trade receivables rose to 348.77 crore from 181.71 crore, inventories increased to 124.95 crore from 62.85 crore, and trade payables rose to 328.32 crore from 120.51 crore. Cash and bank balances stood at 65.45 crore in FY26 versus 49.04 crore in FY25.

The company also adopted Indian Accounting Standards effective 1 April 2025, and FY25 and H2 numbers are presented on a consolidated basis due to the conversion of HKRP Innovations from an LLP to a public limited company, in which Rajesh Power holds a 25.48 percent stake.

Order book strength and a broader strategy: GIS, BESS, rail, and digital

The operational narrative is supported by an order book that remains large relative to current revenue. As of 31 March 2026, the unexecuted consolidated order book plus L1 stood at 3,326 crore. Power distribution accounted for 71 percent, while power transmission represented 29 percent. FY26 order inflow was 2,743 crore. Beyond awarded work, bids awaiting result stood at 2,200 crore and the bid pipeline at 3,500 crore, indicating an active funnel.

The strategic updates during H2FY26 show how the company is trying to widen its addressable opportunity while staying close to its execution strengths.

One pillar is stepping up in high voltage GIS. The company reported entry into the 400 kV GIS segment with landmark orders of 278 crore. This matters because it signals participation in higher voltage infrastructure where technical qualification and delivery capability are critical.

A second pillar is moving into utility-scale energy storage. Rajesh Power signed a Battery Energy Storage Purchase Agreement with Gujarat Urja Vikas Nigam Limited for a 65 MW and 130 MWh project at Virpore, Gujarat. The contract structure is a 12-year BESPA with a tariff of 1.89 lakh per MW per month, awarded through competitive bidding under Phase VII with viability gap funding support via PSDF. Strategically, the company framed this as its first utility-scale BESS project and a formal entry into next-generation energy infrastructure, with potential for long-term annuity revenue and an EPC opportunity set as BESS demand expands across states.

A third pillar is adjacent infrastructure in railways. The company entered into a joint venture with VITS Total Power Solutions, with Rajesh Power as the lead partner holding 51 percent, to execute a 132 kV railway transmission project for East Central Railway. For investors, this is a sign of targeted diversification, with rail electrification and transmission seen as a high-value segment where execution track record can be portable.

The final pillar is technology and grid digitization via HKRP Innovations. The group company provides IoT and SCADA solutions for smart grids and smart renewables, including advanced distribution management systems and feeder-level monitoring hardware and software. HKRP executed a project centralizing more than 1,500 distribution substations on a single SCADA platform under GETCO. Rajesh Power positions this as a technology-driven execution layer and a step toward being an integrated power infrastructure plus technology company.

This strategy also links to the policy environment. The presentation references Draft National Electricity Policy 2026, highlighting emphasis on transmission expansion, renewable integration, energy storage, distribution modernization including underground cabling, and cybersecurity and grid operations. For Rajesh Power, the policy direction supports visibility for EHV and HV EPC work, RE evacuation, storage-linked projects, and urban distribution upgrades.

What FY26 signals for investors

FY26 reinforces a consistent theme: Rajesh Power is scaling on the back of faster-cycle distribution and underground cabling execution while selectively moving up the value chain in transmission, storage, rail, and grid technology. The financial profile shows strong growth with expanding EBITDA margins and high ROCE, while the order book provides a buffer for near-term execution.

Investors should watch how the company manages working capital as scale increases, since receivables, inventory, and payables all expanded materially during FY26. At the same time, the company’s pipeline, rating upgrade by CRISIL for bank facilities, and stated focus on selective scaling suggest management is trying to grow without losing control of returns.

The near-term picture remains centered on disciplined execution and conversion of a distribution-heavy order book. The medium-term narrative broadens through 400 kV GIS, a 12-year BESS agreement with a state utility, a railway transmission joint venture, and a technology platform that has already demonstrated scale through large SCADA deployment. If execution stays consistent, FY26 looks less like a peak year and more like a base year for a larger, more diversified power infrastructure platform.