Rajesh Power Services Wins ₹540.92 Crore Gujarat Orders

Rajesh Power Services Limited secured Gujarat electricity distribution contracts worth ₹540.92 crore from two state-owned utilities, taking its order book beyond ₹4,000 crore. The contracts, to be executed over 12 and 18 months, add to revenue visibility for the power transmission and distribution EPC company.

What orders has Rajesh Power Services won in Gujarat?

Rajesh Power Services has received two new orders from Madhya Gujarat Vij Company Limited (MGVCL) and Uttar Gujarat Vij Company Limited (UGVCL). The awards were disclosed in an exchange filing on October 15, with their combined value reported at ₹540.92 crore, inclusive of applicable taxes.

The larger ₹471.92 crore contract came from MGVCL for strengthening electricity distribution infrastructure at various locations across Gujarat. Rajesh Power Services is required to execute this project within 18 months. The company said the work includes conversion of existing 11 kV high-tension overhead lines into medium-voltage covered conductor systems and underground cable networks under MGVCL's SI Scheme Robust-III.

UGVCL awarded the second contract, valued at ₹69.004 crore, through a Letter of Acceptance dated October 13, 2026. This domestic turnkey contract covers the shifting of existing electricity network infrastructure at multiple locations and has a 12-month execution period.

Together, the two awards were secured within a week. They strengthen Rajesh Power Services' presence in Gujarat, where it operates in the power transmission and distribution engineering, procurement and construction, or EPC, segment.

What does the UGVCL contract cover?

The UGVCL order requires Rajesh Power Services to shift existing electrical networks in specified subdivisions within the Sabarmati and Mehsana circles. The locations named in the disclosure are Adalaj, Kalol-1, Kalol-2, Kalol-T, Chhatral and Jagudan.

The assignment covers the full turnkey cycle, including site surveys, design, engineering, procurement, supply, transportation, installation, testing, commissioning and documentation. It also includes GIS mapping, Geo Urja Mapping developed by Gujarat Urja Vikas Nigam Limited, or GUVNL, and asset tagging under the ND Scheme.

This means the scope combines physical network relocation with mapping and identification of electricity assets. The reported consideration of ₹69.004 crore includes welfare cess and goods and services tax. The disclosure did not provide a separate cost split between the electrical shifting work, mapping activities and asset tagging.

UGVCL is a subsidiary of GUVNL, while MGVCL is also a Gujarat government-owned power distribution company. The two contracts therefore place Rajesh Power Services with utilities operating within the state's electricity distribution system.

How do the orders affect Rajesh Power Services' order book?

The new contracts have taken Rajesh Power Services' aggregate order book beyond ₹4,000 crore, according to Chairman and Managing Director Kurang Panchal. The company had described its order book as approximately ₹4,000 crore while discussing its revenue visibility for the coming quarters.

Panchal said the two back-to-back awards reflected the confidence Gujarat's distribution utilities place in the company's execution capabilities. The orders provide defined work schedules, with the MGVCL project due in 18 months and the UGVCL project due in 12 months.

For an EPC contractor, an order book represents contracted work that is yet to be executed. The reported increase matters because revenue from such projects is linked to progress in design, supply, installation, testing and final commissioning, subject to the underlying contract terms.

The company has said it has a presence across Gujarat, Rajasthan, Uttarakhand, Maharashtra, Madhya Pradesh and Odisha. The Gujarat awards add to its existing regional pipeline in the transmission and distribution sector, but the source does not provide project-wise revenue recognition schedules or margins for these new orders.

What was Rajesh Power Services' September-quarter performance?

Rajesh Power Services reported consolidated net profit of ₹79.22 crore for the July-September quarter of FY27, up 35% year on year. The profit increase was reported alongside higher total income during the quarter.

Total income rose about 46% year on year to ₹931.84 crore in the September quarter, compared with ₹640.07 crore in the corresponding quarter of the previous year. The company attributed the improvement in profit to revenue growth.

The quarterly figures provide context for the importance of the latest contracts. The company has reported both higher income and profit, while the new orders add a further ₹540.92 crore of contracted work to the stated order book.

Why do Gujarat distribution projects matter to the EPC sector?

The MGVCL and UGVCL assignments show the range of work involved in electricity distribution infrastructure. The MGVCL project focuses on strengthening networks, including covered conductors and underground cables, while the UGVCL project combines network shifting with digital mapping and asset tagging.

Rajesh Power Services has previously received a ₹143.11 crore turnkey contract from Dakshin Gujarat Vij Company Limited in September 2025 for power network modernisation involving underground cabling. The latest two orders continue the company's engagement with Gujarat distribution utilities.

Execution will be a key operational factor because the disclosed scopes include engineering, material procurement, installation, testing and commissioning. The contracts also have different completion timelines, requiring delivery within 12 months for UGVCL and 18 months for MGVCL.

For investors, the disclosed data establishes the value of the awards, project scope and expected execution periods. The source does not state the contracts' margins, billing milestones or the precise timing at which their value will be recognised as income.

Conclusion

Rajesh Power Services has added ₹540.92 crore of Gujarat electricity distribution work through contracts from MGVCL and UGVCL. The awards take its reported order book beyond ₹4,000 crore and follow a September quarter in which total income rose about 46% to ₹931.84 crore and consolidated net profit increased 35% to ₹79.22 crore.

The next points to watch are execution of the 12-month UGVCL assignment and the 18-month MGVCL project, along with future disclosures on project progress and order-book conversion. The company's stated presence across six states and its reported order backlog remain central to its revenue visibility in the coming quarters.