Rajesh Power revenue rose nearly eightfold, ROCE reached 43.65%

Rajesh Power Services Ltd. reported revenue from operations of Rs 1,627.94 crore in FY26, up from Rs 207.18 crore in FY23, while return on capital employed reached 43.65% from 16.57%. Profit after tax rose to Rs 143.20 crore from Rs 6.70 crore, although reporting moved from standalone to consolidated figures after FY24.

How quickly did Rajesh Power's revenue expand from FY23 to FY26?

Rajesh Power's revenue from operations increased by Rs 1,420.76 crore between FY23 and FY26, reaching Rs 1,627.94 crore from Rs 207.18 crore. Revenue rose to Rs 284.97 crore in FY24, then reached Rs 1,072.07 crore in FY25. The FY26 amount was 7.9 times the reported FY23 level, with the largest annual increase, Rs 787.10 crore, occurring between FY24 and FY25.

Total income increased from Rs 211.18 crore in FY23 to Rs 1,633.41 crore in FY26, while total expenses rose from Rs 202.58 crore to Rs 1,442.82 crore. Cost of goods sold grew from Rs 164.56 crore to Rs 1,329.50 crore over the period. As a result, profit before exceptional items and tax increased to Rs 190.59 crore in FY26 from Rs 8.60 crore in FY23.

How did Rajesh Power's profitability change by FY26?

Rajesh Power reported earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 197 crore in FY26, compared with Rs 14 crore in FY23. EBITDA margin increased to 12.1% from 6.8%, after reaching 11.9% in FY24 and 11.6% in FY25. The FY26 margin was therefore 5.3 percentage points above FY23 and 0.5 percentage points above FY25.

Profit after tax increased to Rs 143.20 crore in FY26 from Rs 6.70 crore in FY23, while the annualised performance presentation shows profit after tax margin at 8.8%, compared with 3.2%. That margin was below the 9.1% reported for FY24 and 9.0% for FY25. Tax expense rose from Rs 1.89 crore in FY23 to Rs 52.44 crore in FY26 as profit before tax after exceptional items reached Rs 195.64 crore.

Finance costs were Rs 10.90 crore in FY26, below Rs 15.02 crore in FY25 but above Rs 8.47 crore in FY23. Employee benefit expenses increased from Rs 21.28 crore in FY23 to Rs 59.01 crore in FY26, and other expenses rose from Rs 7.33 crore to Rs 42.27 crore. Depreciation and amortisation expense was Rs 1.14 crore in FY26, compared with Rs 0.94 crore in FY23.

What happened to Rajesh Power's returns and funding measures?

Rajesh Power's return on capital employed, or ROCE, increased in each reported year, moving from 16.57% in FY23 to 31.42% in FY24, 39.67% in FY25 and 43.65% in FY26. Return on equity rose from 11.43% in FY23 to 35.26% in FY26, although it was 36.48% in FY25. The FY26 ROCE increase therefore continued even as return on equity was 1.22 percentage points below its FY25 level.

The debt-to-equity ratio fell from 1.02 in FY23 to 0.31 in FY26, after reaching 0.92 in FY24 and 0.29 in FY25. Net worth increased from Rs 58.67 crore to Rs 406.17 crore during the same period. Short-term borrowings rose from Rs 15.94 crore in FY23 to Rs 81.59 crore in FY26, including an increase from Rs 28.90 crore in FY25.

How did Rajesh Power's balance sheet change through FY26?

Rajesh Power's total assets increased by Rs 748.40 crore, from Rs 194.03 crore in FY23 to Rs 942.43 crore in FY26. Total current assets rose from Rs 173.63 crore to Rs 579.63 crore, while total non-current assets increased from Rs 20.39 crore to Rs 362.80 crore. Fixed assets were broadly stable at Rs 19.26 crore in FY26, compared with Rs 19.01 crore in FY23.

Trade receivables increased from Rs 76.26 crore in FY23 to Rs 348.77 crore in FY26, while inventories rose from Rs 36.86 crore to Rs 124.95 crore. Cash and bank balance increased to Rs 65.45 crore from Rs 0.24 crore. On the liabilities side, trade payables rose from Rs 31.16 crore to Rs 328.32 crore and total current liabilities increased from Rs 91.00 crore to Rs 480.79 crore.

Are Rajesh Power's FY23-to-FY26 figures fully comparable?

Rajesh Power's FY23 and FY24 figures are presented on a standalone basis, while FY25 figures are consolidated. The presentation links the FY25 reporting change to the July 20, 2024 conversion of HKRP Innovations Limited, formerly HKRP Innovations LLP, into a public limited company. Rajesh Power holds a 25.48% stake in HKRP Innovations Limited, and FY25 includes Rs 9.75 crore as share of profit and loss of associates and joint ventures.

Rajesh Power adopted Indian Accounting Standards, or Ind AS, effective April 1, 2025. The presentation says the half year ended September 30, 2024 and the year ended March 31, 2025 were restated to comply with Ind AS. The reported rise in revenue, profit and returns therefore spans a change in both reporting perimeter and accounting framework after FY24.

The document also shows a difference in FY26 earnings per share, or EPS, between two pages. The detailed profit-and-loss statement reports Rs 79.46, while the annualised financial performance page reports Rs 79.52; both show FY25 EPS of Rs 59.75. The presentation does not explain this difference.

What is Rajesh Power planning after FY26?

Rajesh Power management said H1FY27 delivered 46% growth, without specifying the measure, and cited execution capabilities, order-book quality and a larger operating scale. Management said it plans to pursue opportunities selectively, increase execution bandwidth, expand technological capabilities and maintain a disciplined approach to profitability and returns.

The stated expansion areas are 400 kilovolt gas-insulated switchgear substations, utility-scale battery energy storage systems, railway transmission projects and technology-enabled grid solutions through HKRP Innovations. Rajesh Power says its underground-cabling projects typically run for 18 to 24 months. Its supervisory control and data acquisition systems manage more than 1,500 substations, according to the presentation.

Conclusion

Rajesh Power's FY23-to-FY26 record shows revenue increasing from Rs 207.18 crore to Rs 1,627.94 crore, alongside higher reported profit and a ROCE rise from 16.57% to 43.65%. Net worth reached Rs 406.17 crore and total assets reached Rs 942.43 crore in FY26, while the debt-to-equity ratio was 0.31.

The next disclosed developments to watch are management's H1FY27 growth statement and its plans for 400 kilovolt gas-insulated switchgear, battery energy storage, railway transmission and digital-grid work. Comparisons with FY26 should also account for the standalone-to-consolidated reporting shift from FY25 and Ind AS adoption effective April 1, 2025.