Rajesh Power Services Limited H1 profit rises 35% on revenue

Rajesh Power Services Limited reported consolidated profit after tax of Rs 79.2229 crore for the half year ended September 30, 2026, up 34.8% from Rs 58.7823 crore a year earlier. Revenue from operations rose 45.7% to Rs 929.2609 crore, while profit before tax increased 30.9% to Rs 106.2663 crore.

How did Rajesh Power Services perform in the September 2026 half year?

Rajesh Power Services reported higher revenue and profit than in the half year ended September 30, 2025. Revenue from operations increased by Rs 291.4429 crore from Rs 637.818 crore to Rs 929.2609 crore, while total income, including other income, rose to Rs 931.8465 crore from Rs 640.0733 crore.

Profit before tax reached Rs 106.2663 crore, compared with Rs 81.2002 crore in the preceding-year half. Profit after tax increased by Rs 20.4406 crore to Rs 79.2229 crore. Basic and diluted earnings per share, which the company said were not annualised for half-year periods, rose to Rs 43.99 from Rs 32.64.

The September 2026 half year was below the immediately preceding half year ended March 31, 2026, when revenue from operations was Rs 990.1247 crore and profit after tax was Rs 84.4171 crore. It nevertheless recorded year-on-year growth across revenue, profit before tax and profit after tax.

What drove Rajesh Power Services’ earnings increase?

Rajesh Power Services’ increase in profit before tax reflected revenue growth exceeding the rise in its aggregate expense base. Revenue from operations rose Rs 291.4429 crore year on year, while total expenses increased Rs 266.9242 crore to Rs 826.5185 crore, resulting in profit before joint-venture profit, exceptional items and tax of Rs 105.328 crore.

The group recognised a Rs 0.9383 crore share of profit from joint ventures in the September 2026 half year, compared with Rs 0.7212 crore in the corresponding 2025 period. It reported no exceptional items in either September half year, leaving profit before tax at Rs 106.2663 crore before a total tax expense of Rs 27.0434 crore.

Other income rose to Rs 2.5856 crore from Rs 2.2553 crore. Total comprehensive income was Rs 79.2052 crore, against Rs 58.7823 crore a year earlier, after other comprehensive loss of Rs 0.0177 crore in the latest period.

Rajesh Power Services accounts for its interests in HKRP Innovations Limited and RPSL-VITS JV as joint ventures under the equity method. Under that mechanism, the group’s share of joint-venture profit or loss is recognised in profit or loss, which explains the separate Rs 0.9383 crore contribution in the consolidated statement.

How did Rajesh Power Services’ costs and finance charges change?

Rajesh Power Services’ cost of materials consumed rose 44.0% to Rs 748.6462 crore from Rs 519.7824 crore, remaining the largest disclosed expense. Employee benefits expense declined to Rs 28.3922 crore from Rs 36.5742 crore, while other expenses increased to Rs 38.2906 crore from Rs 23.2574 crore.

Finance cost increased to Rs 8.3591 crore from Rs 5.1766 crore, and depreciation and amortisation increased to Rs 0.5864 crore from Rs 0.5343 crore. The expense movements accompanied the 45.7% rise in revenue from operations and contributed to the 47.7% increase in total expenses.

The tax charge was Rs 27.0434 crore, compared with Rs 22.4179 crore in the prior-year half. Current tax increased to Rs 28.5353 crore from Rs 21.4568 crore, while deferred tax was income of Rs 1.4919 crore, against income of Rs 3.2338 crore a year earlier.

What do Rajesh Power Services’ assets and cash flows show?

Rajesh Power Services had total assets of Rs 1,037.2993 crore at September 30, 2026, compared with Rs 942.4298 crore at March 31, 2026. Current assets rose to Rs 664.3274 crore from Rs 579.6285 crore, while total equity increased to Rs 483.5723 crore from Rs 406.1678 crore.

Cash and cash equivalents increased to Rs 3.6525 crore from Rs 1.3452 crore over the same period. Trade receivables declined to Rs 324.1139 crore from Rs 348.7721 crore and inventories fell to Rs 122.7022 crore from Rs 124.9462 crore, while bank balances other than cash and cash equivalents rose to Rs 84.4786 crore from Rs 64.1072 crore.

Net cash generated from operating activities was Rs 8.6923 crore in the half year ended September 30, 2026, compared with net cash used in operating activities of Rs 22.4067 crore in the corresponding 2025 period. Cash generated from operations was Rs 42.1082 crore before net income-tax payments of Rs 33.4159 crore.

Investing activities used Rs 20.5956 crore, including Rs 20.2017 crore of bank deposits placed. Financing activities generated Rs 14.2106 crore, supported by Rs 19.2895 crore of long-term borrowing proceeds; non-current borrowings stood at Rs 60.5817 crore and current borrowings at Rs 90.8664 crore at September 30, 2026.

What business does Rajesh Power Services report?

Rajesh Power Services reports a single operating segment: Engineering, Procurement and Construction (EPC). The group said all of its revenue in the September 2026 half year came from domestic EPC projects, so it did not provide separate segment disclosures.

The consolidated results include Rajesh Power Projects Private Limited, a wholly owned subsidiary from February 28, 2026, and Rajesh Power Services NZ Limited, a wholly owned subsidiary incorporated on August 14, 2026. The company said Rajesh Power Services NZ Limited had not commenced operations by September 30, 2026.

The results were reviewed by the audit committee and approved by the board on November 2, 2026. The statutory auditors issued an unmodified limited-review conclusion on the unaudited consolidated financial results for the half year ended September 30, 2026.

Conclusion

Rajesh Power Services translated a 45.7% increase in revenue from operations into a 34.8% rise in consolidated profit after tax for the half year ended September 30, 2026. Higher materials and other expenses, together with a higher finance cost, accompanied the revenue expansion, while operating cash flow moved to an inflow from a prior-year outflow.

The next disclosed matter to watch is the use of initial public offering proceeds allocated to battery energy storage system facility setup and associated infrastructure. As of September 30, 2026, Rs 25.1083 crore assigned to that modified object remained unutilised, while Rajesh Power Services NZ Limited had yet to begin operations.