Rajesh Power Services Limited H1FY27 revenue rises 46%, margins narrow

Rajesh Power Services reported revenue from operations of Rs 929.26 crore in H1FY27, up 45.69% year on year, as project execution and its diversified order book supported growth. Profit after tax rose 34.77% to Rs 79.22 crore, but EBITDA margin declined to 12.02% from 13.16% and PAT margin fell to 8.53% from 9.22%.

How did Rajesh Power Services’ H1FY27 revenue and profit change?

Rajesh Power Services increased revenue from operations by Rs 291.44 crore to Rs 929.26 crore in H1FY27 from Rs 637.82 crore in H1FY26. Total income rose 45.58% to Rs 931.85 crore from Rs 640.07 crore. Management attributed the revenue increase to project execution and a well-diversified order book, without identifying a single project or customer as the driver.

EBITDA, excluding other income, increased by Rs 27.76 crore, or 33.07%, to Rs 111.69 crore in H1FY27. Profit before tax rose 30.87% to Rs 106.26 crore from Rs 81.20 crore, while profit after tax, or PAT, increased by Rs 20.44 crore to Rs 79.22 crore. Earnings per share rose 35% to Rs 43.99 from Rs 32.64.

Why did Rajesh Power Services’ margins decline despite higher profit?

Rajesh Power Services’ margins narrowed because revenue grew faster than its reported operating and net profit measures. Revenue rose 45.69%, compared with EBITDA growth of 33.07% and PAT growth of 34.77%; consequently, EBITDA margin fell by 1.14 percentage points to 12.02% and PAT margin declined by 0.69 percentage points to 8.53%.

The presentation does not provide an H1FY27 expense-category breakdown explaining the margin movement. It shows that full-year FY26 EBITDA margin was 12.11%, close to the H1FY27 level of 12.02%, while FY26 PAT margin was 8.80%, above H1FY27’s 8.53%. The disclosed results therefore show higher absolute earnings but lower margins than H1FY26.

How does H1FY27 compare with Rajesh Power Services’ FY26?

Rajesh Power Services’ H1FY27 revenue of Rs 929.26 crore was more than half of FY26 revenue from operations of Rs 1,627.94 crore. H1FY27 EBITDA of Rs 111.69 crore was also more than half of FY26 EBITDA of Rs 197.16 crore, while H1FY27 PAT of Rs 79.22 crore compared with Rs 143.20 crore for FY26.

The annual series shows different margin movement in the preceding year. In FY26, revenue increased 51.85% from Rs 1,072.07 crore in FY25, EBITDA grew 59.14% to Rs 197.16 crore and PAT rose 48.19% to Rs 143.20 crore. FY26 EBITDA margin increased to 12.11% from 11.56% in FY25, whereas the H1FY27 margin was 12.02%.

Rajesh Power Services stated that FY25 financial numbers are consolidated because HKRP Innovations Limited, in which it holds a 25.48% stake, converted from a limited liability partnership to a public limited company on July 20, 2024. The company adopted Indian Accounting Standards, or Ind AS, effective April 1, 2025, which applies to FY26 figures and affects comparisons with earlier periods.

What changed in Rajesh Power Services’ balance sheet by September 2026?

Rajesh Power Services’ total assets increased to Rs 1,037.30 crore as of September 30, 2026, from Rs 942.43 crore at FY26. Net worth rose by Rs 77.40 crore to Rs 483.57 crore, cash and bank balance increased by Rs 22.68 crore to Rs 88.13 crore, and total current assets rose to Rs 664.33 crore from Rs 579.63 crore.

Trade receivables declined by Rs 24.66 crore to Rs 324.11 crore from Rs 348.77 crore at FY26, while inventories fell by Rs 2.25 crore to Rs 122.70 crore. Short-term borrowings increased by Rs 9.28 crore to Rs 90.87 crore, trade payables rose by Rs 5.95 crore to Rs 334.27 crore, and total current liabilities declined by Rs 2.70 crore to Rs 478.09 crore.

Rajesh Power Services said net worth had grown more than eight times from Rs 58.67 crore in FY23 to Rs 483.57 crore in H1FY27. However, FY23 and FY24 figures are standalone, whereas FY25 onward is consolidated following the HKRP Innovations change. That reporting-basis difference limits direct interpretation of the full three-year movement.

What is Rajesh Power Services planning after H1FY27?

Rajesh Power Services said it intends to pursue opportunities selectively, strengthen execution bandwidth and expand technological capabilities while maintaining a disciplined approach to profitability and returns. Management identified entry into 400 kilovolt gas-insulated switchgear substations, utility-scale battery energy storage systems, railway transmission projects and technology-enabled grid solutions through HKRP Innovations as areas that could broaden its addressable market.

The company disclosed Rs 211.68 crore of orders from Odisha Power Transmission Corporation Limited, or OPTCL, marking its entry into Odisha and one of its largest transmission project wins. It also incorporated Rajesh Power Services NZ Limited as a wholly owned foreign subsidiary in New Zealand, while CRISIL Ratings upgraded the outlook on its long-term bank-facility rating to CRISIL A-/Positive from CRISIL A-/Stable and reaffirmed its CRISIL A2+ short-term rating.

Conclusion

The H1FY27 figures show that Rajesh Power Services expanded its operating scale while profit conversion did not match the rate of revenue growth. The balance sheet also recorded higher assets, net worth and cash, alongside a reduction in trade receivables and inventories from FY26 levels.

The next reported period will indicate whether project execution, including the Rs 211.68 crore OPTCL orders, supports the management plan to expand into 400 kilovolt gas-insulated switchgear, battery storage, railway transmission and grid solutions. Changes in the H1FY27 EBITDA margin of 12.02%, short-term borrowings of Rs 90.87 crore and receivables of Rs 324.11 crore will remain relevant disclosed measures to track.