Rajesh Power Services Limited adds inactive NZ subsidiary

Rajesh Power Services Limited added Rajesh Power Services NZ Limited, a wholly owned New Zealand subsidiary incorporated on August 14, 2026, to its consolidated group. RPSL reported nil assets, revenue, profit or loss and cash flows for the entity at September 30, 2026 because it had not commenced operations; two joint ventures contributed Rs 93.84 lakh of net profit after tax.

What entities are included in RPSL’s consolidated group?

RPSL’s consolidated results at September 30, 2026 include two wholly owned subsidiaries and two joint ventures alongside the parent company. The subsidiaries are Rajesh Power Projects Private Limited, effective from February 28, 2026, and Rajesh Power Services NZ Limited, incorporated on August 14, 2026, with RPSL holding 100% of each entity.

The joint ventures are HKRP Innovations Limited, in which RPSL holds 25.48%, and RPSL-VITS JV, an association of persons in which it holds 51%. The auditor identifies HKRP Innovations Limited as formerly known as HKRP Innovations LLP, while the financial-results note classifies both interests as joint ventures under Indian Accounting Standard 111, or Ind AS 111.

The addition of the New Zealand company expanded RPSL’s legal consolidation perimeter in the half year ended September 30, 2026, but did not add reported operating activity. The statutory auditor said the overseas wholly owned subsidiary had not commenced operations by that date and had nil financial balances for the reported half year.

What did RPSL’s New Zealand subsidiary contribute?

RPSL’s New Zealand subsidiary contributed nil assets, revenue, net profit or loss after tax, comprehensive income or loss, and cash inflows or outflows at September 30, 2026. The auditor described the entity as an overseas wholly owned subsidiary that had not commenced operations after its August 14, 2026 incorporation.

Rajesh Power Projects Private Limited had a different, though still limited, reported financial position at the same date. The Indian wholly owned subsidiary had total assets of Rs 32.28 lakh, nil revenue, a net loss after tax of Rs 5.14 lakh and net cash inflows of Rs 1.80 lakh for the half year ended September 30, 2026.

The comparison shows that the New Zealand entity had no disclosed financial contribution, whereas the Indian subsidiary had assets and a small loss despite recording no revenue. RPSL did not disclose separate products, contracts or operational activity for either subsidiary in the half-year filing.

How do RPSL’s joint ventures affect consolidated profit?

RPSL accounts for HKRP Innovations Limited and RPSL-VITS JV using the equity method, under which investments are presented as one line item and the group’s share of profit or loss is recognised in consolidated profit or loss. The auditor reported the group’s share of the two ventures’ net profit after tax at Rs 93.84 lakh for the half year ended September 30, 2026.

The consolidated financial-results statement records a Rs 93.83 lakh share of profit from joint ventures for the September 2026 half year, against Rs 72.12 lakh in the half year ended September 30, 2025. That represents an increase of Rs 21.71 lakh year on year; the Rs 0.01 lakh difference from the auditor’s amount reflects the figures as separately reported.

RPSL’s consolidated profit after tax increased to Rs 79.22 crore from Rs 58.78 crore, while the joint-venture share increased from Rs 72.12 lakh to Rs 93.83 lakh. The filing does not provide separate revenue, assets or profit figures for HKRP Innovations Limited and RPSL-VITS JV, so their individual financial contributions cannot be identified.

Does RPSL report overseas revenue after adding the NZ subsidiary?

RPSL reported one operating segment, Engineering, Procurement and Construction, or EPC, and said all group revenue came from EPC projects executed only in the domestic market. The company therefore did not present separate operating-segment disclosures under Ind AS 108, the accounting standard covering operating segments.

The New Zealand subsidiary’s August 2026 incorporation did not result in reported foreign revenue in the September 2026 half year. The entity had not begun operations, while RPSL explicitly stated that all group revenue for the period was derived from domestic EPC projects.

Revenue from operations rose to Rs 929.26 crore in the half year ended September 30, 2026 from Rs 637.82 crore in the corresponding 2025 half year. That increase occurred within the domestic EPC revenue base described in the filing, rather than through a separately disclosed overseas operation.

What assurance covers RPSL’s entity-level information?

RPSL’s statutory auditors issued an unmodified limited-review conclusion on the unaudited consolidated results approved by the board on November 2, 2026. The report says a limited review provides moderate assurance and is substantially narrower in scope than an audit.

The auditor did not review the interim financial information of the New Zealand subsidiary, the Indian wholly owned subsidiary or the two joint ventures. Those amounts were based on management-certified interim information, which the auditor said was not material to the group, and the auditor did not modify its conclusion because of this matter.

The company’s explanatory note also says the interim financial information for the two subsidiaries and two joint ventures was management-certified. This is the stated basis for the nil New Zealand balances, the Indian subsidiary’s Rs 32.28 lakh of assets and the joint ventures’ Rs 93.84 lakh contribution to group net profit after tax.

Conclusion

RPSL’s September 2026 consolidated structure includes a newly incorporated New Zealand wholly owned subsidiary, an Indian wholly owned subsidiary and stakes in two joint ventures. The New Zealand company did not contribute assets, revenue, profit or cash movement in its first disclosed half year, while the joint ventures’ share of profit rose to Rs 93.83 lakh from Rs 72.12 lakh a year earlier.

The next disclosure to watch is whether RPSL reports that Rajesh Power Services NZ Limited has commenced operations after September 30, 2026, since it was inactive at that reporting date. Readers can also monitor whether the company continues to derive all EPC revenue from domestic projects and whether management-certified information remains the reported basis for subsidiary and joint-venture figures.