Rajesh Power Services Wins ₹69 Crore UGVCL Order, Taking Two Back-to-Back Gujarat Wins to ₹540.92 Crore in a Week
Most people only notice the power grid when it goes down, but behind every uninterrupted supply is a distribution network of cables, transformers, feeders and substations that need constant upgrading. State utilities rarely do this work themselves, but instead award turnkey contracts to specialist engineering firms to design, supply, install and commission. Utilities tend to give repeat orders to contractors with a good track record, because they care more about reliability than a few dollars off the price.
The Nifty 50 closed at 22,622.70, down 0.44%, while the Sensex fell 0.34% to 72,781.89 on Wednesday. Meanwhile, Shares of Rajesh Power Services were closed at Rs. 795.85, up 3.35% from previous close of Rs. 770.05. The stock opened at Rs. 772.00 and reached an intraday high of Rs. 805.00 and low of Rs. 770.00. The company currently has a market capitalization of Rs. 1,423 crores.
What's the news
Rajesh Power Services has received a Letter of Acceptance dated October 13, 2026 from Uttar Gujarat Vij Company Limited for a turnkey contract worth ₹69.004 crore, including Welfare Cess and GST. The work covers shifting of the existing electrical network at locations across the Adalaj, Kalol-1, Kalol-2, Kalol-T, Chhatral and Jagudan subdivisions of Sabarmati and Mehsana Circle, along with GIS mapping and asset tagging under the ND Scheme. It has to be executed within 12 months.
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This is the company's second order in a week. On October 12, it announced ₹471.92 crore of turnkey contracts from Madhya Gujarat Vij Company Limited, and the two together are worth ₹540.924 crore including taxes. Chairman and Managing Director Kurang Panchal said the back-to-back wins reflect the confidence Gujarat's utilities place in the company's execution. The company also noted that turning the larger order book into revenue and profit will depend on execution, milestones, costs and working capital.
Financial & Business analysis
Consolidated revenue from operations increased 51.85% YoY, climbing from Rs. 1,072.06 crore in FY25 to Rs. 1,627.94 crore in FY26.
Consolidated net profit increased 48.19% YoY, reaching Rs. 143.19 crore in FY26 compared to Rs. 96.63 crore in FY25.
The basic earnings per share stood at Rs. 79.52 as against Rs. 59.75 recorded in the previous year FY2025.
Rajesh Power is mainly a distribution-focused EPC player. At the end of March 2026, about 71% of its order book, or ₹2,365 crore, was in power distribution, with the rest in other segments such as substations and transmission. Its total unexecuted order book, including L1 positions, stood at ₹3,741.79 crore as of June 30, 2026, after new wins of ₹864.8 crore in the quarter. The two Gujarat orders come on top of that and will lift the distribution share further.
Gujarat's utilities have a reputation for being among the better-run in the country, with all four holding A+ ratings for FY24 and very short payment cycles to suppliers. That is useful for a contractor, since delayed payments can tie up working capital. The flip side is concentration, as heavy dependence on a few state utilities leaves the company exposed if their spending slows. Winning orders in Odisha and from transmission utilities helps spread this risk.
Industry context
The aggregate technical and commercial losses in the distribution sector have been targeted at 12-15% under the Revamped Distribution Sector Scheme in India with an outlay of ₹3.04 lakh crore. The losses are higher at 16.16 % in FY25, although it has improved from 21.91 % in FY21, but have not moved further from the target band in FY24 and FY25. Meanwhile, the rollout of the smart meters under the scheme stood at approximately 6 crore smart meters as of early August 2026, accounting for approximately 29.5% of the sanctioned target.
However, utilities have a long way to go and cumulative discom debt is above ₹7 trillion. The government is tying funding to performance benchmarks, and as a result, utilities have a basis for upgrading their networks, replacing overhead lines with underground lines, and digitizing their asset maps. There will be a steady demand for contractors who have experience in these upgrades. Rate of spend will vary according to the financial condition of the state and the speed at which projects are awarded and implemented.
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Company overview
Rajesh Power Services Limited, headquartered in Ahmedabad and led by Chairman and Managing Director Kurang Panchal, is a specialised EPC company in power transmission and distribution. It does turnkey execution of GIS and AIS substations, extra-high-voltage power cables and transmission lines, distribution systems and operation and maintenance, and says it has held its position in the core business for over five decades. It is executing projects in Gujarat, Rajasthan, Uttarakhand, Maharashtra, Madhya Pradesh and Odisha, and holds ISO certifications including 9001, 14001, 45001, 50001 and 55001.