Rajesh Power Services Bags INR 472 Crore Gujarat Power Infrastructure Contract

Rajesh Power Services Ltd of Ahmedabad, India, has won INR 471.92 crore in turnkey contracts from the state discom Madhya Gujarat Vij Company Ltd (MGVCL). As per the contract, Rajesh Power will update overhead power lines and construct underground electrical distribution networks all over Gujarat.

The total amount of orders placed by the corporation is now approaching INR 4,000 crore. Under MGVCL's SI Scheme Robust-III, the contracts call for the development of subterranean cable networks in multiple locations and the conversion of existing 11kV overhead lines into MVCC lines. The company said in a regulatory filing on 12 October that the projects will be carried out over a period of 18 months.

MGVCL’s Order a Significant Milestone for Rajesh Power

The company announced that the order, which adds over 10% to their current order book, will provide them visibility into execution for the next 18 months. The distribution infrastructure is being fortified by the move toward covered conductors and subterranean cabling. It will also lessen the likelihood of outside interference and weather-related outages affecting the network. Rajesh Power Services Limited has reached a new milestone with this substantial order from MGVCL, according to Kurang Panchal, chairman and managing director of the company.

According to Panchal, Rajesh Power Services is an EPC contractor in the power transmission and distribution sector, and the firm's aggregate order book has reached about INR 4,000 crore. Rajesh Power is actively working to strengthen its project pipeline and increase its business visibility. Building gas-insulated and air-insulated substations, extra-high-voltage power cables, transmission lines, and distribution networks and providing operation and maintenance services are all part of its operations. The states of Odisha, Madhya Pradesh, Uttarakhand, Maharashtra, and Gujarat are all included in the company's project execution portfolio.

Financial Outlook of Rajesh Power

A year of solid financial growth preceded the contracts. For the fiscal years 2022–2026, total revenue increased by 52% to 1,627.94 crore Indian rupees. Having said that, consolidated profit after tax rose from INR 96.63 crore to INR 143.20 crore. Supported by an expanded tender pipeline and ongoing project visibility, management has already reaffirmed its ambition of around 40% growth for FY2026-27.

Still, things like cash conversion and execution will play a significant role. Due to rising revenue and other working capital needs, the company's operating cash flow was negative at INR 41.42 crore in FY2025-26. When it comes to EPC projects, cash flows can be influenced by things like billing patterns, retention money, and utility payment cycles, according to Rajesh Power Services. The majority of its current orders come from Gujarat; therefore, the MGVCL award serves to solidify its position in that market even as it expands into other areas.