Rajesh Power Services Bags ₹1,628.74 Cr Turnkey Order From DGVCL

Key numbers

Market Cap	₹1,432.85 CrSmall Cap
P/E Ratio	10.01Sector PE: 21.33
Promoter Holding	71.93%As of latest quarter
Order from	Dakshin Gujarat Vij Company Limited (DGVCL)
Execution period	24 Months
Deal value	₹1,628.74 Cr
Share of market cap	113.7%
Share of annual revenue	100.0%

Key highlights

• Total contract value stands at ₹1,628.74 crore including taxes
• Scope involves conversion of 11/22kV HT and LT overhead networks to underground cable systems
• Project includes the installation of SCADA-compatible equipment under the SI Scheme
• Execution period for the entire project is stipulated at 24 months
• Order size represents approximately 113.7% of the company current market capitalization

Transformative Infrastructure Project from DGVCL

Rajesh Power Services has received a transformative turnkey contract from Dakshin Gujarat Vij Company Limited for the conversion of existing 11/22kV high tension and low tension overhead networks into underground cable systems. This extensive project, valued at ₹1,628.74 crore, is roughly equivalent to the company entire annual operating revenue of ₹1,627.94 crore for the fiscal year ended March 2026. The scope includes the integration of SCADA-compatible equipment, which is essential for modernizing grid management and improving power reliability across various locations in Gujarat.

The contract is expected to be executed within a 24-month timeframe, providing a stable revenue visibility over the next two years.

Expanding Footprint in Gujarat Power Distribution

• October 2026: Secured a ₹471.92 crore contract from MGVCL for overhead to MVCC and underground conversion
• October 2026: Won a ₹69.00 crore electrical network shifting contract from UGVCL with GIS mapping
• August 2026: Awarded a ₹362.83 crore project from PGVCL for underground cabling in Jamnagar Circle
• July 2026: Bagged multiple orders worth ₹653.12 crore for underground network conversion in Bhavnagar and Anjar
• Management target: Closing order book to exceed ₹5,000 crore by the end of FY27
• Pipeline visibility: Active bidding pipeline stood at ₹5,700 crore as of mid-2026

Market Context and Operational Outlook

The company current valuation reflects a conservative multiple with a TTM P/E of 10.01, significantly lower than the industry average of 21.99. This latest order further strengthens the company position in the power distribution sector, following a series of wins from other GUVNL subsidiaries throughout 2026. Management has maintained a growth guidance of approximately 40% for FY27.

Beyond traditional distribution projects, the company is also diversifying into renewable infrastructure, with its 65 MW Battery Energy Storage System project in Virpore scheduled for commissioning by September 2027. Despite a 46.98% decline in stock price over the last year, recent monthly gains of 8.48% suggest recovering momentum as order inflows accelerate.

What to watch next

• Execution progress and revenue recognition from the DGVCL project starting Q3 FY27
• Update on the ₹5,000 crore order book target achievement by March 2027
• Commercial commissioning of the 65 MW Battery Energy Storage System in September 2027

Rajesh Power Services · financial snapshot

Share price	₹795.7
Market capitalisation	₹1,432.85 Cr
Revenue (annual)	₹1,627.94 Cr
Net profit (annual)	₹143.20 Cr
P/E (TTM)	10.01×Sector 21.33×
Promoter holding	71.93%
FII holding	0.43%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.