Rajesh Power Services Secures ₹471.92 Crore Turnkey Order from MGVCL

Key numbers

Market Cap	₹1,319.67 CrSmall Cap
P/E Ratio	9.22Sector: 23.33
Order from	Madhya Gujarat Vij Company Limited (MGVCL)
Execution period	18 Months
Deal value	₹471.92 Cr
Share of market cap	35.8%
Share of annual revenue	29.0%

Key highlights

• Contract value of ₹471.92 crore represents approximately 35.8% of the company's current market capitalization
• Turnkey scope includes converting 11kV overhead lines to Medium Voltage Covered Conductor (MVCC) and underground networking
• The project is slated for execution over an 18-month period at various locations within Gujarat
• This win follows a series of major contracts from state utilities, including a ₹653.12 crore order from PGVCL in July 2026
• Unexecuted consolidated order book stood at ₹3,741.79 crore as of June 30, 2026, prior to this award

Modernising Gujarat Power Grid With MGVCL

Rajesh Power Services Limited has formalised a major turnkey agreement with Madhya Gujarat Vij Company Limited for the Conversion of 11kV Overhead lines to Medium Voltage Covered Conductor and Under Ground Network systems. The project is being executed under the MGVCL SI Scheme Robust-III and targets various geographical locations across Gujarat. This infrastructure upgrade is designed to improve grid reliability and safety by replacing traditional overhead lines with insulated covered conductors and subterranean cabling, which are less prone to environmental interference and outages.

The company confirmed that the orders were received in the normal course of business.

Order Scale Against Revenue and Market Benchmarks

The ₹471.92 crore contract carries significant weight relative to the company's financial profile, equating to 29.0% of its ₹1,627.94 crore annual operating revenue for the previous fiscal year. With an 18-month execution window, the project provides clear revenue visibility through 2027. This award strengthens the company's presence in its home state of Gujarat, where it has historically secured large-scale utility projects.

At a current market capitalization of ₹1,319.67 crore, the contract value alone accounts for over a third of the company's total equity value, highlighting the scale of individual project wins in the utility sector.

Recent Major Wins and Guidance

• August 2026: Secured ₹362.82 crore contract from Paschim Gujarat Vij Company Ltd (PGVCL) for Jamnagar City-2 Division
• July 2026: Awarded ₹653.12 crore contract from PGVCL for underground cable conversion across four Gujarat circles
• June 2026: Bagged ₹211.68 crore EPC contract from Odisha Power Transmission Corporation Ltd for 220 kV transmission
• Management Guidance: Targets ₹4,000–₹5,000 crore in order inflows for FY27 with a projected 40% revenue growth
• Order Momentum: The consolidated unexecuted order book reached ₹3,741.79 crore by June 30, 2026, including L1 positions

Specialised Utility Infrastructure Business

Operating within the Power - Electric Utilities industry, Rajesh Power Services focuses on EPC and turnkey projects for power distribution and transmission. The company's recent focus has been on high-value grid modernization projects, including Gas Insulated Substations (GIS) and underground cabling. Financially, the company reported a Net Profit of ₹143.2 crore for the previous fiscal year, reflecting a 53.37% year-on-year growth.

Despite a 52.44% decline in the share price over the past year, the company maintains a strong Return on Equity (ROE) of 35.25%, significantly outperforming the sector average of 12.82%.

What to watch next

• Announcement of unaudited financial results for the half-year ended September 30, 2026, following the reopening of the trading window after October 14, 2026.
• Execution progress of the ₹653.12 crore PGVCL order received in July 2026, which is critical for meeting FY27 revenue targets.
• Management updates on the unexecuted order book which is guided to exceed ₹5,000 crore by the end of FY27.

Rajesh Power Services · financial snapshot

Share price	₹732.85
Market capitalisation	₹1,319.67 Cr
Revenue (annual)	₹1,627.94 Cr
Net profit (annual)	₹143.20 Cr
P/E (TTM)	9.22×Sector 23.33×
Promoter holding	72.7%
FII holding	0.68%Current quarter

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