Rajesh Power Services has secured a turnkey contract worth Rs 1,628.74 crore from Dakshin Gujarat Vij Company Limited (DGVCL). The project, involving the modernization of power distribution networks into underground cabling systems, will be executed over 24 months. This win boosts the company's total order book to approximately Rs 5,400 crore, marking a 35% expansion. Shareholders should note the company's strong revenue momentum, with 46% year-on-year growth reported in H1 FY27, though timely execution remains critical to future profitability.
Rajesh Power Services Bags Landmark Rs 1,629 Crore DGVCL Order
Order Value: Rs 1,628.74 crore | Order Book Expansion: ~35%
Reader Takeaway: This massive order provides 24-month revenue visibility, but execution efficiency remains the primary monitorable for investors.
What just happened
Rajesh Power Services Limited has been awarded a turnkey project by the state-run Dakshin Gujarat Vij Company Limited (DGVCL). The project mandates the conversion of existing 11/22kV overhead electricity distribution networks into underground cabling systems. Additionally, the contract includes the integration of SCADA-compatible infrastructure to modernize the utility's grid management. The work is slated for completion over the next 24 months.
Why this matters
The deal significantly alters the company's scale, lifting its total order book to approximately Rs 5,400 crore. Management highlighted that this single order represents a 35% expansion compared to the pre-order level of Rs 4,000 crore. For investors, this provides a clear runway for project-related revenue generation through FY27.
The backstory
This win follows a period of robust financial expansion for the company, which recently reported a 46% year-on-year revenue growth for H1 FY27. Management attributes this recent success to healthy profit margins and improved cash flows, which are now being leveraged to secure and execute large-scale infrastructure projects in the power distribution space.
Risks to watch
While the order book expansion is positive, the project is a turnkey contract. Revenue recognition depends entirely on the company's ability to navigate site-level execution challenges and adhere to strict technical specifications. Additionally, investors should monitor the company's reliance on large, utility-scale projects, as concentration risk can affect margins if project timelines are delayed.
What to track next
Investors should monitor quarterly updates regarding the progress of the DGVCL project and any future order wins that help maintain a diversified revenue stream. The company’s ability to sustain its reported H1 FY27 profitability levels while scaling operations will be the key metric for long-term value creation.