Rajesh Power Services Ltd. Reports Strong FY26 Performance, Expands Ventures

Rajesh Power Services Ltd. (RPSL) announced its financial results for the fiscal year ending March 31, 2026. The company reported revenue from operations at ₹1,628 Cr and profit after tax (PAT) of ₹143 Cr for the full fiscal year. The second half of FY26 (H2FY26) showed particularly strong momentum, with revenue growing 30.45% year-over-year to ₹990 Cr and PAT increasing 25.91% to ₹84 Cr.

FY26 Performance Highlights and Order Book Expansion

RPSL finished FY26 with a substantial unexecuted order book valued at ₹3,326 Cr as of March 31, 2026. The company secured robust order inflows totaling ₹2,743 Cr during FY26. Key new wins include turnkey orders worth ₹922 Cr from UGVCL for underground cable systems and MVCC. Rajesh Power also successfully entered the 400 kV GIS segment, securing orders amounting to ₹278 Cr, and formed a joint venture for a 132kV railway transmission project.

Strategic Growth Drivers

These financial results and new orders highlight RPSL's growing capabilities and strengthened market position within India's expanding power infrastructure sector. The company's strategic diversification into high-growth areas such as Battery Energy Storage Systems (BESS) and railway transmission projects, along with its entry into the 400 kV GIS segment, shows a proactive strategy to capture new market opportunities. Alignment with the Draft National Electricity Policy (NEP) 2026, which prioritizes capacity expansion and grid reliability, offers favorable policy support.

Company Background and Recent Milestones

Founded in 1971, Rajesh Power Services Ltd. has grown into a prominent EPC contractor in India's power transmission and distribution (T&D) sector. The company became publicly traded with an IPO in November 2024, offering shares at ₹335. Recent significant orders include ₹1,116 Cr in April 2025 and ₹59.79 Cr from Gift Power in June 2025, demonstrating RPSL's consistent project win capability. This strategic push into new segments like BESS and railway infrastructure, combined with its established expertise in EHV/HV/MV/LV cable systems and transmission lines, positions the company for future expansion. CRISIL has upgraded its ratings on RPSL's bank facilities to 'CRISIL BBB+/Positive/CRISIL A2', indicating an improved financial outlook.

Key Developments and Future Opportunities

Expansion into BESS, railway projects, and 400 kV GIS opens new revenue streams beyond traditional power T&D. The ₹3,326 Cr order book provides strong revenue visibility for upcoming years. Entry into specialized segments like 400 kV GIS allows RPSL to tap into less crowded, high-margin markets. Alignment with NEP 2026 and government investments in power infrastructure create a supportive environment for growth. Continued success in project execution and diversification strengthens its overall market standing.

Potential Risks to Monitor

Despite the positive momentum, RPSL operates in a competitive environment. Key risks include sector competition, reliance on government contracts, and potential impacts from economic conditions, interest rate fluctuations, and regulatory changes. The company also faces operational challenges like cash flow constraints from retention money and the working capital-intensive nature of its projects. Successfully executing its growth and expansion plans is critical.

Competitive Landscape

Rajesh Power Services operates in the power transmission and distribution EPC space, competing with established players like KEC International Ltd. and Kalpataru Projects International Ltd. While these peers have a broader presence and larger scale, RPSL's focused expansion into new segments and strong order inflow suggests it is carving out a significant niche.

Key Financial Metrics

• FY26 Revenue from operations: ₹1,628 Cr.
• FY26 Profit After Tax (PAT): ₹143 Cr.
• H2 FY26 Revenue from operations: ₹990 Cr (30.45% YoY growth).
• H2 FY26 Profit After Tax (PAT): ₹84 Cr (25.91% YoY growth).

Areas to Watch for Investors

• Execution of the ₹3,326 crore order book within timelines.
• Performance and order pipeline development in new growth segments like BESS and railway infrastructure.
• Success in the newly entered 400 kV GIS segment.
• Impact of the Draft National Electricity Policy (NEP) 2026.
• Future order inflows and market share gains in core and new segments.