Rajesh Power Services Reports Strong FY26 Performance

Rajesh Power Services Ltd (RPSL) announced its financial results for H2FY26 and FY26 on April 23, 2026. The company reported FY26 revenue of ₹1,628 crore, a 52% increase from the previous year, with an EBITDA margin of 12.1%. RPSL maintains an unexecuted order book valued at ₹3,326 crore. A significant step is the company's entry into the Battery Energy Storage System (BESS) market with a 65 MW project planned for Gujarat.

Strategic Moves and Future Outlook

This strong revenue growth demonstrates effective project execution and expanding operational capabilities. The move into BESS diversifies RPSL into a rapidly growing energy segment. Management is guiding for continued aggressive growth, targeting a 40% revenue increase in FY27.

Company Profile

Rajesh Power Services has established itself as an EPC (Engineering, Procurement, and Construction) player in the power transmission and distribution sector. Historically, the company has secured substantial contracts for rural electrification and distribution network upgrades.

Key Developments for Shareholders

For shareholders, this means accelerating topline growth powered by strong project execution. The BESS diversification opens a new income source, possibly reducing dependence on traditional T&D work. RPSL is also working to lessen its geographic concentration, a known risk. Management's ambitious targets signal a focus on continued expansion.

Analyst Concerns and Key Risks

Analyst Mohit Arora has pointed to 'working capital stress,' noting doubled receivables and increased short-term debt. A significant concentration of 85-90% of its current order book remains in Gujarat. Additionally, ₹305 crore is tied up in financial assets as retention money, impacting liquidity.

Competitive Landscape

Competitors like KEC International and Kalpataru Projects International also operate in the power T&D EPC sector. These peers are typically larger and more diversified geographically and segment-wise. RPSL's move into BESS provides a point of differentiation from some established T&D contractors.

Future Focus Areas

Investors will be watching for:

• Whether receivables from March are recovered within management's 45-60 day target.
• Progress on new order bids totaling ₹2,200 crore.
• Evidence of successful order book diversification away from Gujarat.
• The execution timeline and financial arrangements for the 65 MW BESS project.
• The company's ability to meet its FY27 revenue growth and margin goals.