CRISIL lifts Rajesh Power outlook to Positive
Rating reaffirmed at A-; bank facilities raised to ₹363 cr as financial profile improves.
— 4 earlier stories on Rajesh Power Services Ltd. →What's new
- CRISIL reaffirms long-term rating at A- and revises outlook to Positive from Stable.
- Short-term rating stays A2+.
- Rated bank facilities enhanced to ₹363 cr from ₹263 cr, distributed across three banks.
Why this matters
The outlook upgrade signals improving financial health for a company with ROE above 35% and debt-to-equity of just 0.21 — a rare combination in engineering-construction. While not a rating upgrade, it supports the strong order momentum seen this quarter, including the ₹653 cr Gujarat win.
What we're watching
- Whether CRISIL upgrades to A rating in the next review cycle.
- Sustained profitability given the large order pipeline from Gujarat and Odisha.
The full read
Rajesh Power Services has added another positive data point to its recent run. CRISIL reaffirmed the A- rating on the company's long-term debt and shifted the outlook to Positive from Stable. Short-term metrics stay at A2+. The move comes alongside a 38% increase in rated bank facilities, from ₹263 cr to ₹363 cr, spread across HDFC, Union, and ICICI banks. For a company with a trailing ROE of 35.4% and a debt-to-equity ratio of just 0.21, the outlook revision is more a formal acknowledgment than a surprise. It aligns with the momentum from recent order wins: the ₹653 cr Gujarat contract and the ₹211.68 cr Odisha EPC deal. The rating itself has not been upgraded yet. But the direction is now officially positive.
Questions answered
- What does the Positive outlook mean for Rajesh Power?
- A Positive outlook indicates CRISIL may upgrade the rating within the next 12-18 months if the company sustains its improved financial profile. It reflects stronger credit metrics than implied by the current rating.
- How much have bank facilities increased?
- Total rated bank facilities rose to ₹363 crore from ₹263 crore, a 38% increase, allocated across HDFC Bank, Union Bank, and ICICI Bank for bank guarantees and cash credit.
- Is this rating action a surprise given the company's recent performance?
- No, it's a routine update. The company reported sales of ₹990 cr and net profit of ₹79 cr in the March 2026 quarter, with a debt/equity of 0.21. The outlook revision was widely expected given the strong order wins and low leverage.
- What was Rajesh Power's prior rating outlook?
- The previous outlook was Stable. The revision to Positive is the first improvement since the initial rating assignment.
Rajesh Power Services Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on RAJESH →- 15 Jul 2026 · 3:43 PM IST CRISIL lifts Rajesh Power outlook to Positive
- today Rajesh Power wins ₹34.37 cr in state utility orders, enters Rajasthan
- 1d ago Rajesh Power Q1 revenue at ₹436.62 cr, order book ₹3,741.79 cr
- 8d ago Rajesh Power lands ₹653 cr Gujarat order, triple its last big win
- 30d ago Rajesh Power wins ₹211.68 cr OPTCL order, enters Odisha