Rajesh Power lands ₹653 cr Gujarat order, triple its last big win
The turnkey contract from Paschim Gujarat Vij for underground cabling in four circles is worth 40% of FY26 revenue and nearly three times the ₹212 cr Odisha order won in June.
— 1 earlier story on Rajesh Power Services Ltd. →What's new
- Won ₹653.12 cr turnkey contract from Paschim Gujarat Vij for underground cabling in four Gujarat circles.
- Order is nearly triple the ₹212 cr Odisha order from June, marking a step-up in individual project scale.
- 18-month execution timeline; order equals 40% of FY26 revenue and 44% of market cap.
Why this matters
At nearly three times the company's previous record order, this contract signals an acceleration in award momentum. With execution compressed into 18 months, it provides clear near-term revenue visibility and should drive earnings estimate revisions. The strong balance sheet (debt/equity 0.21, ROE 35.4%) and arm's-length terms reduce execution and governance risks.
What we're watching
- Execution pace over the next few quarters – rapid revenue recognition is key.
- Whether Rajesh Power can sustain this order pipeline from state utilities.
- Impact on operating margins given the turnkey nature and competition in Gujarat.
The full read
Rajesh Power Services locked in its largest-ever single order: a ₹653.12 crore turnkey contract from Paschim Gujarat Vij Company to convert overhead lines to an underground cable network across four Gujarat circles. The company's previous biggest win, the ₹211.68 crore Odisha order, came just three months ago. This one is three times that. At 40% of FY26 revenue and 44% of market cap, the contract is huge by any measure. Execution is scheduled over 18 months, so revenue should flow quickly. The balance sheet can handle it: debt-to-equity is 0.21, ROE is 35.4%, and the latest quarter delivered ₹990 crore in sales and ₹79 crore in profit. No related-party complications, no promoter entanglement. The open question is whether this is the start of a new trend of larger wins or a one-off. But for now, Rajesh Power has filled its order book in a way that should lift earnings estimates materially.
Questions answered
- What is the size of this order relative to Rajesh Power's revenue?
- The ₹653.12 cr order is approximately 40% of the company's FY26 revenue of ₹1,628 crore, making it a large contract for the micro-cap firm.
- How does this compare to other recent orders?
- It is nearly three times the ₹211.68 cr order from Odisha Power Transmission Corporation announced in June 2026, indicating a significant step-up in individual project scale.
- What is the execution timeline?
- The contract is scheduled for execution over 18 months, suggesting a rapid revenue recognition cycle that could materially enhance near-term earnings.
- Are there any related-party or governance concerns?
- No. The company confirmed the order is in the normal course of business with no promoter or group company interest in the awarding entity and is not a related-party transaction.
- What does this mean for near-term earnings?
- With 40% of annual revenue contracted and a short execution window, earnings forecasts should rise. The order de-risks near-to-medium term revenue.
Rajesh Power Services Ltd.
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All notes on RAJESH →- 9 Jul 2026 · 10:31 AM IST Rajesh Power lands ₹653 cr Gujarat order, triple its last big win
- 23d ago Rajesh Power wins ₹211.68 cr OPTCL order, enters Odisha