Rajesh Power Services Bags ₹1629 Crore Mega Order from DGVCL as Order Book Surges to ₹5400 Crore
Shares of Rajesh Power Services Limited have staged a notable recovery on Dalal Street, climbing over 12% in the past month and more than 11% in a single week. The rally gained further momentum after the engineering, procurement, and construction (EPC) player announced that it has secured a turnkey contract worth ₹1,628.74 crore (inclusive of taxes) from state-run power utility Dakshin Gujarat Vij Company Limited (DGVCL).
Following the announcement, the stock gained up to 3.5% in intraday trade, touching a high of ₹852 per share.
Scope of the ₹1,629 Crore Contract
The turnkey project is focused on modernizing Gujarat's electricity distribution infrastructure and carries an execution timeline of 24 months. Under DGVCL's System Improvement (SI) Scheme, the mandate covers:
- Converting existing 11/22 kV high-tension (HT) and low-tension (LT) overhead distribution networks into underground cabling systems across multiple locations.
- Installing equipment compatible with Supervisory Control and Data Acquisition (SCADA) systems to enhance grid monitoring and efficiency.
- Comprehensive engineering, procurement, installation, testing, and commissioning of modern distribution assets.
Order Book Expands 35% to ₹5,400 Crore
The mega order win marks a decisive expansion for the company's project pipeline. Prior to this contract, Rajesh Power Services' order book stood at approximately ₹4,000 crore. With the addition of the ₹1,628.74 crore DGVCL mandate, the aggregate unexecuted order book has grown by around 35% to reach nearly ₹5,400 crore.
This development closely follows another major award secured in October 2026, when the company bagged a ₹471.92 crore turnkey project from Madhya Gujarat Vij Company Limited (MGVCL) to convert overhead lines into medium-voltage covered conductor (MVCC) and underground networks. It also clinched a ₹69 crore network-shifting contract from Uttar Gujarat Vij Company Limited (UGVCL), underscoring strong repeat business from Gujarat's state-owned power distribution companies.
Financial Profile and Technical Outlook
The influx of high-value turnkey orders comes on the back of operational expansion:
- First-Half Performance: Rajesh Power Services registered 46% year-on-year revenue growth in the first half of FY27, backed by stable profitability and improved cash generation.
- Second-Quarter Profit: For the quarter ended September 2026, the company reported a net profit of ₹79.22 crore, a 35% year-on-year increase.
- Historical Correction: Despite the recent 12% monthly rebound, the stock remains approximately 42% below its 52-week peak of ₹1,465 reached in November 2025, having touched a 52-week low of ₹705 in September 2026.
Market analysts note that the stock is currently consolidating in the ₹800 to ₹900 price band. While the expanding ₹5,400 crore order book provides multi-year revenue visibility, market participants will closely track execution milestones, working capital management, and timely cash flows over the 24-month delivery schedule.
