PE Below 10, Rs 5,400 Crore Order Book: Power Stock Secures Fresh DGVCL Contract Worth Rs 1,628.74 Crore, Exceeding Its Market Cap

Rajesh Power Services is scaling its power-distribution engineering, procurement and Construction business as utilities invest in network modernisation and underground cabling. The company has secured a Rs 1,628.74 crore turnkey order, inclusive of Taxes, from Dakshin Gujarat Vij Company Limited, or DGVCL, taking its aggregate Order Book to about Rs 5,400 crore from Rs 4,000 crore earlier.

The latest award represents an order-book expansion of roughly 35 per cent and provides a larger pipeline for execution over the next two years. Rajesh Power will convert existing 11/22 kilovolt high-tension and low-tension overhead distribution networks into underground cable systems across multiple DGVCL locations under the utility’s SI Scheme.

The project will include Supervisory Control and Data Acquisition, or SCADA, compatible equipment, which can support monitoring and automation of the distribution network. The contract is scheduled to be executed over 24 months, underlining that the order will translate into revenue progressively rather than immediately.

The award follows a Rs 471.92 crore contract from Madhya Gujarat Vij Company Limited, or MGVCL, another Gujarat utility. The two large wins strengthen Rajesh Power’s presence in distribution infrastructure, where underground cabling and substation-related execution are central to its EPC offering.

The order comes after the company reported 46 per cent YoY revenue growth in the first half of FY27, alongside healthy profitability and improved cash generation. For FY26, consolidated revenue from operations stood at Rs 1,627.94 crore and profit after tax was Rs 143.20 crore. The DGVCL order alone is therefore close to the company’s FY26 revenue scale, although contract value will be recognised over the project’s execution period.

The larger backlog improves multi-year execution visibility, but also raises the importance of project mobilisation, billing milestones and collection discipline. Rajesh Power’s FY26 operating cash flow was an outflow of Rs 41.42 crore as receivables, inventory and retention money rose with business growth.

As of 10:50 am on November 5, 2026, Rajesh Power Services shares were trading at Rs 820.00, down 0.34 per cent from the previous close. The stock was down 46.47 per cent over one year, compared with a 4.13 per cent decline in the BSE 500 over the same period. At the current price, the shares remain about 44 per cent below their 52-week high of Rs 1,470.95.

What This Means for Investors

The award gives Rajesh Power a substantially larger execution base in its core distribution business and extends revenue visibility over the next two years. The contract also validates its underground-cabling capability, a field management has identified as strategically important. Together with the earlier MGVCL award, the enlarged order book supports the company’s stated FY27 growth ambitions, while H1 revenue growth of 46 per cent indicates that execution has already begun from a stronger base.

The development is supportive for the medium-term case, but its financial quality will depend on timely mobilisation, milestone certification and collections. Utility contracts can require significant upfront materials and manpower, which matters because the group reported Rs 41.42 crore of operating cash outflow in FY26 as receivables, inventory and retention money increased. Borrowings were Rs 127.23 crore at year-end. 

Disclaimer: The article is for informational purposes only and not investment advice.