Rajesh Power Services Limited secured a major power infrastructure order worth Rs 3.63 billion for turnkey transmission and underground cabling works. The 18-month project expands the company's unexecuted order book, backed by an enhanced credit outlook and expanding operations across state power distribution utilities.
AHMEDABAD, India — Power transmission and distribution infrastructure provider Rajesh Power Services Limited (BSE: 544291) announced on August 4, 2026, that it has secured a major new engineering, procurement, and construction (EPC) order valued at Rs 3.63 billion ($43.4 million).
The new contract award expands the company's unexecuted order backlog and reinforces its specialized market position in underground power cabling, extra-high-voltage (EHV) transmission lines, and gas-insulated substations (GIS) across state power distribution utilities. The development comes as Indian state electricity boards accelerate capital expenditure to modernize urban power distribution systems, reduce aggregate technical and commercial (AT&C) losses, and replace aging overhead wire networks.
Technical Scope and Project Execution Framework
Under the terms of the project agreement, Rajesh Power Services will execute turnkey engineering, supply, installation, testing, and commissioning of high-voltage transmission infrastructure and underground cable networks. The scope includes civil works, equipment procurement, geographic information system (GIS) mapping, and asset tagging to ensure long-term operational monitoring across grid nodes.
Project execution will proceed under a strict 18-month completion schedule. Technical engineering teams at Rajesh Power Services will oversee the conversion of overhead distribution circuits into high-capacity underground cable routes designed to minimize weather-induced power disruptions and lower urban maintenance costs.
Growing Order Book and Strategic Expansion Across Utilities
The Rs 3.63 billion order win builds on significant operational momentum achieved by Rajesh Power Services during the current fiscal year. The company recently reported that its unexecuted order book reached Rs 3,741.79 crore as of June 30, 2026, supported by robust Q1 order inflows totaling Rs 864.8 crore across Gujarat, Rajasthan, and Odisha.
While historically concentrating over 75 percent of its revenue from Gujarat state distribution companies (DISCOMs)—including Paschim Gujarat Vij Company Limited (PGVCL)—Rajesh Power Services has successfully diversified into neighboring regional markets. Recent project awards from Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPNL) and Odisha Power Transmission Corporation Limited (OPTCL) demonstrate the firm's strategy to capture broader national power infrastructure investments.
Enhanced Banking Limits and Credit Outlook Revision
To support the capital requirements of its expanding order pipeline, Rajesh Power Services recently secured enhanced credit facilities from major commercial lenders, including HDFC Bank, Union Bank of India, and ICICI Bank.
Credit rating agency CRISIL Ratings revised its outlook on the company's long-term bank facilities from "Stable" to "Positive" while reaffirming its "CRISIL A-" rating. CRISIL also reaffirmed the company's short-term rating at "CRISIL A2+" and enhanced total rated bank facilities to Rs 363 crore from Rs 263 crore, citing healthy operating margins of 11–12 percent and a comfortable financial risk profile.
Impact on Citizens, Businesses, and Equity Markets
The implementation of underground power networks and modernized substations delivers practical benefits across economic sectors:
Retail Power Consumers: Replacing overhead lines with underground cable networks significantly reduces weather-related outages and improves power supply reliability in high-density urban areas.
Local Municipalities: Converting overhead wiring improves urban aesthetic standards and eliminates safety hazards associated with sagging high-tension wires.
Industrial and Commercial Enterprises: Stable grid voltage and reduced downtime prevent revenue losses caused by unscheduled manufacturing interruptions.
Investors and Equity Markets: High order book visibility provides predictable multi-quarter revenue accrual for Rajesh Power Services shareholders.
Official Sources Section
Order disclosures and financial health indicators have been verified against official regulatory filings and credit rating reports:
Regulatory announcements filed on the Bombay Stock Exchange (BSE) under SEBI LODR Regulations.
Credit rating rationale disclosures published by CRISIL Ratings.
Utility procurement registers maintained by Paschim Gujarat Vij Company Limited (PGVCL).
Official Statement
According to officials from the company's executive management team, the award of large-scale turnkey power infrastructure contracts validates the firm's execution track record and technical capabilities in complex engineering projects.
"According to officials, the company remains dedicated to delivering time-bound, high-quality power distribution infrastructure while maintaining rigorous safety and environmental compliance standards across all active project sites".
Why It Matters
Securing a Rs 3.63 billion EPC contract highlights the sustained capital expenditure cycle within India's electrical power transmission and distribution sector. Modernizing distribution networks through underground cabling and GIS substations enables state utilities to meet rising peak electricity demand while reducing energy transmission losses across urban and rural corridors.
Key Facts at a Glance
Contract Value: Rs 3.63 billion (Rs 363 crore).
Executing Entity: Rajesh Power Services Limited.
Scope of Execution: Turnkey underground cabling, GIS substations, and distribution grid upgrades.
Execution Period: Scheduled for completion within 18 months.
Credit Profile: Rating outlook revised to "Positive" by CRISIL with bank loan limits enhanced to Rs 363 crore.
Frequently Asked Questions (FAQ)
What is the total value of the new order won by Rajesh Power Services?
The new contract carries a total value of Rs 3.63 billion (Rs 363 crore).
What services does Rajesh Power Services specialize in?
Rajesh Power Services specializes in EPC contracts for power transmission and distribution, including underground cabling, extra-high-voltage lines, GIS/AIS substations, and grid maintenance.
How long will it take to execute the contract?
The project execution timeline is set at 18 months from the date of official project handover.
What is the current credit rating of Rajesh Power Services?
CRISIL Ratings maintains a long-term rating of "CRISIL A-" with a "Positive" outlook, alongside a short-term rating of "CRISIL A2+" for the company's enhanced bank debt facilities.
Source: Official regulatory disclosures submitted to the Bombay Stock Exchange (BSE), rating rationale notices from CRISIL Ratings, and corporate releases from Rajesh Power Services Limited
