Rajesh Power Wins ₹653.12 Crore PGVCL Orders; Shares Jump

Mumbai, July 9: Rajesh Power Services Ltd. has landed fresh engineering contracts worth ₹653.12 crore (including taxes) from Paschim Gujarat Vij Company Ltd. (PGVCL), extending the company’s run of sizeable wins in the power distribution segment.

The contracts are tied to a large-scale network upgrade rather than routine maintenance work. PGVCL has awarded the projects for converting existing 11 kV high-tension and low-tension overhead lines into underground cable networks, complete with ring main systems, GIS mapping and asset tagging across Bhavnagar, Anjar, Junagadh and Porbandar circles in Gujarat.

That distinction matters. Underground distribution projects typically involve more engineering complexity than conventional line construction. They require extensive civil work, cable routing, utility coordination and network integration, making them higher-value assignments with longer execution cycles.

For Rajesh Power, this is another reminder that utilities are increasingly investing in strengthening distribution infrastructure instead of merely expanding it.

Gujarat’s Grid Modernisation Continues to Drive EPC Demand

The latest award fits into a broader shift underway in state power networks.

Utilities across several states have been replacing overhead distribution lines with underground cable systems in urban and densely populated areas to reduce outages caused by storms, improve public safety and lower maintenance requirements. Ring main systems also improve network reliability by allowing electricity supply to be restored from alternate feeders when faults occur.

Projects of this nature are technically demanding and execution timelines are closely monitored, which often favours contractors with established experience in transmission and distribution EPC work.

Rajesh Power said the orders reinforce its position in underground power infrastructure, an area where it has been steadily building execution capability over the years.

Managing Director Kurang Panchal described the award as recognition of the company’s technical expertise and execution record in delivering complex power infrastructure projects.

Stock Market Snapshot

As of 10:56 AM IST on July 9, Rajesh Power share price was trading at ₹854.70. The stock had moved sharply higher during the morning session following the disclosure, reflecting optimism around the sizeable addition to the company’s order pipeline.

While investors often react positively to large EPC order wins, the longer-term impact usually depends on execution, project margins and working capital management. Large infrastructure contracts improve revenue visibility, but timely completion remains equally important.

About Rajesh Power Services

Rajesh Power Services operates as an engineering, procurement and construction (EPC) company focused on power transmission and distribution infrastructure. Its portfolio spans transmission lines, substations, extra high voltage power services and distribution network projects for utilities across multiple Indian states.

The company has increasingly built its presence in specialised underground distribution projects, a segment where demand has been supported by grid modernisation programmes and urban infrastructure upgrades.

Conclusion

The ₹653.12 crore order is significant not only because of its size but also because it comes from a government utility undertaking one of the more complex forms of distribution network modernisation.

For Rajesh Power, it strengthens an already expanding order book and reinforces its positioning in underground power infrastructure. The next milestone, however, will be execution. Delivering multiple projects across four Gujarat circles on schedule will determine how quickly this order translates into revenue and operating performance over the coming quarters.

Source:

• https://www.bseindia.com/stock-share-price/rajesh-power-services-ltd/rajesh/544291
• https://www.bseindia.com/xml-data/corpfiling/AttachLive/fb8f808b-fde9-46e9-8fd7-f67b6d34a4b4.pdf