Operational Performance Highlights (H1FY27)

The company reported strong operational execution during the first half of FY27:

  • Installed more than 2,700 ring main units (cumulative installations: 17,000+ units)
  • Installed more than 300 distribution transformers (cumulative installations: 6,500+ units)
  • Laid 905 kilometres of LT and HT 11 kV cables (cumulative length: 11,400 kilometers)
  • Laid 10,800 kilometres of medium-voltage covered conductor (cumulative length: ~35,000 kilometres)
  • Commissioned four air-insulated substations (cumulative commissioning: 104 substations)
  • Laid 157 kilometres of extra-high-voltage cables (cumulative length: 2,700+ kilometres)
  • Erected 12,000 poles during the first half

Financial Performance (H1FY27 vs H1FY26)

  • Revenue: INR 929 crore (46% YoY growth from INR 638 crore)
  • EBITDA: INR 112 crore (33% YoY growth)
  • EBITDA Margin: 12%
  • Profit After Tax: INR 79 crore (35% YoY growth)
  • PAT Margin: 8.5%
  • The company achieved positive cash flow from operating activities for the first half
  • Net worth grew more than eight times from INR 59 crore in FY23 to INR 484 crore in H1FY27

Order Book Status

  • Fresh order inflows in H1FY27: INR 1,250 crore
  • Unexecuted order book as of September 30, 2026: INR 3,647 crore
  • Additional order inflows in October 2026: ~INR 450 crore
  • Current bid pipeline: INR 3,500-4,000 crore
  • L1 status orders: ~INR 100 crore
  • Win rate: ~60% across geographies and business segments
  • FY27 closing order book target: ~INR 5,000 crore

Key Order Wins Mentioned

  • PGVCL (Paschim Gujarat Vij Company Limited): INR 800-900 crore order (18-24 month execution timeline)
  • RVPNL (Rajasthan Vidyut Prasaran Nigam Limited): 132 kV gas insulated substations in Jodhpur
  • OPTCL (Odisha Power Transmission Corporation Limited): INR 212 crore order for underground cable transmission

Strategic Initiatives and Market Opportunities

Transmission Segment Expansion

  • India plans to add ~1.4 lakh circuit kilometers of transmission lines and ~870 GVA of transformation capacity by 2032
  • Green Energy Corridor Phase-III (GEC-III) scheme with INR 1.86 lakh crore outlay:
  • INR 1.36 lakh crore for intrastate transmission systems
  • INR 50,000 crore for 50 GW battery storage systems
  • Company executing 400 kV-level substations, targeting qualification for 765 kV projects

Distribution Modernization

  • Gujarat Wire-Free City Mission: Convert overhead networks to underground across 17 municipal corporations and 151 municipalities by 2030
  • Target: 14,000 circuit kilometers of HT lines and 31,000 circuit kilometers of LT lines (total 46,000 circuit kilometers)
  • National Electricity Policy 2047 targets 100% undergrounding in towns with population >10 lakh

Energy Storage (BESS)

  • 65 MW/130 MWh standalone BESS project at Virpur, Gujarat (company's entry into utility-scale battery storage)
  • India's BESS requirement projected to reach ~47 GW by 2032
  • Company bidding for BESS EPC projects (pipeline: INR 200-300 crore), not BOT models
  • BESS projects are return- and IRR-driven with marginal contribution to overall revenue and margins

Technology Integration through HKRP Innovations

  • Strategic investment in HKRP Innovations Limited (industrial IoT, cloud computing, power sector intelligence)
  • HKRP provides IoT-enabled and SCADA-based platforms for smart grid and smart renewable applications
  • Currently executing SCADA/DMS projects for three Gujarat DISCOMs (UGVCL, DGVCL, PGVCL)
  • FY27 target for HKRP: INR 150 crore revenue with 20% PAT margin
  • Pan-India opportunity size for smart grid solutions: ~INR 3,000 crore
  • Active tendering in Maharashtra, Assam, Kerala, UP, Bihar, and Uttarakhand

Geographical Expansion

  • Odisha: INR 16,000 crore transmission investment planned (765 kV, 400 kV, 220 kV substations, underground cables)
  • Current ex-Gujarat order book: 12% of total, targeting 15-20% in next two years
  • New Zealand: Established wholly owned subsidiary (Rajesh Power Services NZ Limited) to explore electrical infra EPC opportunities
  • Evaluating solar generation EPC opportunities in New Zealand (target: 4-5 GW solar portfolio)

Data Center Opportunities

  • Discussing partnerships with data center companies for power transmission infrastructure
  • Opportunities in connecting data centers to grid and internal data center infrastructure solutions
  • Currently in preliminary discussion/RFQ stage with leading data center companies

Financial Management

  • Working capital cycle showing improvement through better collections and extended trade terms from suppliers
  • Other financial assets increase (INR 58 crore vs INR 8 crore YoY) primarily due to current retention money
  • Other current assets increase includes unbilled revenue of ~INR 38 crore as per Ind AS
  • Targeting sustained positive operating cash flow for full year FY27

Guidance and Outlook

  • Maintaining FY27 revenue growth guidance: 40% YoY
  • EBITDA margin guidance: 11-12%
  • PAT margin guidance: 8-9%
  • Long-term growth guidance: 40% CAGR sustainable for next 4-5 years
  • Execution timeline for current order book: 18-24 months

Corporate Governance

  • Management emphasized commitment to high standards of corporate governance, transparency, business ethics, health and safety, and environmental responsibility
  • No promoter selling in stock after one-off event in March 2026; promoters have been buying at different price points

Q&A Session Key Takeaways

  • HKRP business expected to be H2-heavy with targeted profit margins achieved by year-end
  • Inventory levels maintained at INR 100-125 crore, no project slippages indicated
  • Retention money structure: 80% payment within 45 days, 10% upon installation, 10% upon project commissioning
  • Odisha identified as key growth geography outside Gujarat with similar working capital and margin structures
  • BESS project pipeline focused on EPC rather than development
  • Data center opportunities in preliminary discussion phase with leading companies