About the Company
Rajesh Power Services Limited (RPSL):
is a leading Indian company in the power infrastructure sector, providing comprehensive solutions across both renewable and non-renewable energy segments. With a rich history spanning over five decades, RPSL has established itself as a trusted partner for government and private sector clients, specialising in engineering, procurement, and construction (EPC) services, as well as operations, maintenance, and consultancy.
Industry Overview (Indian Power Sector)
- India’s transmission segment has undergone a significant transformation over the years, transitioning from a fragmented network to a well-integrated and interconnected grid.
- India aims to meet 50 per cent of its generation capacity from non-fossil fuel sources by 2030, and given the rising significance of electricity in the nation’s energy mix, substantial investments will be imperative in both the inter-state and intrastate transmission networks
- India’s power generation witnessed its highest growth rate in over 30 years in FY24. Power generation in India increased by 6.80% to 1,452.43 billion kilowatt-hours (kWh) as of January 2024. According to data from the Ministry of Power, India’s power consumption stood at 1,503.65 BU in April 2023.
Business Verticals
- Turnkey EPC Solutions
RPSL specialises in delivering complete turnkey solutions in the power transmission and distribution sector for voltage levels up to 220KV. The company’s core capabilities include the design and implementation of infrastructure for underground cable systems, overhead transmission lines, substations, and distribution networks.
It provides end-to-end project management services encompassing every phase-from initial design to final commissioning. Additionally, RPSL is actively engaged in the setup and operational management of solar power plants, reinforcing its commitment to integrated energy solutions and sustainable development. Lot of the business is driven from government contracts.
- EVH (Extra High Voltage) Cables :
- EHV underground networks, offering turnkey solutions for constructing transmission lines up to 220kV
- Provide turnkey solutions for EHV cable, network connectivity with the grid and internal networks.
- EVH Substation:
- Turnkey solution providers for EHV substation and Gas Insulated Substation construction up to 220kV, with an in-house design and execution. Recently developed Substations upto 400kV
- MV/HV/LV DISTRIBUTION SYSTEMS :
- Design and implementation experience and expertise of underground distribution systems, including turnkey projects for Gujarat DISCOMS’ overhead-to-underground and MVCC network conversions
Major on-going project include:
- 11/22 kV HT Underground and MVCC Overhead Networks, Gujarat
- 220/66 kV GIS and AIS Substations, Gujarat
- Supply, erection, testing, and commissioning of underground cables, contributing to robust power distribution networks
Marquee Customers Include:
2. Operations Engineering and Maintenance (OEM)
RPSL provides comprehensive OEM services for solar plants, substations, and distribution systems, focused on maximising operational efficiency and reliability. The company’s expert team, equipped with specialised technical knowledge in underground cable systems, delivers 24/7 support for fault detection and resolution.
- EVH Substation operation and Maintenance
- One-stop solution for OMR (Operation, Maintenance & Repairs) of EHV substations
- LT & HT systems operations & maintenance
- Pioneered area-based, city-focused OEM contracts for power distribution companies (PDCs)
- Outsource PDC activities, including consumer complaints, for faster resolution and cost savings
Marquee Customers Include:
OrderBook as on December 2025
- Power Transmission Segment (841crs)
- State Transmission Utilities
- Private DISCOMs
- Private Companies requiring EHV power enhancement/application
- Power Distribution Segment (2661crs)
- Govt. Distribution Sector
- Private Distribution sector
- Turnkey Projects of Private
- Distribution Companies
- OEM for DISCOMs
The execution timeline for such EOC businesses is anywhere between 18 months – 24 months.
Order bid pipeline currently is at INR 2,000 crore, but RPSL expecting it to reach around INR 5,000 crore in the coming months given the opportunities in the distribution and transmission segment.
RSPL usually has a 40% odd win rate for bidding pipeline.
Growth Drivers
- Ease of Competitive Bidding – The transmission landscape has been increasingly shaped by Tariff-Based Competitive Bidding (TBCB), which encourages private participation and drives efficiency. Since its adoption, 135 interstate projects have been bid out, with 60 commissioned to date. Notably, private entities secured 74 projects.
- Overhead Lines conversion to underground – RPSLs expertise lies in underground cabling. The government through various Initiatives is making a shift from overhead lines to underground lines.
- With future Private Capex taking shape, need for power and substations will become a vital need, RPSL doing turnkey projects in this space, has immense to gain from
- RPSL with its strong technical qualification metrics, and capability to bid for large distribution and transmission bids.
- Currently RPSL has maximum presence in Gujarat, the management of RPSL has stated them bidding for projects in Rajasthan, Uttarakhand, Orrisa. This opens up larger pie of the market of RPSL.
Governments Push towards Transmission lines and underground lines
- Gujarat-specific actions: state utilities and agencies are issuing tenders and permissions for underground HT/LT/33kV cable works (Dakshin Gujarat / Surat tenders, Torrent Power permissions on national highways, news about projects in Junagadh). These are real, recent government / public-sector actions.
- National / multilateral projects and loans explicitly planned undergrounding of distribution lines (example: ADB / central govt plan that referenced ~7,200 km of distribution lines to be shifted underground).
- Several technical analyses and industry articles state that undergrounding is primarily being pursued for distribution networks (11kV/33kV and lower)
Investment Rationale
- RPSL plan to grow by 25-30% YoY with increasing orders in Gujarat and newer states they envisage to enter.
- RPSL is in an industry where it is imperative for India to increase its transmission and distribution of power/electricity. Building important substations not only for government but also private capex is a good mix for diversification
- Increasing transition from overhead wires to underground. RPSL is a reputed player in underground transmission, which will benefit from governments push for the same.
- RSPL has constantly been increasing its capability, recently RSPL entered the 400 kV gas-insulated substation segment, which positions them to participate in multi-central power grid and state-level projects in the coming years.
- RSPL currently has majority revenue coming from Gujarat. They have mentioned clear intentions of entering other states, the latest being Rajasthan, and in next few quarters will enter Jharkhand.
- Long standing relations with government DISCOMs and Private players.
Financial Data
EBITDA Margins
- Rajesh Power has seen considerable margin increase, these can be attributed to Rajesh power carefully choosing projects maintaining a project level Margins of 13-14%.
- Another reason for increasing margins is also employee cost reducing as a % of sales, showing increased efficiency in terms of Employees over larger projects
- RPSL consider these margins of 13-14% to be sustainable, stating they will choose and pick projects that fit the margin criteria
Debt to Equity and Working Capital
- There is a clear reduction in Debt to equity owing to a few factors.
- Better Working capital cycle has led to decrease in short term borrowings, directly reducing total debt to equity.
- Above table shows Overall reduction in Receivables days, positively impacting working capital. Working capital cycle has reduced from 75 days two years ago to 39 days currently.
- Having a good working capital cycle in an EPC business is usually difficult which RPSL have managed to do and aim to continue the same.
Risks
- Concentration risk – Gujarat contributed more than 90% of the revenue, any change in government or any delay in projects in this state can hamper future growth
- High contribution from governments and government bodies – Doing business with government and government bodies have their own challenges in terms of payment of outstanding, delay in payments and cancellations of orders that can create working capital needs and hamper growth.
- Monsoon and other physical factors can affect project execution intern hampering execution of Rajesh power delaying growth