Rajesh Power Services Shares Jump 5% as Rs 472 Crore Order Win Boosts Order Book Close to Rs 4,000 Crore: MGVCL Contract, Rs 747 Open and Rs 789 High, FY26 Numbers, 50% Fall in a Year and Risks
- October 12, 2026
- Posted by: Kunal Singla
- Category: News
Rajesh Power Services shares: open Rs 747, high Rs 789 on 12 Oct. Order Rs 471.92 cr from MGVCL, 18 months. Order book about Rs 4,000 cr. FY26 revenue Rs 1,627.94 cr (+52%), PAT Rs 143.20 cr. Stock down about 50% in a year.
Quick Answer
Rajesh Power Services shares rose about 5% to 8% on 12 October after the company won a turnkey order worth Rs 471.92 crore, reported as Rs 472 crore, from Madhya Gujarat Vij Company Limited, opening at Rs 747 and touching a high of Rs 789 in BSE trade. The order adds over 10% to the order book, which the chairman puts at about Rs 4,000 crore, and it covers converting 11 kV overhead lines to covered conductors and building underground cable networks in Gujarat over 18 months. The order equals about 29% of FY26 revenue of Rs 1,627.94 crore (my calculation from the reported figures), yet the stock is still down about 50% in a year and about 50% below its 52-week high of Rs 1,554.70, and operating cash flow was negative at Rs 41.42 crore. The win improves revenue visibility but depends on timely execution and payments from utilities, so investors should check execution, working capital and Gujarat concentration before acting.
Rajesh Power Services shares fell about 50% in a year before this order, which makes the 12 October jump a test of whether new orders can change the trend. The company is an Ahmedabad-based engineering, procurement and construction firm in the power transmission and distribution space.
This article explains the order, how it changes the order book, the FY26 financials, why Rajesh Power Services shares fell so much, the opportunities and the risks, so you can judge the stock from the numbers.
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Rajesh Power Services Shares: The Move on 12 October
| Measure | Level | Note |
|---|---|---|
| Previous close | Rs 732.85 | As reported at 10:01 am by DSIJ |
| Open | Rs 747 | A gap-up of about 1.9% (my calculation) |
| Intraday high | Rs 789 | BSE; about 7.7% above the previous close and 5.6% above the open (my calculation) |
| Price at 10:01 am | Rs 782.95 | Up 6.84% |
| 52-week high | Rs 1,554.70 | The stock was about 49.6% below it |
| One-year return | Down 49.98% | BSE 500 down 6.29% over the same period |
The headline says 5%, and the range of 5% to 8% depends on whether the gain is measured from the open or from the previous close. Either way, Rajesh Power Services shares bounced on the order news.
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The Rs 472 Crore MGVCL Order Explained
| Item | Detail |
|---|---|
| Client | Madhya Gujarat Vij Company Limited (MGVCL), a state-owned power distribution company |
| Value | Rs 471.92 crore including taxes, reported as Rs 472 crore |
| Type | Turnkey contract under the MGVCL SI Scheme Robust-III |
| Scope | Converting 11 kV overhead high tension lines into medium voltage covered conductor networks and building underground cable networks at locations across Gujarat |
| Execution period | 18 months |
| Related party | The company says the deal is at arm’s length with no promoter interest in the awarding authority |
For the stock, the contract adds clear revenue for the next 18 months, since the work is a defined scope with a state utility as the customer.
Order Book Math for Rajesh Power Services Shares
| Measure | Figure | Note |
|---|---|---|
| Order size | Rs 471.92 crore | Includes taxes |
| Order book after the win | About Rs 4,000 crore | Chairman and Managing Director Kurang Panchal |
| Share of order book | About 11.8% | Rs 472 crore of Rs 4,000 crore (my calculation); the report says over 10% |
| Order size against FY26 revenue | About 29% | My calculation; approximate, because the order includes taxes |
| Order book against FY26 revenue | About 2.5 times | Rs 4,000 crore against Rs 1,627.94 crore (my calculation) |
An order book of about 2.5 times annual revenue gives the company two to three years of visible work if execution keeps pace, which is the main support for the stock.
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Rajesh Power Services Shares and the FY26 Financials
| Measure | FY26 (consolidated) | Change |
|---|---|---|
| Revenue from operations | Rs 1,627.94 crore | Up 52% year on year |
| Profit after tax | Rs 143.20 crore | Up from Rs 96.63 crore, about 48% higher (my calculation) |
| Operating cash flow | Negative Rs 41.42 crore | Working capital rose with revenue |
| FY27 growth ambition | About 40% | Management target |
Growth is strong, but cash flow was negative because receivables and working capital grew faster than cash collections. Market capitalisation and valuation multiples were not available in the sources I checked, so confirm them before taking a view on Rajesh Power Services shares.
Why Did Rajesh Power Services Shares Fall 50% in a Year?
- The stock is about 49.6% below its 52-week high of Rs 1,554.70, and the sources did not name a single cause.
- Negative operating cash flow of Rs 41.42 crore can worry investors who watch working capital in EPC firms.
- Small and mid-cap EPC stocks have been volatile, and the BSE 500 itself fell about 6% over the year.
- Concentration in Gujarat utilities makes revenue sensitive to a few customers.
These are possible factors and not confirmed causes. A rebound in Rajesh Power Services shares needs consistent execution, collections and fresh orders.
Opportunities Behind Rajesh Power Services Shares
Gujarat distribution: Gujarat remains the main source of orders, and covered conductor and underground cable work is part of distribution upgrades.
Transmission: The company sees opportunities in Rajasthan, Maharashtra, Odisha, Jharkhand and Uttarakhand.
Growth target: Management aims for about 40% growth in FY27.
Order visibility: An order book near Rs 4,000 crore supports revenue planning.
Risks for Rajesh Power Services Shares
Payment delays: Cash flow depends on timely payments from utilities, which can force more borrowing.
Concentration: A large share of orders comes from Gujarat utilities, so revenue is sensitive to state budgets and policy.
Margins: The sector is competitive, and cost overruns on a Rs 472 crore project can hurt profit.
Execution: An 18-month turnkey project needs materials, labour and approvals on time.
Volatility: A stock that fell about 50% in a year can move sharply in both directions.
What to Watch Next for Rajesh Power Services Shares
- Q2 FY27 results for revenue growth, margins and cash flow.
- Receivables and working capital days.
- Execution progress on the MGVCL order.
- New orders from other states.
- Whether the stock holds the Rs 747 open and Rs 732.85 previous close.
Conclusion
Rajesh Power Services shares jumped on a Rs 471.92 crore MGVCL order that takes the order book close to Rs 4,000 crore, backed by FY26 revenue growth of 52%. The stock is still down about 50% in a year and cash flow is negative, so execution and collections will decide the next move. Consult a SEBI-registered advisor before making any decision.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Why did Rajesh Power Services shares jump?
Ans. The company won a Rs 471.92 crore turnkey order from MGVCL, which adds over 10% to its order book. Rajesh Power Services shares opened at Rs 747 and touched Rs 789.
What is the MGVCL order?
Ans. A turnkey contract under the SI Scheme Robust-III to convert 11 kV overhead lines to covered conductors and build underground cable networks in Gujarat, over 18 months.
What is the order book of Rajesh Power Services?
Ans. About Rs 4,000 crore after this order, per the company’s Chairman and Managing Director.
How did the company perform in FY26?
Ans. Consolidated revenue rose 52% to Rs 1,627.94 crore and profit after tax rose to Rs 143.20 crore from Rs 96.63 crore. Operating cash flow was negative at Rs 41.42 crore.
How much have Rajesh Power Services shares fallen?
Ans. About 49.98% over one year and about 49.6% below the 52-week high of Rs 1,554.70.
How big is the order against revenue?
Ans. About 29% of FY26 revenue (my calculation), and the order includes taxes, so the comparison is approximate.
What are the risks for Rajesh Power Services shares?
Ans. Payment delays from utilities, concentration in Gujarat, thin margins, execution risk and volatility.
Should I buy Rajesh Power Services shares after the order win?
Ans. This article does not constitute investment advice. Rajesh Power Services shares are volatile. Consult a SEBI-registered financial advisor.
