Rajesh Power Services Secures ₹653.12 Crore Turnkey Underground Cable Network Order from PGVCL

What Happened ?

Key Details

Order Details:

• Awarding Authority: Paschim Gujarat Vij Company Limited (PGVCL)
• Order Value: ₹653.12 Crore (Including Taxes)
• Contract Type: Turnkey
• Project Scope:
  • Underground cable conversion of existing HT & LT networks
  • Ring Main System (RMS)
  • GIS Mapping
  • Asset Tagging
• Project Locations:
  • Bhavnagar
  • Anjar
  • Junagadh
  • Porbandar
• Execution Timeline:
  • 18 Months
• Awarded by:
  • Domestic Entity
• Related Party:
  • No
• Promoter Interest:
  • None

Note:

• The order has been received during the normal course of business and materially enhances the company’s execution pipeline.

Risk Analysis

Summary:

• The contract substantially improves Rajesh Power Services’ order book. However, profitability and revenue realization will depend on timely execution and effective project management.

Key Risks:

• Execution delays may postpone revenue recognition.
• Large EPC/utility projects may face cost escalation.
• Regulatory approvals and field execution can affect timelines.
• Higher working capital requirements during project execution.

Worst Case:

• Construction delays or project cost overruns could reduce margins and defer revenue realization.

Risk Level: Medium

Company Commentary

• The order has been secured in the normal course of business.
• The project strengthens Rajesh Power Services’ position in Gujarat’s power distribution infrastructure sector.
• The contract adds a significant long-term project to the company’s order book and execution pipeline.