💰 Financial Performance

Revenue Growth by Segment

The company reported a massive 276.2% YoY increase in standalone revenue from operations, reaching INR 1,072.07 Cr in FY25 compared to INR 284.97 Cr in FY24. For H1 FY26, revenue grew 104% YoY to INR 638 Cr, driven by the execution of a well-diversified order book in the EPC (Engineering, Procurement, and Construction) segment for power transmission and distribution.

Geographic Revenue Split

While specific regional percentages are not disclosed, the company maintains a dominant leadership position in Gujarat, particularly within the 'Option 3' deposit work model for GETCO (Gujarat Energy Transmission Corporation Limited). Operations are heavily concentrated in the Gujarat industrial belts serving clients in Dahej and Ahmedabad.

Profitability Margins

Net Profit (PAT) margins remained stable at 9.0% in FY25 (INR 97 Cr) and 9.2% in H1 FY26 (INR 59 Cr). This stability, despite a 276% revenue jump, indicates efficient scaling of operations. Gross margins are sensitive to raw material costs which constitute 70-80% of total sales.

EBITDA Margin

EBITDA margin stood at 11.6% in FY25 (INR 124 Cr) and improved to 13.2% in H1 FY26 (INR 84 Cr), representing a 126% YoY growth in absolute EBITDA. The margin expansion is attributed to better project execution and strategic diversification into higher-value substation and EHV cable projects.

Capital Expenditure

The company raised INR 160 Cr through its IPO in December 2024, with a significant portion allocated for capital expenditure and additional working capital to support its 40% growth target. Historical fixed assets (Property, Plant, and Equipment) were valued at cost less accumulated depreciation, with additions supporting the expansion of EPC capabilities.

Credit Rating & Borrowing

The company maintains a healthy financial risk profile with a gearing ratio of 0.07 times and an interest coverage ratio of 8.10 times as of March 31, 2025. Total outside liabilities to adjusted networth stood at 0.81 times, reflecting low reliance on external debt. Borrowing costs are minimized through promoter funding (INR 46 Cr unsecured loans) and healthy cash accruals.

⚙️ Operational Drivers

Raw Materials

Key raw materials include EHV/HV/LV Cables, Transformers, Solar Panels, and Switchgear components. Raw material and service costs represent approximately 70-80% of the total cost of sales, making the company highly sensitive to commodity price fluctuations.

Import Sources

Not specifically disclosed in the documents, though the company operates primarily within the Indian domestic market with a focus on Gujarat-based infrastructure projects.

Key Suppliers

Not specifically named in the documents; however, the company acts as an execution partner for major utilities and private giants, implying a supply chain geared toward high-voltage electrical equipment manufacturers.

Capacity Expansion

The company has a cumulative execution record of 2,500+ KMS of EHV Cable, 50,000+ KMS of MVCC, 100+ Air Insulated Substations, and 15+ Gas Insulated Substations. Expansion is focused on increasing the scale of EPC contracts rather than fixed manufacturing capacity.

Raw Material Costs

Cost of Goods and Services rose to INR 901.93 Cr in FY25 from INR 207.06 Cr in FY24, a 335% increase, slightly outpacing revenue growth due to the massive scale-up in project execution. Procurement is managed through tender-based bidding and strategic vendor relationships.

Manufacturing Efficiency

Efficiency is measured by project turnaround times. The company is trusted by clients like Asian Paints and Coca-Cola for completing critical power infrastructure within strict timelines to enable plant startups.

Logistics & Distribution

Distribution costs are integrated into EPC contract execution costs, as the company delivers turnkey power infrastructure directly to client sites.

📈 Strategic Growth

Expected Growth Rate

40%

Growth Strategy

Growth will be achieved through a 40% targeted CAGR by leveraging a well-diversified order book, expanding the 'Option 3' deposit work model in Gujarat, and scaling the operations of associate company HKRP Innovations Ltd in the smart grid and IoT space. The company is also transitioning to Ind AS to improve financial reporting and transparency for future fundraising if required.

Products & Services

EPC services for EHV/HV/LV underground cable networks, solar power plant setup, and substation construction (Air Insulated and Gas Insulated).

Brand Portfolio

Rajesh Power Services Limited (RPSL).

New Products/Services

Expansion into smart grid solutions and IoT-based power monitoring through HKRP Innovations Ltd, which is expected to grow at double digits with high PAT margins (18-20%).

Market Expansion

Increasing footprint in the private sector (industrial clients) and renewable energy (solar power) sectors to reduce dependency on government utility tenders.

Market Share & Ranking

Holds a 'strong leadership position' in the Gujarat 'Option 3' segment for private utility execution.

Strategic Alliances

Holds a 25.48% stake in HKRP Innovations Ltd (Associate Company) for technology-driven power solutions.

🌍 External Factors

Industry Trends

The industry is shifting toward underground cabling (EHV) and smart grids to reduce transmission losses. RPSL is positioned to benefit from India's energy transition and the modernization of power distribution networks.

Competitive Landscape

Intense competition from other EPC players in the T&D sector, necessitating aggressive bidding which can pressure margins.

Competitive Moat

The moat is built on 'Excellence at Execution' and a strong track record with 50,000+ KMS of MVCC and 2,500+ KMS of EHV cable laid. The trust of large private conglomerates (Aditya Birla, Asian Paints) acts as a barrier to entry for smaller contractors.

Macro Economic Sensitivity

Highly sensitive to India's energy transition and infrastructure spending. A slowdown in industrial expansion in Gujarat would directly impact the 'Option 3' project pipeline.

Consumer Behavior

Industrial consumers are increasingly demanding 'ready-to-use' power infrastructure with strict timelines to avoid operational delays.

Geopolitical Risks

Potential impacts from global supply chain disruptions affecting the cost of imported electrical components or solar cells.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and technical standards set by GETCO and other state transmission utilities. Compliance with the Guidance Note on Audit of Internal Financial Controls is confirmed by auditors.

Environmental Compliance

The company is involved in setting up solar power plants, contributing to ESG goals. CSR obligation for FY25 was INR 31.37 Lacs.

Taxation Policy Impact

The company paid a tax expense of INR 2,703.07 Lacs in FY25 on a profit before tax of INR 11,432.82 Lacs, reflecting an effective tax rate of approximately 23.6%.

Legal Contingencies

The secretarial audit for the period ended March 31, 2025, reported no specific events or actions having a major bearing on the company's affairs, other than the IPO process.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the tender-based nature of the business (100% of revenue), where failure to secure new contracts could lead to a sharp revenue decline. Working capital blockage in retention money (INR 160-170 Cr) also poses liquidity risks.

Geographic Concentration Risk

High concentration in Gujarat; while providing a leadership moat, it exposes the company to state-specific regulatory or economic shifts.

Third Party Dependencies

Dependent on state utilities (GETCO) for project approvals and private industrial giants for 'Option 3' work.

Technology Obsolescence Risk

Risk is mitigated by the 25.48% investment in HKRP Innovations, ensuring the company stays current with smart grid and IoT trends in power distribution.

Credit & Counterparty Risk

Receivables are generally high-quality as they are due from reputed private corporates and government-backed utilities, though retention money creates a long collection tail.