Rajesh Power Q4 FY26 Concall Decoded: Order Book Hits ₹3,326 Cr as BESS Becomes the New Growth Engine
The power sector in India is currently undergoing a transformation more dramatic than a soap opera finale. With the government’s Viksit Bharat @2047 vision pushing for a per capita electricity consumption jump of 400%, companies like Rajesh Power Services Limited (RPSL) are no longer just “cable guys”—they are the backbone of a high-voltage future. While some sectors are struggling to keep the lights on, RPSL is busy undergrounding entire city networks and signing up for battery storage projects that sound like they belong in a sci-fi novel.
But as any seasoned investor knows, a massive order book is only as good as the cash it eventually puts in the bank. Management seems confident, but the balance sheet is showing a few “high-voltage” sparks that deserve a closer look.
Keep reading, because between the 51,000 km of conductors and a 99% three-year CAGR, there’s a story of either massive scaling or massive ambition—and we’re here to find out which one it is. 😏
Section 2 — At a Glance
Revenue up 52%: Clocking in at ₹1,628 Cr, because apparently, everyone in Gujarat needs a new substation.
EBITDA Margin at 12.1%: Steady as a rock, or perhaps just very well-behaved spreadsheets.
Order Book at ₹3,326 Cr: Providing enough revenue visibility to make a lighthouse jealous.
PAT up 48%: Net profit hit ₹143 Cr, proving that power infrastructure is actually a “lucrative” business.
Stock Reaction: Trading at a P/E of 12.6, which is either a bargain or the market’s way of saying “show me the money.”
Debt to Equity at 0.31: Management isn’t over-leveraged yet, keeping the lenders’ heart rates in the normal range.
Section 3 — Management’s Key Commentary
“As the power sector in India evolves rapidly, we believe the coming years hold tremendous promise.” (Translation: We are riding a massive government spending wave and hope the tide doesn’t go out. 🌊)
“Our journey is becoming increasingly exciting… actively identifying and executing opportunities across new states.” (Translation: We are finally moving out of Gujarat because our backyard is getting crowded.)
“The BESS project is designed to enhance grid flexibility… marking the beginning of a new growth engine.” (Translation: We’ve entered the battery business because that’s where the “cool kids” and the high valuations are. 🔋)
“Higher receivable is just a short-time phenomenon because of very high billing in the month of March.” (Translation: We crammed all our invoices into the last 30 days and are now waiting by the mailbox. 📬)
“We are also exploring some automation techniques, like automated cable winch machines.” (Translation: We’re trying to replace expensive human labor with robots before the margins feel the pinch.)
“We are targeting an IRR of 10% to 12% in this project.” (Translation: It’s not a gold mine, but it beats keeping the cash in a savings account.)
