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Rajesh Power
Our verdict on Rajesh Power isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The company successfully listed in December 2024 and reported a 189% YoY growth in net worth to INR 322 crore, indicating the successful infusion and utilization of capital to strengthen the balance sheet. (3 met across 3 tracked commitments)
“➢ Raised Rs. 160 Cr ➢ Objects of the Issue: ➢ Capital Expenditure ➢ Additional Working Capital Requirement ➢ General Corporate Purposes”
Management reported significant progress in the distribution segment, specifically noting that 50,000 kilometres of medium voltage covered conductor are currently installed or under progress, which significantly exceeds the previously stated 27,300 km target. (1 in progress, 1 exceeded across 2 tracked commitments)
“Faster Project Execution Projects are completed within 18 to 24 months, faster than traditional multi-year transmission EPC projects.”
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How durable is the business?
The segment has seen massive expansion, with consolidated revenue surging 289% year-on-year, driven by urban distribution network upgrades under the Revamped Distribution Sector Scheme (RDSS). (2 expanding)
“Consolidated revenue surged to ₹1,107 crore, representing a 289% year-on-year growth... Our portfolio included... urban distribution network upgrades under the Revamped Distribution Sector Scheme for state utilities.”
The transmission segment is expanding its technical scope, now securing high-value contracts for 220/66kV GIS/AIS Substations and 132kV underground cable systems. (5 expanding)
“These esteemed contracts encompass... design, engineering, manufacturing, and commissioning of 220/66kV GIS/AIS Substations, along with the erection and commissioning of 132kV/66kV underground cable systems throughout Gujarat.”
See the full cited Business Model analysis of Rajesh Power
Where does growth come from?
The order book has reached a massive scale of Rs. 3,628 Cr as of May 2025, providing multi-year revenue visibility. This represents a significant jump from the scale of operations in previous years. (5 accelerating across 5 signals, 2 leading indicators)
“Revenue from Operations: FY26 1,627.94 Cr, FY25 1,072.07 Cr, YoY (%) 51.85%”
The company is benefiting from a major government policy (NEP 2026) that mandates underground cabling in large cities, a core area of expertise for the company.
“Underground cabling & N-1 redundancy in cities >10 lakh population by 2032... Underground cabling and network redundancy create new EPC opportunities”
See the full cited Future Growth analysis of Rajesh Power
What could break the thesis?
Working capital pressure is intensifying. Trade Receivables jumped from ₹114.04 Cr in FY24 to ₹187.49 Cr in FY25. Trade Payables surged even more sharply from ₹31.44 Cr to ₹120.74 Cr, indicating the company is increasingly relying on supplier credit to fund operations. (5 intensifying, 2 high-severity)
“Trade Payables 120.51 328.32 ... Trade Receivables 181.71 348.77”
Concentration in Gujarat is intensifying in the near term due to massive new MoUs signed with the Government of Gujarat worth ₹4,754 crore, further anchoring the company's future revenue to a single state's infrastructure spending. (1 intensifying)
“Gujarat – Transmission & Distribution: Significant T&D opportunity in Gujarat, driven by emerging mega solar cluster”
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