Rajesh Power Services LtdQ3 FY25
Rajesh Power Services Ltd
Q3 FY25 Earnings Call Analysis
Management growth scorecard
Revenue
Category 1
Margin
Category 3
Fundraise
No
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 1- →Rajesh Power Services Limited expects a revenue CAGR of approximately 40% over the next two years.
- →The company projects bidding opportunities of around INR 5,000 crore in transmission and distribution segments in the coming months.
- →Order inflows are expected to be around INR 2,000 crore for the second half of FY26, over and above the INR 2,000 crore secured in the first half.
- →The unexecuted order book is estimated to be around INR 4,500 crore.
- →Growth is anticipated to be conservative and sustainable, with strong execution capabilities in private and government sectors.
- →HKRP associates are expected to grow by at least double digits this year.
- →Growth in power transformer and distribution transformer segments will continue, with similar margin levels.
- →The company sees significant opportunities in multiple states including Gujarat, Uttarakhand, Rajasthan, Jharkhand, and Orissa.
Margin guidance
Category 3- →Rajesh Power Services Limited expects a robust CAGR of around 40% in revenue and key financial metrics over the next few years, including FY27.
- →The company projects sustained margin levels of 13-14%, targeting consistent profitability.
- →H2 execution is typically stronger, contributing more significantly to revenue and EBITDA.
- →Growth of EPS is implied to align with the overall 40% CAGR given margin sustainability.
- →Order inflow guidance targets about INR 5,000 crore for the full fiscal year with a 40-50% win rate on bids.
- →Debt levels will increase moderately to support working capital for growth, but existing banking limits and upgrades (270 to 400 crore) are deemed adequate.
- →The company does not foresee immediate fundraising, relying on improved banking relationships and rating upgrades.
- →Overall, profit and operating earnings growth is expected to be strong and sustainable driven by increased scale and optimized execution.
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Fundraise plans
No- Currently, Rajesh Power Services Limited is not planning any new fundraising through equity.
- The company is negotiating with existing and new bankers to enhance banking limits from around INR 270 crore to INR 400 crore, including both fund-based and non-fund-based limits.
- This enhanced banking limit is expected to be sufficient to support order execution and growth plans.
- No immediate fundraising is planned, but the company may evaluate options next year based on requirements.
- The company has also recently received an upgraded CRISIL rating, which supports its financing capacity.
Thus, growth will primarily be financed through enhanced debt limits rather than new equity or large-scale fundraises for now.
Order book
Yes- →Current unexecuted order book stands at around INR 3,500 crore (Page 13, Adhish Patel).
- →Estimated execution timeline for this order book is roughly 18 to 24 months (Page 6, Utsav Panchal).
- →Unexecuted order book expected to be around INR 4,500 crore by end of FY26 (Page 16, Utsav Panchal).
- →Order inflow pipeline currently around INR 2,000 crore, expected to increase to INR 5,000 crore in coming months (Pages 8 & 22, Utsav Panchal).
- →The company expects to complete around 40-45% of the order book in H1 and the balance in H2 each year (Page 6).
- →The order book includes recent big orders, including those in October filings amounting to INR 800 crore excluding GST (Page 22, Adhish Patel).
Capex plans
Yes- →Currently, Rajesh Power Services Limited is not looking at any specific backward integration or manufacturing expansion in the transmission segment. (Page 20)
- →There is an early-stage AI investment initiative within Rajesh Power (not HKRP), but further details will be shared as the project evolves. (Page 8)
- →No immediate plans for additional equity fundraising; growth is expected to be managed through enhanced banking limits and working capital facilities. (Page 12)
- →The company plans to enhance its banking limits from around INR 270 crore to INR 400 crore (including fund and non-fund-based limits) to support order execution and growth. (Page 19)
How does Rajesh Power Services Ltd rank vs peers in Other Utilities?
Pro feature1Rajesh Power Services Ltd
Rev 1Mar 3
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