Rajesh Power Services Limited has accepted the resignation of Viral Deepakbhai Ranpura as an Independent Director, effective August 11, 2026. The departure impacts the company’s governance structure, as Ranpura simultaneously ceases to hold positions on the Audit Committee, Nomination and Remuneration Committee, Stakeholders Relationship Committee, and Corporate Social Responsibility Committee. This change requires the Board to appoint a successor to maintain the mandatory composition of independent directors and committee memberships as per regulatory requirements.

The resignation was formally communicated to the Bombay Stock Exchange (BSE) on August 12, 2026, pursuant to Regulation 30 read with Para A, Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Jyoti Daksheshkumar Mochi, the Company Secretary and Compliance Officer, signed the intimation letter, confirming that the resignation was tendered vide letter dated August 11, 2026.

Resignation Details

According to the filing, Ranpura cited "personal and medical occupancy" as the sole reason for his resignation. He confirmed in his resignation letter that there are no other material reasons for stepping down. The details of the change were disclosed in compliance with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Governance Implications

As an Independent Director, Ranpura’s exit necessitates immediate attention from Rajesh Power Services Limited to ensure continued compliance with SEBI norms regarding independent director representation on key board committees. The company must now identify and appoint a new independent director to fill the vacancy and reconstitute the affected committees.

Ranpura, holding DIN 07177208, stated in his resignation letter addressed to the Board of Directors that he wishes the company well for the future. He requested that notice of his resignation be given to the Stock Exchange, the Registrar of Companies, and other regulatory agencies as required. The filing confirms that he does not hold any other directorships in listed entities.

WHAT HAPPENED

Rajesh Power Services has received a confirmed work order valued at Rs 362.83 crore from Paschim Gujarat Vij Company Limited (PGVCL). The contract involves the turnkey conversion of existing 11kV High Tension (HT) and Low Tension (LT) line networks into an underground cable network with a ring main system, including GIS mapping and asset tagging at the Jamnagar circle of Gujarat. The filing confirms this as a formal award, making the value executable immediately.

ORDER IN FINANCIAL CONTEXT

The Rs 362.83 crore order represents a significant addition to the company's pipeline. While average quarterly revenue data is not explicitly provided in the pre-computed metrics, the order size is substantial relative to the company's FY26 annual revenue of Rs 1627.94 crore. The total disclosed order book, which sums exactly the same last 3 fiscal quarters shown in the order track record table below (sum of the 8 orders disclosed across the last 3 fiscal quarters shown in the table below), stands at Rs 2419.73 crore. This results in a book-to-bill ratio that reflects strong recent demand, although precise TTM revenue normalization is constrained by zero TTM reported revenue in the trailing twelve-month snapshot provided. The current order value is consistent with the company's typical per-order size visible in the history, where large-scale infrastructure projects dominate.

COMPANY ORDER TRACK RECORD

Order inflow velocity has accelerated sharply in Q2FY27 compared to the prior quarter. The company moved from Rs 423.36 crore in Q1FY27 to Rs 1996.37 crore in Q2FY27, driven by multiple large awards from state power transmission entities.

EXECUTION AND REVENUE QUALITY

The company demonstrated strong profitability in FY26, with OPM holding steady at approximately 12%. Quarterly consolidated revenue, net profit, and OPM data are not available in the input; however, annual figures show net profit growing from Rs 93.40 crore in FY25 to Rs 136.71 crore in FY26.

REVENUE GROWTH - ORDER WINS TRANSLATING TO REVENUE

As Rajesh Power Services has sustained order wins, with inflow accelerating significantly in recent quarters, its annual revenue has grown from Rs 1114.70 crore in FY25 to Rs 1627.94 crore in FY26, representing a YoY growth of +46.0% based on the latest annual data.

WORKING CAPITAL AND EXECUTION CAPACITY

The balance sheet shows a current ratio of 1.21x and Total Liabilities/Equity of 1.32x, indicating adequate liquidity to fund ongoing operations without excessive leverage. However, operating cashflow was negative at -Rs 16.30 crore in FY25, suggesting that backlog conversion is currently accrual-based rather than cash-generative, which is common in capital-intensive power infrastructure projects where receivables may lag revenue recognition.

WHAT TO WATCH

• Execution rate: Monitor quarterly revenue run-rate against the Rs 2419.73 crore total disclosed order book to assess conversion efficiency.
• OPM trajectory: Watch for margin stability on new underground cable orders versus historical averages of ~12%.
• Client concentration: Paschim Gujarat Vij Company Limited (PGVCL) and Odisha Power Transmission Corporation Limited (OPTCL) dominate the recent order book; assess if any single client accounts for more than 40% of the total disclosed order book.
• Cash conversion: Given negative operating cashflows in FY25, monitor if receivables collection improves as new projects execute.

KEY OBSERVATIONS

• Cash conversion: Operating cashflow of -Rs 16.30 crore in FY25; backlog is not converting to cash efficiently, and receivables or working capital cycle may be stretched.
• Valuation check (as of 04 Aug 2026): P/E of 10.8x against ROCE of 43.57%. At the time of this article, valuation was pricing in execution improvement not yet visible in return ratios. (P/E is price-derived and will change; ROCE is from audited financials)