Rajesh Power Services has secured an intent letter from Gujarat Urja Vikas Nigam Limited (GUVNL) for a substantial battery energy storage project. The development represents a significant milestone for the infrastructure company as it expands its footprint in the renewable energy storage sector.

Project Specifications

The intent letter covers a standalone battery energy storage project with specific technical parameters that highlight the scale of the undertaking.

Strategic Significance

The intent letter from GUVNL positions Rajesh Power Services to participate in Gujarat's energy storage infrastructure development. Battery energy storage systems play a crucial role in modern power grids by providing grid stability, load balancing, and supporting renewable energy integration.

The 65 MW / 130 MWh capacity represents a substantial energy storage facility that can contribute to grid reliability and help manage power supply fluctuations. Such projects are becoming increasingly important as India accelerates its renewable energy adoption and requires robust storage solutions to ensure consistent power supply.

Company Profile

Rajesh Power Services operates in the infrastructure development sector, focusing on power-related projects and services. The company's involvement in this battery energy storage project demonstrates its strategic expansion into emerging energy technologies and its capability to handle large-scale infrastructure projects.

This intent letter represents an important step in the project development process, indicating GUVNL's confidence in the company's technical and execution capabilities for this energy storage initiative.

Rajesh Power Services Limited (RPSL) has reported impressive financial results for the first half of fiscal year 2026 (H1FY26), showcasing robust growth across key metrics. The company's performance underscores its strong position in the power transmission and distribution sector.

Financial Highlights

RPSL achieved significant growth in H1FY26:

The company's EBITDA margin improved to 13.16%, while the PAT margin stood at 9.22%.

Order Book and Business Expansion

RPSL's unexecuted order book has surpassed ₹3,500 crore, with order inflows exceeding ₹2,200 crore in the first six months of FY26. This strong order book provides visibility for future revenue growth.

The company has made significant strides in expanding its geographical footprint beyond its core market of Gujarat. RPSL is now actively operating in five states, including Rajasthan, Uttarakhand, and Madhya Pradesh, with plans to enter Orissa, Jharkhand, and parts of South India.

Key Developments

1. Entry into 400 kV GIS Segment: RPSL has entered the 400 kV gas-insulated substation (GIS) segment, positioning itself for larger projects with Power Grid and interstate transmission opportunities.

2. Private Sector Partnerships: The company has strengthened its position as a preferred partner for private sector clients, including SRF Limited, United Phosphorus Limited, Coca-Cola, Grasim Industries, and Asian Paints, for power supply arrangement projects.

3. Distribution Network Strengthening: RPSL completed 92 feeders for Uttar Gujarat Vij Company Limited, powering over 5 lakh consumers, and installed 2,000 ring main units, 1,000 distribution transformers, and laid more than 1,000 km of underground cable.

Future Outlook

RPSL's management has provided guidance for a 40% CAGR in revenue over the next few years. The company expects to close FY26 with an unexecuted order book of approximately ₹4,500 crore.

The company is actively pursuing opportunities in new geographies, with significant tenders expected in states like Uttarakhand, Rajasthan, Jharkhand, and Orissa. RPSL aims to maintain its current EBITDA margins of around 13-14% in the coming years.

Management Commentary

Utsav Panchal, Director and CEO of Rajesh Power Services Limited, stated, "H1FY26 has been a defining period for Rajesh Power, marked by strong operational performance, strategic diversification, and meaningful progress towards building smarter, more resilient power infrastructure. We remain committed to driving sustainable growth, delivering value to our stakeholders, and contributing to India's energy transition journey."

As RPSL continues to expand its presence across India and diversify its project portfolio, the company appears well-positioned to capitalize on the growing opportunities in the power transmission and distribution sector. Investors should, however, keep an eye on the company's ability to manage its working capital requirements and maintain profitability as it scales up operations.