Gujarat Grid Modernization
Rajesh Power Services Secures \u20b9653 Crore Contract to Modernize Gujarat's Underground Power Grid
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Key Points
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Rajesh Power reported strong FY26 financials with net profit rising 48.19% to Rs 143.20 crore and revenue from operations up 51.85% to Rs 1,627.94 crore, signaling healthy earnings growth alongside the PGVCL order win.
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Kurang Panchal, Managing Director, described the PGVCL awards as a 'strong endorsement' of Rajesh Power’s execution capabilities and technical leadership in underground power distribution, underscoring the ability to handle large-scale, time-bound projects with high quality and safety standards.
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The PGVCL award is part of a broader package collectively valued at ₹6.53 billion (₹653 crore), comprising multiple turnkey contracts rather than a single project.
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As part of the package, the projects involve installing 11 kV insulated covered conductors under the Kisan Suryodaya Yojana scheme to upgrade the distribution network, mitigate tripping and enhance safety across coastal and rural zones, including the Porbandar Circle.
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In early trading, Rajesh Power’s shares rose over 4%, trading around Rs 856 and reaching an intraday high of about Rs 870 in response to the order news.
Rajesh Power Services has won a ₹653.12 crore contract from Paschim Gujarat Vij Company Limited (PGVCL) to build an underground power cable network across four Gujarat circles — Bhavnagar, Anjar, Junagadh, and Porbandar, according to Passionate in Marketing. The deal covers multiple turnkey contracts and must be completed within 18 months.
News of the win sent Rajesh Power's stock up more than 4% in early trading, with shares hitting an intraday high of around ₹870, per Business Upturn. The order adds significant weight to the company's order book and signals a strong pipeline in state-backed power infrastructure.
What the Underground Cable Project Actually Involves
The project converts existing 11kV overhead power lines into an underground cable network, according to Desh Gujarat. Workers will install 11kV insulated covered conductors — cables wrapped in a protective layer to reduce outages and safety risks. The system will also include a Ring Main System, which keeps power flowing even if one line fails.
The work also includes GIS mapping and asset tagging across each circle, per Whales Book. GIS mapping creates a digital record of where every cable and component sits underground. Asset tagging links each piece of equipment to that digital record, making future maintenance faster and cheaper.
Kisan Suryodaya Yojana Scheme Powers Coastal and Rural Upgrades
Part of the work falls under the Kisan Suryodaya Yojana scheme, a Gujarat government program to improve electricity supply for farmers, according to Passionate in Marketing. The Porbandar Circle work specifically targets coastal and rural zones where overhead lines are vulnerable to weather and cause frequent tripping — sudden power cuts that disrupt farm operations.
By burying cables underground, the project aims to cut tripping incidents and lift safety standards in these areas, per Scan X Trade. The shift also protects infrastructure from cyclones and storms, which are common along Gujarat's coastline.
MD Calls PGVCL Win a 'Strong Endorsement' of Execution Skills
Managing Director Kurang Panchal said the PGVCL awards are a "strong endorsement" of Rajesh Power's execution capabilities and technical leadership in underground power distribution, according to Whales Book. He added the company can handle large-scale, time-bound projects with high quality and safety standards.
The company backs up that confidence with solid financials. For FY26, Rajesh Power reported net profit up 48.19% to ₹143.20 crore. Revenue from operations jumped 51.85% to ₹1,627.94 crore, per Desh Gujarat. Those numbers put the firm in a strong position to fund and staff large government contracts.
Gujarat Accelerates Grid Modernization Through State Utility Deals
PGVCL is a government undertaking of Gujarat, making this a state-backed infrastructure push rather than a private deal, per Passionate in Marketing. The contract is classified as a non-related-party transaction in normal course of business, confirmed through regulatory filings. That means no conflict of interest and full transparency with stock exchange rules.
The ₹653 crore package is part of Gujarat's wider effort to modernize its power distribution grid, according to Business Upturn. For Rajesh Power, landing a deal of this size with a state utility cements its role as a top EPC contractor — a company that engineers, procures equipment, and builds entire projects — in India's growing power sector.
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