Synopsis: Small-cap stock jumps 3% as its subsidiary, Rajesh Power Projects, enters utility-scale battery storage with a 65 MW/130 MWh BESS at Virpore, Gujarat, under a 12-year BESPA with GUVNL, to be commissioned in 18 months.
The shares of the power company, specializing in power transmission and distribution services as a leading EPC contractor, jumped upto 3 percent, upon signing a Battery Energy Storage Purchase Agreement(BESPA) with state-run Gujarat Urja Vikas Nigam Limited (GUVNL).
With a market capitalization of Rs. 1,636.87 Crores on the day’s trade, the shares of Rajesh Power Services Ltd rose by 2.9 percent after making a high of Rs. 916.00 compared to its previous closing price of Rs. 890.00.
What Happened
Rajesh Power Projects Private Limited, a wholly-owned subsidiary of Rajesh Power Services Limited (RPSL), has signed a Battery Energy Storage Purchase Agreement (BESPA) with state-run Gujarat Urja Vikas Nigam Limited for a 65 MW / 130 MWh standalone Battery Energy Storage System (BESS) at Virpore, Gujarat, and this marks Rajesh Power’s entry into the utility-scale battery storage segment.
Under the 12-year BESPA, the project will operate at a contracted tariff of Rs. 1.89 lakh per MW per month. The 65 MW battery system, with 130 MWh storage, can supply power for up to two hours and is expected to be commissioned within 18 months. The project was awarded through GUVNL’s competitive bidding under Phase VII of its standalone BESS program, supported by Viability Gap Funding (VGF) via the Power System Development Fund (PSDF).
This Standalone battery storage helps utilities integrate renewable energy, manage intermittency, and enhance grid stability by storing surplus power and supplying it during peak demand. Gujarat is leading in grid-scale battery deployment, with GUVNL actively expanding BESS projects to complement the state’s growing renewable energy capacity.
Commenting on the development, Mr Kurang Panchal, Managing Director, Rajesh Power Services Limited, said, “The signing of the BESPA with GUVNL marks an important milestone for Rajesh Power as we enter the utility-scale battery storage segment. As renewable energy capacity continues to grow, battery energy storage systems will play a critical role in ensuring grid flexibility and reliability. This project reflects our commitment to supporting India’s evolving power infrastructure through high-quality execution and long-term operational capability.”
Financials
The company’s revenue rose by 103.8 percent from Rs. 313 crores in September 2024 to Rs. 638 crores in September 2025. Meanwhile, Net profit rose from Rs. 30 crores to Rs. 59 crores in the same period.
The company shows robust financial health, with a return on capital employed (ROCE) of 54.7% and a return on equity (ROE) of 50.8%. Its debt-to-equity ratio is low at 0.26, and the PEG ratio stands at 0.07, indicating strong growth potential relative to valuation.
Along with it, the company has demonstrated a strong financial performance, with a three-year return on equity (ROE) of 40.2%. Operational efficiency has improved, as debtor days have decreased from 86.3 to 61.9 days, and working capital requirements have been reduced from 52.4 days to 39.0 days.
Rajesh Power Services Limited (RPSL) is a leading specialised Engineering, Procurement & Construction (EPC) company in the Power Transmission & Distribution sector. The company offers turnkey solutions for GIS and AIS substations, extra high-voltage power cables, transmission lines, and distribution system construction.
With a customer-focused approach and a commitment to top-quality execution, RPSL has maintained its strong position in the industry for over five decades. The company serves government and institutional clients across India, delivering reliable and efficient power infrastructure solutions.
The company’s unexecuted order book and L1 pipeline stand at Rs. 3,502 Crores, with 24% from Power Transmission and 76% from Power Distribution. The Order inflows for H1FY26 totalled Rs. 1,929 Crores and Rs. 2,275 Crores, reflecting strong momentum across both segments.
In the Power Transmission segment (₹841 Cr), orders come from state transmission utilities, private DISCOMs, and private companies requiring EHV power enhancement or applications. The Power Distribution segment (₹2,661 Cr) includes orders from government and private distribution companies, turnkey projects for private DISCOMs, and OEM services, highlighting a diversified and robust project portfolio.
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