Rajesh Power Services has made its mark in India’s EPC space. The company delivered a remarkable financial performance for the fiscal year ended 31 March 2025. That performance was driven by both top-line and bottom-line growth—and some very deliberate strategic moves.
Rajesh Power FY25 Results
- Revenue that really takes off: Rajesh Power’s revenue from operations surged. Standalone financial results for FY25 show revenues of around INR 1,072.07 crore compared to INR 284.97 crore in FY24 (a ~276% jump). That’s a reflection of the company’s ability to land and execute high-value EPC projects.
- Profitability that really adds up: PAT jumped (~158%) from INR 26.02 crore in FY24 to INR 67.21 crore in FY25. That growth not only shows better operational efficiency but also a tight control on expenses. Consolidated financials, which include the joint venture HKRP Innovations, report a robust profit of INR 93.37 crore.
- Earnings per share that really soar: Investors will be encouraged by the sharp rise in earnings per share. Standalone diluted EPS increased from INR 17.10 in FY24 to INR 53.99 in FY25. Consolidated diluted EPS registered an impressive INR 57.74.
Rajesh Power IPO Details
Rajesh Power listed on 2 December 2024 on BSE SME platform. The IPO was a mix of fresh issue (INR 93.47 crore) and an OFS (INR 67 crore) and an IPO allotment price of INR 335 per share. It was subscribed 59X and listed with 99% returns on listing day. The IPO capital will not only strengthen the balance sheet but also provide financial headroom to expand operations and invest in growth drivers. With the IPO success, shareholders’ funds have grown substantially from INR 84.30 crore in FY24 to over INR 256.22 crore in FY25. This increase in equity base is a reflection of investor confidence and improves the company’s credit profile and market positioning.
Operational Efficiency and Working Capital
- Operating Profit before Working Capital Adjustments: Operational efficiency has improved significantly, operating profit (before working capital changes) has jumped to INR 127.37 crore from INR 36.33 crore in previous year. This is direct result of higher project volumes and cost management.
- Cash Flow: Operating cash flow was slightly negative at INR (20.79) crore which is common for fast growing companies who are reinvesting in their business. Despite this, strong performance in investing and financing activities helped to balance the net cash flows and overall liquidity position by end of the year.
- Dividend Payout: The board has put forth a recommendation of a 10% final dividend, which translates to INR 1 per equity share (based on a face value of INR 10).
Path to Mainboard
Having proven itself on the SME platform, management is now looking at a possible mainboard listing. This will not only increase the investor base but also brand and liquidity. The strong financials and disciplined corporate governance in FY25 are the credentials for such an upgrade. Rajesh Power FY25 performance is more than just short term numbers—it’s a transformative period of strategic restructuring, capital deployment and future focused management.
Conclusion
Rajesh Power FY25 results is not just a financial milestone but a clear indication of its journey from a SME to a full fledged public sector player in EPC space. The company’s strong results, post IPO, strong balance sheet and strategic governance initiatives has set the stage for growth. As infrastructure spend in India continues to grow, Rajesh Power is well placed to capture more market share and deliver value to shareholders.
Investor Takeaway:
Key Risks: Elevated receivables and working capital pressures
Growth Catalysts: Increased government spending on infrastructure, margin expansion, potential mainboard migration
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