Rajesh Power H1FY27 Results (BSE: 544291)

2 Nov 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The trajectory is still rapid EPC revenue expansion—₹92,926.09 lakh, up 45.69% YoY—but profit conversion weakened: gross margin fell 334bps to 19.20%, operating margin fell 114bps to 12.02%, and finance cost rose 61.49% to ₹835.91 lakh; the next thesis test is whether execution growth can recover margins and convert ₹7,922.29 lakh of PAT into stronger operating cash flow than ₹869.23 lakh.

P&L walk

Consolidated revenue grew 45.69% YoY to ₹92,926.09 lakh, while gross margin fell 334bps to 19.20% and operating margin declined 114bps to 12.02%; PAT still rose 34.77% to ₹7,922.29 lakh, helped by ₹93.83 lakh of joint-venture profit.

Key positives

• Revenue from operations reached ₹92,926.09 lakh, up 45.69% YoY, confirming continued EPC execution momentum.
• Consolidated PAT increased 34.77% YoY to ₹7,922.29 lakh and EPS tracked PAT at +34.77%, with no dilution signal.
• Operating cash flow improved to ₹869.23 lakh from -₹2,240.67 lakh in the year-ago half year, while receivable and inventory balances declined from March-end levels.
• PPE increased 5.66% from March 31, 2026 while depreciation rose 9.75%, producing a clean depreciation-to-capex cross-check.

Key concerns

• Gross margin compressed 334bps YoY to 19.20%, with materials consumed plus inventory changes at 80.80% of revenue versus 77.46% a year earlier; the filing does not disclose the cause.
• Operating margin declined 114bps to 12.02% even as revenue grew 45.69%, indicating weaker profit conversion in the current EPC execution mix.
• Finance cost rose 61.49% YoY to ₹835.91 lakh, faster than revenue, while borrowings increased to ₹15,144.81 lakh.
• Operating cash flow of ₹869.23 lakh represented only 11.0% of consolidated PAT of ₹7,922.29 lakh, leaving cash conversion as a key monitoring point.

View original filing

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