Power & Instrumentation (Gujarat) Bags ₹3.72 Cr Add-on Order from Ajmer Discom

Synopsis:- Continuing from a contract first awarded in October 2025, Power and Instrumentation (Gujarat) Limited has received an additional work order worth Rs. 3.72 crore from Ajmer Vidyut Vitran Nigam Limited, taking the cumulative value of the AVVNL engagement to Rs. 38.28 crore a follow-on addition to its distribution infrastructure mandate in Rajasthan’s Salumbar Circle under the RDSS scheme.

An EPC electrical services company listed on the BSE and NSE came back into focus on Monday after disclosing a fresh additional work order from a Rajasthan state electricity distributor. The Regulation 30 intimation, filed with both exchanges on June 23, 2026, extends a contract originally disclosed in October 2025 with a cumulative scope that has now grown to Rs. 38.28 crore inclusive of taxes.

With a market capitalisation of Rs. 242.81 crore, the shares of Power and Instrumentation (Gujarat) Limited were trading at Rs. 115.74 per share, up 1.11 percent from its previous closing price of Rs. 114..47 apiece. It is trading at a P/E of 16.22.

Order Update

Power and Instrumentation (Gujarat) Limited has received a supplementary work order from Ajmer Vidyut Vitran Nigam Limited, the electricity distribution company serving the Ajmer Discom territory in western Rajasthan. The additional order is valued at Rs. 3,72,38,087, approximately Rs. 3.72 crore inclusive of taxes, and brings the cumulative contract value to Rs. 38,28,38,087 Rs. 38.28 crore against the original engagement intimated to the stock exchanges on October 9, 2025.

The scope of work covers supply, erection, installation, testing and commissioning of material and equipment for development of distribution infrastructure at the Salumbar Circle of the Ajmer Discom. The specific technical mandate involves segregation of 11 KV mixed feeders, a defined activity under the central government’s Revamped Distribution Sector Scheme (RDSS). Feeder segregation involves separating agricultural power supply lines from domestic and commercial connections, enabling discoms to provide scheduled, reliable power to each category independently rather than managing intermittent supply across a single mixed-use feeder.

PIGL is executing the assignment on a turnkey basis, covering the full project delivery chain from material procurement to commissioning. The contract runs for 15 months, no promoter or group company holds any interest in AVVNL, and the order does not fall within related party transaction definitions.

RDSS Scope and Execution Context

AVVNL expanding an existing PIGL contract, rather than retendering, points to satisfactory progress on the original scope. Incremental additions under RDSS mandates are typically issued when the discom wishes to broaden the geographic coverage or technical scope of an ongoing assignment from an incumbent contractor. In this case, the base contract has grown from its October 2025 level to Rs. 38.28 crore in roughly eight months, a step-up that suggests PIGL has maintained execution standards on site.

The RDSS programme, with its national outlay for distribution infrastructure modernisation across India’s state discoms, has been a consistent demand driver for electrical EPC companies operating in the small and mid-cap segment. Rajasthan is among the larger RDSS-active states by tender activity, and PIGL’s established presence with AVVNL gives the company a working relationship inside one of the programme’s higher-volume awarding entities.

At Rs. 38.28 crore, the cumulative AVVNL contract accounts for approximately 17.5 percent of PIGL’s FY26 consolidated revenue of Rs. 219 crore large enough to be revenue-meaningful over the 15-month execution horizon. The Rs. 3.72 crore addition in isolation is relatively small against that base, but in RDSS contracting, add-ons often precede larger scope revisions, and the filing’s cumulative disclosure structure makes clear that PIGL is treating this as a live, growing engagement rather than a closed order.

One financial dynamic worth tracking is the company’s cash flow profile. PIGL’s free cash flow was negative at Rs. 6 crore in FY26 and Rs. 40 crore in FY25 despite posting operating profits in both years. This is typical for turnkey EPC businesses where project billing milestones trail active site expenditure. That said, debtor days improved materially from 131 days in FY25 to 70 days in FY26, indicating the company has been recovering receivables faster. Government scheme contracts, which carry structured payment milestones linked to commissioning stages, tend to support collections once the relevant work is certified and verified.

Business Overview

Incorporated in 1975, Power and Instrumentation (Gujarat) Limited provides EPC solutions across electrical contracting, indoor substations, field services, distribution transformer installation and generator-related services. For the quarter ended March 2026, PIGL reported consolidated revenue of Rs. 58.53 crore and net profit of Rs. 3.93 crore, against revenue of Rs. 55.09 crore and net profit of Rs. 2.81 crore in the March 2025 quarter a 39.9 percent increase in profitability on a 6.2 percent rise in revenue. For the full year FY26, consolidated revenue rose to Rs. 219 crore from Rs. 169 crore in FY25, with net profit growing from Rs. 12 crore to Rs. 15 crore.

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