Power & Instrumentation (Gujarat) has secured an additional work order worth ₹7.14 crore from Ajmer Vidyut Vitran Nigam Limited (AVVNL), as reported by Business Standard. This new order comes in addition to the company's earlier work order of ₹68.22 crore, bringing the total contract value to ₹75.36 crore. The additional order was received against the tender reference AVVNL/RDSS-FS/DPR/TN-162 and was disclosed to exchanges on May 28, 2026, pursuant to Regulation 30 of SEBI listing requirements. The contract involves the supply, erection, installation, testing and commissioning of material/equipment for development of distribution infrastructure works for segregation of 11 KV mixed feeders at Dungarpur Circle of Ajmer Discom, Rajasthan, according to Business Standard. The project is being executed under the Revamped Reforms-Based and Results-Linked Distribution Sector Scheme (RDSS) on a turnkey basis with a 180-day completion schedule from the date of the award letter.
Shares of Power and Instrumentation (Gujarat) Limited demonstrated positive market response to the contract announcement, with the stock trading at ₹109.54, representing a 3.02% increase from its previous closing price of ₹106.33. The stock touched an intraday high of ₹110.60 and a low of ₹106.15, with the company maintaining a market capitalization of ₹229.8 crore and trading at a P/E ratio of 15.92. The market reaction reflects investor confidence in the company's ability to secure government infrastructure contracts and execute them efficiently. The ₹7.14 crore additional work order represents a 10.5% enhancement over the original ₹68.22 crore contract value, significantly improving the company's near-term revenue visibility.
The ₹7.14 crore additional work order brings the total contract value to ₹75.36 crore from Ajmer Vidyut Vitran Nigam Limited (AVVNL). The original work order of ₹68.22 crore was already in place before this new addition, as reported by Business Standard. The company confirmed that the order does not involve any interest from promoter, promoter group, or group companies in the entity awarding the contract, and the transaction does not fall within related party transactions. The contract is purely domestic in nature and does not involve any related-party transaction or promoter group interest, with the company maintaining strict adherence to regulatory compliance requirements.
This add-on order reflects positively on Power and Instrumentation's execution quality, delivery standards, and client confidence, as reported by Trade Brains. The 180-day completion timeline indicates that a substantial portion of the project revenue is likely to be recognized within the first half of FY27, potentially supporting near-term earnings growth and cash flow visibility. The RDSS scheme, with a total outlay exceeding ₹3 lakh crore, aims to modernize electricity distribution infrastructure and reduce AT&C losses across states. Securing repeat work under this scheme positions the company as a credible execution partner not only for AVVNL but potentially for other Rajasthan discoms and state electricity boards implementing similar feeder segregation and grid modernization projects. For a small-cap infrastructure player like Power and Instrumentation, such incremental order additions can materially improve revenue visibility and order book strength, creating a multi-year growth runway supported by government-backed spending.
