BAJEL - Bajel Projects

📊 NSE: BAJEL 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/13/2025 18:56

💰 Financial Performance

Revenue Growth by Segment

The Power Transmission and Power Distribution infrastructure segment (100% of revenue) grew 120% in FY2025 to INR 2,628 Cr from INR 1,194 Cr in FY2024. H1 FY2026 revenue reached INR 1,221 Cr, a 4% increase YoY.

Geographic Revenue Split

Domestic operations across 25 states contribute 97.51% of revenue, while international exports (2 countries including Zambia) contribute 2.49% (INR 64.82 Cr).

Profitability Margins

Net Profit After Tax (PAT) for FY2025 was INR 15.46 Cr (0.6% margin). Q2 FY2026 PAT surged 62% YoY to INR 6 Cr, reflecting improved operational efficiency despite high interest costs.

EBITDA Margin

EBITDA margin improved to 4.8% in Q2 FY2026 from 3.3% in Q2 FY2025. FY2025 EBITDA margin was 3.4%, up from 3.0% in FY2024 due to better fixed cost absorption.

Capital Expenditure

The company plans to invest in manufacturing and efficiency improvements to boost growth, supported by net cash accruals of INR 50-60 Cr and unencumbered cash of INR 103 Cr as of March 2025.

Credit Rating & Borrowing

CRISIL reaffirmed 'CRISIL A/Stable' and 'CRISIL A1' ratings in September 2025. Interest costs rose 56% YoY to INR 33 Cr in H1 FY2026, impacting Profit Before Tax.

⚙️ Operational Drivers

Raw Materials

Steel (TMT 10mm, HRC 2mm, CRC 0.63mm) and other commodities represent the primary input costs for power infrastructure projects.

Import Sources

Raw materials are primarily sourced domestically across 25 Indian states, with international project requirements (e.g., Zambia) sourced as per project location.

Capacity Expansion

The company is focusing on higher bidding to increase its order book, which stood at INR 2,984 Cr as of March 2025, providing over a year of revenue visibility.

Raw Material Costs

Raw material costs are managed through commodity price hedging to mitigate volatility in steel prices, which directly impacts the execution costs of transmission towers.

Manufacturing Efficiency

Operational efficiency is reflected in the EBITDA margin improvement to 4.8% in Q2 FY2026 and an improved inventory turnover ratio of 19.40x in FY2025.

📈 Strategic Growth

Expected Growth Rate

120%

Growth Strategy

The 'RAASTA 2030' strategy focuses on prudent order selection, higher bidding for large-scale tenders, and expanding the international footprint (currently in Zambia) to diversify the INR 2,984 Cr order book.

Products & Services

Engineering, Procurement, and Construction (EPC) solutions for Power Transmission and Power Distribution infrastructure.

Brand Portfolio

Bajel, Bajaj Group.

New Products/Services

Expansion into international markets and strategic investments in manufacturing are expected to contribute to future revenue growth.

Market Expansion

Expanding footprint across 25 Indian states and key international markets like Zambia to leverage global power infrastructure demand.

Market Share & Ranking

Part of the Bajaj Group, which is among the top five business groups in India by market capitalization.

Strategic Alliances

Benefit from being part of the Bajaj Group and expected financial support from Jamnalal Sons Pvt Ltd (JSPL), which has robust financial flexibility.

🌍 External Factors

Industry Trends

The power infrastructure industry is growing due to grid modernization and electrification; institutional buyers are increasingly prioritizing ESG compliance (BRSR).

Competitive Landscape

The company faces intense competition in the EPC sector, requiring prudent order selection to maintain profitability.

Competitive Moat

Durable advantages include the Bajaj Group brand reputation, financial flexibility from JSPL, and a strong L1 bidding track record in the EPC sector.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and interest rate cycles, as interest costs rose 43% in Q2 FY2026.

Consumer Behavior

Government and institutional clients are shifting demand toward ESG-compliant and sustainable infrastructure solutions.

Geopolitical Risks

International operations in Zambia expose the company to regional economic developments and trade barrier impacts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to changes in governmental regulations, tax regimes, and pollution norms at EPC sites.

Environmental Compliance

ESG compliance is a core focus to meet the expectations of government buyers; BRSR reporting is aligned with National Guidelines on Responsible Business Conduct.

Taxation Policy Impact

The effective tax rate was approximately 25% in H1 FY2026 (INR 3 Cr tax on INR 12 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Key risks include interest rate volatility (43% increase in Q2 interest cost) and commodity price spikes (Steel) which could impact the 4.8% EBITDA margin.