BBajel ProjectsExecutive Cockpit

Board & Investors — Value Creation & Risk

The shareholder-value thesis: profitable order-book growth, margin expansion & commodity discipline, working-capital & balance-sheet discipline, capability & internationalisation — governance and disciplined capital allocation, priced for growth optionality.

Bajel Projects Limited · FY26 (Mar'26, standalone audited anchor)
Bajaj Group's power-transmission & distribution EPC and tower/monopole manufacturing arm
1,400 employees · 1+ plants & units · 6 export markets
Executive read· the answer, then the moves

The order-book / growth-optionality thesis is proving out: 3 mature capabilities run at ~7% EBITDA margin, and net leverage sits at a modest 1.30x against a comfortable ~3x ceiling (CRISIL A+) — holding working-capital and balance-sheet discipline through the growth phase is the board priority. The remaining value is in the 4 ramping capabilities (765 kV lines, AIS & GIS substations, data-centre GIS) — build in-house engineering and capture margin to lift the blended EBITDA margin toward 6%.

5 of 6 headline metrics improving vs prior · still off target: Revenue (FY26) ₹2,792 Cr vs ₹3,200 Cr, EBITDA Margin 4.4% vs 6.0%, Revenue Growth (YoY) 7.4% vs 12.0%

Do now — ranked by urgency
  1. 1
    Bank the margin capture in the ramping capabilitiesWatch
    Why it matters

    3 of 7 capabilities sit below 80% margin / maturity capture; the mature lines already run richer — the same playbook is unbanked EBITDA until applied to the 765 kV line, AIS/GIS substation and data-centre GIS engines.

    What's driving it
    • 4 capabilities not yet fully mature
    • EBITDA margin 4.4%
    FYI
    • Capabilities: 765 kV lines · AIS/GIS substations · monopoles & galvanizing · data-centre GIS
    • Owner: President — Power Transmission · PMO
  2. 2
    Rich valuation — P/E ~66×Watch
    Why it matters

    Deliver order-book execution & margin expansion to justify the re-rating; execution must earn the multiple.

    What's driving it
    • P/E
    • Signal: Alert
    FYI

    Market cap ₹2,201 Cr on ₹27 Cr PAT — priced for order-book / growth optionality, not current earnings.

  3. 3
    PGCIL concentration & no-HVDC gapWatch
    Why it matters

    Diversify clients (Adani / data-centre / international); build 765 kV GIS and evaluate HVDC.

    What's driving it
    • Client concentration / capability
    • Signal: Alert
    FYI

    >90% of the book is transmission with a significant PGCIL share; 765 kV AC ceiling (no HVDC yet vs Skipper/KEC).

  4. 4
    Covenant headroom 1.5× (lev 1.5× vs 3×)Watch
    Why it matters

    Sets capex headroom and refinancing risk on a conservatively levered (~1.3×) balance sheet.

    What's driving it
    • Q1 FY26 (act)
    • Signal: Threshold
    FYI
    • Net-debt/EBITDA 1.5× against a 3× lender ceiling.
    • Owner: CFO · Treasury
Shareholder-value thesis · Bajel Projects Limited (NSE: BAJEL · BSE: 544042)

Grow the order book profitably, expand the thin EBITDA margin through a higher-value 765 kV substation mix and steel / zinc discipline, keep working capital and leverage in check, and build capability & international scale — compounding shareholder value as a newly-listed, Bajaj-Group power-transmission EPC and tower manufacturer.

₹2.8k Cr
FY26 revenue (+7.4% YoY)
~7%
EBITDA margin, mature capabilities
82%
transmission order-book mix
1.30x
net leverage (ceiling ~3.0x)
Revenue (FY26)
₹2,792 Cr
▲ 7.5% vs priorTarget ₹3,200 Cr
EBITDA Margin
4.4%
▲ 28.3% vs priorTarget 6.0%
Employees
1,400
▲ 7.7% vs priorNo target
Revenue Growth (YoY)
7.4%
▼ 93.9% vs priorTarget 12.0%
Order Book
₹4,055 Cr
▲ 35.9% vs priorTarget ₹4,500 Cr
Order-Book YoY Growth
15.0%
▲ 50.0% vs priorTarget 18.0%
Trailing 12 months

Revenue & EBITDA trajectory

Consistent top-line growth with steady margin expansion.

Diversification

Revenue by segment

Power Transmission (Lines & Substations ≤765 kV)77%
Power Distribution (Rural/Urban & Schemes)9%
Monopoles, Structures & Galvanizing (Ranjangaon)9%
International EPC (MENA & Africa)5%
Top verticals
Capability validation

Capability & product-line performance

The capability build: EBITDA growth and margin / maturity capture per product line.

Capability / product lineSinceRevenueOrder bookEBITDAMaturityStatus
Lattice Towers2001₹900 Cr₹1200 Cr8% → 54 Cr92%Integrated
Monopoles & Tubular Poles2007₹300 Cr₹400 Cr10% → 22 Cr88%Integrated
Galvanizing Services2010₹240 Cr₹220 Cr12% → 20 Cr85%Integrated
765 kV Transmission Lines2011₹1400 Cr₹2600 Cr6% → 64 Cr82%In progress
765 kV AIS Substations2016₹400 Cr₹500 Cr8% → 24 Cr78%In progress
400 kV GIS Substations2019₹200 Cr₹300 Cr7% → 14 Cr70%In progress
Data-Centre GIS Substations2025₹90 Cr₹300 Cr5% → 6 Cr55%In progress

The mature lines (lattice towers, monopoles, hot-dip galvanizing) anchor the group; the higher-value capabilities (765 kV transmission lines, 765 kV AIS & 400 kV GIS substations, data-centre GIS) are still ramping, with in-house engineering and margin capture in progress. Transmission ceiling is 765 kV AC — HVDC is a peer capability, not yet in Bajel's book.

Capital allocation & risk

Leverage, liquidity & cash

Covenant headroom funds the growth capex program; cash generation supports debt service & dividends.

Net Debt / EBITDA
1.3x
▲ 550.0% vs priorTarget 1.0x
Covenant Headroom
1.7x
▼ 39.3% vs priorTarget 2.0x
DSCR
2.2x
▼ 12.0% vs priorTarget 2.5x
Cash & Bank
₹200 Cr
▲ 11.1% vs priorNo target
Free Cash Flow
₹-90 Cr
▲ 25.0% vs priorTarget ₹50 Cr
Margin-Improvement Program
65.0%
▲ 30.0% vs priorTarget 100.0%
Material signals

Strategic & market watch

High-materiality external signals and peer moves from the news / BSE-NSE adapter feed.

Exchange/CRISIL
CRISIL upgrades Bajel to A+/Stable (LT); A1 (ST)
Bajel Projects Limited · Rating · → stronger order book quality & financial profile; lowers funding cost for WC-heavy growth (Jamnalal Sons backing cited)
Positive
News
Steel & zinc prices firm; management flags FY27 commodity-cost margin pressure
Steel & zinc (raw material) · Commodity · → fixed-price EPC margins compress unless hedged / escalation clauses apply — the single biggest margin swing factor
Negative
News
Order book hits all-time high ₹4,055 Cr (30-Jun-2026)
Order Book · Order · → Q1 FY27 inflow ~₹1,098 Cr; book-to-bill ~1.4–1.5×; honest Mar-25 dip to ₹2,984 Cr shows lumpiness
Positive
News
PGCIL / NEP transmission capex ramp; TBCB tenders accelerate
Power Grid Corp (PGCIL) · Policy · → multi-year T&D supercycle; Bajel one of 7 empanelled for 765 kV TBCB pan-India (also = concentration risk)
Positive
News
Egypt 500 kV EETC order — first ultra-mega international win (~₹400 Cr)
International EPC (MENA & Africa) · Order · → MENA internationalisation axis opens (Egypt / Saudi 50:50 JV / UAE WOS)
Positive