Bajel Projects Limited — Q4 FY26 earnings call

Call held 29 May 2026

Management summary

Bajel Projects reported a strong Q4 and FY26, with full-year revenue growing 7% to INR2,792 crores and PAT surging 74% to INR27 crores. EBITDA margin improved to 4.4%. The company saw a 55% increase in order outflow for FY26 and maintained a robust unexecuted order book of INR3,442 crores. Strategic initiatives include a significant manufacturing capacity expansion and new JVs, despite facing headwinds from commodity prices and geopolitical tensions.

Highlights

  • FY26 Revenue from operations grew to INR2,792 crores, a 7% increase.

  • FY26 Profit after tax expanded to INR27 crores, a 74% growth.

  • FY26 EBITDA grew to INR125 crores, with a margin improving from 3.4% to 4.4%.

  • Q4 FY26 standalone revenue from operations grew by 26% YoY to INR1,008 crores.

  • Order outflow for FY26 stood at roughly INR3,100 crores, a 55% increase YoY.

Concerns

  • Temporary moderation in ordering activity in FY26 due to capacity and bandwidth.

  • Commodity price volatility (steel, zinc) and geopolitical uncertainty impacted margins.

  • Increase in debtor days and receivables during Q4 FY26, though largely collected post-quarter.

Key financials

5 periods

Headline

  • Net Working Capital Days
    124 days
  • Net Debt to EBITDA
    2.8
  • Return on Average Capital Employed
    15.8%
  • Cash Borrowings
    ₹31 Cr

Q4 FY26

  • Revenue from Operations
    ₹1,008 Cr
    YoY +26%
  • EBITDA
    ₹38 Cr
    YoY +39%
  • EBITDA Margin
    3.7%
  • Profit After Tax
    ₹16 Cr

FY26

  • Revenue from Operations
    ₹2,792 Cr
    YoY +7%
  • Profit After Tax
    ₹27 Cr
    YoY +74%
  • EBITDA
    ₹125 Cr
    YoY +38%
  • EBITDA Margin
    4.4%
  • Finance Cost
    ₹63 Cr

Employee Welfare Trust, FY26

  • Share of P&L
    ₹6.68 Cr

Employee Welfare Trust, Q4 FY26

  • Share of P&L
    ₹1.57 Cr

What they filed

Q1 FY27: revenue down 6.7%, net profit up 59.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue662 622 801 608 614 −7%562 −10%1,008 +26%567 −7%
EBITDA17 15 21 16 20 +22%25 +69%31 +47%19 +15%
Net profit4 1 5 3 4 −2%-0 −129%14 +193%5 +60%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹3,442 Cr

as of 2026-03-31 quantified

Execution

Current order book is expected to be executed over the next financial year, contributing to FY27 revenue.

Composition

  • Domestic (geography)
  • Middle East & North Africa (geography) ₹400 Cr
  • Transmission Lines & Substations (product)

Pipeline

L1 awaiting loa

L1 or in advanced stages of negotiation on orders worth over INR2,000 crores; actively pursuing opportunities worth INR22,000 crores.

The company has a robust order book and a strong pipeline, with significant new order wins and L1 positions, indicating good future revenue visibility.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹170 Cr INR120 crores through term loan, INR50 crores through own investments
    • Manufacturing facility expansion (overall capacity from 45k MT to 110-120k MT)
    • Galvanizing bath readiness (Phase 1)
    • Improve TLT (transmission tower) capacity from 2k MT/month to 6k MT/month (Phase 2)
    • New monopole line (Phase 3)
    On Nishita's question on manufacturing capacity, the overall capex outlay Nishita is INR170 crores. And what we're trying to do is to increase the capacity of the plant from the current 45 odd thousand metric tonnes to about 110 to 120,000 metric tonnes. So you see it's a two and a half times sort of growth in capacity. We are trying to do that in three phases. ... So, that would be, you know, and the funding of it is INR120 crores of this is through term loan, Nishita, and the balance INR50 crores is through our own investments.
  • Debt 2.8× EBITDA
    Net working capital stood at 124 days as of 31st of March 2026, and our net debt to EBITDA improved to around 2.8 times. Cash borrowings have reduced from INR121 crores last year to INR31 crores this year.
  • Dividend ₹0.6/share (final) Payout ratio 30%
    the Board of Directors have recommended a maiden dividend of INR0.60 per equity share, that is 30% dividend pay-out on the face value of INR2 per share for the financial year 31st March 2026, subject to the approval of the shareholders at the ensuing Annual General Meeting.
  • M&A Al Sharif Contracting and Commercial Development Company Limited Joint venture · Signed

    Establishing a long-term platform for growth in the Middle East, one of the fastest growing electricity infrastructure markets globally.

    50-50 JV structure.

    We also entered into a 50-50 JV in the Kingdom of Saudi Arabia with Al Sharif Contracting and Commercial Development Company Limited, establishing a long-term platform for growth in the Middle East in one of the fastest growing electricity infrastructure markets globally.
  • M&A NIIF and AnantGrid Private Limited Joint venture · Announced

    Jointly deliver high quality and cost-efficient power transmission projects in India. Bajel takes small equity, NIIF and AnantGrid largely fund, Bajel gets EPC agreement.

    Positive impact on P&L due to high quality, large-scale projects and better margins/terms from EPC agreement.

    On the 10th of March 2026, we announced a strategic collaboration with NIIF, National Investment and Infrastructure Fund, a sovereign-linked fund of the Government of India, and AnantGrid Private Limited, a NIIF-promoted power transmission developer. This tripartite arrangement enables us to jointly deliver high quality and cost-efficient power transmission projects in India. ... Now the arrangement, the Tripartite arrangement is very clear. The financing of it is largely going to be done by NIIF and AnantGrid. And we'd be taking -- we'd be taking a small equity. And in return, what we are getting is the EPC agreement, back to back EPC agreement for executing any of the projects that we win.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence upwards of 15%
    On the revenue growth for FY27, I mean, projection for the year, it's a bit early in the year, but I think we should be in, I mean, our endeavour is obviously to grow the -- the focus is not to grow the top line significantly, but I do acknowledge that a certain amount of scale is required for fixed cost absorption in this business. So we are targeting anywhere upwards of 15% and we are quite confident we should get there.

    — Rajesh Ganesh

Order Book

  • Unexecuted Order Book Order Book · End of FY27 · Medium confidence INR4,000 crores to INR5,000 crores
    So given this, I think we should be, we should be in a position to end the year with an unexecuted order book of about INR4,000 crores to INR5,000 crores. Hopefully that helps.

    — Rajesh Ganesh

Capacity

  • Manufacturing Plant Capacity Capacity · Phased expansion · High confidence 110,000 to 120,000 metric tonnes

    From 45,000 metric tonnes today

    And what we're trying to do is to increase the capacity of the plant from the current 45 odd thousand metric tonnes to about 110 to 120,000 metric tonnes. So you see it's a two and a half times sort of growth in capacity.

    — Rajesh Ganesh

  • Galvanizing Bath Operational Capacity · August (this year) · High confidence Ready
    The first one is to get the big galvanizing bath ready, which is the heart of a tower manufacturing or a monopole manufacturing facility. Now that should be done by August.

    — Rajesh Ganesh

  • Transmission Tower (TLT) Capacity Capacity · End of FY27 or start of FY28 · High confidence 6,000 metric tonnes per month

    From 2,000 metric tonnes per month today

    The second part of the -- the second phase is to improve the TLT, the transmission tower capacity, which currently stands at about 2,000 metric tonnes per month. I mean, that's going to go up to 6,000 metric tonnes per month. ... And that would be ready by the end of this financial year or max by the start of the next financial year.

    — Rajesh Ganesh

  • New Monopole Line Operational Capacity · End of FY28 · High confidence Ready
    And the third phase is we are setting up a brand new monopole line because we believe that the demand for monopoles in the future will be high, and, and that's a segment where we have an inherent strength, both in design as well as in manufacturing. So, so that would be phase three, and that would go till the end of next financial year.

    — Rajesh Ganesh

What to watch in Q1 FY27

FY27 Revenue Growth

FY27
Current FY26 growth 7%
Target >15%

Why it matters

Key indicator of business momentum and execution capability, reflecting the success of strategic initiatives.

On the revenue growth for FY27, I mean, projection for the year, it's a bit early in the year, but I think we should be in, I mean, our endeavour is obviously to grow the -- the focus is not to grow the top line significantly, but I do acknowledge that a certain amount of scale is required for fixed cost absorption in this business. So we are targeting anywhere upwards of 15% and we are quite confident we should get there.

Risks & concerns

  • Commodity price volatility (steel, zinc)

    medium

    While aluminum is largely hedged, steel and zinc prices are unhedged and subject to market fluctuations, impacting margins.

    Management acknowledged

  • Geopolitical uncertainty (US-Iran conflict)

    medium

    Affected global supply chains, crude oil prices, and slowed plans in the Middle East/North Africa region.

    Management acknowledged

  • Manpower challenges and supply chain disruptions

    medium

    Shortage of skilled labor, high oil prices, and non-availability of LPG adversely affected execution and supply chain operations.

    Management acknowledged

  • Depreciating currency and higher labor costs

    medium

    Depreciating currency added to challenges, and higher wages/new labor code are expected to increase costs.

    Management acknowledged

  • Temporary moderation in ordering activity

    low

    Ordering activity in FY26 saw temporary moderation due to capacity and bandwidth, but the medium-term opportunity remains robust and well-funded.

    Management downplayed

  • Increase in debtor days and receivables

    low

    Debtors increased in Q4 due to higher billing and a marquee customer holding back payments, but management stated most of it has been collected post-quarter.

    Analyst acknowledged

Q&A highlights

7 direct
Margins trajectory and Q4 dip due to external factors Direct
Rahul, last six months, the commodities have been on a bit of a run. I mean, we all know that, aluminum, steel, zinc, copper, all of them have been on a bit of a run. So does present a challenging environment. Aluminum, we've managed to by and large hedge, we still have some open exposure, but especially for the new orders. But up to March, end of March, you know, financial year, I think we've completely hedged. So but there's no way to hedge steel, zinc, and others.

Explains the reasons behind the Q4 margin dip, attributing it to unhedged commodity price volatility and geopolitical factors.

Asked by Rahulkumar Mishra

Capex for manufacturing facility expansion, operational timeline, and FY27 revenue growth Direct
On Nishita's question on manufacturing capacity, the overall capex outlay Nishita is INR170 crores. And what we're trying to do is to increase the capacity of the plant from the current 45 odd thousand metric tonnes to about 110 to 120,000 metric tonnes. ... On the revenue growth for FY27, I mean, projection for the year, it's a bit early in the year, but I think we should be in, I mean, our endeavour is obviously to grow the -- the focus is not to grow the top line significantly, but I do acknowledge that a certain amount of scale is required for fixed cost absorption in this business. So we are targeting anywhere upwards of 15% and we are quite confident we should get there.

Provides detailed financial and operational guidance for the manufacturing expansion and revenue growth for the next fiscal year.

Asked by Nishita Shanklesha

Revenue potential from expanded manufacturing facility and rationale for in-housing Direct
Well, I mean, tower capacity, availability of tower manufacturing capacity and monopole capacity is a challenge in the market Nishita, because as, as the sector is witnessing quite a bit of demand. ... So the endeavour here is really to try to in-source as much as possible the raw material that we need as much as possible, right. So that's the endeavour here. And it's more to ensure that we protect our margins, and that we to some extent insulate ourselves against possible increase in conversion costs, prices, et cetera, et cetera, due to higher demand, right.

Clarifies the strategic rationale behind the significant capex, focusing on margin protection and supply chain control.

Asked by Nishita Shanklesha

Industry dynamics (domestic/international) and interest in HVDC projects Direct
India is one of those markets, is an exciting market for power transmission and distribution, particularly, because if you see the demand for electricity continues to grow. ... If you take Saudi Arabia for example, or UAE or Oman, or Egypt, markets like that, I mean there's considerable amount of work that's happening and there's big plans for grid expansion as well. ... For bidding for HVDC, well we do not have HVDC in our portfolio yet, but we are keen. I must say we are keen. And if an opportunity presents itself we are sure to grab it.

Offers a comprehensive overview of the market opportunities both domestically and internationally, and the company's strategic interest in HVDC.

Asked by Yash Sarda

Impact of Tripartite SPV (NIIF, AnantGrid) on Bajel's financials and strategy Direct
I mean, we have no interest in asset ownership. Let me make that very clear. That's not the business that we are in. ... The financing of it is largely going to be done by NIIF and AnantGrid. And we'd be taking -- we'd be taking a small equity. And in return, what we are getting is the EPC agreement, back to back EPC agreement for executing any of the projects that we win. ... So I actually see a positive impact on the P&L as a result of this, madam.

Clarifies the company's role and financial benefits from the strategic partnership, emphasizing it's not an asset ownership play but an EPC opportunity.

Asked by Ashok Jain

Employee welfare trust losses and future impact Direct
These are five employer trusts, and the impact is primarily because of the mark to market that we have done as a part of the trust accounting. And 31st March, the equity markets were quite low. And as they improve, as the share prices come back, we should be able to, I mean, we should be able to bring back those numbers back on track. The real impact of the share of profit and loss is INR6.68 and INR1.57 for the quarter ended 31st March 2026.

Explains a specific financial item impacting profit, attributing it to market-to-market accounting and expecting recovery.

Asked by Ashok Jain

Increase in debtor days, receivables, and borrowings in Q4 FY26 Direct
Vedant, the debtors have increased by around INR590 crores from INR1,258 crores to INR1,849 crores. This is primarily on account of higher last quarter billing. The billings have increased on a year-on-year basis compared to previous year, that is an impact of around INR194 crores. Also one marquee customer held back payments in the last fortnight of March of around INR225 crores. Both of this, most part of both of this have been collected by us in this part of, I mean in this year, so till date we have collected most part of it.

Provides a detailed explanation for the working capital deterioration in Q4, clarifying it was largely a timing issue with subsequent collections.

Asked by Vedant

3 min read 8 chapters

Detailed narrative

Strategic Shift and Vision: RAASTA 2030

Bajel Projects is undergoing a transformation guided by its RAASTA 2030 strategic roadmap, shifting from scale-led to quality-led growth. The focus is on disciplined bidding, execution excellence, and operational margins. This strategy aims to position Bajel as a future-ready and globally recognized player in the power transmission infrastructure sector, building on the Bajaj Group's 100-year philosophy of integrity and community service.

Robust Industry Outlook and Market Opportunities

India's power sector remains highly attractive, targeting 900 gigawatts of non-fossil fuel capacity by 2036, requiring an estimated INR9 lakh crores investment by 2032. This growth is driven by renewable integration, growing electricity demand, and modernization of the national grid. Internationally, the Middle East, Africa, and parts of Southeast Asia are also experiencing a parallel investment cycle, with significant capital commitments like Saudi Arabia's Vision 2030, presenting selective opportunities for established EPC players.

Strong Operational Performance Despite Headwinds

In FY26, Bajel successfully commissioned 17 power transmission projects, completing 1,168 circuit kilometers, representing approximately 10% of India's total transmission line capacity addition. This was achieved despite significant challenges, including shifting trade policies, geopolitical uncertainty (US-Iran war), commodity price volatility (steel, zinc), currency depreciation, manpower shortages, and high oil/LPG prices affecting the supply chain.

Order Book Growth and Strategic Pipeline

The company's order outflow for FY26 increased by 55% YoY to INR3,100 crores. As of March 31, 2026, the unexecuted order book stood at INR3,442 crores. Post-March 2026, Bajel secured additional orders worth INR1,000 crores, including a INR400 crore order from the Middle East. The company is currently L1 on orders worth over INR2,000 crores and actively pursuing opportunities valued at INR22,000 crores, aiming for an unexecuted order book of INR4,000-5,000 crores by end of FY27.

Strategic Partnerships and Joint Ventures

Bajel announced a strategic collaboration with NIIF and AnantGrid Private Limited to jointly deliver power transmission projects in India, where Bajel will take a small equity stake and secure EPC agreements. Additionally, a 50-50 JV was formed with Al Sharif Contracting and Commercial Development Company Limited in Saudi Arabia, establishing a long-term platform for growth in the Middle East's electricity infrastructure market. These partnerships are expected to bring high-quality, large-scale projects and improve margins.

Manufacturing Capacity Expansion and In-housing Strategy

Bajel is investing INR170 crores in capex to expand its Ranjangaon manufacturing facility from 45,000 metric tonnes to 110,000-120,000 metric tonnes. This expansion, funded by INR120 crores in term loans and INR50 crores from internal investments, is phased, with the galvanizing bath ready by August 2026, TLT capacity increasing to 6,000 MT/month by end FY27/start FY28, and a new monopole line by end FY28. The strategy aims to in-source raw materials, protect margins, and ensure captive demand.

Financial Performance and Working Capital Management

For FY26, standalone revenue grew 7% to INR2,792 crores, PAT increased 74% to INR27 crores, and EBITDA grew 38% to INR125 crores, with the margin improving to 4.4%. Q4 FY26 saw revenue of INR1,008 crores (+26% YoY) and EBITDA of INR38 crores (+39%). Net working capital stood at 124 days, and net debt to EBITDA improved to 2.8 times. Cash borrowings reduced from INR121 crores to INR31 crores. An increase in debtor days in Q4 was attributed to higher billing and a specific customer payment hold, which has largely been collected post-quarter.

Maiden Dividend Declaration

In recognition of its strong performance and the Bajaj Group's 100-year milestone, the Board of Directors recommended a maiden dividend of INR0.60 per equity share for FY26. This represents a 30% dividend payout on the face value of INR2 per share, subject to shareholder approval.

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