Bajel Projects Ltd (BSE: 544042, NSE: BAJEL) — Business Report / Investor Feed
Business & Distribution Evaluation: Bajel Projects Limited (BSE: 544042)
1. Business Identity
Bajel Projects Limited is an Engineering, Procurement and Construction (EPC) company focused on power transmission and power distribution infrastructure, serving government utilities, private infrastructure players, and international clients across 25 Indian states and 7+ countries [2][6][20]. The company constitutes a single reporting segment — power transmission and distribution — as reviewed by the CODM under Ind AS 108 [24][36].
| Parameter | Detail |
|---|---|
| Sector | Power Infrastructure — EPC (NIC Code: 3510) [2] |
| Year of Incorporation | 19 January 2022 [6] |
| CIN | L31900MH2022PLC375133 [8] |
| Listing Date | 19 December 2023 (demerged from Bajaj Electricals Ltd) [22][34] |
| Promoter Group | Bajaj Group — India's 3rd largest group by market capitalisation; founded 1926 by Shri Jamnalal Bajaj; 40+ group companies [20][34] |
| Registered Office | Rustomjee Aspiree, 8th Floor, Sion (E), Mumbai 400022 [8] |
| Credit Rating | CRISIL A/Stable & CRISIL A1 [as of September 2025] [30] |
Legacy: Bajel was formerly the EPC segment of Bajaj Electricals Limited and carries forward a legacy of over 20 years of excellence in power infrastructure [9][5].
2. Revenue Architecture
Revenue Model
Project-based EPC contracts — the company earns revenue through design, engineering, procurement, construction and commissioning of power transmission and distribution infrastructure. 100% of turnover is derived from this single activity [2][6].
Revenue Trajectory
Source: [14][35]. All figures standalone.
Revenue more than doubled in FY25 (+122%) while EBITDA grew even faster (+152%), indicating operating leverage is beginning to kick in as project scale increases. However, absolute EBITDA margin remains thin at 3.4% — typical of EPC businesses where profitability is highly sensitive to execution efficiency and input cost pass-through.
Quarterly Progression [FY26]
| Particulars (₹ Cr) | Q1 FY26 | Q2 FY26 | H1 FY26 | H1 FY25 | H1 Growth |
|---|---|---|---|---|---|
| Revenue from Operations | 608 | 614 | 1,221 | 1,174 | 4% |
| EBITDA | 25 | 30 | 55 | 41 | 34% |
| EBITDA Margin % | 4.04% | 4.8% | 4.4% | 3.4% | +100 bps |
| PBT | 4.5 | 8 | 12 | 14 | -13% |
Source: [27][30]. Standalone figures. PBT impacted by higher interest cost and legacy projects [30].
H1 FY26 EBITDA margin expanded 100 bps YoY to 4.4%, suggesting the company is making progress toward its stated long-term target of high single-digit margins. The divergence between EBITDA growth (+34%) and PBT decline (–13%) signals that interest costs from capacity expansion are currently compressing bottom-line gains.
Revenue Mix by Geography [FY25]
| Geography | ₹ Lakhs | % of Turnover |
|---|---|---|
| Domestic | ~2,53,341 | ~97.5% |
| Export | 6,482 | 2.49% |
| Total | 2,59,824 | 100% |
Source: [2]
Pricing Mechanism
Orders are won through competitive tendering (including Tariff Based Competitive Bidding / TBCB route for PGCIL projects) [5][26]. The company categorises order wins into financial bands (inclusive of GST) [1][5]:
| Significant | Large | Major | Mega | Ultra-Mega |
|---|---|---|---|---|
| ₹50–100 Cr | ₹100–200 Cr | ₹200–300 Cr | ₹300–400 Cr | ₹400 Cr+ |
3. Product & Service Portfolio
4 Business Verticals [6][9]
| Vertical | Key Offerings | Scale Metrics | Lifecycle Stage |
|---|---|---|---|
| Power Transmission | EPC for 132kV–765kV transmission lines (S/C, D/C, M/C); AIS/GIS substations up to 765kV | 8,995+ ckm lines; 45+ AIS/GIS substations [20] | Growth |
| Power Distribution | 33/11kV substations, overhead lines, underground cabling, ring main units, service connections, rural electrification | 50,000+ villages electrified; 2.6 million+ service connections; 85,301+ transformers installed [9][20] | Mature |
| Monopoles / Products | Lattice towers, monopoles (110kV–400kV), high masts, lighting poles; galvanizing services | 1,015+ monopoles supplied; 1,32,882 lighting poles produced; 6,904 poles exported [19][20] | Growth |
| International EPC | Transmission lines, distribution networks, rural electrification, product supply | Presence in Kenya, Togo, Zambia, UAE, Ghana, DRC, Suriname, Liberia, Rwanda, Nepal [3][18][20] | Early Growth |
Manufacturing Facility — Ranjangaon, Maharashtra [9]
| Parameter | Detail |
|---|---|
| Area | 67,840 sq. m. |
| Production FY25 | 44,741 MT [9][22] |
| Production H1 FY26 | 25,315 MT (highest ever H1) [20] |
| Production FY24 | 33,609 MT [34] |
| Galvanization Capacity (Current) | 40,500 MT p.a. at 98% utilization [32] |
| Galvanization Capacity (Post-expansion) | 1,10,000 MT p.a. (Q4 FY26–Q4 FY27, ₹170 Cr investment via internal accruals/debt) [32] |
| Certifications | ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 3834-2:2005 [9] |
Galvanization capacity running at 98% utilization is effectively a hard constraint. The planned 2.7x expansion to 1,10,000 MT p.a. is critical not just for growth but to avoid becoming a bottleneck — especially as production has already risen from 33,609 MT (FY24) to an annualised ~50,630 MT pace in H1 FY26.
Key differentiators: Qualification advantage in Extra High Voltage (EHV) segments with limited competition [16][38]; integrated manufacturing + EPC capabilities; galvanizing unit serving both captive and third-party needs [3][18].
4. Value Chain Position
Position in the Value Chain
Integrated EPC contractor + product manufacturer — Bajel occupies a mid-to-downstream position spanning engineering design → procurement → manufacturing (towers, monopoles, poles) → construction → commissioning [6][9].
Raw Material Suppliers → [BAJEL: Design + Procurement + Manufacturing + Construction + Commissioning] → End Customer (Utility / IPP)
Direction of Integration
Backward integration into manufacturing of lattice structures, monopoles, and galvanizing (Ranjangaon plant), reducing dependence on external suppliers for key structural components [3][18][32].
Key Inputs & Outputs
| Key Inputs | Key Outputs |
|---|---|
| Steel, aluminium conductors (ACSR/AAAC/AL59), electrical equipment (transformers, switchgear), cement, cables | Commissioned transmission lines, substations, distribution networks, monopoles, lattice towers, lighting poles |
Supplier Concentration
- Purchases from trading houses: Nil [FY25 and FY24] [13]
- Share of RPTs in purchases: 18.14% [FY25] vs 8.49% [FY24] — increasing reliance on related party procurement [13]
- The company mandates compliance with a Supplier Code of Conduct (SCoC) for all suppliers [13]
5. Distribution Architecture
Channel Structure
Bajel operates a 100% direct distribution model with no dealers or distributors — sales to dealers/distributors as a % of total sales is Nil [FY25 and FY24] [13]. Revenue is generated through:
- Direct B2G contracts — government utilities (PGCIL, state transmission/distribution corporations) via competitive tendering
- Direct B2B contracts — private sector infrastructure players (Adani Energy Solutions, Tata Power, Torrent Power, Inergy Infra) via negotiated/tendered contracts [7][15][34]
- International contracts — funded by multilateral agencies (EXIM Bank of India, European International Bank) or direct to national utilities (ZESCO Zambia, CEET Togo) [3][19]
Network Scale [as on 30 September 2025]
| Metric | Count |
|---|---|
| Active projects | ~160 [20] |
| National plants | 3 [2] |
| National offices | 7 [2] |
| International offices | 2 [2] |
| States served (India) | 25 [2] |
| Countries served (international) | 7+ [20] |
| Employee strength | 829 [20] (1,000+ including contract workforce [9]) |
| EPC Order Book | ₹3,375 Cr [as on 30 Sept 2025] [20] |
Order Book Momentum
The order pipeline is heavily tilted toward PGCIL, which accounts for the majority of disclosed Mega and Ultra-Mega wins. While government counterparty risk is low, execution concentration on a single client's project cadence creates scheduling and cash-flow dependency that the company's strategic push into private and international EPC is designed to offset.
International Distribution
| Country | Activity | Status |
|---|---|---|
| Kenya | LV single-phase line (1,583 km) | Completed [3] |
| Zambia | 132kV D/C transmission line (Roma–Lusaka West, 20 km); 132kV monopole TL (Coventry–Chawama) | Completed [3][18][19] |
| Togo | MV/LV rural electrification of 46 villages (97km MV + 127km LV) | Ongoing [3][18] |
| UAE | Supply of 220kV monopoles | Completed [18][19] |
| Ghana, DRC, Suriname | Supply of distribution poles | Completed [3] |
| Liberia, Rwanda, Nepal | Secured supply orders | Active [18] |
Digital Distribution
Not applicable in the traditional sense — the company is a project-based EPC contractor. Customer engagement is through sales teams, project coordinators, catalogues, website, and email [29]. The company is investing in digitisation (PMO, IT, IoT) as part of its Year 0–2 strategic roadmap [16][38].
Strategic Distribution Targets [16][38]
| Timeframe | Goals |
|---|---|
| Year 0–2 | Organisation building; EPC on-ground international presence; establish product supply chains; digitisation |
| Year 2–4 | Enhance win ratio; selective international EPC; product supply to key accounts; enter new businesses |
| Long-term | Double-digit revenue growth; high single-digit EBITDA margins; >15% ROCE; increased topline from international & new businesses |
6. Customer Profile
Customer Segments
Bajel's clientele is classified into Institutional Customers and Government/Non-Government Entities [2]. The EPC segment primarily serves government institutions with projects typically 2–3 years in duration [2].
| Segment | Key Customers | Revenue Nature |
|---|---|---|
| Central Government Utilities | PowerGrid Corporation of India Ltd (PGCIL) — multiple orders including 765kV and 400kV transmission lines [5][10][11][23][26][37] | B2G, tender-based |
| State Government Utilities | MPPTCL (Madhya Pradesh), KPTCL (Karnataka), HVPNL (Haryana), WBSETCL (West Bengal) [4][8][18][34] | B2G, tender-based |
| Private Sector | Adani Energy Solutions Ltd (400kV Raipur–Tiroda, 217 km) [7]; Tata Power (400kV substations, Greater Noida) [3][34]; Torrent Power/Solapur TL (400/220kV substation) [15]; Inergy Infra (550MW solar-wind hybrid evacuation) [10][25] | B2B, LOA-based |
| International Government Bodies | ZESCO (Zambia), CEET (Togo), EXIM Bank-funded projects [3][19] | B2G, bilateral/multilateral |
Sales to Related Parties
| Metric | FY25 | FY24 |
|---|---|---|
| Sales to related parties / Total Sales | 4.59% | 3.86% |
Source: [13]
Customer Concentration
Specific top-customer revenue percentages are not disclosed in the filings reviewed. However, PGCIL is evidently the dominant client, with multiple Ultra-Mega (₹400 Cr+), Mega (₹300–400 Cr), and other large orders awarded across FY25 and H1 FY26 [5][10][11][23][26][37]. A significant portion of credit exposure is directed towards government entities, which the company notes contributes to financial stability and lower operational risk [2].
Data gap: Top 1 / Top 5 / Top 10 customer concentration ratios are not available in the filings.
Relationship Depth
| Parameter | Detail |
|---|---|
| Contract type | Project-based (12–29 months typical execution timelines) [4][5][10][11][15] |
| Acquisition model | Competitive tendering (including TBCB) for government; LOA-based for private sector [5][7] |
| Repeat relationships | PGCIL — multiple awards across FY25–FY26; Inergy Infra — two simultaneous orders [37]; Tata Power — distribution and transmission orders [3][34] |
| Complaints | Zero consumer complaints [FY25 and FY24] [31] |
| Arbitration | Outstanding balance of ₹49.30 Cr (net of provision) from two customers under arbitration [as on 30 Sept 2025] [24][36] |
Sector-Specific Metrics (Manufacturing B2B / EPC)
| Metric | Value |
|---|---|
| OEM Relationships | PGCIL (largest single client), state transcos (MPPTCL, KPTCL, HVPNL), private IPPs (Adani, Tata Power, Torrent) [4][5][7][34] |
| Service Recognition | "Transmission Excellence with Zero Accidents" by PGCIL; Certificate of Merit in Maharashtra Safety Award [21] |
| Export Logistics | Product supplies to 7+ countries; completed monopole exports to UAE, pole exports to Ghana, Togo, DRC, Suriname [3][19][20] |
| Manufacturing Capacity Expansion | Galvanization: 40,500 → 1,10,000 MT p.a. (2.7x increase); ₹170 Cr capex; Q4 FY26–Q4 FY27 [32] |
| Production Trend | FY24: 33,609 MT → FY25: 44,741 MT → H1 FY26: 25,315 MT (annualised ~50,630 MT) [34][9][20] |
Key Data Gaps
- Customer concentration ratios (top 1 / 5 / 10) — not disclosed.
- Segment-wise revenue split across the four verticals (Power Transmission, Power Distribution, Monopoles, International EPC) — the company reports as a single segment under Ind AS 108 [24].
- Order book composition by vertical or by customer type — only the aggregate order book of ₹3,375 Cr [as on Sept 2025] is disclosed [20].
- Channel economics / subcontracting margins — erection & subcontracting expenses are disclosed (₹250 Cr in FY25) [28] but margin structure per project type is not broken out.
- Competitive distribution comparison — peer data (KEC International, Kalpataru Projects, Sterlite Power, etc.) is not available in the filings reviewed and therefore cannot be presented.