Bajel Projects announced the retirement of Executive Director Ajay Suresh Nagle, effective August 31, 2026. The departure marks the conclusion of his tenure with the company.

The firm notified both the BSE and NSE regarding the change in key managerial personnel. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Disclosure Details

The company referenced an earlier intimation dated May 27, 2026, regarding this transition. The retirement takes effect from the close of business hours on August 31, 2026.

Amee Bharatbhai Joshi, Company Secretary and Chief Compliance Officer, signed the filing. The document included Annexure 1 detailing the cessation of office as required by SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Bajel Projects has received a major work order valued at Rs 600.0 crore from the WR-ER Inter-Regional Network Expansion Scheme. The contract entails the construction of 765kV double-circuit transmission lines connecting Raigarh (Tamnar), Raigarh (Kotra), and Dharamjaygarh in Chhattisgarh. The filing, disclosed to the exchange on 12 Aug 2026, confirms this as a firm order with tax treatment inclusive of the stated value.

This latest win adds to the company's growing order book, which now stands at Rs 2900.00 crore across six disclosed orders over the last three fiscal quarters. The previous quarter saw the company secure a Rs 700.0 crore order from Power Grid Corporation of India Limited (Powergrid) for similar transmission line packages under the same WR-ER scheme, highlighting sustained demand in the domestic power transmission segment.

Order in Financial Context

The Rs 600.0 crore order value is substantial relative to the company's scale, representing approximately 87.6% of its average quarterly revenue of Rs 684.92 crore over the last four quarters. When added to the prior backlog of Rs 2300.00 crore, the total disclosed order book now totals Rs 2900.00 crore. This expanded backlog provides coverage of approximately 4.23 quarters of average quarterly revenue, up from the previous 3.36 quarters.

With a Trailing Twelve-Month (TTM) revenue of Rs 2739.70 crore, the book-to-bill ratio improves to roughly 1.06x, indicating that recent order inflows are beginning to match or exceed current revenue run-rates. The mix of domestic infrastructure work from the WR-ER scheme complements recent international wins from clients such as Egyptian Electricity Transmission Company (EETC), diversifying the client base and reducing reliance on any single geographic region.

Company Order Track Record

Order inflow velocity has accelerated with large-ticket domestic deals joining the pipeline of international contracts. The current Rs 600.0 crore order is part of a broader trend of increased per-order size or bundled packages from key entities like Powergrid and the WR-ER scheme. Over the last three quarters, the company has secured significant wins ranging from Rs 400.0 crore to Rs 700.0 crore each.

Note: Q2FY27 total includes the newly disclosed Rs 600.0 crore order.

Execution and Revenue Quality

Revenue recognition has shown volatility, with Q4FY26 being a standout quarter due to higher billing cycles. Net profit turned negative in Q3FY26, signaling execution stress or one-off costs during that period. Operating Profit Margins (OPM) have remained consistently thin, hovering around 1.82% to 1.84% across the last three quarters. This low margin profile leaves little room for error in project execution, cost overruns, or delays in milestone billings.

Revenue Growth and Order Wins Translating to Revenue

As Bajel Projects has sustained order wins, with consistent inflows including the recent Rs 1500.00 crore in Q2FY27, its annual revenue has grown from Rs 2629.10 crore in FY25 to Rs 2818.60 crore in FY26, representing a year-on-year growth of +7.2% based on the latest annual data. The earlier surge in FY25 (+120.1%) was driven by prior cycle orders, suggesting that the current backlog is now translating into top-line visibility, albeit at a slower growth rate compared to the previous year's catch-up phase.

Working Capital and Execution Capacity

The balance sheet indicates tight liquidity conditions. The Current Ratio stands at 1.20x, which is adequate but leaves minimal cushion for working capital spikes often associated with EPC projects. More concerning is the Total Liabilities/Equity ratio of 2.40x. Since this figure includes trade payables and other non-debt liabilities alongside borrowings, it reflects a high reliance on external funding and supplier credit to finance operations. Operating Cashflow declined sharply to Rs 21.10 crore in FY26 from Rs 69.10 crore in FY25, resulting in negative Free Cashflow of -Rs 12.70 crore. This trend suggests that the existing backlog is not converting to cash efficiently, potentially stretching the receivables cycle or increasing inventory holding costs.

What to Watch

• Execution rate: Monitor quarterly revenue run-rate against the Rs 2900.00 crore backlog. Given the thin OPM, any delay in milestone certifications from awarding entities could directly impact net profit.
• Margin quality: Watch if the OPM on these new WR-ER orders improves upon the historical average of ~1.8%. Infrastructure projects often face cost escalation risks that can erode already slim margins.
• Client concentration: Assess the shift in client mix. With recent heavy exposure to international clients, these domestic wins provide some balance, but overall dependence on a few large entities remains high.
• Cash conversion: Track operating cashflow trends closely. The decline in FY26 operating cashflow warrants attention to ensure working capital does not become a binding constraint for new project mobilization.

Key Observations