Bharat Bijlee Limited , a prominent player in the capital goods manufacturing sector, has announced a significant move to enhance its financial flexibility and support its expansion plans. The company has issued a postal ballot notice seeking shareholder approval for two special resolutions that aim to increase its borrowing capacity and secure these borrowings.

Proposed Resolutions

1. Increase in Borrowing Limit: Bharat Bijlee proposes to raise its borrowing limit from the current ₹650.00 crores to ₹1,500.00 crores under Section 180(1)(c) of the Companies Act, 2013.

2. Creation of Charges on Assets: The company seeks approval to create charges on movable and other securities up to ₹1,500.00 crores to secure these borrowings under Section 180(1)(a) of the Companies Act, 2013.

Rationale for the Increase

The company states that this substantial increase in the borrowing limit is necessary to address:

• Higher non-fund based bank facilities requirements, including bank guarantees for business operations.
• Planned expansion of transformer manufacturing capacity.

Voting Process

Impact on Operations

The proposed increase in borrowing capacity is expected to provide Bharat Bijlee with the financial resources needed to:

• Submit bank guarantees of various maturities to customers at different stages of business operations.
• Support the company's expansion plans, particularly in its transformer manufacturing segment.
• Bridge working capital gaps through cash credit facilities.

Management's Perspective

The Board of Directors, in their meeting held on October 16, 2025, approved and recommended these resolutions to the shareholders. They believe that the increased borrowing limit and the ability to create charges on assets are in the best interest of the company, considering its growth trajectory and operational requirements.

Shareholders are advised to carefully review the postal ballot notice and cast their votes through the remote e-voting system provided by the company. The outcome of this vote may significantly impact Bharat Bijlee's financial structure and future growth prospects.

Bharat Bijlee Limited (BBL), a leading player in the electrical engineering sector, has announced strong financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

The company's performance for Q2 FY2026 showcases substantial year-over-year improvements:

All financial figures are in crore rupees, except for percentages

Segment Performance

Bharat Bijlee's growth was driven by strong performances in both of its primary business segments:

1. Power Systems: This segment, which includes transformers and turnkey projects for electrical substations, reported revenue of ₹259.76 crore.

2. Industrial Systems: The segment comprising electric motors, drives, automation systems, and magnet technology machines generated revenue of ₹213.68 crore.

Balance Sheet Strength

As of September 30, 2025, Bharat Bijlee maintains a robust financial position:

• Total assets stood at ₹3,109.11 crore
• Shareholders' equity reached ₹2,195.14 crore
• The company held cash and cash equivalents of ₹27.01 crore

Management Initiatives

The Board of Directors has approved several strategic initiatives:

1. An increase in borrowing limits to ₹1,500 crore, subject to shareholder approval.
2. Authorization for the creation of charges on company assets to secure the proposed borrowings.
3. Initiation of a postal ballot process to seek shareholder approval for these financial decisions.

Outlook

The significant increase in borrowing limits suggests that Bharat Bijlee may be positioning itself for potential expansion or major capital investments in the future.

The strong Q2 results, particularly the improvement in EBITDA margin, indicate enhanced operational efficiency alongside revenue growth. This performance demonstrates Bharat Bijlee's ability to capitalize on market opportunities while maintaining cost discipline.

Investors and analysts will likely watch closely how the company utilizes its expanded borrowing capacity and whether this translates into growth or market expansion in the coming quarters.

Note: All financial figures are based on the unaudited results for the quarter ended September 30, 2025, as reported by Bharat Bijlee Limited.