Bajaj Steel Industries Limited has announced its financial results for the quarter and nine months ended December 31, 2025, revealing mixed performance across its business segments. The company's consolidated revenue declined in Q3FY26 while facing operational challenges in its core cotton ginning machinery division.

Financial Performance Overview

The company reported consolidated revenue from operations of Rs 125.3 Cr for Q3FY26, marking a 9.3% decline from Rs 138.0 Cr in Q3FY25. On a sequential basis, revenue dropped 28.3% from Rs 174.6 Cr in Q2FY26. For the nine-month period ending December 31, 2025, revenue stood at Rs 407.4 Cr compared to Rs 431.3 Cr in the corresponding period last year, reflecting a 5.5% decline.

Segment-wise Performance Analysis

The cotton ginning machinery segment experienced a 26% year-on-year decline, with revenue dropping from Rs 97 Cr in Q3FY25 to Rs 72 Cr in Q3FY26. This decline was attributed to customer site unpreparedness, delays in commercial approvals, increased tariff barriers, geo-political issues, and consequent dispatch delays, leading to reduced export turnover.

Conversely, other business segments demonstrated resilience with 29% year-on-year growth, driven by improved order inflow and execution in infrastructure (PEBs) and electrical panels divisions. The infrastructure segment revenue increased from Rs 15 Cr to Rs 26 Cr, representing 73% growth, while electrical panels grew 25% from Rs 12 Cr to Rs 15 Cr.

Order Book and Business Outlook

Despite current challenges, the company maintains a robust order book of Rs 561 Cr as of February 11, 2026, with 38% contribution from other business segments. The cotton ginning machinery division holds Rs 348 Cr in orders, while infrastructure, electrical panels, heavy engineering, and other products contribute Rs 90 Cr, Rs 66 Cr, Rs 37 Cr, and Rs 20 Cr respectively.

Operational Challenges and Recovery Prospects

The nine-month revenue in the cotton ginning machinery segment was impacted by customer site unpreparedness and commercial clearances resulting in dispatch delays and deferred revenue recognition despite receipt of advances. However, the company expects performance improvement as commercial clearances, payment approvals, and order finalizations are progressing steadily.

Operating and net profitability were impacted by lower export revenues from the cotton ginning machinery segment, which accounts for approximately 60% of total revenue, amid largely unchanged fixed costs. The company anticipates that continued growth in other verticals will strengthen overall financial performance going forward.

Strategic Diversification Impact

The revenue growth in other business segments underscores the company's strategic emphasis on diversification and scaling other verticals. This diversification strategy appears to be providing some cushion against the challenges faced in the core cotton ginning machinery business, with other segments showing a compound annual growth rate of 47% compared to 6% for the cotton ginning machinery segment.

Bajaj Steel Industries has witnessed a significant increase in shareholding by Vidarbha Tradelinks Private Limited through an NCLT-sanctioned scheme of arrangement. The transaction, completed on December 13, 2025, involved the acquisition of 17.10 lakh equity shares from Bajaj Exports Private Limited, effectively doubling Vidarbha Tradelinks' stake in the company.

Major Shareholding Restructuring

Transaction Details

The acquisition was executed pursuant to a Scheme of Arrangement sanctioned by the National Company Law Tribunal among Bajaj Exports Private Limited, Rohit Polytex Limited, and Vidarbha Tradelinks Private Limited. Under this arrangement, the entire equity shareholding of Bajaj Exports Private Limited in Bajaj Steel Industries was transferred and vested into Vidarbha Tradelinks Private Limited.

Key Transaction Parameters

Regulatory Compliance

The disclosure was made by Vidarbha Tradelinks Private Limited in compliance with Regulation 10(6) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The acquisition falls under Regulation 10(1)(d)(iii) of SEBI SAST Regulations, which provides exemption for inter-se transfer of shares pursuant to NCLT-approved schemes.

Share Transfer Summary

Impact on Shareholding Structure

Following this transaction, Bajaj Exports Private Limited's stake in Bajaj Steel Industries has been reduced to zero, while Vidarbha Tradelinks has emerged as a significant shareholder with 16.39% voting rights. The acquisition represents 8.22% of the total diluted share capital of the target company. This corporate restructuring represents a substantial consolidation within the promoter group, with Vidarbha Tradelinks now holding a more prominent position in Bajaj Steel Industries' shareholding structure.