Bajel Projects Limited, a Bajaj Group company specializing in power infrastructure, has announced its financial results for the first quarter of the fiscal year 2025-26, showcasing a mixed performance with revenue growth but a decline in profitability.

Revenue and EBITDA Growth

The company reported a robust 19% year-on-year increase in revenue from operations, reaching Rs. 607.60 crores in Q1 FY2025-26, up from Rs. 512.00 crores in the same quarter of the previous year. This growth was accompanied by a significant improvement in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which rose by 32% to Rs. 24.90 crores from Rs. 18.80 crores in the corresponding period.

Margin Improvement

Bajel Projects demonstrated improved operational efficiency, with its EBITDA margin expanding to 4.04% from 3.58% in the same quarter last year. This enhancement in margin reflects the company's efforts to optimize its operations and manage costs effectively.

Profit Decline

Despite the growth in revenue and EBITDA, the company faced challenges in its bottom line. Profit before tax (PBT) declined by 40% to Rs. 4.45 crores from Rs. 7.46 crores in the previous year's quarter. Similarly, net profit also decreased by 40% to Rs. 3.32 crores from Rs. 5.52 crores.

Project Execution Highlights

During the quarter, Bajel Projects successfully executed several key transmission line projects in various locations:

• Raichur
• Jeypore-Jagdalpur
• Gurgaon

These projects underscore the company's continued focus on operational execution and its strong presence in the power transmission sector.

Management Commentary

Rajesh Ganesh, MD & CEO of Bajel Projects Limited, commented on the results: "Our focus is on project execution. Revenue grew 19% year-on-year, while EBITDA margin improved to 4% from 3.6% in the same period last year. Despite ongoing finance cost pressures, we continue to enhance efficiency and collaborate with financial partners to mitigate challenges. We remain focused on execution excellence and creating long-term value for our stakeholders."

Financial Performance Overview

Note: All financial figures are presented on a standalone basis. EBITDA includes other income, and EBITDA margin is calculated on Total Income.

Company Background

Bajel Projects Limited, formerly part of Bajaj Electricals Limited's EPC segment, is a leading player in power infrastructure with a strong presence in Power Transmission and Power Distribution sectors. The company leverages its project management skills and operational excellence to serve various state, national, and international utilities, as well as private infrastructure players.

Bajel Projects Limited, a prominent player in the construction and infrastructure sector, has released its financial results for the first quarter, showcasing a mixed performance. The company also announced a significant employee stock option grant, highlighting its commitment to employee retention and long-term growth.

Q1 Financial Performance

Bajel Projects demonstrated strong top-line growth in the first quarter, with revenue increasing to ₹6.10 billion, up from ₹5.12 billion in the same period last year. This represents a year-over-year growth of approximately 19%, indicating robust demand for the company's services.

The company's operational efficiency showed marked improvement, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubling to ₹166.00 million, compared to ₹71.00 million in the previous year. Consequently, the EBITDA margin expanded significantly to 2.72% from 1.39%, reflecting enhanced cost management and operational optimization.

However, despite the revenue growth and improved operational performance, Bajel Projects experienced a decline in net profit. The company reported a net profit of ₹33.00 million for the quarter, down from ₹55.00 million in the same period last year.

Employee Stock Option Plan

In a separate announcement, Bajel Projects revealed that its Nomination and Remuneration Committee has approved the grant of 1,82,000 stock options under the Bajel Projects Limited Employee Stock Option Plan 2024 (ESOP 2024). This move is aimed at aligning employee interests with those of the company and its shareholders.

Key details of the ESOP 2024 include:

The stock options, when exercised, will be convertible into an equal number of equity shares, potentially diluting the company's share capital by 1,82,000 shares.

Looking Ahead

While Bajel Projects has shown strong revenue growth and operational improvements, the decline in net profit may raise questions among investors. The company's focus on employee retention through the ESOP scheme suggests a long-term growth strategy, potentially aimed at navigating challenges in the competitive construction and infrastructure sector.

As the fiscal year progresses, stakeholders will likely keep a close eye on how Bajel Projects balances its growth initiatives with profitability measures, and whether the ESOP scheme contributes to improved performance and employee productivity in the coming quarters.