Bajaj Steel Industries Ltd Q2FY26 – From Cotton Ginning to Global Grinning: ₹175 Cr Sales, ₹21 Cr Profit, and a ₹100 Cr Export Order That Made Nagpur Say “Gin-Gin Baby!”
1. At a Glance
Imagine a 63-year-old Nagpur-based engineering veteran that started by ginning cotton and now gins the nerves of competitors across 40 countries. Bajaj Steel Industries Ltd (BSIL) closed Q2FY26 with a strong show — Sales ₹175 crore, PAT ₹21.3 crore, and a 14.7% YoY sales growth. The stock trades at ₹538, with a market cap of ₹1,119 crore, P/E of 18.5x, and ROCE of 21.3%.
In the last few days, the company announced not one, not two, but massive export orders worth ₹100 crore for cotton ginning equipment and another ₹9 crore domestic order for pre-engineered warehousing structures. That’s not “gin and tonic” — it’s “gin and profit.”
But let’s not forget: the same stock was chilling at ₹988 less than a year ago and has now halved. Down 37.6% YoY, the market seems hungover from its bonus issue (3:1 in Oct 2024). Still, the fundamentals remain as solid as the steel in their pre-fab buildings.
Nagpur ka Bajaj is no longer just a cotton machine maker — it’s a diversified engineering orchestra, exporting across continents and recently launching a Brazil subsidiary. Who knew a company making gin machinery would be this sober about numbers?
2. Introduction
Some companies build rockets; Bajaj Steel builds the machines that process the raw material that clothes the rocket engineers.
Incorporated way back in 1961, BSIL has been quietly compounding for decades, a kind of industrial monk meditating with steel beams, electrical panels, and fire-fighting systems. For years, it was dismissed as a boring engineering firm making “cotton ginning” equipment. And yet, those who understood its niche — serving a global agricultural supply chain — have been laughing their way to the loom.
This Nagpur-based firm has transformed itself from a traditional ginning machinery player into a multi-vertical engineering powerhouse. Its tentacles now cover electrical panels, pre-engineered buildings, heavy fabrication, fire-fighting systems, and power transmission products. Think of it as the “Bajaj of everything that spins, presses, bolts, or burns.”
While its peers chase shiny digital dreams, Bajaj Steel still finds joy in tangible metal. And surprisingly, the margins are impressive: OPM of 15.7% and NPM of 11% — far better than many tech bros running “asset-light” dreams.
So what’s the secret sauce? Let’s find out what this old-school industrialist is up to in FY26, apart from casually winning export orders the size of some startups’ entire valuations.
3. Business Model – WTF Do They Even Do?
Think of Bajaj Steel Industries as India’s ultimate “engineering thali.” It serves everything — ginning, pressing, electricals, prefabs, and even aerobridges. You can’t call it boring when one of its divisions literally builds passenger boarding systems for airports.
Here’s the spread:
Ginning Machinery Division – The crown jewel. Bajaj is the only company in the world manufacturing machinery for all ginning technologies — Double Roller, Saw Gin, and Rotobar — under one roof. It’s like the Netflix of cotton equipment: all formats, one subscription.
Continental Eagle Corporation Division (CEC) – Their collab with the American giant lets Bajaj manufacture and sell U.S.-designed cotton processing equipment in India. Essentially, the “Make in Nagpur” version of Alabama’s cotton legacy.
Infrastructure Division – Designs and erects pre-engineered buildings, warehouses, solar module mounting structures, and prefab houses. If it’s made of steel and needs to stand up, Bajaj builds it.
Electrical Division – Makes every kind of control and power panel imaginable — MCC, APFC, LT/HT, PLC/SCADA — basically everything you’d find in a power plant or factory control room.
Heavy Engineering Division – Serves the steel, cement, and power sectors with fabricated structures. It even rolled out aerobridges recently — talk about taking cotton machinery to the skies!
Fire Fighting Division – Because after you build steel buildings, you better also sell the sprinklers.
Other Products – From conveyors to steel doors, furniture, and ducting systems — it’s a complete B2B engineering bazaar.
And the best part? 48% of their revenue now comes from exports across 40+ countries including the U.S., Africa, Southeast Asia, and Europe. This isn’t your typical “Nagpur ka dukaan” — it’s an engineering MNC in disguise.
4. Financials Overview
Metric (₹ Cr)
Q2FY26 (Sep’25)
Q2FY25 (YoY)
Q1FY26 (QoQ)
YoY %
QoQ %
Revenue
175
152
108
+14.7%
+62.0%
EBITDA
32
25
14
+28.0%
+128.6%
PAT
21.3
17
7
+22.1%
+200%
EPS (₹)
10.23
8.18
3.56
+25.1%
+187%
Annualized EPS = ₹10.23 × 4 = ₹40.9 At CMP ₹538 → P/E ≈ 13.1x (vs Industry P/E 34.7x)
The cotton is soft, but the numbers are hard. Margins are steady, profits are rising, and cash conversion looks healthier than ever. The QoQ jump alone shows a major comeback — probably boosted by new export shipments and PEB orders.
5. Valuation Discussion – The Fair Value Range
Let’s keep it desi and disciplined.
a) P/E Method: Industry P/E = 34.7×; BSIL’s P/E = 13.1× If BSIL trades at 16–22× FY26E EPS (₹40.9): → Fair Value = ₹654 – ₹900
b) EV/EBITDA Method: EV/EBITDA = 10.6× currently. Sector peers (LMW, Kaynes, Jyoti CNC) trade between 25×–60×. If re-rated to 14–18× EV/EBITDA → Fair EV Range ₹1,415–₹1,820 Cr Subtract Debt ₹49.7 Cr; Add Cash ₹~50 Cr → Equity Value ≈ ₹1,420–₹1,830 Cr → Per Share = ₹680 – ₹880
c) DCF (Simplified): Assume FCF CAGR 10% for 5 years, terminal growth 3%, WACC 11%. Intrinsic value band: ₹620 – ₹760 per share.
→ Combined Fair Value Range: ₹620 – ₹880/share
Disclaimer: This fair value range is for educational purposes only and not investment advice. Please don’t mortgage your tractor to buy ginning machines.
