1. At a Glance – Power EPC Ya Patience Test?
Welcome to Bajel Projects Ltd, where ₹2,585 Cr revenue meets ₹15.9 Cr profit and somehow the market still gives it a P/E of 110. Yes, you read that right—this is not a typo, this is optimism on steroids.
Current price: ₹151
Market cap: ₹1,744 Cr
3-month return: -14% (investors clearly need therapy)
ROE: 2.5% (even FD laughs quietly in the corner)
ROCE: 12.1% (okay, at least trying)
Now let’s talk Q3 FY26 — the latest quarterly results:
- Revenue: ₹562 Cr (down YoY)
- EBITDA margin: improved to 5.6%
- PAT: ₹4.51 Cr (still struggling like Monday morning motivation)
So what’s happening here?
Margins are improving. Execution is happening. Orders are flowing.
But profit? Still behaving like that one friend who promises to come but never shows up.
And yet, the market is pricing this like a future superstar.
Question for you:
Is this a turnaround story… or just a well-dressed construction company with low margins?
2. Introduction – Bajaj Group Ka Beta, But Marks Abhi Average
Let’s set the stage.
This company didn’t organically grow over decades. It was carved out of Bajaj Electricals Ltd in 2022. So basically, Bajaj said:
“Beta, jao… power EPC mein naam kamao.”
And now Bajel is out there building transmission lines, substations, and global EPC dreams.
But here’s the catch.
EPC (Engineering, Procurement, Construction) business is like Indian weddings:
- Huge contracts
- Big promises
- Long timelines
- And profits? Very thin margins after everything settles
Even the CRISIL report politely says:
- Profitability is “modest”
- Working capital is “large”
- Interest coverage is “moderate”
Translation:
“Company is doing fine… but don’t expect fireworks yet.”
However, not everything is boring.
Revenue has grown massively:
- ₹1,194 Cr → ₹2,628 Cr in FY25 (that’s 120% growth)
And order book?
So pipeline exists. Execution is happening.
But the real question is:
Growth toh ho raha hai… but paisa kahan ja raha hai?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Bajel Projects is basically the “electricity highway contractor” of India.
They do:
1. Power Transmission
- Build high-voltage lines (132kV to 765kV)
- Execute large EPC projects
2. Power Distribution
- Build substations
- Lay cables
- Electrify villages (50,000+ already done)
3. Manufacturing
- Towers, monopoles, poles
- Pune facility pumping steel structures
4. International EPC
- Projects in Zambia, Togo, Kenya
- Export to 7+ countries
So imagine this:
Electricity needs to travel from power plant → your home
Bajel builds the road.
Simple.
But here’s the roast:
This is a low-margin, high-risk, working capital heavy business
- You win a ₹500 Cr order
- Spend 18–24 months
