Bajel Projects announces a new order win

The stipulated execution timeline for the PowerGrid Corporation of India Limited (PGCIL) transmission line project is 27 months from the date of issuance of the Notification of Award ^[2].

Scope of Work and Technical Specifications

The project entails Transmission Line Package TL06 for the LILO of the Ranchi (New) - New PPSP 400kV D/C line at Jamshedpur (New), associated with the "WR-ER Inter-Regional Network Expansion Scheme-Part A" executed via the Tariff Based Competitive Bidding route ^[2]. The specific technical scope includes:

• Section 1: Jamshedpur (New) to LILO section towards Ranchi (New) utilizing a 400kV D/C configuration with Twin Moose conductors ^[2].
• Section 2: Jamshedpur (New) to LILO section towards New PPSP utilizing a 400kV D/C configuration with Twin HTLS (High-Temperature Low-Sag) conductors ^[2].

Deviation from Standard EPC Profile

The exchange filing does not provide comparative commentary or qualitative disclosure on whether these technical requirements—specifically the deployment of Twin HTLS conductors for high-voltage double-circuit lines—deviate from Bajel Projects' standard EPC project profile ^[2]. The regulatory disclosure confines its scope to standard contractual parameters, order classification as a 'Mega' order ranging between Rs 300 crore and Rs 400 crore, and counterparty details ^[1].

Client Mix & Contract Profile

Bajel Projects was awarded a Mega EPC order by PowerGrid Corporation of India Limited (PGCIL), a central public sector utility, for transmission line works under the Tariff Based Competitive Bidding (TBCB) route ^[1].

• Contract Value & Scope: Classified as a Mega Order, valued between Rs 300 Crores and Rs 400 Crores ^[1]. The scope encompasses the 400kV D/C transmission line package TL06 for LILO of the Ranchi (New)–New PPSP line at Jamshedpur (New), associated with the *WR-ER Inter-Regional Network Expansion Scheme-Part A* ^[2].
• Execution Timeline: 27 months from the issuance date of the Notification of Award ^[2].
• Client Exposure: PGCIL is a central Public Sector Undertaking (PSU) sovereign-backed utility ^[2].
• Historical Baseline Gap: A granular numerical breakdown of Bajel Projects' historical order book split between private utilities versus state/central public sector utilities was not separately disclosed in the financial reports.

---

Working Capital Baseline Context

Bajel Projects' existing balance sheet reflects a extended working capital cycle heading into the execution of this contract:

---

Working Capital & Financial Implications

Execution of this Rs 300–400 Crore contract over 27 months ^[1] under PGCIL's institutional framework introduces distinct working capital dynamics:

• Elimination of Counterparty Default Risk: Contracting with PGCIL (central PSU) provides high cash-flow certainty and near-zero bad debt risk compared to financially stressed state DISCOMs or private developers.
• Milestone & Retention Cash-Flow Locks: Central PSU contracts like PGCIL typically feature rigid stage-wise billing milestones, technical inspection clearances, and retention money withholdings (typically 10% until final commissioning/defect liability expiry). This structure slows cash conversion during initial tower foundation and stringing phases.
• Sustained Receivables & Short-Term Debt Exposure: With Bajel's Receivable Days standing at 148.60 days ^[5] and Trade Receivables reaching Rs 1,633.80 Crores in Q4 FY26 ^[6], ramping up execution on a Mega order will keep working capital requirements high.
• Dependence on Short-Term Credit & Vendor Stretch: To support expanding execution, Bajel increased its current short-term borrowings from Rs 93.06 Crores in Q3 FY26 ^[9] to Rs 349.96 Crores in Q4 FY26 ^[9], driving TTM Net Debt to EBITDA from 0.60x to 2.62x ^[10]. Concurrently, payable days were stretched to 101.10 days ^[7] (Trade Payables of Rs 881.56 Crores ^[8]). Continued order execution with PGCIL will rely on keeping vendor credit extended while managing higher interest costs from short-term debt facilities.