MAJOR CONTRACTS CAPEXRegulated Electric

Bajel Projects announces a new order win

Bajel ProjectsBAJEL

TL;DR

The aggregate value of the two PGCIL orders and Bajel Projects' total order book position are not reported or separately disclosed in the available financial filings and KPI data. To assess scale against baseline output, performance from the most recent reported quarterly filing (Q4 FY26) is as follows: Q4 FY26 Consolidated Revenue: Rs 1,007.8 Crores (standalone revenue was identical at Rs 1,007.8 Crores).

What is the aggregate value of these two PGCIL orders, and how does this addition shift the company’s total order book position relative to the revenue reported in the most recent quarterly filing?

The aggregate value of the two PGCIL orders and Bajel Projects' total order book position are not reported or separately disclosed in the available financial filings and KPI data.

To assess scale against baseline output, performance from the most recent reported quarterly filing (Q4 FY26) is as follows:

  • Q4 FY26 Consolidated Revenue: Rs 1,007.8 Crores [1] (standalone revenue was identical at Rs 1,007.8 Crores [2]).
  • Trailing Twelve Months (TTM) Consolidated Revenue: Rs 2,791.6 Crores [3] (TTM standalone revenue was Rs 2,791.6 Crores [4]).

Because order book balances and specific contract award values for the referenced PGCIL wins are omitted from the current disclosure set, quantifying the exact backlog addition or calculating its percentage shift relative to quarterly revenue remains a data gap.

_Scope note: this comparison also included Power Grid Corporation of India Ltd. (POWERGRID), which the answer above does not cover. Ask about any of them for a full side-by-side._

Based on the project timelines disclosed in the exchange filing, what is the expected revenue recognition schedule for these specific orders over the next 12-24 months, and does this align with the company's current execution capacity?

Executive Summary

Bajel Projects Limited's exchange filing confirms two major Power Grid Corporation of India Limited (POWERGRID) EPC order wins (TL06 and TL02) totaling over Rs 700 Crores [5], but the filing does not disclose specific contractual completion dates or a quarter-by-quarter revenue recognition schedule [5].

Operationally, the orders (~Rs 700 Crores, equivalent to 25.07% of TTM revenue [3]) align well with BAJEL's physical execution bandwidth, given its recent quarterly revenue scale of Rs 1,007.80 Crores in Q4 FY26 [1]. However, working capital intensity—evidenced by 148.60 receivable days [6] and a spike in Net Debt to EBITDA to 8.61x in Q4 FY26 [7]—presents a balance-sheet friction point for financing execution over the next 12–24 months.

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Order Details & Revenue Recognition Baseline

The corporate update issued on August 10, 2026, details two transmission line packages secured under the Western Region-Eastern Region (WR-ER) Inter-Regional Network Expansion Scheme [5]:

  • Package TL06 (Mega Order): Value exceeding Rs 300 Crores; covers design, supply, erection, testing, and commissioning of LILO of Ranchi (New) – New PPSP 400kV D/C Line at Jamshedpur (New) [5].
  • Package TL02 (Ultra-Mega Order): Value exceeding Rs 400 Crores; covers construction of the Raigarh (Tamnar) – Jamshedpur (New) 765kV D/C Line, Part-II [5].
  • Total Combined Value: Over Rs 700 Crores [5].

Disclosed Timeline & Milestone Schedule Gap

  • Filing Disclosure Gap: The corporate announcement does not specify the contract duration (e.g., execution period in months) or milestone completion timelines [5].
  • Implied Recognition Scenarios: High-voltage (400kV/765kV) power transmission EPC projects typically feature execution windows of 18 to 24 months.
  • 24-Month Execution Baseline: Implies an incremental revenue run-rate of approximately Rs 87.50 Crores per quarter (derived from Rs 700 Crores over 8 quarters).
  • 12-Month Accelerated Baseline: Implies an incremental revenue run-rate of approximately Rs 175.00 Crores per quarter (derived from Rs 700 Crores over 4 quarters).

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Execution Capacity Assessment

Operational vs. Financial Capacity Read

1. Operational Capacity (Aligned): BAJEL possesses demonstrated EPC project management capabilities in 400kV and 765kV EHV transmission lines [5]. Having delivered Rs 1,007.80 Crores of revenue in Q4 FY26 alone [1], the physical execution bandwidth required to deliver ~Rs 700 Crores over 12–24 months is well established within current operating capacity. 2. Financial / Working Capital Capacity (Constrained): While manufacturing and site execution resources are sufficient, cash flow generation is restricted. TTM OCF to Revenue stood at 0.8% [12] and Receivable Days expanded to 148.60 days in Q4 FY26 [6]. Consequently, finance costs rose to Rs 63.42 Crores on a TTM basis [13], pushing Net Debt to EBITDA to 8.61x [7].

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Analytical Implications & Key Factors to Monitor

  • Margin Trajectory: TTM EBITDA margin was 4.5% [14] and Q4 FY26 EBITDA margin stood at 3.8% [15]. With large-scale 765kV EPC projects, operational leverage could improve gross margins (which were 27.7% in Q4 FY26 [16]), provided input raw material cost variations (steel/aluminum) are pass-through or hedged.
  • Working Capital Release: Timely milestone billing and cash collection from POWERGRID will determine whether working capital constraints limit execution speed, or whether short-term debt must be expanded further to finance inventory and supply chain needs.
Execution DimensionMetric ValuePeriod / SourceAnalyst Assessment
Annual Execution BaseRs 2,791.60 CrTTM Q4 FY26 [3]Order wins equal 25.07% of annual revenue base (derived).
Quarterly Peak ThroughputRs 1,007.80 CrQ4 FY26 [1]Proven operational capacity to execute ~Rs 1,000 Cr in a single quarter.
Quarterly Baseline ThroughputRs 562.34 Cr to Rs 613.83 CrQ1–Q3 FY26 [1]Run-rate indicates quarterly capacity easily absorbs ~Rs 87.5–175 Cr incremental execution.
Receivable Days148.60 daysQ4 FY26 [6]Extended collection cycle increases reliance on short-term working capital borrowings.
Trade Receivables YoY+68.3%Q4 FY26 [8]Capital locked in working capital; receivables growth outpaced revenue growth (+25.7% YoY) [9].
Net Debt to EBITDA8.61xQ4 FY26 [7]Leverage increased sharply from 2.13x in Q3 FY26 [7] due to higher current borrowings (+189.2% YoY) [10].
Cash Conversion16.9%TTM Q4 FY26 [11]Low cash conversion and TTM OCF-to-Revenue of 0.8% [12] constrain self-funded capex/working capital.

Sources

  1. [1]Revenue INR
  2. [2]Revenue INR
  3. [3]TTM Revenue INR
  4. [4]TTM Revenue INR
  5. [5]Bajel Projects Secures Two Major Transmission Line Orders from Power Grid Corporation of India — 2026-08-10T07:12:09.993000, p.2
  6. [6]Receivable Days
  7. [7]Net Debt to EBITDA
  8. [8]Trade Receivables YoY
  9. [9]Revenue INR YoY
  10. [10]Current Borrowings YoY
  11. [11]TTM Cash Conversion
  12. [12]TTM OCF to Revenue
  13. [13]TTM Finance Costs
  14. [14]TTM EBITDA Margin
  15. [15]EBITDA Margin
  16. [16]Gross Margin
  17. [17]TTM Receivable Days
  18. [18]TTM Gross Margin
  19. [19]PAT Margin
  20. [20]TTM PAT Margin
  21. [21]Revenue Growth QoQ
  22. [22]TTM Payable Days
  23. [23]TTM Inventory Days
  24. [24]TTM Net Debt to EBITDA
  25. [25]TTM Finance Costs

Keep digging

What is the aggregate value of these two PGCIL orders, and how does this addition shift the company’s total order book position relative to the revenue reported in the most recent quarterly filing?

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