Bajel Projects revenue drops 16%, September profit slips 2%

Bajel Projects Limited reported standalone revenue from operations of Rs 514.1051 crore for the quarter ended September 30, 2026, down 16% from Rs 613.8311 crore a year earlier, while profit for the period fell 2% to Rs 5.7979 crore. The board approved the unaudited results on November 6, 2026.

Why did Bajel Projects’ September-quarter revenue fall?

Bajel Projects’ September-quarter revenue fell because net sales declined 18% year on year to Rs 496.1892 crore from Rs 606.5470 crore. Other operating income increased to Rs 17.9659 crore from Rs 7.2841 crore, partly offsetting the reduction in net sales, but total revenue from operations still declined by Rs 99.7260 crore.

Total income was Rs 520.7781 crore in the quarter ended September 30, 2026, compared with Rs 620.8077 crore in the corresponding quarter a year earlier. Other income declined to Rs 6.6730 crore from Rs 6.9766 crore, while revenue from operations was also below Rs 566.8817 crore in the preceding quarter ended June 30, 2026.

Bajel Projects reports power transmission and distribution as a single reporting segment under Indian Accounting Standard 108, or Ind AS 108. Consequently, the filing does not provide separate revenue or profit figures for activities within the segment that could explain the Rs 99.7260 crore year-on-year reduction in operating revenue.

How did costs affect Bajel Projects’ September-quarter profit?

Bajel Projects’ lower material and finance costs partly contained the impact of reduced revenue, but profit for the period still declined to Rs 5.7979 crore from Rs 5.9422 crore. Cost of materials consumed fell 22% to Rs 332.1516 crore from Rs 425.6271 crore, a larger percentage decrease than the 16% reduction in revenue from operations.

Changes in inventories of finished goods and work-in-progress were negative Rs 29.2249 crore, compared with negative Rs 14.6036 crore a year earlier. Erection and subcontracting expenses declined to Rs 79.7514 crore from Rs 84.3150 crore, while finance costs decreased 31% to Rs 11.8210 crore from Rs 17.0182 crore.

Employee benefits increased to Rs 47.0059 crore from Rs 39.3655 crore and other expenses rose to Rs 66.1370 crore from Rs 56.2942 crore. Depreciation and amortisation increased to Rs 5.3318 crore from Rs 4.8147 crore, while total expenses declined to Rs 512.9738 crore from Rs 612.8311 crore.

Profit before tax was Rs 7.8043 crore, compared with Rs 7.9766 crore in the September 2025 quarter, and tax expense was Rs 2.0064 crore against Rs 2.0344 crore. Profit was higher than Rs 4.5478 crore in the June 2026 quarter, and basic and diluted earnings per share were Rs 0.50, compared with Rs 0.51 a year earlier.

What changed in Bajel Projects’ first-half revenue and cash flow?

Bajel Projects’ revenue from operations for the six months ended September 30, 2026 declined 11% to Rs 1,080.9868 crore from Rs 1,221.4636 crore, while profit for the period increased 12% to Rs 10.3457 crore from Rs 9.2573 crore. Profit before tax rose to Rs 14.6864 crore from Rs 12.4258 crore over the same periods.

First-half material costs fell to Rs 734.4405 crore from Rs 869.0253 crore and finance costs declined to Rs 23.5995 crore from Rs 32.8897 crore. In contrast, employee benefits increased to Rs 87.7757 crore from Rs 75.6158 crore and other expenses rose to Rs 118.0749 crore from Rs 102.3772 crore.

Net cash inflow from operating activities was Rs 108.8376 crore in the six months ended September 30, 2026, compared with Rs 67.8910 crore in the prior-year period. The cash-flow statement recorded a Rs 607.5858 crore decrease in current and non-current trade receivables, alongside a Rs 323.7336 crore decrease in trade payables, provisions, employee-benefit obligations and other liabilities.

Investing activities used Rs 119.4521 crore, compared with an inflow of Rs 23.8163 crore a year earlier, including Rs 99.1310 crore placed in bank deposits not considered cash equivalents. Cash and cash equivalents stood at Rs 2.7315 crore at September 30, 2026, down from Rs 23.7211 crore at March 31, 2026, while other bank balances were Rs 222.8214 crore.

What balance-sheet and arbitration matters did Bajel Projects disclose?

Bajel Projects reported total assets of Rs 2,152.5887 crore at September 30, 2026, compared with Rs 2,472.1550 crore at March 31, 2026. Current trade receivables declined to Rs 1,042.2459 crore from Rs 1,633.7755 crore, while inventories rose to Rs 225.0676 crore from Rs 138.5127 crore and contract assets increased to Rs 69.7439 crore from Rs 18.8577 crore.

Total borrowings increased to Rs 375.0707 crore at September 30 from Rs 349.9611 crore at March 31. Total equity was Rs 634.5722 crore, down from Rs 681.2598 crore, while contract liabilities rose to Rs 496.6267 crore from Rs 465.3234 crore during the six-month period.

Bajel Projects disclosed invoked or ongoing arbitration proceedings against three customers for recovery of outstanding balances, interest on delayed payments and losses suffered. The outstanding balance from those customers was Rs 85.9224 crore at September 30, 2026, net of provision, and management said no further adjustment was considered necessary because the outcome cannot presently be determined.

During the quarter ended June 30, 2026, Bajel Projects acquired a 26% equity stake in Anant Grid Projects One Pvt. Ltd. for Rs 7.03 lakh and invested Rs 6.76 crore in compulsorily convertible debentures. Bajel Projects classified the holding as an investment in an associate carried at cost, with investments of Rs 6.8303 crore shown in non-current financial assets at September 30.

Conclusion

Bajel Projects’ September-quarter results show that a Rs 99.7260 crore year-on-year decline in operating revenue was accompanied by a Rs 0.1443 crore reduction in profit. Lower material and finance costs partly offset the sales decline, while increases in employee benefits and other expenses contributed to profit remaining below the September 2025 level.

The disclosed matters to watch are the unresolved arbitration proceedings involving Rs 85.9224 crore of customer balances and changes in receivables, inventories and borrowings after September 30, 2026. Bajel Projects also disclosed its 26% associate investment in Anant Grid Projects One Pvt. Ltd., acquired during the June 2026 quarter.