Bajaj Steel Industries Ltd

Business Overview

• Core: multiproduct engineering company; Cotton Ginning leader; diversified into infrastructure, electrical panels, heavy engineering.
• 14 manufacturing facilities; 100,000+ sq m built-up across five divisions.
• Presence in 60+ countries; exports ≥50% of FY25 revenue.
• Partnerships with ABB, Schneider Electric, Mitsubishi for electrical panels and related systems.
• Four subsidiaries: USA, Uganda, Brazil; global footprint across regions.
• R&D collaborations with CIRCOT (ICAR) and CBRI.
• Listed on BSE since 1986; four decades of cotton ginning leadership.

Operational Highlights

• Q1FY27 revenue Rs120.4 Cr, up 11.9% YoY.
• Other Business contributed 53% of revenue; Cotton Ginning subdued.
• Infrastructure 29%, Electrical Panels 5%, Heavy Engineering 14%, Others 5% of revenue.
• Heavy Engineering and Infrastructure grew 32% and 35% YoY.
• Margin headwinds from sharp raw material price increases; company absorbed escalation.
• Order book Rs605 Cr as of Aug 8, 2026.
• Segment order books: Cotton Ginning 376 Cr; Infrastructure 85 Cr; Heavy Eng 75 Cr; Other 15 Cr.

Financial Performance

• Revenue from operations Rs120.4 Cr; YoY growth 11.9%.
• EBITDA Rs5.9 Cr; EBITDA margin 4.9%; EBIT Rs2.4 Cr; EBIT margin 1.9%.
• PAT Rs -0.3 Cr; PAT margin -0.2%.
• Cash and cash equivalents Rs99.3 Cr as of Mar-26.
• Share capital Rs10.4 Cr as of Mar-25/26, up from Rs2.6 Cr.

Capital & Liquidity

• ST borrowings Rs40.9 Cr; LT borrowings Rs15.3 Cr.
• Net cash position ~Rs43 Cr after borrowings.
• Total assets Rs699.1 Cr; Total liabilities Rs699.1 Cr as of Mar-26.

Strategic Priorities & Outlook

• Pursue diversification across verticals; Other Business ~53% of revenue.
• Expect profitability to improve progressively over coming quarters.
• Maintain global footprint; export-led growth and expanding Heavy Engineering capabilities.

Risks & Mitigation

• Risks: delays in order conversion/dispatch; raw material price volatility; geopolitical trade conditions.
• Mitigation: diversified verticals and in-house design/production capabilities.

Governance & Leadership

• Board includes independent directors; strong governance framework.
• Key executives: Dr. M.K. Sharma (CEO); Manish Sharma (CFO); Rachit Jain (CS & Compliance).

Standalone results

• Revenue from operations: Rs 10,761.77 lacs; Other income: Rs 125.54 lacs; Total income: Rs 10,877.31 lacs.
• Total expenses: Rs 11,249.14 lacs.
• Profit before tax: negative Rs 71.83 lacs.
• Net profit after tax: Rs -71.89 lacs.
• Paid up equity share capital: Rs 1,040.00 lacs.
• Statement prepared under Ind AS; limited review conducted by Statutory Auditors.

Consolidated results

• Total income (consolidated): Rs 12,234.45 lacs; Revenue from operations: Rs 12,035.27 lacs; Other income: Rs 1,675.86 lacs.
• Total expenses: Rs 12,082.29 lacs.
• Profit before tax: Rs 87.60 lacs.
• Net profit after tax: Rs -26.87 lacs.
• Subsidiaries in consolidation: Bajaj Coneagle LLC, Bajaj Steel Industries (U) Ltd, Bajaj Services Ltda, Bajaj Continental Ltda.
• Segment: Multiple Engineering Products is the sole reportable segment.

Other details

• Auditor's review status: Independent Auditor's Review conducted; no audit opinion issued.
• Notes: Interim results of subsidiaries not reviewed by auditors; management-provided statements used for those entities.
• Board meeting date: 10 August 2026; Place: Nagpur.

Dematerialisation processing and listing status

• Dematerialisation requests processed and confirmed to the depositories.
• Securities dematerialised have been listed on the stock exchanges.
• Physical certificates dematerialised were mutilated and cancelled after verification.
• Depository name substituted as registered owner in the records within 15 days.

Business Overview

• Bajaj Steel Industries operates in Cotton Ginning Machinery, Infrastructure (PEBs), Electrical Panels, Heavy Engineering, and Other Products.
• Exports constitute over 50% of revenue, with presence in 60+ countries and 14 manufacturing facilities.
• Acquired Continental Eagle (USA), adding Saw-Ginning and Roto-Bar technologies, completing all four ginning technologies globally.
• Partnerships with Schneider Electric, ABB, and Mitsubishi enhance electrical panels and HVAC offerings.

Key Operational Highlights

• Order book at Rs 561 Cr as of Feb 11, 2026; 38% from Other Business segments.
• Other Business segments grew 29% YoY, led by Infrastructure and Electrical Panels.
• Cotton Ginning Machinery revenue declined 26% YoY due to site, tariff, and geopolitical issues.
• Infrastructure capacity expanded to 35,000 MTPA with turnkey projects for Nuclear Fuel Complex and Indian Oil Corporation.
• Heavy Engineering entered aerobridges and biomass pellet plant equipment segments.

Financial Performance 📊

• Q3FY26 revenue declined 9.3% YoY to Rs 125.3 Cr; 9MFY26 revenue down 5.5% YoY to Rs 407.4 Cr.
• Q3FY26 EBITDA fell 55.2% YoY to Rs 9.3 Cr; 9MFY26 EBITDA declined 19.6% YoY to Rs 54.6 Cr; Q3FY26 EBITDA margin 7.4%.
• Q3FY26 PAT dropped 56.9% YoY to Rs 5.9 Cr; 9MFY26 PAT down 47.8% YoY to Rs 34.6 Cr; Q3FY26 PAT margin 4.6%.
• FY25 revenue Rs 585 Cr; EBITDA Rs 92 Cr; PAT Rs 84 Cr.
• Export revenues (~60%) impacted profitability due to delays and fixed costs.

Capital Structure & Liquidity

• Net worth Rs 414 Cr as of Sep-25; net debt/equity improved to 0.52x.
• Long-term borrowings Rs 26.1 Cr; short-term borrowings Rs 20.4 Cr as of Sep-25.
• Cash and equivalents Rs 94.9 Cr as of Sep-25.
• Credit ratings: CRISIL A/Stable (long-term), CRISIL A1 (short-term).

Strategic Priorities & Outlook

• Focus on diversifying and scaling Other Business segments to offset Cotton Ginning Machinery challenges.
• Expect improved Cotton Ginning Machinery performance with progressing commercial clearances and orders.
• Continue capacity expansion and turnkey project execution in Infrastructure and Heavy Engineering.
• Strengthen global presence via subsidiaries in USA, Uganda, Brazil, and technology partnerships.

Order Award

• Order awarded by an undisclosed domestic customer under confidentiality.
• Contract covers design, engineering, manufacturing, and supply of Main LT Panels.
• Total order value is approximately Rs. 35.00 Crores, inclusive of taxes.
• Execution timeline is 10 to 12 weeks from order receipt.
• No promoter, promoter group, or related entities have interest in the customer.
• The order is not a related party transaction.