Bajel Projects Ltd Management Discussions

Outlook

The global economy is expected to maintain its current momentum, with GDP growth projected at 2.8% in CY 2025 and 3% in CY 2026. This growth is likely to be supported by accommodative monetary policies aimed at ensuring price stability, stimulating economic activity and boosting employment. Inflationary pressures are expected to ease gradually, with Statements global headline inflation projected to decline to 4.2% in CY 2025 and to 3.5% in CY 2026. Emerging Markets and Developing Economies (EMDEs) are projected to sustain their momentum with a 3.7% growth in CY 2025 and 3.9% in CY 2026. Advanced economies is expected to grow at a more moderate pace, 1.4% in CY 2025 and 1.5% in CY 2026. pg. 178-

Overview of Indian Economy³

India continued to maintain its position as the fastest growing major economy, with a robust GDP growth of 6.5% this FY 2025⁴, despite an external environment marked by volatility. Strategic interventions under government-led schemes, particularly those focused on infrastructure development and expanding rural connectivity, played a pivotal role in catalysing economic momentum. Sectoral performance remained encouraging, with manufacturing, agriculture and technology benefitting from sustained government support. Additionally, inflation moderated to 4.7% in FY 2025 from 5.4% in the previous fiscal⁵, which caused a rebound in both urban and rural consumption.

Outlook

The Indian economy is expected to sustain the positive growth momentum in FY 2026, with GDP expansion expected to be 6.5%. This strong growth will be backed by a combination of the governments income tax reform, targeted fiscal initiatives and a supportive monetary environment. Another enabler of growth is the governments sustained focus on infrastructure development, as evidenced by the _11.21 lakh crore capital outlay announced in the Union Budget.⁶ Complementing this, the Reserve Bank of India (RBI) has lowered the interest rate back to back two times by 50 bps⁷ to infuse liquidity and boost consumption. Inflation is expected to remain stable, thereby strengthening purchasing power and supporting economic momentum. India is keeping a close watch on global trade developments, including new tariff impositions by the United States, and is preparing responses to safeguard its trade interests without disrupting long-term partnerships.

Industry Overview

Global Power Transmission and Distribution (T&D)

The global power transmission and distribution (T&D) market is expected to witness steady expansion over the coming years, driven by rising electricity demand, rapid integration of renewable energy and the urgent need to modernise aging grid systems. The market is projected to reach a value of USD 454.84 billion by 2033, up from USD 325.15 billion in 2024.

The adoption of advanced transmission technologies is contributing to improved efficiency. Solutions such as high-voltage direct current (HVDC) and flexible AC transmission systems (FACTS) are being deployed to facilitate long-distance power transfer and manage grid fluctuations. These technologies are gaining prominence as energy sector shifts to cleaner and more flexible systems.

The Asia-Pacific region is currently the largest in the T&D market, accounting for around 40% of the global share in 2024. Within the region, China remains a key contributor, especially in building ultra-high voltage (UHV) transmission projects. Looking ahead, significant expansion of the existing network, comprising addition of more than 12,00,000 kilometres of lines, may be required to meet future energy demands by the end of 2033.⁹ The T&D sector is undergoing significant transformation, supported by cross-border interconnection projects, increased deployment of digital technologies for smart grids and the growth of decentralised energy systems like microgrids. However, the market also faces challenges, including the need to maintain grid stability amid variable renewable energy supply, replacing outdated infrastructure and accelerating investment in energy storage systems.

Despite these challenges, the global T&D market is expected to remain integral to the development of a reliable, efficient and sustainable energy future for communities worldwide.

Key Drivers and Trends

Integration of Renewable Energy: The increasing use of solar and wind energy necessitates grid upgrades to manage variable supply and improve integration. This is crucial for maintaining a stable and efficient power supply.

Rising Electricity Demand: Developing economies are witnessing rapid population and industrial growth, driving a higher demand for reliable electricity. New infrastructure and modern technologies are vital to meet this demand.

Modernization and Digitalization of Grids: Advanced digital tools and smart grid systems are being employed to enhance grid monitoring, improve efficiency and support real-time decision-making. This also includes the adoption of automated systems to reduce outages and enhance resilience.

Cross-Border and Decentralized Networks: Countries are increasingly collaborating to develop cross-border transmission networks, ensuring balanced supply and demand. Additionally, decentralized systems and micro-grids are being deployed to improve local energy access and resilience, especially in remote areas.

Key Challenges

Grid Stability with Fluctuating Renewable Inputs: Wind and solar energy are inherently inconsistent, posing challenges for stable power supply without robust balancing mechanisms.

Aging Infrastructure: Many existing power lines and components are outdated, increasing failure risks and reducing efficiency. Timely upgrades and replacements are crucial to maintaining reliability.

Energy Storage Integration: Large-scale batteries and storage solutions are essential to manage excess energy. However, integrating them into existing grids is technically and financially challenging, requiring careful planning and innovation.

Indian Power Transmission and Distribution (T&D)

Indias power transmission and distribution (T&D) sector has evolved significantly over the past few decades. The country has transitioned from a fragmented grid system, with independent regional networks, to a unified national grid that operates at a single frequency. This has allowed more effective sharing of power across the entire country.

Indias energy consumption is on a rapid upward trajectory, with its share of global primary energy demand expected to rise from 6% to 9.8% by 2050¹¹. To meet this surge in demand, the country has outlined an ambitious plan to increase its power generation capacity from approximately 475 gigawatts (GW) in 2024 to over 900 GW by 2032. This will necessitate a substantial increase in transmission and distribution (T&D) infrastructure to support the growing electricity demand.

To support this growth, India is expected to invest around USD 280 billion in the power generation, transmission and distribution sector from 2024-30. A significant portion of this capital is directed toward the adoption of advanced technologies to improve transmission efficiency and grid resilience. Key areas of focus include the deployment of high-voltage direct current (HVDC) lines, flexible AC transmission systems (FACTS) and high-temperature low-sag (HTLS) conductors, all of which are essential for enabling efficient long-distance power transmission and reducing technical losses. The integration of smart technologies, such as Advanced Metering Infrastructure (AMI) and Supervisory Control and Data Acquisition (SCADA) is gaining momentum. These enhancements are critical for accommodating more renewable energy and ensuring stable grid operations.

Despite the progress, the power sector continues to face challenges. The increasing use of renewable energy presents complexities in maintaining grid stability, particularly during periods of intermittent generation. Also, much of the existing infrastructure is outdated and requires upgrades. Financial stress within several power distribution companies also remain a key concern, slowing down progress.

While challenges persist, Indias T&D sector continues to expand. Government-led initiatives such as ‘Make in India are helping boost domestic manufacturing capabilities and encouraging innovation. With the right investments and support, the country is steadily progressing towards a more reliable, efficient and sustainable electricity network.

Key Trends
Trend	Details
High Growth in Demand	Power demand is increasing rapidly, with Indias annual electricity consumption growing at a rate of over 7.8%.12
Massive Investment Plans	An investment of over _ 9.15 lakh crore is planned for transmission infrastructure by 2032.13
Boost in Renewable Energy Integration	India aims to integrate 500 GW of Variable Renewable Energy (VRE) into the grid by 2030.14
Smart Grid and Metering Technology	Widespread deployment of smart meters and digital tools to improve efficiency and reduce losses.
High Voltage Infrastructure Upgrades	As per National Electricity Plan (NEP) 2023–32, India will be adding HVDC links (33 GW), upgrading AC voltage to 1200 kV, and boosting inter-regional capacity from 119 GW to 168 GW by 2032.15
Focus on HTLS Conductors	The increasing use of High Temperature Low Sag (HTLS) conductors is enhancing the ability to handle higher power loads while reducing line sag.
Public-Private Participation	Competitive bidding and public-private partnership (PPP) models are encouraging private sector investment in T&D infrastructure.
Focus on Grid Modernisation	Efforts are underway to modernise the grid through the deployment of smart meters, with 2.13 crore installed and an additional 19.8 crore meters sanctioned. This initiative aims to improve billing efficiency and reduce revenue losses.16

The Way Forward

Indias transmission and distribution (T&D) sector is set for major growth as the country advances towards creating a secure, flexible, sustainable and digitally integrated power system. With electricity demand rising steadily, the T&D sector will be central to ensuring uninterrupted and efficient power delivery. Companies in the manufacturing of wires, cables, conductors and electrical equipment will be important in helping the sector grow.

According to a Jefferies report, Indias power generation and transmission sectors are expected to increase 2.2 times from FY 2024 to FY 2030¹⁷, surpassing the pace observed between FY 2017 to FY 2023¹⁸. Power consumption is expected to rise at an annual rate exceeding 7%. Thermal power, still a large component of Indias energy landscape, is projected to see notable growth, with annual capacity additions in this segment projected to rise from 2.5 GW to 17 GW. Meanwhile, the renewable energy sector is set for substantial growth, with capacity additions likely to grow 3.5 times faster between FY 2024 and FY 2027, compared to the period from FY 2010 and FY 2020.

There transmission sector in India presents a huge investment opportunity, with many new transmission projects currently under development, in planning or available for bidding. By 2032, the sector is expected to attract over H 9.15 lakh crore in investments, driving the expansion of infrastructure necessary to transport electricity from generation sources to end users, including residential, commercial and industrial consumers.

In conclusion, Indias T&D sector is poised for growth. With an emphasis on modernisation, technological advancements and becoming more self-reliant, the country is steadily enhancing its power grids resilience and efficiency. Continued government backing, coupled with rising investments, positions to meet its escalating energy demand while paving the way for a sustainable and secure energy future.

National Electricity Plan¹⁹

The National Electricity Plan (NEP), formulated by the Ministry of Power serves as a guide for the development of the countrys power sector over a decadal timeframe. The latest iteration, spanning 2022–2032, places significant emphasis on strengthening the national transmission network, which is crucial for enabling large-scale integration renewable energy while ensuring reliability.

Key highlights from the year end review of 2024 Record Power Demand Met: India successfully met an all-time maximum power demand of 250 GW during FY 2025, demonstrating the capacity of the national transmission network to manage high load conditions effectively.

Reduction in Energy Shortages: National-level energy shortages declined to a mere 0.1% in FY 2025, a significant improvement from 4.2% in FY 2014. This sharp reduction highlights enhanced transmission efficiency and reliability.

Universal Electrification Achieved: The completion of the electrification across all villages and households indicates the expansion and strengthening of the transmission grid, enabling connectivity to remote and previously underserved regions.

Approval of Inter-State Transmission Projects: Interstate transmission projects totalling 50.9 GW in capacity and valued at _ 60,676 crore have been approved, facilitating the seamless power transfer across regions and supporting the integration of diverse energy sources.

Revised Right of Way (RoW) Guidelines: To accelerate the development of power transmission infrastructure for evacuating 500 GW of renewable energy by 2030, the Ministry of Power revised the Right of Way (RoW) guidelines in June 2024. The updated guidelines has linked compensation to the market value of land. For the tower base area, compensation has been raised from 85% to 200% of the land value, while for the RoW corridor, it has been increased from 15% to 30% of the land value.

HTLS and Monopoles

As Indias power infrastructure adapts to the demands of rapid urbanisation and constrained land availability, High-Temperature Low-Sag (HTLS) conductors and monopoles are gaining prominence as a practical and future-ready alternative to conventional lattice towers. High-Temperature Low-Sag (HTLS) conductors are designed to carry more electricity without sagging, even when temperatures are high. These conductors are great for urban areas because they can replace old lines without needing big changes to existing structures, saving time and money. When combined with monopoles that take up less space, they make power transmission more efficient and less visually intrusive. This combination is ideal for cities where space is limited and the demand for electricity is high.

Key Advantages of Monopoles

Advantage	Description
Space Saving	Takes up much less land than
	traditional lattice towers
Faster Installation	Easier and quicker to build and set up
Better	Looks cleaner and modern,
Appearance	especially in cities
Good for Cities	Works well in crowded areas where
	space is limited
Less Land Use	Does not need much digging or
Impact	cutting trees, so it is better for the
	environment.
Supports Modern	Can carry multiple power lines in
Needs	one pole, helping with growing
	electricity demand.

Company Overview

Bajel Projects Limited, headquartered in Mumbai, is a well-known Bajaj Group company in Indias power infrastructure sector, especially in power transmission and distribution. Formerly the EPC (Engineering, Procurement, and Construction) division of Bajaj Electricals Limited, the Company now operates as an independent listed entity while retaining the legacy of operational excellence and ethical business practices built over two decades.

Bajel Projects delivers end-to-end business solutions across four main segments, which are Power Transmission, Power Distribution, Monopoles and International Business. Renowned for executing important infrastructure projects, the Company undertakes large-scale initiatives ranging from high-voltage transmission networks to advanced electrification systems. It is also a trusted provider for the manufacturing & installation of Monopoles, Lattice Structures, Lighting Poles & Masts and Galvanizing services. Bajel Projects manages projects across the lifecycle through effective planning, designing and implementing thereby ensuring reliable and efficient power to communities.

The Company has extended its expertise beyond India and has executed projects in Sub-Saharan and Western Africa. Its first international project was in Zambia in 2018. With a focus on delivering high-quality, sustainable solutions, Bajel Projects is expanding its footprint across key international markets. Under the guidance of experienced leaders like Mr. Shekhar Bajaj (Chairman) and Mr. Rajesh Ganesh (Managing Director and CEO), Bajel Projects continues to grow and deliver reliable and efficient infrastructure solutions both in India and abroad.

Financial Review

Financial Overview (FY 2025)*

Particulars	FY 2025	FY 2024
Equity Capital (_ Lakhs)	2,312.05	2,306
Reserves and Surplus (_	56,154.41	54,311
Lakhs)
Total Revenue from	2,59,823.65	1,16,921.15
Operations (_ Lakhs)
Profit After Tax (_ Lakhs)	1,546	429
Basic Earnings per Share (_)	1.34	0.37
Diluted Earnings per Share (_)	1.33	0.37

*Standalone figures.

Financial Performance Analysis

Key Financial Ratios (FY 2025)^*

Description	FY 2025	FY 2024
Current Ratio (in times)1	1.13	1.47
Inventory Turnover Ratio	19.40	9.98
(in times)2
Trade Receivables	2.61	2.00
Turnover ratio (times)3
Net Profit Margin (%)4	0.59%	0.36%
Return on Capital	12.75%	5.13%
Employed (%)5
Operating Profit Margin (%)6	3.43%	2.99%

*Standalone figures.

1. Current Liabilites have increased in higher proportion as compared to Current Assets

2. Better execution of projects and scrapping inventory of closed projects.

3. Improvement in collection from customers in comparison to projects execution.

4. Increase in execution of projects.

5. Increase in operating profit for the year.

6. Calculated based on total income. Improvement due to increase in scale of operations.

Business Verticals

Power Transmission

Bajel Projects Limited is a trusted name in Indias power transmission sector, with 20+ years of experience delivering end-to-end solutions. With a strong presence across 19+ states, Bajel has successfully built 8,686+ ckm of transmission lines and executed 43+ AIS/GIS substation projects. The company has significant experience and capability in designing, building and commissioning substations of up to 765 kV for AIS and 400 kV for GIS, indicating their proficiency in handling both high-voltage and space-constrained environments.

In the year under review, three substations have been successfully completed, including a high-voltage 765/400 kV AIS substation in Dharamjaigarh and two Karnataka Power Transmission Corporation Limited-operated substations in Ramasamudra (220/110 kV) and Raichur (110/11 kV), with the Raichur substation being commissioned on 4th April.

In FY 2025, the Company also received an initial data centre order. It was awarded a contract for the design and construction of a 220/33 KV GIS Substation and transmission line extension for a colocation data centre facility in Navi Mumbai. This demonstrates the Companys capacity to leverage on the key EPC competencies in the data centre space.

Power Distribution

Bajel Projects Limited continues to strengthen Indias power distribution ecosystem through its comprehensive execution of rural and urban electrification projects. In rural areas, the Company has extended electricity access to over 50,000 villages and facilitating more than 26 lakh service connections. This has contributed directly to socioeconomic upliftment in rural areas.

In urban areas, the Company focuses on building resilient and future-ready infrastructure. Its capabilities include the implementation of underground cabling, installation of compact and primary distribution substations (33/11 kV) and deployment of 33 kV and 11 kV overhead and underground networks.

During FY 2025, the Company has commissioned the 33/11KV Panchmala substation in Angul for Tata Power Central Odisha Distribution Limited (TPCODL), and it is the Companys first greenfield distribution substation after TATA Powers takeover of Odisha DISCOMs.

Monopoles

Bajel Projects Limited is a pioneer in monopole technology in India, with over 15 years of experience in designing, manufacturing and installing them. As one of the earliest adopters of this space-efficient alternative to lattice towers, the Company has consistently advanced the adoption of monopoles, particularly in dense urban environments where conventional tower footprints are impractical. Monopoles, which require up to 90% less space, offer multiple advantages including faster installation, enhanced aesthetics, improved resistance to vandalism and greater environmental compatibility.

The Companys monopole portfolio spans voltage levels from 110kV to 765 kV, catering to both single and double circuit configurations. The Company has supplied more than 883 monopoles, each designed to support transmission lines with voltage levels ranging from 110 kV to 400 kV. Landmark achievements include a 400 kV double-circuit transmission line between

Dadri and Ballabhgarh for Power Grid Corporation of India Limited in 2006 and the countrys largest 400 kV monopole transmission line in Noida for Uttar Pradesh Power Transmission Corporation Limited (UPPTCL). The Company also manufactures steel utility poles and tubular substation structures, to meet varied soil and project conditions.

International Business

Bajel Projects Limited has steadily expanded its presence in the global product & engineering, procurement and construction (EPC) sector. It has supplied products to countries like Kenya, Democratic Republic of the Congo, Suriname, Zambia, Togo, UAE, Qatar, Ghana. The Company is backed by a robust in-house design and engineering team, integrated manufacturing capabilities for monopoles and lattice towers and a network of reliable domestic and international partners. The Company provides turnkey solutions in Extra High Voltage (EHV) transmission lines up to 765 kV AC and ?800 kV High Voltage Direct Current (HVDC), covering the entire project lifecycle from conceptual design and testing to manufacturing and execution.

The Company has a track record of completing projects in logistically and environmentally challenging terrains, including hills, forests and river crossings. A key accomplishment includes the engeering, procurement and construction of 132 kV Single Circuit Transmission Lines from Roma to Luska West in Zambia, East Africa. In power distribution, the Company has made a significant impact through the electrification of 381 villages, the installation of more than 27,336 service connections and the deployment of nearly 1,787 kilometres of medium and low-voltage lines across multiple African nations, including Kenya and Togo.

Manufacturing

Bajel Projects Limited operates a modern manufacturing facility at Ranjangaon, near Pune, Maharashtra, spread across 67,840 square metres. This unit is equipped to produce a wide range of structures, including transmission towers, monopoles, high masts as well as octagonal and conical poles. The Company also manufactured the tallest and the largest monopole in India at the RU manufacturing plant.

New Areas of Growth

New Areas of Growth	Description
Data Center	Expanding into building and maintaining high-capacity data transmission infrastructure.
Industrial	Providing specialized transmission solutions to support industrial power requirements.
Battery Energy Storage	Integrating energy storage systems to enhance grid stability and efficiency.
Metros & Railways	Developing transmission solutions tailored to the unique demands of urban transit systems.

Risk Management

Bajel Projects has implemented a comprehensive Risk Management Policy to proactively identify, assess and mitigate potential threats to business performance. Oversight is provided by a dedicated Risk Management Committee (RMC), which operates under the guidance of the Board of Directors. This RMC ensures adherence to the Companys risk mitigation policies and regularly evaluates the effectiveness of control mechanisms. The Committees core mandate is to ensure that potential disruptions are anticipated and addressed in a timely manner, thereby safeguarding operations and upholding the long-term interests of the Company.

As an EPC company, we are exposed to market fluctuations in commodities like Aluminium, Zinc and Steel. Components made from these commodities have significant impact on companys overall procurement cost. Aluminium and Zinc prices at London Metal Exchange (LME) were volatile throughout the financial year. In the first half, strikes by Houthi rebels in Red Sea disrupted global supply chain while policy shift after Trumps accession to US presidency dominated movement of commodity prices in the second half.

Steel sector also witnessed similar fluctuating trajectory throughout the year. Despite being worlds second largest steel producer, Indias steel trade deficit in the FY 2025 hit decade high. This has created supply deficit in the domestic market. Heavy dumping from China and impending Carbon Border Adjustment Mechanism (CBAM) regulations of the European Union severely impacted steel raw material prices in India. Our company has started hedging commodity exposures to reduce the impact of future uncertainty in prices.

Human Resource

The Company acknowledges the crucial role its employees played in ensuring a seamless demerger. Their commitment, resilience and professionalism have been key to maintaining business continuity. Focused on its ambitious future goals, the Company continues to invest in building a capable and agile workforce. Efforts remain concentrated on attracting the right talent, strengthening internal capabilities and evolving HR policies, particularly in areas like skill development, performance management, and employee engagement, to support a culture of excellence across the organization. During the year, the Company took significant steps to enhance its human resource practices. One of the key achievements was the successful implementation of a new band, grade and compensation structure through a comprehensive job evaluation and compensation benchmarking exercise, aligning it with EPC industry standards. Additionally, a structured Performance Management Framework was introduced to foster a meritocratic culture by linking individual and company performance to the reward system, thereby driving accountability and growth.

The recruitment process was also redesigned to improve efficiency, governance, and better align with the evolving business needs. Furthermore, to develop internal leadership and create a steady talent pipeline, the Company launched the ‘Saksham trainees program, designed to build the Companys own cadre of future leaders.

Through these strategic initiatives, the Company remains committed to strengthening its human resources to meet future challenges and capitalize on emerging opportunities.

Total Employees

Internal Control System

The Company has a robust internal financial control system that aligns with the nature, size, and complexity of its operations, and is in accordance with the Internal Financial Control (IFC) framework under Section 134(5) of the Companies Act, 2013. These controls are supported by well-documented policies and procedures that cover all key financial and operational areas.

To ensure effectiveness, the internal control systems are regularly tested and reviewed by both Internal and Statutory Auditors. The internal audit function operates independently and is further strengthened by collaboration with reputed Chartered Accountant firms. Internal audits are conducted as per an annual plan approved by the Audit Committee. Significant findings and the related corrective actions are reported to the Committee, which oversees the adequacy and efficiency of the internal control and risk management systems of the Company.

Location: Raipur, Chhattisgarh.

Cautionary Statement

The management discussion and analysis report containing the Companys objectives, projections, estimates and expectations may constitute certain statements, which are forward-looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include changes in governmental regulations, tax regimes, economic developments within India and other incidental factors.