Bajel Projects Ltd Management Discussions

Global Trade in 2025

World merchandise trade volumes expanded by 4.6 per cent in 2025, significantly above the WTOs October 2025 forecast of 2.4 per cent. This outperformance was driven primarily by strong demand for Al-related hardware, particularly semiconductors and data-centre equipment, which offset the negative effects of higher US tariffs and trade policy uncertainty. The value of world merchandise exports reached US$ 26.26 trillion in 2025, up 7 per cent year-on-year, while services trade grew 8 per cent to reach US$ 9.56 trillion. Combined goods and services trade stood at US$ 34.65 trillion, representing approximately 7 per cent growth over 2024.

Asian economies were the dominant engine of trade growth in 2025, contributing 3.2 percentage points out of the 4.6 per cent total increase, accounting for 71 per cent of all growth. Chinas export volumes rose 9.2 per cent, while Singapore, Chinese Taipei and Thailand recorded double-digit export gains. A notable feature of 2025 trade was the frontloading of imports in North America in early 2025, ahead of anticipated US tariff hikes, followed by a moderation in the second half.

Outlook for 2026: And the Shadow of Conflict

Looking ahead to 2026, the IMF projects global growth to remain steady at 3.3 per cent, a marginal upward revision of 0.2 percentage points compared to the October 2025 forecast. Advanced economies are projected to grow at 1.8 per cent, with the United States expanding by 2.4 per cent, supported by fiscal policy. Emerging markets and developing economies are expected to maintain growth just above 4.0 per cent. Indias growth is projected to moderate to 6.4 per

cent in 2026 and 2027 as cyclical tailwinds fade, while China is expected to slow to 4.5 per cent in 2026 as structural headwinds reassert themselves. Global inflation is forecast to ease further to 3.8 per cent in 2026, continuing its gradual return toward targets.

However, the outlook for global trade in 2026 has materially darkened due to an escalating conflict in the Middle East.

The WTOs March 2026 report highlights that oil shipments through the Persian Gulf, which in 2024 accounted for approximately 20 per cent of global liquid petroleum consumption, have been severely curtailed by the conflict. Crude oil prices have risen above US$ 90 per barrel as of March 2026, and LNG prices in Asia have surged to approximately US$ 16 per MMBtu.

The conflict also introduces risks to food security, as the Gulf region is a significant exporter of fertilisers, including urea and ammonia, with around one-third of global supply passing through the Strait of Hormuz. Disruptions to these supply chains could increase agricultural input costs globally, adding an inflationary dimension beyond energy prices alone.

The global economic environment entering 2026 is one of cautious resilience, underpinned by technology-driven investment and broadly accommodative macro conditions, yet increasingly clouded by geopolitical conflict, trade fragmentation, and the risk of persistent energy price pressures. For Bajel Projects Limited, these dynamics underscore both the challenges ahead in global supply chains and input costs, and the opportunities presented by continued demand for infrastructure investment in a world adapting to structural change.

Overview of the Indian Economy

FY2025-26: From Goldilocks to Geopolitical Headwinds

The Indian economy entered FY26 in a position of considerable strength, which the Reserve Bank of India had earlier described as a "Goldilocks" moment, high growth coexisting with low inflation, translated into tangible outperformance. India posted an impressive 8% growth in the first half of the fiscal year, powered by robust private consumption and investment, aided by easing inflation and favourable rural conditions. According to the Ministry of Statistics and Programme Implementation (MoSPI), India recorded a robust GDP growth of 7.7% amidst global turmoil, making it one of the fastest growing major economies in the world.

Domestic demand remained the central pillar of this performance. Private final consumption expenditure grew by 7.9% in the second quarter, supported by decade-low inflation of 1.7%, rising disposable incomes from tax and GST relief, and improved rainfall. On the investment side, government capital expenditure utilisation rose to 51.8% in the first half of the fiscal year, boosting gross fixed capital formation growth to 7.6%. Manufacturing emerged as a key growth driver, with manufacturing GVA rising 9.1% in the second quarter, supported by higher-value production and stronger industrial activity. The sector also played an increasing role in exports, with electronics becoming Indias third-largest export category and one of its fastest-growing segments. Alongside this, the services sector maintained strong momentum, contributing to broad-based economic expansion.

Policy support was decisive in sustaining this momentum. Fiscal policy deployed tax exemptions for the middle-income class, rationalisation of GST slabs, and high public capital expenditure at 3.4% of GDP. The RBI delivered one of the sharpest easing cycles in recent history, cutting policy rates by a full percentage point within four months starting in February 2025, using a window of cooling food inflation and stable global energy prices to shift decisively from tightening to an accommodative stance. On the structural reform front, long-pending labour codes finally came into force, expected to improve ease of doing business, accelerate job formalisation, and attract fresh investment across manufacturing and services. A significant milestone was achieved in August 2025, when S&P upgraded Indias sovereign rating for the first time in 18 years.

FY2026-27 Outlook: Navigating the Middle East Shock

The macroeconomic optimism that characterised FY26 has been considerably tempered as India enters FY2027. Conditions turned adverse in March 2026, with the widening and intensification of the US-Iran conflict zone, after conditions before the outbreak had exuded confidence, buoyed by growth and low inflation. The conflict triggered a sharp rise in crude oil prices and energy supply disruptions after Iran closed the Strait of Hormuz, unleashing fresh price pressures, straining supply chains, and causing raw material shortages across industries.

The RBIs Monetary Policy Committee, in its June 2026 review held the repo rate steady at 5.25% and revised Indias GDP growth forecast downward to 6.6% for FYRs. 27. Headline retail inflation is set to average 5.1% in the current fiscal compared with Consumer Price Index inflation averaging around 2% in FYRs. 26, while the risks to the growth outlook are on the downside, those to inflation forecasts are on the upside.

The RBI Governor identified five key transmission channels through which the conflict poses risks to the Indian economy: elevated crude oil prices, widening the current account deficit; disruptions in energy, fertilisers and commodity markets adversely impacting output; heightened uncertainty dampening consumption and investment; weaker global growth reducing external demand and remittances; and adverse spillovers from global financial markets tightening domestic financial conditions.

Indias energy exposure makes this shock particularly acute. India is the worlds third-largest importer of crude, and 60% of its natural gas and over 90% of its LPG imports also originate in the Middle East. The RBI now expects the price of Indias crude oil basket to average $85 per barrel in FY27, up sharply from its earlier $70 per barrel assumption, while the rupee is assumed to average Rs. 94 to the dollar for the fiscal year.

Despite these headwinds, structural buffers provide resilience. The RBI notes that Indias macroeconomic fundamentals are on a stronger footing than during previous crisis episodes and compared with many other economies. Sustained momentum in the services sector, the persisting impact of GST rationalisation, and healthy balance sheets of financial institutions and corporates are expected to continue supporting economic activity. A lower rupee could improve export competitiveness, and Indias comfortable foreign exchange reserves provide a meaningful cushion. The government has also responded proactively with a proposed $6.2 billion economic stabilisation fund and additional spending on food and fertiliser subsidies to absorb the shock.

Industry Overview

Global Power Transmission and Distribution (T&D)

Technological advancements in digitalisation, automation, and smart grid implementation are transforming the traditional T&D landscape, enabling better real-time monitoring, control, and optimisation of power flows, thereby enhancing grid reliability and reducing energy losses. The adoption of advanced technologies such as High-Voltage Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) is further enabling efficient long-distance electricity transmission, addressing the need for improved grid connectivity and stability. Government initiatives and regulatory frameworks promoting grid modernisation and electrification are propelling the market forward, with countries worldwide investing in upgrading ageing infrastructure, reducing carbon emissions, and enhancing energy efficiency.

From an asset perspective, transmission lines held one of the largest revenue share, driven by their crucial role in transporting electricity over long distances, from power generation sites to distribution networks and end consumers. This dominance is expected to be sustained, as governments and energy companies continue prioritising the expansion

and upgrading of transmission networks to accommodate growing electricity demand and the integration of renewable energy. Electric utilities, as the backbone of national and regional power systems, accounted for the largest share of end use. Their central role in managing and maintaining vast grids, upgrading ageing infrastructure, and deploying smart grid technologies makes them the primary consumers of T&D equipment and services. Regulatory pressures and government incentives aimed at achieving energy efficiency and reducing carbon emissions have further reinforced their dominance.

Geographically, the Asia Pacific region dominates the global T&D marketdriven by rapid industrialisation, urbanisation, and the growing energy needs of countries such as China, India, and Japan. China leads the region with massive investments in ultra-high-voltage (UHV) transmission lines. At the same time, India continues to emerge as a critical growth market, driven by its ambitious renewable energy integration programme and large-scale grid expansion plans. In the Middle East, a strategically important international market for Bajel, countries such as Saudi Arabia and the UAE are investing significantly in grid expansion to support economic diversification and renewable energy projects, particularly solar power.

Looking at the broader energy landscape, the power sector in 2026 is at an important inflexion point. Artificial intelligence and electrification are driving a surge in power demand. Global electricity demand is forecast to increase at a brisk average annual rate of 3.6% over the 2026-2030 forecast period, supported by rising consumption from industry, electric vehicles, air conditioning and data centres. 15, testing the limits of existing grid infrastructure and supply chains. As a result of rampant use of Al, and energy-intensive uses - such as Al agents, electricity consumption from data centres is set to double by 2030, and power use from those focused on Al is poised to triple. These structural demand drivers are creating an unprecedented and durable investment cycle in T&D infrastructure globally. At the same time, persistent supply chain constraints, with lead times for critical grid equipment such as power transformers stretching to multiple years, alongside market volatility, policy shifts, and rising project costs, are reshaping capital allocation across the industry. Companies are increasingly prioritising efficiency, resilient supply chains, and margin discipline over pure volume growth. Digital transformation, Al-driven asset

management, and predictive maintenance are moving from pilot projects to core operations, becoming indispensable tools for grid reliability and operational efficiency.

The global power transmission market is expected to exceed USD 200 billion per year by the mid-2030s under todays policy settings to meet rising needs for electricity, and to reach USD 250-300 billion in scenarios that achieve national and global emissions goals in full16 This steady expansion is driven primarily by rising electricity demand, particularly in emerging economies, where rapid industrialisation, urbanisation, and population growth collectively increase the need for expanded and upgraded T&D infrastructure. The accelerating shift towards renewable energy sources, such as wind and solar, is further driving investments in smart grids and advanced T&D systems to integrate and manage renewable energy more efficiently.

For Bajel Projects, this global landscape presents a compelling and sustained opportunity. The Companys specialisation in EHV transmission EPC, its expanding manufacturing capabilities, and its strategic international alliances, including the recently announced Joint Venture in Saudi Arabia, position it well to capture value from the multidecade global T&D investment cycle.

Indian Power Transmission and Distribution (T&D)

Indias power transmission and distribution sector stands as one of the most expansive and rapidly evolving energy infrastructure systems in the world. Over the past decade, the country has undertaken a structural transformation of its electricity network, scaling installed generation capacity from 305 GW in FY2015-16 to a landmark 520.51 GW as of January 2026, while simultaneously reinforcing the grid backbone required to carry this power to consumers across every corner of the country.

Indias national transmission network, the worlds largest synchronous national grid, crossed the historic milestone of 5 lakh circuit kilometres (ckm) during FY2025-26, with total substation transformation capacity reaching 1,407 GVA as of January 2026. This network has been built at a sustained pace: transmission line length grew at a CAGR of 4.19% from FY2015-16 to FY2024-25. In comparison, substation capacity expanded at a significantly faster CAGR of 8.18% over the ) same period, reflecting the grids increasing densification and the growing complexity of power flows it must manage. Electricity generation rose from 1,173 BU in FY2015-16 to 1,829 BU in FY2024-25, while per capita electricity consumption increased by 52.6% from 957 kWh in FY2013- 14 to 1,460 kWh in FY2024-25. Power shortages, which once stood at 4.2% in FY2013-14, have been reduced to a negligible 0.03% through December 2025, a near-complete elimination of energy deficit that would have seemed improbable a decade ago. Rural Indias average daily power supply improved from 12.5 hours (FY14) to 22.6 hours (FY25); urban supply improved from 22.1 hours to 23.4 hours over the same period.

The scale of Indias renewable energy transformation has been equally dramatic, and it is now the primary structural driver of T&D investment. India ranks fourth globally in total installed renewable energy capacity (IRENA RE Statistics 2025). Total installed renewable energy capacity grew nearly threefold from 76.37 GW in March 2014 to 226.79 GW by June 2025, with solar alone surging from 3 GW in 2014 to 140 GW by January 2026, a 46-fold increase. A defining moment came on 29 July 2025, when renewable sources met 51.5% of Indias total electricity demand of 203 GW for the first time, with solar contributing 44.50 GW, wind 29.89 GW, and hydro 30.29 GW. Beyond the installed base, 176.70 GW of RE projects are currently under implementation, and 72.06 GW are under bidding, a combined pipeline of nearly 249 GW awaiting execution. Every gigawatt of this pipeline will require dedicated transmission evacuation infrastructure, making the T&D investment cycle structurally inseparable from Indias clean energy ambitions.

Metric	Then	Now
Installed Power Capacity	305 GW (FY16)	520.51 GW (Jan 2026)
Installed RE Capacity	76.37 GW (Mar 2014)	267 GW (Feb 2026)
Solar Capacity	3 GW (2014)	140 GW (Jan 2026)
Per Capita Electricity Consumption	957 kWh (FY14)	1,460 kWh (FY25)
Rural Daily Power Supply	12.5 hrs/day (FY14)	22.6 hrs/day (FY25)
Total Electricity Generation	1,168 BU (FY16)	1,824 BU (FY25)
Power Shortage	4.2% (FY14)	0.03% (till Dec 2025)
Transmission Network Length	3,41,551 ckm (FY16)	>5,03,661 ckm (Feb 2026)
Substation Transformation Capacity	570 GVA (FY16 est.)	1,407 GVA (Jan 2026)

Future of Indian Power Transmission and Distribution (T&D)

IIndias T&D sector faces both an enormous opportunity and a structural challenge: the pace of renewable energy deployment has consistently outrun the development of evacuation infrastructure, creating a widening gap between clean power generation and the capacity to deliver it efficiently to consumers. The shorter gestation periods of Variable Renewable Energy (VRE) installations, typically 12-18 months for solar and wind projects, have structurally outpaced transmission projects, which often take three to five years to commission. The consequence is tangible and costly: approximately 50 GW of renewable energy capacity is currently stranded in India due to transmission bottlenecks, leading to cost overruns, delayed returns, and diminished investor confidence. In Rajasthan alone, around 8 GW of 22 GW of ISTS-connected RE projects remained stranded as of July 2025, with an additional 3.8 GW facing generation curtailment in the same month. Right-of-Way (RoW) land acquisition difficulties, overseas equipment procurement constraints, and state-specific ecological and regulatory hurdlesfurther compound execution delays, stretching the gestation period of transmission projects well beyond that of the RE assets they are meant to serve.

The quantum of investment required to bridge this gap and build a future-ready grid is substantial. The National Electricity Plan (NEP) 2023-2032, finalised by the Central Electricity Authority (CEA), targets a peak demand of 458 GW by 2032, requiring an investment of Rs. 9.15 lakh crore in transmission infrastructure alone. Under the NEP, the transmission network is targeted to expand from 5 lakh ckm (January 2026) to 6.48 lakh ckm by 2032, an addition of approximately 1.48 lakh ckm of new transmission lines. Substation transformation capacity is targeted to grow from 1,407 GVA to 2,345 GVA, and interregional transfer capacity to rise from 120 GW to 168 GW by 2032. Looking further ahead, India is projected to require investments of Rs. 13 lakh crorein transmission infrastructure by 2035, alongside Rs. 1.3 lakh crorefor smart metering,

Collectively, investment opportunities across generation, transmission, distribution, and energy storage through 2032 have been estimated to exceed Rs. 50 lakh crore, placing Indias power sector among the largest infrastructure investment opportunities globally. In response to these evolving ground realities, the CEA has shifted to potential-based transmission planning, revising its plans every six months and holding monthly inter-ministerial coordination meetings to expedite approvals and prevent execution delays.

Government Initiatives to Boost the Sector

The Government of India has deployed a comprehensive, multi-pronged policy framework to accelerate T&D infrastructure development and address long-standing structural weaknesses across the power value chain. On the transmission side, the National Electricity Plan (2023-2032) provides a blueprint for grid expansion, focusing on high- voltage infrastructure, HVDC corridors, and green energy evacuation. To enable larger, more capital-intensive projects, the Government enhanced POWERGRIDs investment delegation by raising the permissible equity investment limit per subsidiary from Rs. 5,000 crore to Rs. 7,500 crore, enabling participation in Ultra High Voltage AC and HVDC transmission projects at a greater scale.

On the distribution side, the Revamped Distribution Sector Scheme (RDSS), launched in 2021 with a total outlay of

Rs. 3.03 lakh crore, is the Governments flagship initiative for modernising distribution infrastructure. Projects worth Rs. 2.8 lakh crore have already been approved under the scheme. A key pillar of RDSS is the large-scale rollout of smart metering: as of March 2026, 5.97 crore smart meters have been installed across the country, 4.55 crore under RDSS and the remainder under state-led plans, providing consumers with near real-time visibility of electricity usage and enabling utilities to detect and reduce commercial losses. The Late Payment Surcharge (LPS) Rules, 2022, have been transformative in restoring financial discipline: outstanding dues from DISCOMs to power generators declined by 97% from Rs. 1.4 lakh crore in June

2022 to Rs. 4,109 crore by February 2026, restoring liquidity and confidence across the entire power value chain.

Building on the gains of the current programme, the government is also shaping the next phase of distribution reforms through RDSS 2.0, which is expected to deepen grid modernisation and digitalisation efforts. The proposed framework is likely to focus on advanced distribution infrastructure, AI-enabled load forecasting and demand management, underground cabling, renewable energy integration, and wider deployment of smart consumer technologies to improve efficiency and reliability across the power distribution network.

The Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules provide time-bound

approvals for consumers with loads above 100 kW. At the same time, Renewable Consumption Obligations, interstate transmission charge waivers, and energy storage deployment policies collectively accelerate the integration of RE into the grid. The Electricity (Amendment) Bill, 2026, marks an important structural reform, seeking to rationalise cross-subsidies, promote cost-reflective tariffs, and enable industrial consumers to procure power directly, thereby improving affordability for manufacturing and commercial consumers while safeguarding subsidised tariffs for farmers and eligible households. Alongside these, automatic monthly adjustments to fuel and power purchase costs have been introduced, allowing legitimate procurement and network costs to be reflected promptly in tariffs, preventing the build-up of new losses, and improving financial stability for distribution utilities.

FY2026: A Year of Acceleration

FY2025-26 has been a landmark year for Indias power sector by virtually every metric. On the supply side, a record 52,537 MW of generation capacity was added in just ten months (April 2025 to January 2026), the highest ever in a single year, surpassing the previous record of 34,054 MW in FY2024-25 and representing an increase of over 11% in total installed capacity within a single year. Of this addition, 39,657 MW came from renewable energy sources, including 34,955 MW of solar and 4,613 MW of wind power. Installed RE capacity reached 267 GW (till February 2026), with a further 152 GW in the pipeline, comprising 101 GW of solar, 27 GW of wind, and 24 GW of hydro.

On the transmission side, Indias network added 9,287 ckm of new transmission lines in eleven months (April 2025 to February 2026), already exceeding the full-year addition of 8,830 ckm in FY2024-25, a meaningful recovery in execution pace after the significant programme-versus-achievement gap of the prior year. Substation capacity additions for the same period reached 91,408 MVA, again ahead of the 86,433 MVA added in full-year FY2024-25. Peak power demand met during FY2025-26 reached 242.49 GW, while the power shortage remained negligible at 0.03% through December 2025.

The financial health of the distribution sector also reflected the cumulative benefits of sustained reform. Indias DISCOMs recorded a collective Profit After Tax of Rs. 2,701 crore in FY2024-25, the first time the sector posted a net profit since the unbundling and corporatisation of State Electricity Boards. This marks a historic reversal from a sector that had reported losses of Rs. 67,962 crore in FY2013-14 and Rs. 25,553 crore in FY 2023-24. AT&C losses declined from 22.62% in FY14 to 15.04% in FY25, and the ACS-ARR gap narrowed from Rs. 0.78/kWh to Rs. 0.06/kWh over the same period. Accumulated losses of distribution utilities showed a year- on-year decline for the first time, falling to Rs. 6.39 lakh crore in FY25 from Rs. 6.92 lakh crore in FY24, a positive directional shift, even as the residual legacy burden of Rs. 6.39 lakh crore in accumulated losses and Rs. 7.18 lakh crore in debt continues to warrant sustained attention.

Sector Opportunity for Bajel Projects Limited

Bajel Projects Limited operates at the intersection of three long-term sector drivers:

First, Indias renewable energy expansion coupled with increasing demand requires corresponding investment in transmission evacuation infrastructure.

Second, the growing complexity of electricity networks globally increases demand for technically capable EPC Transmission players with experience in high-voltage transmission and substations.

Third, emerging growth areas such as data centres, industrial power, metros and battery energy storage create adjacencies where Our Company can leverage its existing competencies.

The sector opportunity is therefore not merely volume led. It increasingly rewards companies that can deliver technical complexity, cost discipline, execution certainty and working- capital efficiency. This aligns with Our Companys strategic shift towards a Quality of Earnings model.

Company Overview

Bajel Projects Limited is a Bajaj Group company headquartered in Mumbai and one of Indias experienced power infrastructure EPC specialists. The Company was formed following the demerger of Bajaj Electricals Limiteds EPC division and is listed on the BSE and NSE.

The Company carries forward more than two decades of EPC and manufacturing experience, with capabilities across engineering, procurement, construction, testing and commissioning. Since its successful demerger from Bajaj Electricals Limited in 2023, the Company has operated as Bajel Projects Limited, a distinct sector-focused listed entity, while continuing to draw strength from the governance standards and ethical foundation of the Bajaj Group.

The Company operates across core and emerging business verticals, including Power Transmission, "New Energies", Monopoles, International Business and new growth adjacencies such as Data Centres, Battery Energy Storage Systems, Industrial Power and Metro & Railways. Its manufacturing facility at Ranjangaon, near Pune, provides backward integration and supports the execution of high- voltage transmission and monopole projects.

As of 31 March 2026, Bajel Projects Limiteds cumulative execution footprint included more than 9,823 ckm of transmission lines, more than 49 AIS/GIS substation works, more than 90,554 transformers, more than 1,100 km of underground cabling and more than 1,128 monopoles supplied across various voltage levels. The Company has supplied products to more than seven countries and executed EPC projects in select African markets.

The approved expansion of galvanisation capacity from 40,500 MT per annum to 1,10,000 MT per annum, to be executed in phases, is expected to strengthen backward integration, reduce dependence on outsourcing, and support future margin improvement.

FY2025-26: Delivering on Our Transformation Journey

FY2025-26 marked a key transformational year for Bajel Projects Limited. Following the demerger and establishment of its independent listed identity, Our Company has moved from strategic intent to operational evidence. FY2025-26 demonstrated progress in building a standalone business model anchored in execution discipline, technical capability, selective bidding and margin-focused growth.

The Companys strategic journey under RAASTA 2030 is progressing from Phase 1, focused on "Gear for Growth", to Phase 2, focused on "Prepare for Scale". Under Phase 1 of RAASTA 2030, the company has achieved significant milestones. Our Company is increasingly prioritising high- margin, high-voltage projects over pure revenue growth. This Quality of Earnings approach is intended to improve earnings predictability and strengthen cash-flow discipline.

FY2025-26 also saw continued progress in building institutional systems that can support scale. Project Neev, digital project monitoring, advanced manufacturing investments, selective customer mix improvement, international partnerships and capability-building initiatives all represent steps towards building a more resilient, specialised and scalable EPC enterprise.

Bajel Projects Limited is thus not only participating in a favourable sector cycle; it is reshaping its internal operating model to convert opportunity into sustainable performance.

Key Operational Milestones

• Secured major transmission line orders, including a 400 kV D/C Quad transmission line order for Siwani-Jind.

• Received a 765 kV transmission line contract from PGCILs SPV Vindhyachal Varanasi Transmission Limited. ^•

• Bagged a 400/220 kV AIS substation project at Saswad, Pune from MSETCLs SPV Saswad Transmission Limited.

• We have commissioned 17 power transmission projects in FY2025-26, covering 1,168 ckm from the total 12,139 ckms commissioned in India in FY 25-26

• Announced a landmark 50:50 Joint Venture with Al Sharif Contracting and Commercial Development Company in Saudi Arabia to pursue EPC contracts in High Voltage and Extra High Voltage infrastructure.

• Signed a tripartite collaboration agreement with National Investment and Infrastructure Fund and AnantGrid Private Limited to participate in Indias transmission growth through a developer-EPC model.

• Completed key transmission projects, including the 400 kV M/C Maharanibagh-Narela Monopole Transmission Line in Delhi NCR delivered ahead of schedule. Commissioned the 400 kV Navsari-Magarwada transmission line for PGCIL in Gujarat.

• Progressed the capacity expansion programme at Ranjangaon, including galvanisation capacity enhancement from 40,500 MT per annum to 1,10,000 MT per annum.

• Proposed to strengthen operational excellence through Project Neev: mechanised tower erection, digital PMO tools, GPS-based fleet tracking, e-cataloguing, and realtime project monitoring.

• The company continues to invest in developing its workforce by hiring specialised EPC personnel and implementing programs like Saksham for graduate and management trainees, along with leadership training initiatives such as Shikhar, Prabhaav, Utkarsh and Prarambh, to upskill the existing teams.

The Bajel Advantage

• High Voltage & Extra-High-Voltage Execution Prowess:

Our Company maintains a significant competitive edge through its extensive pre-qualification and execution expertise in the demanding high voltage and extra-high- voltage segments that carry high barriers to entry.

• Urban Infrastructure Pioneering: As a first mover in monopole technology, we provide space-efficient and aesthetically superior alternatives to traditional lattice towers that effectively resolve complex right-of-way challenges in dense urban corridors.

• Process-Driven Scalability: Through Project Neev, we are institutionalising robust systems, processes and a comprehensive digital architecture to ensure operational performance is driven by sustainable processes rather than individual execution.

• Efficient working capital management: Our efficient working capital management acts as a powerful strategic differentiator, allowing our supply chain and customer advances to effectively finance our growth while minimising interest-bearing debt.

• Design Capabilities: The seamless alignment of our in-house design capabilities with our specialised manufacturing units ensures superior cost control, captured through total vertical integration.

• Selective Global Footprint: Our depth-over-breadth international strategy focuses on high-potential clusters through strategic joint ventures that combine our execution capabilities with deep regional market presence.

• Digital Project Governance: The deployment of real-time dashboards, and site monitoring tools enhances project predictability and provides the transparency needed to mitigate delivery risks.

• Sunrise Sector Alignment: We are strategically pivoting to high-growth sunrise segments, including data centres, metros and battery energy storage.

Financial Review

Income Statement Analysis

Particulars (In Cr.)	FY2026	FY2025	YoY Change
Revenue from Operations	Rs. 2,791.58 Crore	Rs. 2,598.24 Crore	7.44 %
EBITDA*	Rs. 124.69 Crore	Rs. 90.16 Crore	38.30 %
EBITDA Margin	4.47%	347%	31.47 %
Profit Before Tax	Rs. 33.86 Crore	Rs. 23.97 Crore	41.22 %
Profit After Tax	Rs. 26.95 Crore	Rs. 15.46 Crore	74.30 %
EPS - Basic (in B)	Rs. 2.33	Rs. 1.34	73.88 %
Order Book	Rs. 3441.82 Crore	Rs. 2,984.40 Crore	15.34 %

Income Statement Analysis

FFY2025-26 was a year of financial discipline. The Company focus was not only on revenue expansion; it was equally directed towards improving the quality of revenue, project- level profitability and earnings conversion. Revenue from operations stood at Rs. 2791.58 Crore compared with Rs. 2,598.24 Crore in FY2024-25. During the financial year 25-26: 7 projects were completed, demonstrating our execution prowess.

EBITDA stood at Rs. 124.69 Crore, with EBITDA margin at 4.47 %. The improvement in margins was supported by selective bidding, phasing out of low-margin projects, better project mix, manufacturing capabilities productivity, proactive hedging of commodities and currencies, and tighter cost discipline.

Profit Before Tax stood at Rs. 33.86 Crore compared with Rs. 23.97 Crore in FY2024-25. Profit After Tax stood at Rs. 26.95 Crore compared with Rs. 15.46 Crore in FY2024-25. Finance costs remained an important area of management focus.

The Company maintained disciplined working-capital management through efficient project execution, prudent receivables monitoring, and balanced supplier and customer payment structures, supporting liquidity and operational cash flow stability.

Balance Sheet Analysis

Particulars (In Cr.)	FY2025	FY2026
Equity Share Capital	Rs. 23.12 Crore	Rs. 23.14 Crore
Other Equity	Rs. 561.54 Crore	Rs. 658.12 Crore
Total Equity	Rs. 584.66 Crore	Rs. 681.26 Crore
Non-current Liabilities	Rs. 30.16* Crore	Rs. 29.45 Crore
Current Liabilities	Rs. 1,378.47* Crore	Rs. 1761.44 Crore
Total Equity and Liabilities	Rs. 1,993.29 Crore	Rs. 2,472.16 Crore
Non-current Assets	Rs. 436.61 Crore	Rs. 353.44 Crore
Current Assets	Rs. 1,556.68 Crore	Rs. 2,118.72 Crore
Total Assets	Rs. 1,993.29 Crore	Rs. 2,472.16 Crore

*Previous Year (i.e. FY 24-25) figures were regrouped or reclassified wherever necessary.

The Companys balance sheet strategy remained focused on supporting growth while maintaining prudent financial discipline. Given the working-capital-intensive nature of the EPC business, the Company continued to emphasise disciplined management of trade receivables, inventories, customer advances, supplier credit and bank guarantees through rigorous project-level cash flow monitoring and working-capital optimisation. The balance sheet also remained conservatively structured, with very low non-current liabilities, supporting overall financial flexibility and stability.

The Companys credit ratings reflect its established execution track record, diversified customer base, prudent financial management and business position in the power T&D EPC market.

Instrument	Rating	Outlook	Date Reaffirmed
Long-Term Facilities	CRISIL A	Stable	December 2025
Short-Term Facilities	CRISIL A1	Stable	December 2025

The reaffirmation of CRISIL A/Stable and CRISIL A1 ratings supports the Companys ability to access working-capital facilities and participate in larger EPC contracts requiring bank guarantees and performance bonds.

Key Financial Ratios

Key Financial Ratios	FY2025	FY2026
Current Ratio	1.13x	1.20x
Inventory Turnover	19.33x	17.34x
Trade Receivables	2.61x	1.80x
Turnover
Net Profit Margin	0.59%	0.96%
Return on Capital	13.16%	16.27%
Employed
Operating Profit Margin	2.95 %	3.73%
Debt-to-Equity	0.64x	0.54x
EPS - Basic	Rs. 1.34	Rs. 2.33

Manufacturing and Operational Excellence

Ranjangaon as a Productivity Engine

The Ranjangaon manufacturing facility provides backward integration and control over execution. During FY2025-26, the Company continued to invest in improving productivity, throughput and resource efficiency at the facility.

The approved expansion of galvanisation capacity from 40,500 MT per annum to 1,10,000 MT per annum is expected to support a larger project pipeline, reduce dependence on outsourcing, and strengthen control over quality and delivery schedules. The expansion is planned in phases

and is expected to support future growth in high-voltage transmission, as well as in monopoles and complex structures.

During FY2025-26, 55,724 MTPA was produced from the Ranjangaon facility, the highest ever mark achieved in companys history

During the year, the Company deployed advanced CNC machinery, including 12-metre press brakes and profile cutting machines, integrated with in-house digital design systems. These capabilities strengthen Bajel Projects Limiteds ability to manufacture structures for high-voltage applications, including 765 kV transmission requirements, while reducing outsourcing costs and improving turnaround time.

Flux Reduction and Margin Protection

The Flux Reduction System at Ranjangaon delivers both environmental and economic benefits. By reducing material loss, including zinc ash and dross, the system improves resource efficiency.

Business Segment Review

Power Transmission

The Company has more than 25 years of experience in end-to-end EPC execution. It has built a strong track record across transmission lines, AIS substations, GIS substations and EHV infrastructure.

The Company is qualified to bid for substations up to 765 kV for AIS and GIS, positioning it well for high-voltage projects linked to renewable energy evacuation, interstate transmission systems, and grid-strengthening programmes. During FY2025-26, Bajel Projects Limited continued to execute projects across key transmission corridors and secured important orders from central and state transmission utilities.

Bajel Projects Limited is developing capabilities in monopole applications, where qualification requirements, design complexity and precision manufacturing limit competitive intensity. The Company is also deploying Steel Caisson foundation technology for complex project sites, particularly where soil conditions, space constraints or execution challenges require specialised engineering solutions.

The successful, ahead-of-schedule delivery of one of the companys private-sector projects demonstrated its execution agility beyond traditional utility contracts. This is important to the Companys customer mix strategy, as Bajel Projects Limited is increasing its focus on central utilities, financially stronger customers and high-value private-sector opportunities.

"New Energies" (Formerly Power Distribution)

During FY2025-26, the erstwhile Power Distribution business was repositioned as "New Energies". This reflects a strategic shift from conventional distribution-led business towards emerging sectors.

"New Energies" represents the Companys move towards newer customer segments to support customers in data centres, industrial infrastructure, specialised substations, high-capacity electrical systems, and battery energy transition-linked infrastructure. This shift allows Bajel Projects Limited to participate in high-entry-barrier opportunities where technical capability, engineering complexity, execution expertise, and reliability are valued beyond pure cost competitiveness.

Monopoles

Bajel Projects Limited is one of Indias pioneering monopole manufacturers, with more than 15 years of experience in designing, manufacturing and installing monopoles across voltage levels. Monopoles are increasingly relevant in urban and semi-urban transmission corridors where land availability, right-of-way constraints and visual footprint are important considerations.

The segment benefits from strong structural demand as Indian cities expand and transmission projects increasingly require compact infrastructure solutions. Monopoles require significantly less land than conventional lattice towers and can be suitable for constrained corridors.

The planned galvanisation capacity expansion at Ranjangaon will further support the monopoles business by reducing outsourcing dependency and enhancing control over quality and delivery timelines.

International Business

FY2025-26 marked a significant step-up in Bajel Projects Limiteds international strategy. The Companys approach is based on "depth over breadth", focusing on selective participation in a few core geographies.

The 50:50 Joint Venture with Al Sharif Contracting and Commercial Development Company in Saudi Arabia is a landmark development. The JV is designed to participate in High Voltage and Extra High Voltage EPC contracts in the Kingdom of Saudi Arabia, supported by Saudi Arabias Vision 2030 grid modernisation and renewable energy integration programme. The partnership combines Bajel Projects Limiteds execution expertise with Al Sharifs regional experience and local market understanding.

Bajel-NIIF-AnantGrid Collaboration

On March 10, 2026, Bajel Projects Limited entered into a collaboration agreement with National Investment and Infrastructure Fund (NIIF) and AnantGrid Private Limited to jointly pursue power transmission opportunities in India. The collaboration aligns with the countrys expanding transmission requirements, driven by renewable energy integration, grid modernisation, and increasing private-sector participation in the power sector.

The partnership brings together the complementary strengths of all three organisations: NIIFs investment and asset management capabilities, AnantGrids project development and management expertise, and Bajel Projects Limiteds engineering and EPC execution capabilities. Through this framework, the Company aims to participate in transmission opportunities beyond the conventional EPC contractor model, supporting Indias target of 500 GW of renewable energy capacity by 2030.

Project Neev and Operational Excellence

In FY2025-26, our Company kick-started "Project Neev" a business transformation programme designed to strengthen organisational scalability, operational discipline, and execution consistency as the Company prepares for its

next phase of growth. The programme focuses on building process-led capabilities, accelerating digitalisation across functions, and improving productivity and cost efficiency across the EPC value chain.

Project Neev continues to drive the standardisation of systems and workflows across execution, procurement, manufacturing, supply chain management, and governance functions. The initiative also supports greater operational visibility, improved decision-making, enhanced project monitoring, and more efficient resource utilisation through an integrated digital architecture and data-driven management practices.

Opportunities and Threats

The Indian power sector is amidst a structural transformation. The opportunities before Bajel are larger, more clearly defined, and longer in tenure than at any point in its operating history — but they are also more competitively contested, more execution-intensive, and more exposed to global commodity and macroeconomic cycles than in earlier transmission cycles. This section sets out, candidly, where we see the most significant tailwinds and the most material headwinds, and how Bajel is positioned to navigate both.

Opportunities

The transmission super-cycle in India. The Central Electricity Authoritys National Electricity Plan (Transmission) sets out an investment outlay of approximately Rs. 9.15 lakh crore between 2023 and 2032 to expand the countrys transmission backbone in step with the planned ramp-up of renewable generation. The plan envisages expansion of the transmission network from approximately 5.04 lakh circuit kilometres (as of February 2026) to 6.48 lakh ckm by 2032, with transformation capacity rising from 1,429 GVA to 2,345 GVA over the same period. Inter-regional transmission capacity is planned to increase from the present level of 120 GW to 143 GW by 2027 and 168 GW by 2032. Of the Rs. 4.91 lakh crore earmarked for the 2027-32 window, approximately Rs. 3.91 lakh crore is allocated to the Inter-State Transmission System (ISTS), the segment in which Bajels competence is most directly applied.

For a power EPC company purpose-built around transmission and distribution, this represents a once-in- a-generation visibility of demand. The opportunity is not a single year or a single plan; it is a decade of structurally elevated investment, underwritten by Indias renewable

energy commitments and overseen by a stable institutional framework of CEA, CERC, POWERGRID and state transmission utilities.

Renewable energy integration and the storage build-out.

India is committed to 500 GW of non-fossil installed capacity by 2030 and over 600 GW by 2032. The NEP plans for the parallel build-out of 47 GW of Battery Energy Storage Systems and 35.6 GW of Pumped Storage Plants to support intermittent renewable evacuation, and provisions for the dedicated transmission required by 10 GW of offshore wind. This creates a layered demand — for renewable evacuation corridors, for substation-level storage integration, and for the transformer and reactive compensation infrastructure that high-RE-share grids require. Bajels manufacturing depth in lattice towers, monopoles, and substation structures, combined with its EPC execution capability, positions it to participate across this stack.

HVDC and 765 kV — the high-voltage frontier. The NEP

plans for the addition of 32,250 MW of HVDC bi-pole capacity in the 2027-32 window. The recently awarded Ladakh- Kaithal HVDC project (a Rs. 20,773 crore mandate) and the Bhadla-Fatehpur HVDC project (a single Rs. 25,000 crore mandate awarded in Q3 FY26) demonstrate the scale of individual ticket sizes now available in this segment. The plan also commits to upgrading the maximum operating voltage in transmission to 1,200 kV AC over the planning horizon. Bajels continued investment in higher-voltage capability — including 765 kV substations and monopole technology — directly aligns with this technology migration.

Green hydrogen and the new manufacturing geography.

The NEP specifically provides for transmission system delivery to green hydrogen and green ammonia manufacturing hubs at coastal locations including Mundra, Kandla, Gopalpur, Paradeep, Tuticorin, Vizag and Mangalore. The build-out of these hubs creates a fresh layer of regional transmission, port-to-hub corridor, and industrial substation demand — adjacent to but distinct from the renewable evacuation corridor opportunity.

The international opportunity, anchored in the Kingdom of

Saudi Arabia. Saudi Electricity Company (SEC) has launched a USD 58.7 billion grid investment programme spanning 2025-30, of which approximately USD 36 billion is allocated to the transmission backbone, with the balance directed to grid modernization. SEC plans to expand its transmission network to approximately 14,000 km of transmission lines by

2030 and to install nine new HVDC lines connecting regions and neighbouring countries. The Kingdoms target of 50% renewable electricity generation by 2030 — requiring the integration of approximately 130 GW of renewable capacity — and the giga-project demand from NEOM, the Red Sea Project, Qiddiya and Diriyah Gate underwrite a transmission investment cycle structurally similar to Indias, but on an accelerated timeline.6 Bajels 50:50 joint venture with Al Sharif in the Kingdom gives the Company a direct, on-the- ground vehicle to participate in this build-out, with Indian EPC competence aligned to one of the most ambitious grid modernisation programmes globally.

Cross-border interconnections. The NEP explicitly contemplates probable cross-border interconnections with Saudi Arabia and the UAE, in addition to existing/planned linkages with Nepal, Bhutan, Bangladesh, Myanmar and Sri Lanka.2 For a Company operating both in India and in the GCC, this category of project represents an emerging opportunity over the medium term — one in which integrated EPC plus manufacturing capability is a differentiator.

Indian Power T&D EPC market — structural growth.

Independent industry estimates place the India Power Transmission and Distribution EPC market at approximately USD 14.68 billion in 2025, with a forecast trajectory to USD 35.20 billion by 2035 at a compound annual growth rate of 9.3%. The Ministry of Power added 12,139 ckm of transmission lines in FYRs. 26 alone, underlining the pace of execution the sector is now demonstrating.

Capital architecture and asset-side participation. The

tripartite arrangement with NIIF and AnantGrid announced during the year creates optionality for Bajel to participate selectively in transmission asset development alongside leading institutional capital. While EPC remains the core, this avenue creates additive participation in annuity-style, longer- tenure value pools that complement the project-based EPC model.

Threats

Commodity price volatility. A material share of EPC cost in transmission is driven by steel (towers, substation structures), zinc (galvanising), copper and aluminium (conductors, cable, transformers). Steel procurement in 2026 is being managed against a backdrop of continued cyclical volatility, supplier concentration and compliance conditions that directly influence project margin stability. The London Metal Exchange (LME) zinc price for 2025 averaged approximately USD 3,218 per tonne, with industry forecasts suggesting continued regional disparities and volatility into the first half of 2026. The International Copper Study Group (ICSG) has projected a refined copper deficit of approximately 150,000 tonnes in 2026 , which is likely to keep copper prices supported and pressure margins for downstream consumers. Bajel manages this exposure through a combination of input price escalation clauses in contracts, forward procurement of critical commodities at the point of LOA/PO, an integrated in-house galvanising and fabrication base that reduces exposure to spot conversion costs, and disciplined project selection that favours work with clearer pass-through provisions.

Competitive intensity and concentration in large tickets.

The transmission EPC market in India is being aggressively consolidated by large private-sector participants competing for very large ticket-size TBCB awards. The Q3 FY26 award of the Bhadla-Fatehpur HVDC project — a single Rs. 25,000 crore mandate to Adani Energy Solutions Limited — illustrates both the scale of the opportunity and the concentration of the largest tickets among a small set of well-capitalised competitors. Bajel is positioned not to compete head-to-head for every mega-project, but to selectively pursue projects where the economics, the risk profile and the strategic fit align — the disciplined quality-of-earnings approach that has underwritten the margin expansion delivered in FY26.

Project execution risks. Transmission EPC is exposed to a recurring set of execution challenges: right-of-way and land acquisition delays, particularly in densely populated and forest-zone corridors; subcontractor and skilled labour availability, especially at remote sites; and weather- related disruptions during monsoon and cyclone seasons. Bajel manages these through advance corridor surveys and stakeholder engagement, structured subcontractor onboarding under defined safety and quality protocols, and project scheduling that builds in known seasonal constraints.

Working capital intensity. EPC contracting carries an inherent working capital cycle driven by mobilisation advances, milestone-based billing, retention monies, and the timing gap between supplier payments and customer receipts. This cycle is sensitive to interest rates and to the credit profile of customers. Bajel manages working capital exposure through disciplined project selection (preference for credit-rated, institutional customers), proactive engagement with customers on milestone certifications, and active treasury management of facilities.

Currency volatility and international exposure. The

expansion of the International EPC business introduces foreign exchange exposure, both transactional (project receivables/payables) and translational (overseas entity reporting). The USD-INR pair has experienced cyclical volatility through FY26, and is expected to remain influenced by global monetary policy, oil prices, and geopolitical developments. Bajel manages exposure through natural hedging where possible (matching project revenue and costs in the same currency), forward contracts for residual exposures, and partnership structures (such as the 50:50 JV in Saudi Arabia) that share currency exposure with local partners.

Macroeconomic and geopolitical risk. The International Monetary Funds July 2025 World Economic Outlook projected global GDP growth at 3.0% in CY 2025, recovering modestly to 3.1% in CY 2026, with persistent inflationary pressures, continuing energy market volatility (driven in part by geopolitical tensions in Ukraine and the Middle East), and trade-policy uncertainty acting as headwinds to global growth. While Indias domestic transmission demand is largely insulated from these factors, Bajels international EPC business is exposed to project-finance cycles and capex sentiment in destination markets, and to commodity prices that move on global, not domestic, fundamentals.

Regulatory and policy transitions. The transmission sector operates within a dense and evolving regulatory framework: CERC tariff orders, transmission service agreements under TBCB, GST treatment of EPC contracts, BIS standards, and state-level RoW and approval processes. Material change in any one of these can affect project economics. Bajel maintains active engagement with industry bodies, anticipates regulatory shifts through its compliance and legal functions, and structures projects to absorb defined regulatory transitions through indexation and change-in-law provisions.

Cybersecurity in the digital grid era. As transmission infrastructure increasingly incorporates smart grid elements, SCADA systems, IoT-enabled monitoring and remote operations, the cybersecurity surface expands materially.

The growing role of digital technology in grid operations introduces vulnerability vectors that did not exist in earlier transmission cycles. Bajel is investing in cybersecurity capability across its IT and OT estates, aligned to CEA cybersecurity guidelines for the power sector and to its broader information security framework.

Climate and extreme weather risk. Transmission infrastructure is, by its nature, exposed to climate events — cyclones, floods, extreme temperatures and increasingly erratic monsoon patterns — both during construction and over the asset life. Bajels project design, material specification and EHS protocols incorporate climate resilience considerations, and the Business Responsibility and Sustainability Report sets out the Companys broader climate-related governance and risk assessment approach.

Risk Management

Bajel Projects Limited has implemented a comprehensive Risk Management Policy, overseen by the Risk Management Committee and guided by the Board. The Companys risk management approach is designed to identify, assess, monitor and mitigate risks across strategy, operations, finance, compliance and sustainability.

Risk Category	Description	Mitigation
Commodity Price Risk	Exposure to aluminium, zinc and steel price volatility can affect project margins.	Mitigated through disciplined commodity hedging strategies, particularly for aluminium and other key raw materials, along with bid-level pricing discipline, procurement planning,
Working Capital Risk	EPC projects require significant working capital, bank guarantees and cash-flow management.	Customer advances, supplier credit discipline, collection focus, project-level cash-flow monitoring and maintenance of a healthy working-capital cycle.
Order Execution Risk	Right-of-way issues, land constraints, forest clearances, equipment delays, and site conditions can affect timelines.	Mitigated through scope categorisation frameworks, efficient project control mechanisms, and disciplined claim management processes to improve execution visibility and manage project- related contingencies.
Customer Concentration Risk	Overdependence on certain customer categories may affect cash-flow predictability.	Diversification towards central utilities, private utilities, data centres, international markets and select customers.
Margin Dilution Risk	Low-margin legacy projects and aggressive bidding can affect profitability.	Mitigated through a rigorous Quality of Earnings framework, disciplined tender selection, selective bidding strategies, and a focus on technically differentiated and margin-accretive projects.
Foreign Exchange Risk	International operations and imported equipment may expose the Company to currency volatility.	Selective hedging, contract structuring and matching of revenue and procurement currencies where feasible.
Interest Rate Risk	Finance costs can affect PAT conversion in a working-capitalintensive business.	Working-capital discipline, efficient collections, customer advances and prudent debt management.
ESG and Compliance Risk	Environmental norms, safety requirements and regulatory obligations require ongoing monitoring.	Mitigated through ISO-aligned systems, Zero Liquid Discharge practices, environmental monitoring, and structured sustainability and compliance management processes.
High Attrition Risk	Increased employee turnover may impact operations in short term.	A comprehensive employee engagement & retention plan has been rolled out to mitigate the risk of attrition rate

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, Bajel Projects remains exposed to the vagaries of market fluctuations in aluminium and steel prices. Components made from these commodities incur significant amount of the companys total procurement cost.

Aluminium and zinc prices on the London Metal Exchange (LME) witnessed an overall uptrend through the year.

In the first half, prices were at the mercy of trade tariffs and counter-tariffs imposed by major economies, while geopolitical tensions in Iran supported strong momentum in the second half.

Steel prices followed downwards trajectory till December, prior to the imposition of safeguard duty on imports supported by surging material costs and front-loaded infrastructure demand cycle. Depreciating currency further supported exporters and decimated domestic supplies. Our company is trying to contain risk exposure through commodity and forex hedging along with fostering good relations with vendors and suppliers.

Human Resources

Peoples capability remained central to Bajel Projects Limiteds transformation during FY2025-26. For the coming financial year, the HR agenda focuses on building a performance- oriented, specialised, and execution-driven organisation.

As of 31^st March26, the Company had 822 permanent employees and a total workforce of 1,477, including contract workers.

The Company undertook several HR transformation initiatives during the year:

• Redesigned recruitment processes to align with service- oriented EPC industry requirements rather than legacy FMEG-oriented models.

• Strengthened job evaluation and compensation benchmarking to improve role clarity and market alignment.

• Introduced a structured Performance Management Framework linking individual performance, business outcomes and rewards.

• Advanced the Saksham programme to train approximately 70 entree-level trainees and build a specialised

internal cadre.

• The company has continued strengthening its teams by attracting industry experts including those in key leadership positions. Leadership development programs like Shikhar, Prabhaav, Utkarsh and Prarambh are specifically designed for the senior and middle management teams

• The company has continued renewing its leadership, with about 70% of leaders being replaced to support the next growth phase. Leadership development programs like Shikhar and Prarambh are specifically designed for the leadership team.

The Companys values - Courage, Collaboration, Commercial Mindset, Integrity and Ownership - continue to guide employee behaviour and decision-making.

Internal Control Systems

The Company has a robust internal financial control framework commensurate with the nature, size and complexity of its operations. These controls cover key financial and operational processes and are supported by documented policies, approval matrices, audit mechanisms and compliance systems.

The internal control systems are reviewed by Internal and Statutory Auditors. The internal audit function operates

independently and follows an annual audit plan approved by the Audit Committee. The Audit Committee reviews audit observations, corrective actions and process improvements.

These systems are expected to support scale by reducing dependency on manual reporting and improving the predictability of project outcomes

Outlook and Forward Strategy

The medium and long-term outlook for Bajel Projects Limited remains favourable, supported by structural demand for transmission infrastructure, renewable energy evacuation, data centres, industrial power, grid modernisation and international infrastructure investment.

Indias transmission sector is expected to witness sustained investment in renewable energy capacity, along with rising demand and as the national grid is becoming more complex. The Companys expertise in High Voltage and Extra High Voltage transmission, Green Energy Corridor projects, substations, monopoles and manufacturing integration positions it well to participate in this opportunity.

Internationally, the Company will focus on selective markets where its technical capabilities and partnerships can create differentiated opportunities. The Saudi Arabia JV provides a platform for deeper participation in the Middle East and adjacent geographies.

The "New Energies" vertical will pursue opportunities in data centres, industrial power, battery energy storage, metro rail and specialised electrical infrastructure. These segments offer the potential for working with customers seeking technical know-how, while selectively focusing on traditional RDSS projects.

The Companys forward strategy is anchored in five priorities:

1. Scale selectively through high-quality orders.

2. Improve margins through timely execution, manufacturing integration and cost discipline.

3. Strengthen PAT conversion through working-capital efficiency and finance cost management.

4. Build international depth in selected geographies.

5. Institutionalise systems and talent to support the next phase of growth

Cautionary Statement

This Management Discussion and Analysis contains forward-looking statements based on certain assumptions, expectations, estimates and projections. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.

Important factors that could affect the Companys performance include changes in government policy, regulatory developments, commodity prices, interest rates, foreign exchange rates, customer payments, project execution timelines, geopolitical developments, supply-chain disruptions, competitive intensity and general economic conditions in India and international markets.

The Company assumes no obligation to publicly update or revise forward-looking statements except as required under applicable laws and regulations.

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