Bajel Projects Sees Credit Rating Upgrade, Loan Facilities Enhanced

Bajel Projects Ltd's long-term credit rating has been upgraded to 'Crisil A+/Stable' by CRISIL, while its short-term rating has been reaffirmed at 'Crisil A1'. Total rated loan facilities have been enhanced to ₹3,500 crore.

Reader Takeaway: Strong order book and Bajaj Group backing are positives, while working capital intensity is a watch point.

What just happened

CRISIL upgraded Bajel Projects' long-term credit rating to A+/Stable and reaffirmed its short-term rating at A1. The total rated loan facilities were enhanced from previous levels to ₹3,500 crore. The company reported a revenue of ₹2,808 crore and Profit After Tax (PAT) of ₹22 crore for FY 2026, with a PAT margin of 0.8%.

Why this matters

The rating upgrade signifies an improvement in the company's business risk profile and its capacity to maintain a robust order book. The increased credit facility highlights the company's growing operational scale. The explicit support from the Bajaj group provides financial flexibility.

The backstory

Bajel Projects operates in the engineering, procurement, and construction (EPC) segment, specializing in power transmission and distribution. As of March 31, 2026, the company had an order book of ₹3,442 crore, with over 90% in power transmission. New orders in Q1 FY27 exceeded ₹1,098 crore. Power Grid Corporation of India Ltd (PGCIL) accounts for 60-70% of the order book.

What changes now

The credit rating upgrade and enhanced loan facilities are expected to support Bajel Projects' growth trajectory. The company can leverage this to undertake larger projects and manage its expanding operations more effectively.

Risks to watch

A key watch point is the company's working capital intensity, with gross current assets at approximately 245 days. High working capital can strain liquidity. Additionally, intense competition in the power transmission and distribution segment may limit margin expansion potential.

Peer comparison

While specific peer data is not provided in the filing, the company's focus on power transmission and distribution places it within a competitive EPC landscape in India. Its strong order book and single-client concentration with PGCIL are distinct operational characteristics.

Context metrics (time-bound)

• Order Book (Mar 31, 2026): ₹3,442 crore
• New Orders (Q1 FY27): > ₹1,098 crore
• Revenue (FY 2026): ₹2,808 crore
• PAT (FY 2026): ₹22 crore
• PAT Margin (FY 2026): 0.8%
• Revenue (FY 2025): ₹2,628 crore
• PAT (FY 2025): ₹16 crore
• PAT Margin (FY 2025): 0.6%
• Total Rated Loan Facilities: ₹3,500 crore

What to track next

Investors should closely monitor the company's working capital management, execution of its ₹3,442 crore order book, and its ability to secure and integrate new orders. The company's financial flexibility, bolstered by Bajaj Group's support, will also be crucial.