Bajel Projects has secured a significant EPC order worth ₹200-300 crore for a 400 kV transmission line project under the Bellary-Davanagere renewable energy evacuation scheme, with shares surging 17% following the announcement. The stock reached a high of ₹199.80 per share compared to its previous closing price of ₹171.15 per share, reflecting strong market confidence in the company's order book expansion. According to the latest disclosure made on May 13, 2026 pursuant to SEBI regulations, the 400 kV transmission line project involves construction of a 400kV (Quad) double-circuit transmission line under the TL-01 package of the Bellary-Davanagere 2nd 400kV line scheme, with a line length of around 70 km connecting the Bellary Substation to the Davanagere Substation. The order was awarded by Bellary Davanagere Power Transmission Ltd, a Special Purpose Vehicle (SPV) of Power Grid Corporation of India Limited (PGCIL).
The 400 kV transmission line project forms part of a renewable energy evacuation system designed to integrate 0.25 GW at Davanagere and 2.75 GW at Bellary into the national grid. This corridor serves as a central transmission system for evacuation of renewable power from critical solar and wind zones in Karnataka. The project has a committed execution timeline of 21 months from the date of issuance of award notification, aligning with the company's other ongoing projects. The transmission line project is crucial for supporting India's renewable energy integration goals as the power transmission sector experiences strong growth driven by projected investment of approximately ₹9 lakh crore by 2032.
Despite the major contract wins, Bajel Projects reported a revenue decline of 9.65% from ₹622.39 crores in December 2024 to ₹562.34 crores in December 2025. The company's net profit turned negative from ₹1.46 crores to a loss of ₹0.42 crores in the same period, attributed to exceptional costs including a ₹772.06 lakh labor code charge and losses from joint ventures. However, the company maintains strong financial fundamentals with a decent ROCE of 12.1% and low ROE of 2.5%, supported by a conservative debt-to-equity ratio of 0.16, indicating strong capital efficiency with minimal leverage. As of December 31, 2025, the company's EPC order book stood at ₹2,912 crore with a production capacity of 39,525 MTPA reported in 9M FY'26.
The 400 kV transmission line project serves as a critical infrastructure component for India's renewable energy transition, supporting the evacuation of 2.75 GW at Bellary and 0.25 GW at Davanagere into the national grid. This grid reinforcement initiative aligns with India's power transmission sector experiencing strong growth driven by projected investment of approximately ₹9 lakh crore by 2032 and a compound annual growth rate (CAGR) of up to six percent. The project strengthens the company's competitive positioning for upcoming PGCIL transmission tenders in other high-demand industrial corridors across India, with management indicating a strategic shift towards higher-margin EPC projects and reported margin expansion in Q3 FY26.
Rajesh Ganesh, Managing Director & CEO of Bajel Projects Limited, described the order wins as 'strong endorsement of Bajel's execution credentials' in high-voltage transmission and alignment with India's energy transition priorities. The company's strong performance in securing major EPC orders from Power Grid Corporation of India Limited demonstrates its capabilities in complex power infrastructure projects. As a leading player in the power infrastructure sector with presence in over 7 countries and 20+ years of EPC and manufacturing experience, Bajel Projects carries forward the values and expertise from its former association with Bajaj Electricals Limited's EPC segment. The company's global presence and recognition as a trusted partner for state, national, and international utilities positions it well for future growth opportunities in India's expanding power transmission sector.
