Bajaj Steel Q4 FY26 Revenue Drops 24% YoY

Financial Performance Highlights

Quarterly Performance (Q4 FY26 vs Q4 FY25)

Revenue from Operations: ₹116.8 Cr (down 23.9% from ₹153.5 Cr)
EBITDA: ₹5.6 Cr (down 76.8% from ₹24.2 Cr)
EBITDA Margin: 4.8% (down 1094 bps from 15.8%)
EBIT: ₹4.9 Cr (down 80.1% from ₹24.6 Cr)
EBIT Margin: 4.0% (down 1139 bps from 15.4%)
Profit Before Tax: ₹3.8 Cr (down 83.6% from ₹23.3 Cr)
PAT: ₹2.3 Cr (down 87.2% from ₹18.1 Cr)
PAT Margin: 1.9% (down 939 bps from 11.3%)
EPS: ₹1.4 (down from ₹8.4)

Quarterly Performance (Q4 FY26 vs Q3 FY26)

Revenue from Operations: ₹116.8 Cr (down 6.8% from ₹125.3 Cr)
EBITDA: ₹5.6 Cr (down 39.7% from ₹9.3 Cr)
EBITDA Margin: 4.8% (down 262 bps from 7.4%)
EBIT: ₹4.9 Cr (down 47.5% from ₹9.3 Cr)
EBIT Margin: 4.0% (down 323 bps from 7.2%)
Profit Before Tax: ₹3.8 Cr (down 52.3% from ₹8.0 Cr)
PAT: ₹2.3 Cr (down 60.8% from ₹5.9 Cr)
PAT Margin: 1.9% (down 268 bps from 4.6%)
EPS: ₹1.4 (down from ₹2.8)

Annual Performance (FY26 vs FY25)

Revenue from Operations: ₹524.2 Cr (down 10.4% from ₹584.8 Cr)
EBITDA: ₹60.3 Cr (down 34.6% from ₹92.1 Cr)
EBITDA Margin: 11.5% (down 426 bps from 15.8%)
EBIT: ₹55.0 Cr (down 38.5% from ₹89.6 Cr)
EBIT Margin: 10.3% (down 474 bps from 15.0%)
Profit Before Tax: ₹50.0 Cr (down 55.3% from ₹111.9 Cr)
PAT: ₹36.9 Cr (down 56.2% from ₹84.3 Cr)
PAT Margin: 6.9% (down 724 bps from 14.1%)
EPS: ₹18.0 (down from ₹40.3)

Note: FY25 PAT included a one-time dividend of approximately ₹26.5 Cr from US subsidiary.

Cost Structure Analysis

Q4 FY26 Cost Breakdown

Cost of Goods Sold: ₹63.8 Cr
Employee Benefits Expense: ₹20.6 Cr
Other Expenses: ₹26.7 Cr
Depreciation and Amortization: ₹6.3 Cr
Finance Cost: ₹1.1 Cr
Tax Expense: ₹1.5 Cr

FY26 Annual Cost Breakdown

Cost of Goods Sold: ₹257.6 Cr
Employee Benefits Expense: ₹85.0 Cr
Other Expenses: ₹121.3 Cr
Depreciation and Amortization: ₹17.5 Cr
Finance Cost: ₹5.1 Cr
Tax Expense: ₹13.1 Cr

Balance Sheet Position (as of March 31, 2026)

Liabilities

Reserves & Surplus: ₹377.0 Cr (down from ₹413.6 Cr in Mar-25)
Shareholders' Funds: ₹387.4 Cr (down from ₹424.0 Cr in Mar-25)
Long Term Borrowings: ₹22.6 Cr (up from ₹15.3 Cr in Mar-25)
Short Term Borrowings: ₹38.3 Cr (down from ₹40.9 Cr in Mar-25)
Trade Payables: ₹71.2 Cr (down from ₹94.8 Cr in Mar-25)
Other Current Liabilities: ₹70.1 Cr (down from ₹106.7 Cr in Mar-25)
Total Liabilities: ₹603.6 Cr (down from ₹699.1 Cr in Mar-25)

Assets

Property, Plant & Equipment & Intangible Assets: ₹210.7 Cr (up from ₹175.2 Cr in Mar-25)
Capital Work in Progress: ₹27.1 Cr (up from ₹19.2 Cr in Mar-25)
Inventories: ₹177.1 Cr (up from ₹152.9 Cr in Mar-25)
Trade Receivables: ₹57.1 Cr (up from ₹47.5 Cr in Mar-25)
Cash and Cash Equivalents: ₹99.3 Cr (up from ₹80.1 Cr in Mar-25)
Other Current Assets: ₹80.0 Cr (up from ₹78.0 Cr in Mar-25)
Total Assets: ₹699.1 Cr (up from ₹603.6 Cr in Mar-25)

Cash Flow Statement

FY26 Cash Flow Performance

Net Cash Flow from Operating Activities: ₹78.2 Cr (up from ₹52.1 Cr in FY25)
Net Cash Flow from Investing Activities: -₹58.4 Cr (down from -₹38.1 Cr in FY25)
Net Cash Flow from Financing Activities: -₹5.0 Cr (up from -₹26.2 Cr in FY25)
Net Increase in Cash & Cash Equivalents: ₹14.8 Cr (up from -₹12.1 Cr in FY25)
Opening Cash Balance: ₹86.2 Cr
Closing Cash Balance: ₹101.0 Cr

Business Segment Performance

Revenue Diversification (FY26)

Infrastructure Segment: 21% of total revenue (~30% YoY growth)
Electrical Panels: 11% of total revenue
Heavy Engineering: 6% of total revenue
Other Product Segments: 2% of total revenue
Cotton Ginning Machinery: Remaining percentage (approximately 60%)

Order Book Position (as of March 31, 2026)

Total Order Book: ₹587 Cr
Cotton Ginning Machinery: ₹363 Cr
Infrastructure: ₹100 Cr
Heavy Engineering: ₹54 Cr
Electrical Panels: ₹55 Cr
Other Products: ₹15 Cr

Operational Highlights

Performance Challenges

Q4 performance impacted by delays in order conversion and dispatches across certain segments
Volatile global trade conditions affecting overall business sentiment
Cotton Ginning segment affected by volatile cotton prices, weaker demand dynamics, and fluctuations in global trade conditions
Customer site unpreparedness and pending commercial clearances resulting in dispatch delays
Decline in export revenues from Cotton Ginning Machinery segment (~60% of total revenue) while domestic business registered healthy growth

Strategic Positioning

Company continues diversification strategy across multiple verticals with strong Revenue CAGR of 36%
Expects improvement in performance supported by improving market conditions and better execution across business segments
Maintains global leadership in cotton ginning machinery with ~35-40% global market share and 50% domestic share
Only company worldwide offering all four ginning technologies: Single Roller, Double Roller, Saw-Ginning & Roto-Bar Ginning

Corporate Overview

Company History & Evolution

Incorporated in 1961 under leadership of Late Shri Hargovind Bajaj
Evolved from Cotton Ginning Machinery Company to Multi-product Engineering Company
Started exports in 1996
Awarded India's Largest & Most Modern Cotton Ginning Machinery Maker by Ministry of Textiles
Technical Partner with CIRCOT–ICAR, Govt. of India (2011)
Acquired Continental Eagle (USA) in 2012

Manufacturing Capabilities

Manufacturing Facilities: 100,000 Sq. Mtrs across 13 units in Nagpur, India
ISO Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018
Technical Workforce: 2,000+ employees with 200+ Design & Detailing Engineers
Equipment: 7 Laser Cutting Machines, 56 CNC Machines, 91 Conventional Machines, Robotic & Manual Welding

Global Presence

Subsidiaries: Bajaj Coneagle LLC (USA), Bajaj Steel Industries (U) Ltd. (Uganda), Bajaj Continental LTDA (Brazil), Bajaj Services LTDA. (Brazil)
Sales Offices: Brazil, Peru, Paraguay, Argentina, Australia, West Africa, East Africa, CIS & GCC Countries
Presence in 60+ countries including USA, China, Taiwan, Malaysia, UK, Bangladesh, Egypt, Kenya, and others

Management Team

Executive Director: Lav Bajaj (40+ years experience)
Director: Name not specified in presentation (38+ years experience in Steel and Plastic industries)
Director: Name not specified in presentation (44+ years leadership experience, PhD from Nagpur University)
Chief Financial Officer: Manish Sharma (Chartered Accountant with 18+ years experience)
Company Secretary & Compliance Officer: Rachit Jain (Company Secretary with 8+ years experience)

Business Segments Detail

1. Cotton Processing Machinery Division

Global Market Share: ~35-40%
Domestic Market Share: 50%
Export Contribution: 50%+ of revenue
Complete portfolio with all four ginning technologies
Custom-built machines with up to 200 bales/hour capacity
Major supplier of IMPCO Delinting Equipment and Systems

2. Infrastructure Division

Specializes in Pre-Engineered Buildings, Industrial Sheds, Warehouses, K-Houses, and Solar Mounting Structures
EPC/turnkey projects for major clients including Indian Oil Corporation Ltd., Maharashtra State Warehousing Corporation, Nuclear Fuel Complex
Compliance with IS (Indian) and AISC (American) seismic and wind-load codes
Capacity: 35,000 MTPA
Projects Completed: 600+

3. Electrical Panels Division

Product range: Power & Motor Control Centers, APFC Panels, LT & HT Panels, IMCC Panels, Drive Panels, PLC & SCADA Panels
Quality Certifications: IEC 61439 Part 1 and 2, UL certification, IS 8623 Certification
Strategic Partnerships: Channel partner of Schneider Electric, ABB, and Mitsubishi

4. Heavy Engineering Division

Custom fabrication for OEMs in Steel, Cement, Mineral, and Power sectors
Products include aerobridges & passenger boarding systems, Biomass Pellets
Delivered 57 Aerobridges as of December 31, 2024
Capacity: 12,000 MT
Global collaborations with 3D Bukaka (Indonesia) and Adelte (Spain)

Stock Information

BSE/NSE Code: 507944 / BAJAJST
CMP: ₹368.5
Market Cap: ₹369.6 Cr
Shares Outstanding: 2.08 Cr
Face Value: ₹5
Average Trading Volume: 23,500 shares