Bajaj Steel Industries (BAJAJST) Q2 25/26 earnings summary

Executive summary

• Achieved strong revenue growth of 62% QoQ and 15% YoY in Q2FY26, with margin improvement driven by major order executions in Pre-Engineered Buildings and Electrical Panels, and growth in Cotton Ginning Machinery.

• H1FY26 performance was impacted by delays in the Cotton Processing Machinery segment due to client site readiness and deferred customer advances, affecting machinery dispatches and operating profit.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, with review by independent auditors and no material misstatements noted.

• Order book stood at Rs 520 Cr as of September 30, 2025, with significant new orders and advances received in November, indicating improving business sentiment.

• Maintained a healthy ROE of 25% and ROCE of 20%, with a net debt-free balance sheet (Net Debt/Equity: -0.12x).

Financial highlights

• Q2FY26 consolidated revenue from operations was Rs 174.6 Cr, up 14.7% YoY and 62.4% QoQ; H1FY26 revenue was Rs 282.2 Cr, down 3.8% YoY.

• Q2FY26 consolidated PAT was Rs 21.3 Cr (12.1% margin), up 22% YoY and 187.5% QoQ; H1FY26 PAT was Rs 28.7 Cr.

• Q2FY26 EBITDA was Rs 31.8 Cr (18.2% margin), up 25.6% YoY and 134.7% QoQ; H1FY26 EBITDA was Rs 45.3 Cr.

• Q1FY25 PAT included a one-time dividend of Rs 27 Cr from the US subsidiary.

• Annual FY25 revenue was Rs 585 Cr, EBITDA Rs 92 Cr (15.8% margin), PAT Rs 84 Cr (14.1% margin), and EPS Rs 40.3.

Outlook and guidance

• Receipt of customer advances in November signals a pickup in growth momentum for H2FY26.

• Planned capex of Rs 300-350 Cr over 2–3 years to support growth across Cotton Processing, Infrastructure, Electrical Panels, Heavy Engineering, and Other Products.

• Roadmap in place for Electrical Panel and Heavy Engineering divisions, with focus on new geographies and client engagement.

• Earnings per share figures for prior periods have been restated to reflect bonus share allotment.

• The company continues to identify 'Multiple Engineering Products' as its only reportable segment.