Bajel Projects Establishes Wholly Owned Subsidiary In UAE For EPC Expansion

Market snapshot: Bajel Projects Limited has officially expanded its international footprint by establishing a wholly-owned subsidiary in Abu Dhabi, United Arab Emirates (UAE). This strategic unit is poised to target high-potential power transmission and electrical contracting projects in the Middle East region.

Data Snapshot

• Incorporated BAJEL T AND D PROJECTS AND CONTRACTING - L.L.C - S.P.C in Abu Dhabi, UAE on July 18, 2026, with an issued share capital of AED 100,000.
• Reported its strongest standalone annual revenue since listing at ₹2,792 cr for FY26.
• Achieved standalone Profit After Tax of ₹27 cr for FY26, a 74% year-on-year increase from ₹15 cr in FY25.
• Maintained a strong EPC order book of ₹3,442 cr as of March 31, 2026.

What's Changed

• Strategic entry into the Gulf Cooperation Council region with a dedicated, wholly-owned local subsidiary.
• Shift towards direct international bidding to enhance operating margins, building on an improved EBITDA margin of 4.4% recorded in FY26.

Key Takeaways

• Bajel Projects establishes direct corporate presence in Abu Dhabi, enabling execution rights for transmission lines, distribution networks, and substations across the UAE.
• The subsidiary is fully funded by cash consideration from the parent, minimizing third-party debt exposure.
• The international push is supported by record-high domestic profits, as standalone PAT jumped 74% YoY to ₹27 cr in FY26.
• Geographic diversification leverages the massive infrastructure and grid-connection spending in the Middle East.

SAHI Perspective

Bajel Projects' decision to set up an Abu Dhabi-based subsidiary is a structurally positive step to transition from a purely domestic player to a global EPC contender. Historically, Middle Eastern power transmission projects offer superior margin structures compared to highly competitive state-level utility projects in India. By setting up direct execution capabilities, Bajel can bid independently for major tenders, augmenting its already robust order book of ₹3,442 cr. This move demonstrates strategic execution of the 'RAASTA 2030' roadmap, though investors should closely watch localized working capital cycles.

Market Implications

The establishment of a local UAE arm positions Bajel Projects favorably for long-term export and international EPC revenues. Geographical diversification will cushion the company against localized execution and policy risks in India. It is likely to positively re-rate the valuation multiples of the company if the international unit successfully clinches and executes high-value utility projects over the next 12-24 months.

Trading Signals

Market Bias: Bullish

Direct entry into the lucrative UAE market backed by stellar FY26 performance (revenue of ₹2,792 cr) and a robust order book of ₹3,442 cr signals strong long-term fundamentals and potential margin expansion.

Overweight: Power Transmission, Infrastructure EPC, Capital Goods

Trigger Factors:

• First major order win secured by the newly incorporated UAE subsidiary.
• Execution pace and billing updates of the ₹3,442 cr domestic order book in upcoming quarters.
• Movement of working capital cycles as international activities commence.

Time Horizon: Medium-term (3-12 months)

Industry Context

The GCC region is undergoing significant power grid modernization to integrate renewable energy and bolster cross-border power connections. Leading Indian players like KEC International and Kalpataru Projects have historically derived strong margins from Middle East operations. Bajel's entry into the UAE, following its recent 50:50 joint venture with the Al Sharif Group in Saudi Arabia, highlights a broader industry-wide trend of Indian EPC majors expanding aggressively into the Gulf region.

Key Risks to Watch

• Extended working capital cycles, which are common in Middle Eastern turnkey projects, could strain near-term liquidity.
• Stringent regulatory and localization guidelines in the UAE might result in execution delays during the initial phase.
• Forex volatility (INR vs AED/USD) could impact final realized profitability on international contracts.

Recent Developments

On July 18, 2026, Bajel Projects incorporated its wholly-owned UAE subsidiary, BAJEL T AND D PROJECTS AND CONTRACTING - L.L.C - S.P.C, with an issued share capital of AED 100,000. Earlier, in May 2026, the company reported its strongest annual performance since listing, achieving standalone revenue of ₹2,792 cr and recommending a maiden dividend of ₹0.60 per equity share. In March 2026, the company signed a tripartite collaboration agreement with NIIF and AnantGrid to explore domestic power transmission assets and secured a major domestic order valued at over ₹400 cr from Maharashtra State Electricity Transmission Company Ltd (MSETCL).

Closing Insight

Bajel Projects' direct expansion into the UAE is a timely move to capitalize on the high-capex Middle Eastern energy transition. Backed by solid balance-sheet strength from a record-breaking FY26 domestic run, this expansion provides a viable avenue for high-margin, scalable growth.

High Performance Trading with SAHI.