Crisil Ratings stated that the company has a healthy order book, which provides revenue visibility. It maintains a healthy bid pipeline and has expanded its geographic reach to more than 60 countries, which will sustain order inflow.

While cotton ginning machinery is the main business of BSIL, increased product diversification into electric panels, infrastructure (pre-engineered buildings [PEBs]) and heavy engineering for diverse industries will help sustain growth and safeguard against slowdown in the cotton industry.

The financial risk profile will remain strong, with networth at Rs.390 crore as on 31 March 2025, and expected over Rs 550 crore over the medium term with greater accretion of profits and lower reliance on debt. The company plans capital expenditure (capex) of Rs 300-350 crore over the next 2-3 years, which will be funded through internal accrual, debt and other modes will be raised only if necessary.

The ratings continue to reflect the strong track record and extensive experience of the promoters in the cotton ginning machinery business, the improving geographical diversity of the company and its strong financial risk profile.

These strengths are partially offset by limited scale of operations, susceptibility to economic downturns and to volatility in cotton demand-supply and prices, and large working capital requirement.

Bajaj Steel Industries (BSIL) manufactures cotton processing machinery, equipment and their spare parts, PEBs, electrical panels, fire-fighting equipment, steel doors,heavy engineering equipment and other products The company is one of the few players with operations across the entire ginning process value chain. It has a registered office and fourteen manufacturing units in Nagpur, Maharashtra.

The company's consolidated net profit declined 19.91% to Rs 18.06 crore as net sales fell by 11.73% to Rs 153.50 crore in Q4 FY25 as compared with Q4 FY24.

The scrip advanced 0.36% to currently trade at Rs 742.85 on the BSE.