Vikran Engineering Limited is a diversified **Engineering, Procurement, and Construction (EPC)** firm providing end-to-end turnkey solutions from conceptualization to commissioning. Transitioning from a specialized power player to a multi-sector infrastructure provider, the company operates an **asset-light model**, leveraging equipment leasing and a robust supply chain of **3,500+ vendors** to maintain high operational efficiency. This strategy is evidenced by a remarkable **Fixed Asset Turnover Ratio of 101.27x** in **FY25**. --- ### **Core Infrastructure Verticals & Technical Capabilities** The company operates across four primary infrastructure segments, integrating **SAP-based automation** and specialized design software to manage complex engineering requirements. | Vertical | Core Capabilities & Infrastructure | Strategic Focus | | :--- | :--- | :--- | | **Power T&D** | High-voltage transmission lines (up to **765 kV**); **AIS & GIS** substations (up to **400 kV**); rural electrification; **Smart Metering**; and underground **EHV cabling**. | Grid modernization and **RDSS** (Revamped Distribution Sector Scheme) projects. | | **Solar EPC** | Ground-mounted utility-scale projects; water pump installations; and Balance of System (**BoS**) services. | Aggressive scaling to **2 GWp** turnkey and **1 GWp** BoS capacity. | | **Water Infra** | Water Treatment Plants (**WTP**); distribution networks; intake wells; overhead reservoirs; and **SCADA**-based automation. | Alignment with the **Jal Jeevan Mission (Har Ghar Jal)**. | | **Railway Infra** | Overhead Electrification (**OHE - 25 kV**); Traction Substations (**TSS**); signaling; and metro power supply. | High-speed rail and urban transit expansion. | --- ### **Order Book Dynamics & Revenue Visibility** As of **February 2026**, Vikran maintains a robust consolidated order book of over **₹4,700 Cr**, providing revenue visibility for the next **24 months**. * **Segment Concentration:** Power T&D remains the dominant driver at **~86%** (**₹4,283.2 Cr**), though Solar EPC is the fastest-growing segment following the **August 2025 IPO**. * **Geographic Footprint:** Active in **16 states** with **190+ project locations**. Major revenue concentration includes **Uttar Pradesh (29.02%)**, **Madhya Pradesh (22.63%)**, **Karnataka (11.67%)**, and **Andhra Pradesh (11.07%)**. * **Client Profile:** Marquee public and private entities including **PGCIL**, **NTPC**, **CORE**, **MPPTCL**, and various state utilities. **Key Recent Project Wins:** * **Onix Renewables Ltd:** **₹2,035.3 Cr** for **600 MW AC** Solar (Turnkey). * **MSEDCL:** **₹530.80 Cr** for distribution infrastructure in Nashik & Kolhapur. * **NTPC Renewable Energy:** **₹459.20 Cr** for **400 MW AC** Solar (BoS). * **Ellume Energy:** **₹354.21 Cr** for **100 MW AC** Solar (Turnkey). --- ### **Financial Performance & Growth Metrics** Vikran has demonstrated significant scaling, characterized by a revenue **CAGR of 32.17%** between **FY23-FY25**. | Metric (Consolidated) | Q2 FY26 | Q2 FY25 | YoY Growth | | :--- | :--- | :--- | :--- | | **Revenue from Operations** | **₹ 176.3 Cr** | **₹ 159.2 Cr** | **10.7%** | | **EBITDA** | **₹ 25.4 Cr** | **₹ 12.8 Cr** | **98.9%** | | **EBITDA Margin** | **14.4%** | **8.0%** | **+640 bps** | | **Profit After Tax (PAT)** | **₹ 9.1 Cr** | **₹ 2.1 Cr** | **333.3%** | The company’s margin expansion is attributed to tighter cost controls and a shift toward high-value Solar and Water segments. --- ### **Strategic Growth & Capital Allocation** The company is pivoting toward a more aggressive renewable energy stance while exploring international markets. * **Solar SPV Investments:** Exploring investments up to **₹175 Cr** in Solar Special Purpose Vehicles to secure captive EPC rights. * **Global Expansion:** Targeting private sector EPC projects in the **Middle East** and **Africa**, focusing on regions with low electricity access. * **Capital Raising:** In February 2026, the Board approved raising up to **₹300 Cr** via term loans or **Non-Convertible Debentures (NCDs)** to fund the current growth phase. * **Risk-Averse Bidding:** Demonstrated capital discipline by **cancelling a ₹1,641.91 Cr order** from Carbonminus Maharashtra One following an internal review of capital requirements. --- ### **Credit Profile & Risk Factors** While the company has seen credit upgrades, it faces headwinds related to the capital-intensive nature of the EPC business. **Credit Ratings (as of April 2026):** * **India Ratings:** Reaffirmed **IND A-**, but revised outlook to **Negative**. * **Rationale:** The negative outlook reflects heavy working capital requirements for new solar projects and potential cash flow constraints in **FY26 & FY27**. **Key Risks:** * **Working Capital Intensity:** Operations are highly intensive with **Gross Current Asset (GCA) days** at **517** in **FY25**. Fund-based bank limit utilization reached **97.54%**. * **Legal Contingencies:** Ongoing litigation in the **Jaipur Commercial Court** regarding the recovery of **₹29.29 Cr** from a customer. * **Regulatory Compliance:** Recently penalized by the **NSE** for a two-day delay in shareholding disclosures. The company is currently strengthening internal compliance to mitigate future lapses. * **Labor Costs:** Impact from **New Labour Codes** (Nov 2025) resulted in a one-time exceptional cost of **₹1.21 Cr** for gratuity and compensated absences.