Vikran Engineering Limited: Powering Ahead with Stellar Growth and Strategic Diversification

Vikran Engineering Limited, an emerging multi-sector EPC (Engineering, Procurement, and Construction) company based in Thane, Maharashtra, has reported an exceptional financial performance for the second quarter and half year ended September 30th, 2025. The company, known for its end-to-end turnkey solutions across critical infrastructure sectors, has demonstrated robust growth, significant margin expansion, and a strategic pivot towards renewable energy.

For H1 FY26, Vikran Engineering Limited posted a consolidated revenue from operations of INR 335.4 crore, marking a healthy 13.6% year-on-year increase from INR 295.3 crore in H1 FY25. The second quarter alone saw revenue grow by 10.7% to INR 176.3 crore. This growth was primarily fueled by strong execution in the Power Transmission & Distribution (T&D) business. Profitability metrics soared, with EBITDA nearly doubling to INR 48.1 crore for H1 FY26, a remarkable 76.6% increase from INR 27.2 crore in H1 FY25. The EBITDA margin expanded significantly to 14.3% from 9.2% in the previous half-year. Similarly, Profit After Tax (PAT) witnessed an astounding 132.9% growth, reaching INR 14.8 crore in H1 FY26 compared to INR 6.3 crore in H1 FY25, with PAT margin improving to 4.4% from 2.1%.

Strategic Expansion and Order Book Momentum

The company's strategic initiatives are clearly paying off, particularly its aggressive foray into the solar EPC segment. Vikran Engineering Limited recently secured two major solar EPC contracts: a prestigious INR 354 crore project from Ellume Energy MH SolarOne Private Limited for a 100 MW solar power project in Maharashtra, and a marquee INR 1,642 crore order from Carbonminus Maharashtra One Project Limited. These landmark wins not only signify the company's formal entry into the solar EPC space but also significantly enhance its growth visibility.

As of November 10th, 2025, Vikran Engineering's consolidated order book has surged past INR 4,000 crore, providing robust revenue visibility for the next two years. This substantial order book, coupled with a strong execution pipeline, reinforces the company's position as a growing multi-sector EPC player. Management highlighted that the order book is diversified, with approximately 50% from Solar, 32% from Power T&D, and the remaining 18% from Water and Railway Infrastructure. This strategic diversification reduces reliance on a single revenue stream, offering resilience against market fluctuations.

Financial Summary Table (Consolidated)

Operational Excellence and Future Outlook

Vikran Engineering's success is underpinned by its operational discipline, efficient execution, and prudent cost management across projects. The company's in-house technical model handles design, supply chain, and regulatory compliance, ensuring high-quality and timely project delivery. This commitment to excellence has earned them an upgraded credit rating to A minus stable from India Ratings. The management emphasized their focus on profitable orders and maintaining strong margins, which have been among the best in the industry for the past three years.

Looking ahead, Vikran Engineering is confident in sustaining its growth trajectory. The company plans to further strengthen its presence in Power T&D and Solar sectors, expand its geographical footprint into international markets like Africa and the Middle East, and diversify its EPC portfolio into new sectors such as railways, metros, data centers, and smart metering. These initiatives are strategically aligned with government policies and India's push for renewable energy and infrastructure development, including the Jal Jeevan Mission and the Revamped Distribution Sector Scheme (RDSS).

Management has provided guidance for future growth, anticipating a turnover of approximately INR 2500 crore without additional working capital raises, leveraging the funds from its successful IPO. They also expect to reach over INR 2000 crore turnover next year with the invested working capital. The current order book is slated for execution within 18 months, ensuring clear revenue visibility.

Navigating Challenges with Confidence

Despite the strong performance, the company acknowledges certain financial dynamics. The negative cash flow from operations in H1 FY26 and high trade receivables are areas under active management. The company attributes high receivables partly to retention portions in EPC contracts and expects positive cash flows to normalize from FY28 as working capital is fully deployed. The management's disciplined approach to bidding, focusing on projects with better payment terms and profitability, is expected to mitigate these challenges.

In conclusion, Vikran Engineering Limited is demonstrating sustained growth and strategic foresight. With a robust order book, expanding into high-growth sectors like solar, and a clear roadmap for geographical and portfolio diversification, the company is well-positioned to capitalize on India's infrastructure boom and global energy transition. The management's emphasis on operational excellence and disciplined growth provides a strong foundation for continued success and investor confidence.