Vikran Engineering Stock Jumps 15% on ₹2,035 Crore Solar Order

Introduction

Shares of Vikran Engineering rallied over 15% on December 24, 2025, driven by the announcement of a substantial order win valued at ₹2,035.26 crore. The stock reached an intraday high of ₹99.80 per share, reflecting strong investor confidence following the news. This development, coupled with a recent credit rating upgrade, positions the newly-listed engineering, procurement, and construction (EPC) company for significant growth in India's renewable energy sector.

Landmark Order from Onix Renewables

Vikran Engineering secured a major work order from Onix Renewables Limited, a special purpose vehicle (SPV), for the development of 600 MW AC solar power projects. The project will be executed across multiple locations in Maharashtra. The contract, valued at ₹2,035.26 crore (excluding GST), is nearly equivalent to the company's entire market capitalization of approximately ₹2,235 crore, highlighting the transformative scale of this win. Including taxes, the total consideration for the order is ₹2,216.40 crore.

The project will be executed on a turnkey EPC basis, covering all activities from design, engineering, and procurement to erection, testing, and commissioning. The scope also includes the supply of critical components like solar PV modules and inverters. The company has a timeline of 12 months to complete the project, which was formally accepted on December 23, 2025.

Management Commentary

Rakesh Markhedkar, Chairman and Managing Director of Vikran Engineering, stated that the order is a significant milestone for the company. He emphasized that it reflects the strong momentum in their renewable energy EPC business and serves as a vote of confidence in their engineering capabilities and project management skills. Markhedkar added, "This win meaningfully strengthens our order book and positions us well for sustained growth, as we continue to support India’s clean energy ambitions through reliable, timely, and sustainable infrastructure development."

Credit Rating Upgrade

Adding to the positive news, Infomerics Valuation and Rating Limited upgraded Vikran Engineering's credit ratings. This upgrade signals improved financial stability and enhanced credibility in the market, which can lead to lower borrowing costs and better access to working capital for future projects.

Financial Performance in Q2 FY26

Vikran Engineering reported a strong performance for the quarter ending September 30, 2025. The company's robust execution in its Power Transmission and Distribution (T&D) business was a key driver. Revenue from operations grew by 10.7% year-on-year to ₹176.3 crore. More impressively, EBITDA nearly doubled to ₹25.4 crore, and the net profit surged more than fourfold to ₹9.1 crore from ₹2.1 crore in the same quarter of the previous fiscal year. This performance indicates significant improvements in operational efficiency and profitability.

Market Debut and Stock Performance

Vikran Engineering made its stock market debut on September 3, 2025. The stock listed at ₹99 on the NSE, a slight premium of 2.06% over its issue price of ₹97. After listing, the share price reached a high of ₹118.40 in November before experiencing a correction. The recent surge has brought the stock back above its listing price, renewing investor interest. Following the successful IPO, the company's consolidated order book now stands at over ₹4,000 crore, providing strong revenue visibility for the next two years.

Company Profile and Outlook

Vikran Engineering is a diversified EPC company with expertise in Power Transmission & Distribution, Water Infrastructure, and Railway Electrification. It is also expanding its capabilities in Solar EPC and Smart Metering. The company offers end-to-end turnkey solutions for clients that include major public sector undertakings like NTPC and Power Grid Corporation. This latest order significantly bolsters its renewable energy portfolio and aligns with its strategic focus on large, complex infrastructure projects.

Conclusion

The massive order from Onix Renewables is a game-changer for Vikran Engineering, providing a substantial boost to its order book and reinforcing its position in the competitive solar EPC market. Combined with an improved credit rating and strong quarterly performance, the company appears well-equipped to capitalize on India's push towards clean energy. This development provides clear visibility for future growth and has been rightly recognized by the market.