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Vikran Engineering FY26: Solar-led scale-up, order book jumps, and a big bet on a 25-year PM-KUSUM cash flow stream

Vikran Engineering Limited closed FY26 with its highest reported revenue from operations so far, alongside a sharp shift in business mix toward solar EPC. For Q4 FY26, consolidated revenue from operations rose to INR 647.4 crore from INR 355.4 crore in Q4 FY25. EBITDA in Q4 FY26 was INR 92.2 crore, while PAT was INR 56.0 crore.

For the full year, revenue from operations came in at INR 1,249.3 crore versus INR 915.8 crore in FY25. EBITDA for FY26 was INR 175.1 crore and PAT was INR 91.7 crore. However, margins compressed year-on-year. FY26 EBITDA margin was reported at 14.0 percent versus 17.5 percent in FY25, and PAT margin moderated to 7.3 percent versus 8.5 percent.

A core driver behind the FY26 narrative is not just growth, but the company’s stated transition from being largely a power transmission and distribution focused EPC player into a larger renewable energy execution platform, with solar EPC now occupying the biggest share of the order book.

FY26 performance: revenue expands, margins soften

In its investor presentation, Vikran reported strong top-line momentum in Q4, reflecting milestone-based billing and ramp-up in execution. Management also pointed out on the earnings call that margin recognition tends to improve as projects move into advanced stages, while early-stage execution can carry relatively lower margins.

On the margin decline, the CFO specifically attributed part of FY26 compression to provisioning taken against delayed receivables from Jal Jeevan Mission projects. Management stated this was a prudent practice and indicated that such provisions could be reversed once collections are received.

Order book: the centre of gravity shifts to solar

The order book is where FY26 looks structurally different from FY25.

As of 31 March 2026, the company disclosed an order book of INR 5,206.0 crore, compared to INR 2,044.3 crore as of 31 March 2025. The FY26 order book is led by solar EPC at INR 2,825.1 crore, which was shown as nil in the prior year table.

By 22 May 2026, Vikran disclosed an order book of about INR 5,737 crore, with segmentation shared as 49 percent solar, 39 percent power T and D, 11 percent water infrastructure, and 1 percent railway infrastructure. The company also disclosed the order book client mix as government 31 percent, private sector 51 percent, and PSUs 17 percent.

This matters because management later gave an indicative revenue mix for FY27 in the concall. The CMD stated that approximately 60 percent of FY27 revenue is expected from solar and about 30 percent from power T and D, with the balance around 10 percent coming from water, largely from the existing order book.

NOPL Solar acquisition: from EPC to an annuity-like renewable platform

The most consequential strategic move highlighted is the acquisition of NOPL Solar Projects Private Limited.

The investor presentation positions the acquisition as a business model transformation: from a pure-play EPC contractor to an integrated renewable energy infrastructure company with long-duration, recurring cash flows. The deck provides detailed parameters for the portfolio:

• Target investment: 969 MW PM-KUSUM solar portfolio
• Ownership: 100 percent
• Total project cost: INR 4,200 crore
• PPA tenure: 25 years
• Off-taker: MSEDCL
• Tariff: INR 3.074 per kWh

The company also disclosed its own estimate of portfolio economics in the deck: average annual revenue potential of about INR 525 crore plus, average EBITDA generation of about INR 450 crore plus, and EBITDA margins of 85 to 88 percent.

On the earnings call, management added execution and financing color. They stated that the acquisition was completed at the end of April 2026. They also said lender sanction is in place and that the financing line rolls over with the new owner subject to evaluation of the new promoter, with additional backup financing arranged. Management also highlighted project progress: 20 MW commissioned already, additional commissioning expected shortly, and land identification or securing claimed at around 80 to 85 percent.

The company also stated that MNRE has granted an extension until March 2027, and that MSEDCL has provided an extension letter in line with that.

The key pressure point: receivables and cash flow timing

While the order book surge and solar positioning are clear positives, the company’s disclosures also make it clear where the operational tension sits: working capital.

The consolidated balance sheet as of 31 March 2026 shows trade receivables of INR 1,013.1 crore, up from INR 605.0 crore in the prior year. Management discussed that operating cash flows remain negative mainly because of working capital investments during a growth push.

In Q and A, management quantified Jal Jeevan Mission exposure in two ways:

• About 25 to 30 percent of receivables are from JJM projects (as a proportion at that point in the discussion).
• A later clarification pegged water segment receivable exposure at about INR 400 crore.

The CFO also stated that about INR 20 crore of provisions were taken in FY26, mostly in Q4, linked to delayed JJM receivables. Management said collections improved post year-end and that about INR 17 to 18 crore had been received in FY27 from JJM receivables.

On the question of when cash flows could normalize, management explicitly stated that cash flow from operations is expected to turn positive from FY28, and that there are no current plans for further equity dilution.

FY27 guidance: revenue jump with steady margins

Vikran provided explicit guidance for FY27 on the call:

• Revenue expectation of INR 2,200 crore plus, with a range also referenced at INR 2,200 to INR 2,500 crore.
• Sustainable EBITDA margin expectation of 14 to 15 percent.

Management also gave an indicative FY28 view, stating that investors can look at around INR 3,000 crore plus for FY28, while avoiding specific figures for FY29 due to visibility constraints.

Adjacent opportunities: data center EPC and selective international expansion

Two additional initiatives were discussed as extensions of the company’s EPC capabilities.

First, management spoke about exploring data center EPC execution for third parties. The CMD explained that Vikran already participates in three of the four pillars of data centers through its existing capabilities in power, solar, and water (cooling), supported by an in-house design team. The company stated an initial target of INR 100 crore to start in data center EPC.

Second, the investor presentation and call both referenced international expansion exploration. The deck explicitly mentions expansion into the Middle East in private sector EPC projects. The call also referenced selective evaluation of opportunities in the Middle East and some regions of Africa.

Takeaways

Vikran’s FY26 disclosures show a company in the middle of a business mix shift. Reported revenue growth is strong, and the order book has more than doubled year-on-year, with solar now the largest vertical. At the same time, margin compression and elevated receivables highlight the practical constraints of scaling an EPC business quickly.

The acquisition of NOPL Solar Projects stands out as the strategic pivot, with the company presenting it as a route to long-duration PPA-linked cash flows. FY27 will likely be watched for two things management explicitly put on the table: delivery against the INR 2,200 crore plus revenue guidance at 14 to 15 percent EBITDA margins, and visible progress on working capital normalization as the company targets operating cash flow positivity from FY28.