VIKRAN projects Rs 525 crore-plus NOPL solar annual revenue

VIKRAN ENGINEERING LIMITED projects that its 969 megawatt NOPL solar portfolio can generate Rs 525 crore-plus of average annual revenue after commissioning, supported by a 25-year power purchase agreement with MSEDCL at Rs 3.074 per kilowatt-hour. Management also estimates annual EBITDA of Rs 450 crore-plus and an 85% to 88% EBITDA margin.

How does VIKRAN expect NOPL to generate Rs 525 crore-plus annually?

VIKRAN expects the 969 MW solar portfolio held through NOPL Solar Projects Private Limited to generate average annual revenue of about Rs 525 crore-plus after commissioning. The forecast is based on a 25-year signed power purchase agreement, or PPA, with Maharashtra State Electricity Distribution Company Limited, known as MSEDCL, at a tariff of Rs 3.074 per kilowatt-hour.

Management estimates average annual earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 450 crore-plus from the portfolio, equivalent to an EBITDA margin of about 85% to 88%. These are management projections, not reported generation results. The presentation identifies the asset as a 969 MW PM-KUSUM solar portfolio in which VIKRAN has 100% ownership.

The proposed income model differs from engineering, procurement and construction, or EPC, revenue because it would arise from contracted electricity sales rather than individual project execution. VIKRAN says the distributed solar structure reduces land and transmission risk, with 80% of land secured and more than 100 installation partners identified.

VIKRAN also discloses Rs 1,017 crore of central financial assistance, or CFA, under PM-KUSUM for the portfolio. The presentation describes the CFA, land progress and installation-partner network as execution support for the asset base expected to produce PPA-backed generation income.

Why are VIKRAN's consolidated results below standalone results?

VIKRAN reported H1 FY27 consolidated revenue from operations of Rs 353.4 crore, compared with standalone revenue of Rs 424.1 crore, because Rs 70.7 crore of intra-group EPC revenue was eliminated in consolidation. VIKRAN says it performs EPC work for wholly owned NOPL, requiring elimination of internal turnover under Indian Accounting Standards, or Ind AS.

The elimination also affected profit measures. H1 FY27 consolidated EBITDA was Rs 33.5 crore, versus Rs 48.1 crore standalone, while consolidated profit after tax was Rs 6.7 crore against standalone profit after tax of Rs 25.4 crore. Consolidated EBITDA margin was 9.5%, compared with 11.4% on a standalone basis.

VIKRAN says the eliminated internal EPC value is capitalised into the renewable asset base rather than lost economically. Its bridge places an execution phase between Q2 FY27 and Q2 FY28, and says consolidated results should inflect as NOPL assets move toward commissioning and generation contribution becomes material.

This accounting treatment means the H1 FY27 consolidated revenue figure does not show the projected PPA-based generation income. VIKRAN's presentation therefore distinguishes between currently eliminated intra-group EPC margins and the future external power-sales revenue management expects from the solar portfolio.

What assets and funding support VIKRAN's NOPL plan?

VIKRAN discloses a total project cost of Rs 4,200 crore for the 969 MW portfolio, Rs 1,017 crore of PM-KUSUM CFA, and a Rs 2,941.19 crore loan facility from Indian Renewable Energy Development Agency Limited, or IREDA. Its 2026 company timeline also cites a Rs 3,517.98 crore EPC contract for the NOPL project.

The September 2026 consolidated balance sheet shows a substantial increase in assets associated with the build-out. Property, plant and equipment rose to Rs 188.1 crore from Rs 10.8 crore at March 2026, while capital work-in-progress was Rs 739.9 crore at September 2026, compared with nil at March 2026.

Total non-current assets increased to Rs 1,114.5 crore at September 2026 from Rs 109.1 crore at March 2026. Total assets rose to Rs 2,707.6 crore from Rs 2,503.5 crore, while total equity was broadly unchanged at Rs 1,237.6 crore, compared with Rs 1,237.4 crore.

Funding balances also changed over the six-month period. Long-term borrowings rose to Rs 150.7 crore from Rs 45.8 crore, and current borrowings increased to Rs 385.6 crore from Rs 246.4 crore. H1 FY27 investing cash outflow was Rs 786.9 crore, compared with Rs 333.6 crore in H1 FY26, while operating cash flow changed to an inflow of Rs 559.3 crore from an outflow of Rs 166.6 crore.

How does NOPL alter VIKRAN's EPC-led business mix?

VIKRAN says NOPL is intended to move the business from a pure-play EPC contractor to an integrated renewable-energy infrastructure platform. The company reported an order book of about Rs 6,257 crore at 31 October 2026, comprising 60% solar, 29% power transmission and distribution, 10% water infrastructure and 1% railway infrastructure.

The detailed order book at 30 September 2026 shows solar growing faster than the total book since 31 March 2026. Solar orders rose to Rs 3,920.5 crore from Rs 2,825.1 crore, increasing solar's share to 61.1% from 54.2%. Power transmission and distribution orders increased to Rs 1,853.3 crore from Rs 1,705.8 crore, but their mix fell to 28.9% from 32.8%.

The order book represents EPC work yet to be executed, whereas the NOPL PPA underpins management's projected generation revenue after commissioning. At 31 October 2026, VIKRAN's order book client mix was 58% private sector, 24% government and 18% public-sector undertakings.

The presentation contains an unresolved timing point. One page says the 969 MW solar project was successfully commissioned, while other pages say the forecast applies upon commissioning and describe assets as moving toward commissioning. VIKRAN does not provide generation output, billed electricity sales or a date for full commercial operation in the supplied material.

Conclusion

VIKRAN's stated transformation combines an EPC order book of about Rs 6,257 crore with a wholly owned 969 MW solar portfolio that management projects will deliver Rs 525 crore-plus of annual revenue and Rs 450 crore-plus of annual EBITDA. The 25-year MSEDCL PPA, Rs 3.074 per kWh tariff, Rs 1,017 crore of CFA and disclosed IREDA facility are the key supports identified for that projected recurring revenue model.

The next point to watch is whether the transition between Q2 FY27 and Q2 FY28 indicated in VIKRAN's bridge results in reported external generation revenue. Progress on the remaining land requirement beyond 80%, deployment through more than 100 installation partners, and clarification of the differing commissioning statements will also determine how the projected portfolio economics appear in consolidated reporting.