Announcement
Vascon Engineers Limited (Vascon) received a Letter of Intent from the Central Public Works Department (CPWD), Office of the Executive Engineer, Guwahati Division, for the demolition and redevelopment of the Reserve Bank of India (RBI) quarters located at Zoo‑Narengi Road Colony, Guwahati, Assam. The contract is valued at ₹347.43 crore inclusive of GST, is awarded on an EPC basis, and must be completed within 36 months from order receipt. The award is domestic with no promoter or related‑party interest in the awarding entity.
Order Book Impact
The new order raises Vascon’s consolidated order book to ₹2,717 crore, representing 290 % of FY26 EPC revenues. Government projects now constitute approximately 79 % of the external EPC order book, which stands at ₹2,387 crore. The company has set a target to secure additional EPC orders of ₹1,500‑2,000 crore in FY27, and the Guwahati project is a step toward that goal.
Financial Snapshot
For FY26, Vascon reported revenue of ₹948.53 crore, EBITDA of ₹87.13 crore (EBITDA margin 9 %) and profit after tax (PAT) of ₹48.90 crore. In Q4FY26, revenue was ₹252.96 crore, EBITDA ₹16.40 crore and PAT ₹5.72 crore. Net debt as of 31 March 2026 was ₹91.41 crore, while cash and bank balances totaled ₹207.19 crore. The firm operates at roughly 90 % capacity utilization and maintains an in‑house design and engineering team.
Market Reaction
Following the announcement, Vascon’s shares rose 5 % to ₹35.2, triggering the 5 % upper‑circuit limit. The market capitalisation is now about ₹815 crore, and the stock trades at a price‑to‑earnings multiple of approximately 16.7×, compared with an industry average of 26×.
Business Overview
Vascon Engineers is a 40‑year‑old integrated EPC and real‑estate company with operations in more than 30 locations across India. It has delivered over 225 projects covering 45 million sq ft, serving institutional, healthcare, residential and commercial clients such as Cipla, NBCC, DLF, GMR and Capgemini.
Disclaimer
The views expressed are those of the author and not of Trade Brains Technologies Private Limited. Investing in equities involves risk; investors should consult their advisors before making investment decisions.