Comprehensive Summary
Financial Performance FY 2025-26
Vikran Engineering reported strong growth in FY26 with revenue from operations increasing 36.4% to ₹1,249.31 crore (₹915.85 crore in FY25) and profit after tax growing 17.9% to ₹91.70 crore (₹77.81 crore in FY25). Despite top-line growth, the company experienced margin compression with EBITDA margin declining to 14.02% (from 17.50%) and PAT margin reducing to 7.34% (from 8.50%). The order book expanded dramatically to ₹5,206 crore as of March 2026 (from ₹2,044 crore in March 2025), driven primarily by solar EPC contracts.
IPO & Capital Markets Activity
The company completed a ₹772 crore mainboard IPO in September 2025 with an issue price of ₹97 per share (including ₹96 securities premium). The offering included a fresh issue of 74.33 million shares raising ₹721 crore and an offer for sale of 5.26 million shares by promoter Rakesh Markhedkar. Pre-IPO placement raised ₹185.54 crore from marquee investors including Ashish Kacholia and Mukul Agrawal. Net proceeds of ₹670.97 crore were fully utilized for working capital requirements and general corporate purposes.
Business Transformation & Order Wins
Vikran Engineering transformed its business mix with solar EPC emerging as the dominant vertical, now representing 87% of the total order book. Major contract wins included:
- NTPC Renewable Energy Limited: ₹459.20 crore EPC contract for 400 MW AC solar project in Uttar Pradesh
- NOPL Solar Projects Private Limited: ₹2,035.26 crore turnkey EPC contract for 600 MW AC solar projects across Maharashtra
The client mix shifted significantly to 58% private sector, 21% PSUs, and 21% government entities.
Subsidiary Developments & Acquisitions
The company expanded through strategic subsidiaries:
- Vikran MP Solar Private Limited: Incorporated January 2026 for 45.75 MW solar project from MP Urja Vikas Nigam
- Vikran Renewable Private Limited: Incorporated May 2026 for integrated renewable energy projects
- NOPL Solar Projects Private Limited: Acquired 100% stake in May 2026 for ₹10 crore, now a wholly-owned subsidiary
- Post-year incorporation of Vikran For Good Foundation as a Section 8 company for CSR activities
Contingent Liabilities & Legal Matters
The company faces significant contingent liabilities including disputed GST demands of ₹738.7 crore and income tax demands of ₹40.2 crore under various legal proceedings. A major commercial court case in Jaipur involves ₹292.9 lakhs receivable under dispute from a customer who invoked performance guarantee. Additionally, a Gujarat High Court case filed by a government investigating agency against the company, two employees, and a public official regarding contract allegations remains ongoing, though management expects no material financial impact.
Corporate Actions & Governance
The Board recommended a final dividend of ₹0.18 per equity share (18% of face value) for FY26, subject to shareholder approval. The company adopted new accounting standards including Ind AS 115 for revenue recognition and made significant investments in subsidiary companies. All mandatory Board Committees were constituted and functional with 8 Board meetings held during FY26.
Credit Rating & Capital Structure
Credit rating updates included:
- Infomerics Valuation: Upgraded long-term bank facilities to IVR A-/Stable (₹420.40 crore)
- India Ratings: Reaffirmed at IND A- but revised outlook from Stable to Negative
The capital structure shows total borrowings of ₹292.27 crore with debt equity ratio improving to 0.24 (from 0.58). The company issued ₹50 crore secured NCDs on private placement basis in April 2026.
Post-Reporting Period Events
Significant events after March 31, 2026, include the complete acquisition of NOPL Solar Projects Private Limited, incorporation of Vikran Renewable Private Limited and Vikran For Good Foundation, and submission of a corrigendum to the FY26 Annual Report to correct typographical errors in director remuneration headings and AGM timing.