Vikran Engineering Q2-H1 FY27 Earnings Conference Call

Standalone Performance H1 FY27:

Revenue from operations: ₹424.12 crores (27% YoY growth from ₹335.45 crores in H1 FY26)
Profit After Tax: ₹25.37 crores (71% YoY growth from ₹14.78 crores in H1 FY26)
EBITDA: ₹48.13 crores (compared to ₹48.09 crores in H1 FY26)
EBITDA margin: 11.3% (compared to 14.3% in H1 FY26)
PAT margin: 6.0% (compared to 4.4% in H1 FY26)

Standalone Performance Q2 FY27:

Revenue from operations: ₹220 crores (25% YoY growth from ₹76 crores in Q2 FY26)
EBITDA: ₹20.12 crores (compared to ₹25.43 crores in Q2 FY26)
EBITDA margin: 9.1% (compared to 14.4% in Q2 FY26)
PAT: ₹7.87 crores (compared to ₹9.12 crores in Q2 FY26)
PAT margin: 3.6% (compared to 5.2% in Q2 FY26)

Consolidated Performance H1 FY27:

Revenue from operations: ₹353 crores (5% YoY growth from ₹335 crores in H1 FY26)
EBITDA: ₹33.53 crores (compared to ₹48 crores in H1 FY26)
EBITDA margin: 9.5% (compared to 14.3% in H1 FY26)
PAT: ₹6.74 crores (compared to ₹14.78 crores in H1 FY26)
PAT margin: 1.9% (compared to 4.4% in H1 FY26)

Consolidated Performance Q2 FY27:

Revenue from operations: ₹211.84 crores (20% YoY growth from ₹176 crores in Q2 FY26)
EBITDA: ₹22.26 crores (compared to ₹25.43 crores in Q2 FY26)
EBITDA margin: 10.5% (compared to 14.4% in Q2 FY26)
PAT: ₹2.75 crores (compared to ₹9.12 crores in Q2 FY26)
PAT margin: 1.3% (compared to 5.2% in Q2 FY26)

The company received two significant orders from Power Grid Corporation of India Limited:

1. 400 kV GIS substation package valued at approximately ₹120.69 crores for Baroda and Rajgarh substation

2. 400 kV AIS substation package SS-136T valued at approximately ₹153.76 crores for Tumkur II pooling substation (includes STATCOM installation)

Commissioned 132 kV Miao Namsai transmission line in Arunachal Pradesh for Power Grid (40.6 kilometers, 138 tower foundations)
Commissioned 400 kV GIS substation at Malerkotla for Power Grid (ahead of schedule by two months, first process bus system in India)

Project value: ₹3,517 crores
Capacity: 969 MW AC (1,163 MW peak)
Locations: 152 sites across Maharashtra
IREDA financing: ₹2,941.19 crores sanctioned at 9.15% interest against estimated project cost of ₹4,200 crores
Current status: 18 sites commissioned (90 MW capacity)
Expected H2 FY27 revenue from power sales: ₹40-50 crores
Expected annual revenue at peak capacity: Over ₹500 crores
Expected PAT at peak capacity: ₹70-75 crores (approximately 12% margin)
Expected free cash flow: ₹100 crores annually
Project completion target: Q1/Q2 FY28

Standalone net cash generation from operating activities: ₹258 crores in H1 FY27 (compared to net cash used of ₹166 crores in H1 FY26)
Debtor days reduction: Approximately 40-50 days expected reduction compared to previous year
Received ₹45 crores from Jal Jeevan Mission projects in H1 FY27

EBITDA margin decline attributed to higher direct costs due to inflation
₹13-16 crores of price variation revenue not yet recognized due to conservative accounting policy (revenue recognized only after client certification)
Expected certification and revenue recognition in H2 FY27
Majority of contracts include price variation clauses covering cost escalations
Small portion of purchases not covered by pass-through mechanisms