Vikran Engineering Q4 FY26 earnings call
In brief
Vikran Engineering Q4 revenue ₹647 cr, up 82% YoY; guides FY27 revenue ₹2,200-2,500 cr at 14-15% EBITDA margin; completes NOPL Solar acquisition.
- Management's tone
- Confident
- What was said
- Leaned positive
- Guidance
- First guidance issued
- Analyst pushback
- Low
- Stock, next session
- +9.26% (Nifty 50 −0.49%)
- Q4 FY26 revenue ₹647 cr, up 82% YoY from ₹355 cr, with EBITDA at ₹92 cr (14.2% margin) and PAT at ₹56 cr versus ₹38 cr last year.
- FY27 revenue guided at ₹2,200-2,500 cr with 14-15% EBITDA margin; composition 60% solar, 30% power T&D, 10% water.
- Completed acquisition of NOPL Solar with 969 MW PM-KUSUM PPA signed with Maharashtra Government, requiring ₹4,200 cr investment with sanction in place.
- Order book stands at ₹5,700 cr as of 22 May 2026, up from ~₹2,000 cr previously.
- Credit rating upgraded from BBB+ to IND A- with stable outlook reflecting improved financial profile and execution capabilities.
An AI read of the company's transcript · the filing
The numbers
The quarter, Q4 FY26
| This quarter | A year ago | Last quarter | Margin | |
|---|---|---|---|---|
| Revenue | ₹647 cr | — | — | |
| EBITDA (excl. other income) | ₹92.2 cr | — | — | 14.2% |
| Net profit | ₹56 cr | — | — | 8.6% |
| EPS (₹) | ₹2.17 | — | — |
From the company's filed results for the quarter ended 31 Mar 2026 (consolidated), not from the call. EBITDA here excludes other income, so it can differ from the figure management quotes.
What moved the numbers, as management explained it
- FY26 EBITDA margin at 14% vs 15-17% in prior three years, depressed by ~₹20 cr provision taken in Q4 against delayed Jal Jeevan Mission receivables. (one-off)
- Higher solar EPC contribution at lower initial-stage execution margins compressed blended margin in FY26.
- Q4 revenue share disproportionately large due to execution ramp-up and milestone-based billing as projects advanced.
- Q4 revenue grew 82% YoY to ₹647 cr driven by execution momentum in power T&D and ramp-up of newly secured solar EPC projects.
The numbers management led with
- Total solar projects under construction: 1.5 gigawatt (1 GW developer + ~500 MW EPC)
- Current order book (22 May 2026): INR 5,700 crores
- Additional prospective order from Onix SPV: ~INR 1,000 crores expected at arm's length pricing
- NOPL Solar acquisition — installed capacity: 969 MW PM-KUSUM PPA with Maharashtra Government
- NOPL Solar — total project investment: INR 4,200 crores sanctioned
- NOPL Solar — long-term revenue: INR 500 crores over 25 years
Guidance
Guidance on this call
| What | For | What management said |
|---|---|---|
| FY27 revenue | FY27 | FY27 revenue of ₹2,200-2,500 crores (with or without NOPL). |
| FY27 EBITDA margin | FY27 | FY27 EBITDA margin maintained at 14-15%. |
| FY28 revenue | FY28 | Around ₹3,000 crores plus for FY28. |
| Data center order book target | FY27 | Initial target of ₹100 crores in data center in FY27. |
| NOPL revenue over 25 years (NOPL Solar) | FY27-FY51 | NOPL will lead to revenue of over ₹500 crores over the next 25 years. |
| NOPL EBITDA margin (NOPL Solar) | FY27-FY51 | NOPL EBITDA margin of 85% to 88%. |
| NOPL project investment (NOPL Solar) | — | NOPL project will require an investment of ₹4,200 crores. |
| Cash flow positive target year | FY28 | Cash flow positive operations expected from FY28. |
The business
By business
Solar EPC
Emerged as key growth pillar; large project wins during FY26 including 400 MW AC NTPC and 600 MW NOPL end-to-end project; 1.5 GW under construction across developer (1 GW) and EPC (500 MW).
1.5 GW under construction · 1 GW as developer · 500 MW as EPC · 100 MW AC Ellume project · 400 MW AC NTPC Renewable · 600 MW NOPL end-to-end
Outlook: 60% of FY27 revenue expected from solar; scaling in disciplined manner
Power T&D
Core business across 765 kV substations, transmission lines (AIS/GIS), underground cabling and smart metering; presence in 22 states across 190 locations.
765 kV substation capability · Presence in 22 states · 190 locations · 1,200 professionals · 222 at head office Thane
Outlook: 30% of FY27 revenue expected; selective focus on high-voltage 765 kV GIS/AIS projects from Power Grid and NTPC
Water Infrastructure
Jal Jeevan Mission and drinking water supply projects in UP, MP, Chhattisgarh; receivables of ~₹400 cr pending, ~25-30% of total trade receivables; ₹20 cr provision taken in Q4 FY26.
~₹400 cr exposure to JJM projects · ₹20 cr provision in Q4 FY26 · Water order book ~₹600 cr
Outlook: 10% of FY27 revenue; no new water bids for last 18 months; focus on completing existing and collecting receivables
NOPL Solar (Acquisition)
Post-quarter acquisition completed with 969 MW PM-KUSUM PPA signed with MSEDCL; long-term CFA support; 20 MW commissioned across 5 locations.
969 MW PM-KUSUM PPA · ₹4,200 cr investment · ₹500 cr revenue over 25 years · 85-88% EBITDA margin · 20 MW commissioned · 85% land acquired · 148 MW in advanced execution
Outlook: Extension from MNRE and MSEDCL until March 2027; full commissioning targeted by FY27 end; ~₹1 cr/month revenue from commissioned projects
Data Center
New initiative in FY27; will operate as EPC contractor (not developer); presence in 3 of 4 data center pillars (power T&D, captive solar power, cooling water); hired EY as consultant.
₹100 cr initial FY27 target · 50-100 MW target data center project size
Outlook: Targeting initial ₹100 cr order book in FY27; margins aligned with existing solar and power T&D range
Balance sheet, capex and funding
- Order book of ₹5,700 cr as of 22 May 2026, up from ~₹2,000 cr previously.; INR5,700 crores is our current order book
- Trade receivables of ~₹1,000 cr, with ~25-30% (~₹400 cr) from JJM projects; ₹20 cr provision in Q4 FY26.; exposure from water is about INR 400 Crores
- Credit rating upgraded to IND A-/stable from BBB+ during FY26.; credit rating has been upgraded from BBB+ to IND A- with a stable outlook
- NOPL project financing: ₹4,200 cr sanction in place from a major lender; project financing rolls over with new promoter.; we already have a sanction in place from one of our major lenders
- Trade payables increased ~60% YoY to ₹788 cr at FY26-end due to Q4 procurement and execution activity.; payables has been increased almost 60%. Earlier year it was INR470 crores, this year it is INR788 crores
- No plans for further equity dilution; cash flow positive operations expected from FY28.; we don't have any plans for further equity dilution
The industry, as management sees it
Management views the Indian power and renewable energy sector as highly encouraging: India recorded its highest-ever annual non-fossil capacity addition with total installed non-fossil capacity exceeding 280 GW; 50% of installed capacity already from non-fossil sources, ahead of the original 2030 target. Transmission and distribution ecosystem is witnessing strong investments driven by rising power demand, renewable energy integration and grid modernization, creating long-term opportunities in transmission lines, substations, underground cabling and renewable evacuation infrastructure.
Risks management named
- Negative operating cash flow expected to persist through FY27; positive operations cash flow only from FY28
- Trade receivables of ~₹1,000 cr with ~₹400 cr exposure to Jal Jeevan Mission / water projects — pace of recovery key
- Supply chain dependency on Chinese imports — geopolitical risk being mitigated via advance procurement and engagement with large supply chain partners
- Solar execution ramp may pressure blended margins in early stages of project lifecycle (12-15 month execution window for new orders)
- BESS regulation not impacting current portfolio but could affect new project bids
- Project extension deadlines (MNRE/MSEDCL March 2027) on NOPL project require continued execution discipline
Q&A
Q&A was collegial across 13 distinct exchanges covering six broad themes: FY27 revenue/margin guidance confirmation (multiple analysts pressed on NOPL inclusion, EBITDA sustainability, and revenue mix split), working capital and JJM receivables (CFO gave granular ₹20 cr provision detail, ₹400 cr water exposure, ₹17-18 cr collected in FY27), NOPL Solar acquisition mechanics (financing rollover, MSEDCL/MNRE extensions to March 2027, ~85% land identified), data center entry (EY-engaged, ₹100 cr FY27 target, EPC-only mode), Onix SPV takeover status (148 MW in advanced execution, 20 MW commissioned), and cash flow trajectory (FY28 guidance reaffirmed, no further equity dilution). Pushback was minimal — analysts asked clarifying questions rather than challenging numbers. No questions on management compensation, related party, or audit issues.
Not answered directly
- Multi-year (FY29+) revenue guidance
- Exact execution split between Vikran order book vs Onix SPV additional ₹1,000 cr order in FY27
- Data center investment quantum and margin specifics (only directional)
- FY28 EBITDA margin guidance (only directional — beyond FY27 numbers)
Asked for a number, answered without one
- Long-term (2-3 year) revenue growth rate: Management declined to give 3-year figures, stating it would be 'a long unrealistic expectation'. Indicated ~₹3,000 cr plus for FY28 but said FY29 figures would be problematic.
- Data center investment size: Management clarified they are not entering as developer/investor; only EPC mode using existing capabilities. No investment quantum provided beyond the ₹100 cr initial revenue target.
Every question, with its answer
1. Margin trajectory + Onix + supply chain
Ashok Ajmera, Ajcon Global
Question. Margin commentary — EBITDA used to be 20-25% historically but has dropped to 13-14% in recent quarters; going forward, will it revert to 18-22%? Also, what is the current status of the Onix project, financials, and execution? And third — impact of West Asian / geopolitical crisis given imports from China.
Answer, Ashish Bahety, Chief Financial Officer. CFO clarified that EBITDA margin in FY23-FY25 was 15-17% range, not 20-25% — current FY26 at 14% mainly due to delayed Jal Jeevan Mission receivables for which prudent provisions were taken (to be reversed once received). Onix project status was handed to Nakul. CFO stated margin guidance is to maintain the current range.
Follow-up. Is the receivable a government receivable? And what is the BESS regulation impact?
Answer. Yes, government. BESS policy applies to upcoming tenders, not Vikran's current portfolio — impact is zero for current projects. Onix SPV fully taken over by Vikran, Onix no longer in the picture. On supply chain, Vikran had strategically procured critical items last year; large supply chain partners are being engaged to hedge uncertainty.
2. Order book + Onix update
Ashok Ajmera, Ajcon Global
Question. Order book — including Onix, what is the current order book position?
Answer, Rakesh Markhedkar, Chairman and Managing Director. CMD Rakesh Markhedkar stated current order book is ₹5,700 crores. On Onix, with MSEDCL and Maharashtra Government approvals, Vikran has taken over 100% of the SPV; 20 MW commissioned and another 20 MW being commissioned; 80% land acquired; 148 MW out of 969 MW in advanced execution stage.
3. FY27 execution + NOPL milestones
Pritesh Chheda, Lucky Investment
Question. With order backlog shape changing due to NOPL — what is the execution for FY27 with and without NOPL, and what margins? Also, what milestones have been achieved on NOPL and what are pending?
Answer, Nakul Markhedkar, Promoter and Whole-Time Director. Nakul Markhedkar guided FY27 at ₹2,200 cr to ₹2,300 cr plus. Margins in line. NOPL is a subsidiary now so thinking without it doesn't make sense. Acquisition completed at end-April 2026; couple more projects commissioned; funding, supply chain, execution all clear; ~85% land identified; project spread across 150+ locations so billing starts as each is completed; ~₹1 cr/month revenue from 20 MW commissioned (4 locations). MNRE and MSEDCL have officially extended deadline till March 2027.
Follow-up. Does financing line roll over to the new owner, and is any project extension needed with MSEDCL / Maharashtra Government?
Answer. Financing rolls over with small evaluation of new promoter under process; backup financing arranged. MNRE has given extension till March 2027, and MSEDCL has aligned to March 2027 — official extension letter received.
4. Revenue confirmation + margin + receivables
Paras Chheda, Purpleone Vertex Ventures
Question. Confirming FY27 revenue guidance of ₹2,200 cr? Sustainable EBITDA margin? Trade receivables of ₹1,000 cr — exposure to JJM and when to turn cash flow positive?
Answer, Nakul Markhedkar, Promoter and Whole-Time Director. Confirmed ₹2,200 cr+ for FY27 (note: with range ₹2,200-2,500 cr stated later). EBITDA margin guidance of 14-15%, confident to maintain. CFO Ashish Bahety clarified ~25-30% of receivables from JJM projects; overall JJM now <10% of order book as no new water orders in last two years; shifting to solar for faster receivables; private sector orders are increasing. No plans for further equity dilution. Cash flow positive operations expected from FY28. NOPL subsidiary will contribute meaningful EBITDA next year.
Follow-up. Any high-risk receivables likely to be written off? And FY28 cash flow positive guidance holds?
Answer. No major risk receivables; no major write-off hits in company's history including the IPO prospectus period. Provisions were just prudent measures, expected to be reversed once amount received. FY28 cash flow positive guidance holds.
5. Water receivables + JJM 2.0
Prem Soni, Individual Investor
Question. Last year receivables ₹605 cr vs ₹1,000 cr this year — what is water segment exposure specifically? Collection status in current FY27 vs last year? Any expected order flow from JJM 2.0 (₹8.2 lakh cr opportunity)? Data center opportunity details?
Answer, Ashish Bahety, Chief Financial Officer. CFO: ~30% of receivables from water side, balance from power and solar. FY27 collections so far ~₹17-18 cr from JJM, improvement vs last year. Cautious on JJM 2.0 — better cash flow in solar; can participate if good opportunity arises. ₹600 cr water balance order book is mainly JJM + drinking water projects in UP, MP, Chhattisgarh.
Partly answered.
6. Data center opportunity
Prem Soni, Individual Investor
Question. Data center opportunity details and margin profile?
Answer, Rakesh Markhedkar, Chairman and Managing Director. CMD explained Vikran already has presence in 3 of 4 data center pillars (power T&D, evacuation, captive solar power, water). Using existing EPC capability to pursue data center projects targeting private clients. EY engaged as consultant. Targeting ₹100 cr order book in FY27, with margins aligned to solar/power T&D.
7. Data center investment + revenue mix
Ashok Ajmera, Ajcon Global
Question. Data center — what kind of investment is planned over 2-5 years and how will it be financed given current negative cash flow? Also — composition of FY27 revenue target of ~₹2,200 cr across verticals in % terms.
Answer, Rakesh Markhedkar, Chairman and Managing Director. CMD: Vikran is NOT going into developer/investor mode — will execute data centers on EPC basis only. Starting with 50-100 MW data center project on EPC mode. Investment is via execution capability, not capital deployment. FY27 revenue composition: ~60% solar, ~30% power T&D (selective 765 kV GIS/AIS for Power Grid, NTPC), ~10% water (completing existing order book, no new water quotes for 18 months).
8. Order book composition + execution
Aniket Madhwani, Steptrade Capital
Question. Order book ~₹5,700 cr on 22 May. Additional solar EPC order of ₹1,400 cr — is it included in ₹5,700 cr or over and above? Will execution happen in FY27? What amount will be executed from ₹5,700 cr?
Answer, Ashish Bahety, Chief Financial Officer. CFO: ~₹1,400 cr additional EPC order from Onix SPV company — based on arm's length pricing, can go to any EPC; expecting ~₹1,000 cr of this to come to Vikran at arm's length pricing. Will be over and above ₹5,700 cr. Execution in 12-15 months. Of ₹5,700 cr, ₹2,200-2,500 cr to be executed in FY27 — hence the range. Additional ₹1,000 cr will further add to revenue in current and next year.
9. Water receivables specifics + provision
Pritesh Chheda, Lucky Investment
Question. Follow-up — water receivables in balance sheet now? How much provision was taken in FY26 — full year or just Q4?
Answer, Ashish Bahety, Chief Financial Officer. CFO: Water exposure is about ₹400 crores from JJM projects (management corrected from ₹280-300 cr originally stated). FY26 provision was about ₹20 crores, mostly in Q4.
10. Working capital sustainability
Ashutosh Singh, Individual Investor
Question. Liquidity / working capital — payables have grown 60% to ₹788 cr (FY26) vs ₹470 cr (FY25); cash conversion cycle is -240 days. Is 596 payable days sustainable or will borrowings rise materially?
Answer, Ashish Bahety, Chief Financial Officer. CFO: Higher creditors reflect Q4 procurement and execution ramp; both debtors and creditors elevated at year-end. As solar projects stream through (faster cycles), receivables and payables should normalize to normal range.
Partly answered.
11. NOPL order book timing
Aryan Bhatia, InVed Research
Question. On the NOPL Solar additional ₹1,400 cr project — why is this not included in the order book?
Answer, Nakul Markhedkar, Promoter and Whole-Time Director. Because order has not yet been placed with Vikran — documentation pending. Just being prudent. Will add once finalised.
12. Multi-year growth outlook
Deeya, Sapphire Capital
Question. What kind of growth are we expecting in the next 2-3 years?
Answer, Nakul Markhedkar, Promoter and Whole-Time Director. CFO: next year ₹2,200 cr+ with growth higher going forward, depending on order book in current year. Nakul: visibility for next 2 years; FY28 should be around ₹3,000 cr+; FY29 numbers would be unrealistic without more data backing.
Partly answered.
13. Project expense composition
Vaibhav Chandak, Krijuna Research & Analytics
Question. Project-related expenses in P&L have grown 2.7x YoY — will this stay at same % of turnover going forward?
Answer, Ashish Bahety, Chief Financial Officer. CFO: This reflects change in composition of product and service mix (e.g., solar projects have higher material cost, power projects may have higher service cost). Confident overall direct margins and EBITDA margins remain in comfortable range.
Partly answered.
What was said
Topic by topic, in the order it was spoken
Company Overview & Capabilities · Rakesh Markhedkar (CMD)
- Integrated infrastructure EPC company now with developer presence in solar — 1.5 GW total solar projects under construction (1 GW developer + 500 MW EPC).
- Strong execution capability across power T&D — 765 kV substations and transmission lines, AIS/GIS substations, distribution and smart metering.
- Diversified presence across water infrastructure and railway electrification; consistent focus on timely project delivery with no delayed projects historically.
- Pan-India presence in 22 states across 190 locations; head office at Thane with ~1,200 professionals including 222 at HQ.
- Disciplined bidding, operational efficiency and profitability-led growth model.
FY26 Strategic Significance & Solar EPC Wins · Nakul Markhedkar (Whole-Time Director)
- Power T&D and solar EPC now constitute majority of order book reflecting strategic shift from predominantly Power T&D focused EPC player.
- Marquee solar wins during FY26: Ellume Energy Maharashtra SolarOne (100 MW AC), NTPC Renewable (400 MW AC / 580 MW DC), NOPL (600 MW end-to-end).
- Balanced order mix supported by water infrastructure and railway projects providing sectoral diversification.
- Strategic acquisition of NOPL Solar Private Limited — 969 MW PM-KUSUM PPA signed with Maharashtra Government; benefits from long-term PPA with MSEDCL and CFA support.
NOPL Solar Acquisition & Power Sector Landscape · Nakul Markhedkar (Whole-Time Director)
- NOPL investment ₹4,200 cr with sanction from major lender; expected revenue ₹500 cr+ over 25 years at 85-88% EBITDA margin.
- India recorded highest-ever annual non-fossil capacity addition; total non-fossil installed capacity >280 GW; 50% of installed capacity from non-fossil sources — ahead of 2030 target.
- Credit rating upgraded from BBB+ to IND A- with stable outlook reflecting improved financial profile, execution capabilities and order book quality.
- Strong T&D investment cycle driven by rising power demand, renewable integration and grid modernization.
FY27 Outlook & Strategic Priorities · Nakul Markhedkar (Whole-Time Director)
- Entered FY27 with cautious confidence; focus on scaling business in disciplined manner; power T&D remains foundation of company.
- Solar EPC has emerged as key growth pillar with significant long-term opportunities; focus on scaling vertical while strengthening execution and supply chain capabilities.
- Water infrastructure — selective engagement, no new water orders for 18 months; complete existing order book and recover receivables.
- Cautiously evaluating international markets (Middle East, selective Africa); monitoring smart meters and data center infrastructure adjacencies.
Financial Performance FY26 · Ashish Bahety (CFO)
- Q4 FY26 revenue ₹647 cr vs ₹355 cr YoY; EBITDA ₹92 cr (14.2%); PAT ₹56 cr vs ₹38 cr YoY.
- Full year FY26 revenue ₹1,249 cr (highest in company history) vs ₹916 cr in FY25; EBITDA ~₹175 cr at ~14% margin; PAT ₹92 cr vs ~₹78 cr in FY25.
- Margin commentary — solar EPC projects in early execution stage pressured blended margins; margin recognition improves in advanced stages of projects.
- Focus on balancing growth with financial discipline, maintaining bidding prudence and improving operating efficiencies as business scales.
In their words
We've entered this financial year with cautious confidence, focused on scaling the business in a disciplined and sustainable manner.
As of now, we don't have any plans for further equity dilution. ... we can see a positive cash flow which is expected from FY28.
Approximately to start with, we are looking for to start with in the range of 50 megwatt to 100 megwatt data center project on EPC mode.
To check next time
What management committed to on this call, or the dates they gave.
- FY27 revenue execution against ₹2,200-2,500 cr guidance and 14-15% EBITDA margin band.; INR 2,200 crores, INR2,300 plus crores is what we are looking at in FY27
- NOPL Solar commissioning progress against March 2027 MNRE/MSEDCL extension deadline.; MNRE has already given the extension till March 2027
- JJM receivables collection; ₹17-18 cr received in early FY27 against ~₹400 cr outstanding.; in FY27 we have got about INR17 crores-INR18 crores of receivables
- Order inflow progress for data center vertical against ₹100 cr FY27 target.; we have set a very small target of INR100 crores now to start with in the data center
- Additional ~₹1,000 cr Onix-related order book transfer into Vikran's order book.; around you can say about INR 1,000 crores would be additional order book which we may expect
- Execution of ~1,400 cr additional NOPL solar EPC order documentation and inclusion in order book.; we've not yet placed the order, so that's why. It is just a prospective project
Transcript
We have not transcribed this call's recording. Read the company's transcript (PDF).
The stock after the call
| After the call | Close | Stock | Nifty 50 |
|---|---|---|---|
| Next session Tue 26 May 2026 | ₹77.16 | +9.26% | −0.49% |
| 5 sessions Tue 2 Jun 2026 | ₹71.33 | +1.01% | −2.28% |
| 20 sessions Tue 23 Jun 2026 | ₹71.19 | +0.81% | −0.86% |
From the close of Mon 25 May 2026, ₹70.62: the close before the call day (the call's time is not on file). Adjusted daily closes; the move includes everything else that happened in those sessions.