Vascon Engineers Q2 FY27 results: net profit up 13.9% to ₹13.02 crore, revenue up 11.7%

How did Vascon Engineers perform in Q2 FY27?

Vascon Engineers reported consolidated revenue of ₹252.09 crore for Q2 FY27, up ₹26.46 crore or 11.7% from ₹225.63 crore in Q2 FY26. EBITDA rose ₹2.98 crore or 18.7% to ₹18.88 crore, and the margin increased 0.5 percentage points to 7.5%.

Profit before tax was ₹18.27 crore, up ₹2.65 crore or 17.0%, while net profit rose ₹1.59 crore or 13.9% to ₹13.02 crore. EPS increased to ₹0.56 from ₹0.50. Against Q1 FY27, revenue rose 65.9% to ₹252.09 crore and net profit rose 547.8% to ₹13.02 crore.

On a standalone basis, Q2 FY27 revenue was ₹250.92 crore, up 11.3%, while profit before tax was ₹11.62 crore and profit after tax was ₹13.12 crore.

What changed in Vascon Engineers' costs and profit?

Total expenses increased ₹25.15 crore or 11.7% from Q2 FY26 to ₹239.25 crore. Cost of materials fell ₹3.09 crore or 1.3% to ₹243.78 crore, while employee cost rose ₹1.21 crore or 16.0%, finance costs rose ₹1.84 crore or 59.9%, and other expenses rose ₹1.49 crore or 24.1%.

Other income increased ₹1.34 crore or 32.8% to ₹5.43 crore, while depreciation fell ₹0.17 crore or 13.1% to ₹1.13 crore. Tax expense rose ₹0.38 crore or 9.6% to ₹4.34 crore. There was no exceptional item in Q2 FY27, Q2 FY26 or Q1 FY27.

Compared with Q1 FY27, total expenses rose ₹84.90 crore, mainly alongside a ₹91.14 crore increase in cost of materials. Other expenses fell ₹3.47 crore and finance costs fell ₹1.14 crore, while other income rose ₹0.57 crore and tax rose ₹3.88 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹404.03 crore, down ₹42.78 crore or 9.6% from ₹446.81 crore in H1 FY26. Total income fell 12.2% to ₹414.32 crore, profit before tax declined 51.7% to ₹20.72 crore, and net profit fell 55.7% to ₹15.03 crore.

H1 FY27 EPS was ₹0.65, compared with ₹1.50 in H1 FY26. The investor presentation separately showed consolidated continuing-operations revenue of ₹403.14 crore, EBITDA of ₹33.22 crore and an EBITDA margin of 8%, against ₹446.31 crore, ₹53.30 crore and 11%, respectively, in H1 FY26.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹2,463.69 crore, against ₹2,361.23 crore on 31 March 2026. Total equity rose to ₹1,184.67 crore from ₹1,148.82 crore, while borrowings increased to ₹351.16 crore from ₹298.60 crore. Cash declined to ₹48.50 crore from ₹56.09 crore.

Inventories increased to ₹833.19 crore from ₹736.50 crore, trade receivables rose to ₹250.46 crore from ₹238.29 crore, and trade payables increased to ₹650.16 crore from ₹640.33 crore. H1 FY27 operating cash flow was negative ₹111.14 crore, compared with negative ₹72.91 crore in H1 FY26; investing cash flow was ₹52.19 crore against negative ₹24.22 crore, and financing cash flow was ₹46.67 crore against ₹42.79 crore.

Capex in the first half was ₹0.92 crore, compared with ₹2.75 crore in H1 FY26. Management reported net debt of ₹155.72 Cr as on 30 September 2026, up from ₹91.41 Cr at March 2026.

How has Vascon Engineers done over the last 8 quarters?

Revenue reached a high of ₹387.08 crore in Q4 FY25 and fell to a low of ₹151.94 crore in Q1 FY27, before recovering to ₹252.09 crore in Q2 FY27. Profit peaked at ₹75.57 crore in Q3 FY25 and bottomed at ₹2.01 crore in Q1 FY27, then rose to ₹13.02 crore.

The EBITDA margin rose from 3.3% in Q1 FY27 to 7.5% in Q2 FY27, but remained below its 9.7% peak in Q4 FY25. Revenue and profit therefore moved higher in the latest quarter, while the margin continued to remain below its earlier peak.

Which businesses drove the quarter?

EPC remained the main business, reporting Q2 FY27 revenue of ₹250.52 crore, up 11.5% from ₹224.76 crore in the year-ago quarter. Segment EBIT rose to ₹36.23 crore from ₹31.38 crore, and the reported EBIT margin was 14.5%.

Real Estate Development reported revenue of ₹1.57 crore, up 80.5% from ₹0.87 crore. Segment EBIT was a loss of ₹0.56 crore, compared with a loss of ₹1.31 crore in Q2 FY26, while the reported EBIT margin was negative 35.7%.

What else did the company announce?

The board introduced ESOP Scheme 2026, under which options not exceeding 1,20,00,000 may be granted to eligible employees, with vesting from 2027 to 2030 and vesting from 2027 to 2030 and subject to shareholder approval by postal ballot. It also approved the issuance of secured and unsecured, listed, rated NCDs worth ₹85 crore by private placement, subject to regulatory and statutory approvals, and constituted a committee for the issue.

The board meeting began on 3 November 2026 at 11:39 and concluded at 14:50. The company’s earlier notice had said that fund raising through private-placement NCDs would be considered in one or more tranches, while the board outcome specified ₹85 crore.

What did the auditors point out?

Sharp & Tannan Associates LLP issued limited review reports for the standalone and consolidated statements and concluded that nothing had come to its attention that caused it to believe the statements had not disclosed the required information or contained a material misstatement. The review was conducted under SRE 2410 and was less extensive than an audit.

The auditors included an emphasis of matter concerning Vascon Engineers’ divestment of its entire shareholding in Almet Corporation Limited and relinquishment of control under the Share Transfer Agreement dated 31 March 2025. They stated that the agreement had been kept in abeyance because of a dispute among the transferees and remained unresolved as of the reporting date.

The auditors said management had informed them that the matter remained under review and appropriate action would be taken upon resolution of the dispute. They stated: “Our conclusion is not modified in respect of this emphasis of matter.” The filing did not describe a qualified opinion or a going-concern qualification.

What did Vascon Engineers' management say?

Management said the order book was ₹3,400 Cr, including ₹3,215 Cr of external EPC orders, with about 63% from government projects. It reported ₹1,250 Cr of new EPC orders secured in FY27 and said it was targeting ₹1,500–2,000 Cr of new EPC orders for the year.

Management said cash-flow constraints on two major government projects held back execution in Q1 FY27, while improved fund inflows during Q2 led to a recovery in project progress. It said new project orders were yet to contribute significantly to revenue and were expected to contribute meaningfully from Q3 FY27 onwards.

Management said unutilised working-capital limits support ₹3,000 Cr of additional orders. It also said the company was working on real estate debt optimisation and accelerating ongoing projects, with minimum GDV of ₹250 Cr for redevelopment projects and greenfield opportunities.

For real estate, management said the company was targeting at least two acquisitions a year and annual GDV of ₹500-1000 Cr from acquisitions. The presentation identified government-project concentration, execution and cash-flow constraints, real estate losses and the timing of new-order revenue as risks.

Management reported ₹152 Cr of real estate bookings in the first half and total collections of ₹43 Cr. It also said Tranquil Heights in Powai had been launched with GDV of ₹350 Cr, while Prakash CHS in Santacruz West had been launched with GDV of ₹350 Cr. The presentation did not set out a separate response to analysts’ questions.

How did Vascon Engineers shares react?

After the filing appeared in the market, the stock was up 5.5% after five minutes and 4.4% after 15 minutes from the price at that point. From the previous close of ₹31.25, it closed 0.9% lower on the reaction day at a base price of ₹29.95, then was up 0.7% from the pre-results close by the next day’s close.

No industry median or Nifty Microcap 250 comparison was available for the reaction day or the following session. Earlier reaction-day moves were negative on 12 August 2026, 11 May 2026, 10 November 2025, 14 May 2025, 27 January 2025 and 29 October 2024, with the largest fall on 14 May 2025 at 13.0%.