💰 Financial Performance

Revenue Growth by Segment

H1 FY26 revenue grew 13.6% YoY to INR 335.45 Cr. The order book of INR 4,240 Cr is dominated by Power Transmission & Distribution at 82%, Water at 17%, and Railway Infrastructure at 1%.

Geographic Revenue Split

Currently 100% PAN India operations; however, the company is actively planning expansion into international markets including Africa and the Middle East to diversify its revenue base.

Profitability Margins

Net Profit (PAT) for H1 FY26 rose 150% to INR 15 Cr from INR 6 Cr in H1 FY25. Profitability is driven by a strategic shift toward high-margin private sector orders which now constitute 60% of the mix.

EBITDA Margin

EBITDA margin improved to 14% in H1 FY26 (INR 48 Cr) from 9% in H1 FY25 (INR 27 Cr), representing a 500 bps expansion due to better fixed-cost absorption and disciplined project selection.

Capital Expenditure

The company raised INR 772 Cr through its IPO in September 2025, with INR 541 Cr specifically earmarked for working capital to support the execution of its INR 4,240 Cr order book.

Credit Rating & Borrowing

Credit rating upgraded in December 2025 to IVR A-/Stable (Long Term) and IVR A2+ (Short Term). Average fund-based utilization is high at 92%, while non-fund-based utilization is 82%.

⚙️ Operational Drivers

Raw Materials

Key materials include steel, copper, aluminum, and solar panels. These represent a significant portion of EPC costs, though 65% of orders include price escalation clauses to protect margins.

Import Sources

Sourced primarily from domestic suppliers across India; solar panels and specialized components are tied to specific manufacturer agreements for timely delivery.

Key Suppliers

Collaborates with major panel manufacturers and subcontractors; marquee clients/partners include NTPC, NHPC, and Ellume Energy MH Solar One Private Limited.

Capacity Expansion

Current order book stands at INR 4,240 Cr. Management indicates that existing working capital from IPO proceeds can support a turnover scale-up to INR 2,500 Cr without further capital raises.

Raw Material Costs

Susceptibility to volatile input prices is a key risk; 35% of the order book lacks escalation clauses, making margins vulnerable to sudden spikes in global commodity prices.

Manufacturing Efficiency

Focus on 'timely completion' as a core metric; the company is currently executing a INR 355 Cr solar project with a strict 11-month delivery schedule.

Logistics & Distribution

Distribution costs are integrated into turnkey EPC contracts for PAN India projects, including sites in Jalna, Dharashiv, and Solapur.

📈 Strategic Growth

Expected Growth Rate

177%

Growth Strategy

Growth will be achieved by utilizing INR 772 Cr in IPO proceeds to scale operations from a ~INR 900 Cr revenue base to a target of INR 2,500 Cr. Strategy involves increasing private sector participation (now 60%), expanding into Solar EPC (INR 355 Cr recent win), and entering African and Middle Eastern markets.

Products & Services

Turnkey EPC services for Extra High-Voltage (EHV) substations, solar power plants, water supply infrastructure, and railway electrification.

Brand Portfolio

VIKRAN

New Products/Services

Expansion into Solar EPC with two prestigious turnkey contracts totaling over INR 355 Cr, expected to contribute significantly to H2 FY26 revenue.

Market Expansion

Targeting international expansion in Africa and the Middle East to diversify from the current 100% India-centric revenue model.

Market Share & Ranking

Positioned as one of the fastest-growing EPC companies in India based on revenue growth over the last two years.

Strategic Alliances

Maintains strategic tie-ups with solar panel manufacturers and specialized subcontractors to ensure execution within the 11-month project windows.

🌍 External Factors

Industry Trends

The industry is benefiting from the National Solar Mission and Swachh Bharat Mission. The shift toward renewable energy is reflected in Vikran's growing Solar EPC segment.

Competitive Landscape

Operates in a highly competitive, tender-based EPC market against both large diversified players and specialized infrastructure firms.

Competitive Moat

Moat is built on a 4.62x order-book-to-sales ratio and a reputation for timely execution (e.g., 11-month solar projects), which attracts high-margin private developers.

Macro Economic Sensitivity

Highly sensitive to government infrastructure budgets (40% of orders) and interest rate fluctuations affecting working capital costs.

Consumer Behavior

Shift in developer preference toward EPC partners with strong balance sheets post-listing, favoring Vikran's new capitalized status.

Geopolitical Risks

Expansion into Africa and the Middle East introduces risks related to local political stability and international trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Central and State electricity regulatory norms, water management standards, and railway safety certifications for electrification projects.

Environmental Compliance

Complies with ESG standards required for large-scale solar and water infrastructure projects; specific costs not disclosed.

Taxation Policy Impact

Standard corporate tax rates apply; fiscal policy favoring infrastructure and renewable energy (Solar Mission) provides a tailwind.

Legal Contingencies

No specific pending court cases or values disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (35% exposure) and the ability to maintain execution speed as the order book scales to INR 4,240 Cr.

Geographic Concentration Risk

Currently 100% concentrated in India, primarily in states like Maharashtra and Madhya Pradesh.

Third Party Dependencies

Dependent on subcontractors and panel manufacturers for the timely delivery of turnkey solar projects.

Technology Obsolescence Risk

Risk is low in traditional T&D but moderate in Solar EPC, requiring constant updates to procurement standards for high-efficiency panels.

Credit & Counterparty Risk

High exposure to government entities and private developers; receivables of INR 634 Cr indicate a significant portion of capital is tied up in the payment cycle.