Vikran Engineering IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is one of the fast-growing Indian Engineering, Procurement and Construction (EPC) company. It has a diversified project portfolio, with majority revenue from energy and water infrastructure verticals  which have a high growth potential in the medium term. It provides end-to-end services from conceptualisation, design, supply, installation, testing and commissioning on a turnkey basis and has presence across multiple sectors including power, water, and railway infrastructure. Within the power sector, it has presence in both-power transmission and power distribution and have completed projects under various schemes in power transmission (up to 400kV level), extra high voltage (EHV) substations (up to 765kV level) including construction of 132 KV transmission line and bay extension projects as part of railway electrification. In the water sector, its projects include underground water distribution and surface water extraction, overhead tanks, and distribution networks. The company also has experience in Solar EPC of ground mounted solar projects and smart metering. (Source : CRISIL Report). Also, as a part of railway projects it undertook 132 kV traction substation projects and underground EHV cableling projects.

Its key competencies encompass inhouse design and engineering and timely project execution. It has successfully executed projects for government entities, public sector undertakings and private companies. Its focus on operational excellence, and efficient cost structure, and has enabled it to deliver high-value projects that meet stringent regulatory and quality standards.

Among the considered peers, it reported the highest operating EBITDA margin of 17.50% for Fiscal 2025; the second highest PAT margin of 8.44% in Fiscal 2025; and the second highest Return on Equity (ROE) among the peers compared during Fiscal 2025.

As of June 30, 2025, we have successfully completed 45 projects across 14 states with a total executed contract value of ₹ 19,199.17 million. As of June 30, 2025, it has 44 ongoing projects across 16 states, aggregating orders of ₹ 51,202.07 million, of which Order Book of ₹ 24,424.39 million. Its clients in the government sector include NTPC Limited, Power Grid Corporation of India Limited, South Bihar Power Distribution Co. Ltd., North Bihar Power Distribution Co. Ltd., Transmission Corporation of Telangana Limited, Madhya Pradesh Power Transmission Company Limited, Madhya Pradesh Madhya Kshetra Vidyut Vitran Company Limited, District Water and Sanitation Mission (PHED) and State Water and Sanitation Mission (SWSM). Further it is working on certain projects for Assam Power Distribution Company Limited and the Danapur division of the Eastern Central Railway.

IPO Details:

Objectives of Issue:

• Funding working capital requirements of the Company

• General Corporate Purposes

Key Strengths:

• Diversified Order Book Across Business Verticals- The Order Book has moved from ₹ 20,457.86 million as of March 31, 2023, to ₹ 21,148.02 million as of March 31, 2024 and to ₹ 20,443.18 million as of March 31, 2025.Its Order Book is diversified across business verticals including power transmission and distribution, water infrastructure, and railway infrastructure. Further, it has presence in all the power transmission and distribution segments, which helps its Order Book to remain diversified within the power sector as well. It has developed pre-qualifications in government projects for power transmission lines upto 400 kV, Substations upto 765 kV and power distribution projects of 33 kV and 11 kV, distribution substations and distribution lines. Additionally, it is also qualified for bidding for energy meter service connection projects. This enables it to bid for and execute projects across all these verticals. The company involvement in a variety of projects, ranging from extra high-voltage transmission lines to water treatment plants to railway electrification, helps in maintaining flow of business opportunities and mitigates sector-specific risks. This diversification reduces our reliance on any single revenue stream, providing stability and helps us to face market fluctuation.

• Pan India Presence- In its journey so far, it has executed work across 22 states, of which it is currently executing projects in 17 states. With a pan-India presence supported by 195 sites and store locations as of August 31, 2024, it offers a range of EPC services that cater to the specific needs of its customers across the country. This distribution of offices allows it to provide on-the-ground support and services, project efficiency and customer satisfaction. It  also has executed multiple projects with some of its key customers such as NTPC Limited, Transmission Corporation of Telangana Limited, Madhya Pradesh Power Transmission Company Limited, South Bihar Power Distribution Co. Ltd.

• Inhouse technical and engineering capabilities- It undertakes its EPC business in an integrated manner. The  Company has developed resources in-house to deliver a project from conceptualization until completion ensuring overall overview of the project and execution of the project. Apart from this, it also have a team of designers and engineers deputed for providing on-ground support at its ongoing project sites. Its in-house integrated model includes a design and engineering team for each business vertical to oversee timely completion of projects, in line with the applicable quality standards thereby allowing it to capture a larger proportion of the value chain in the EPC business. In addition to the inspections conducted by external agencies, it also conduct internal inspection, internal audit and quality control of raw materials used in its projects.

Risks:

• Dependence on Government Orders- During Fiscals 2025, 2024, and 2023 it derives 61.73%, 46.45%, and 68.82% respectively, of our total revenue from operations from the tenders released by government entities including central or state governmental organizations. In the event any one or more these customers cease to release tenders, our business may be adversely affected.In the event of an adverse change in budgetary allocations or a downturn in available work for such sectors resulting from a change in government policies or priorities, its business prospects and our financial performance may be adversely affected.

• Company Involvement in Litigation- Executive Director/Gati Shakti (Elect.) Railway Board has passed an Order dated July 26, 2024 in terms of which CORE/Vigilance has held that the Ministry of Railways should ban the Company for a period of two years for breaching code of integrity and involvement in illegal gratification. Vide its Order dated August 13, 2024, the Hon’ble High Court of Delhi (the “Hon’ble High Court”) held that prima facie it is of the opinion that the said Order is unsustainable In the meantime, the Hon’ble High Court has also stayed operation of the said Order. There can be no assurance that this litigation will be resolved in a way that benefits the Company. If such claims are determined against the Company or the said Order is upheld, there could be a material adverse effect on its reputation, business, financial condition and results of operations.

• Contracts favouring the government entities - The counterparties to a number of its EPC contracts are Indian government entities and these contracts are usually based on the forms chosen by such entities. As a result, it has only a limited ability to negotiate the terms of these contracts, which tend to favour the government customers. For instance, the terms laying out our obligations in relation to delivery and completion schedules, specifications for manufacturing, guarantees to be furnished by the company for the project, right of way, etc., are determined by the government entities and the company is not permitted to amend such terms.Under its EPC contracts, the contract price and scheduled completion date of the project may not be adjusted for any unforeseen difficulties or costs such as work stoppages, labour or social unrest, environmental activism, adverse weather conditions such as cyclones and monsoons, natural calamities, delays in construction, delays in clearances, increased cost of raw materials, unavailability of adequate funding, inability to secure rights of way for certain portions of the transmission line or within the required timeframe, failure to complete projects within budget and in accordance with the required specifications, legal actions brought by third parties, changes in government, regulatory and tax policies, foreign exchange movements, adverse trends in the power transmission industry.

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The company derives a significant share of its revenue from a high-growth segment that continues to benefit from strong government focus. Its business is well-diversified, with integrated operations providing additional resilience.

When compared to peers, the company’s revenue growth is in line with the industry average, while its EBITDA and PAT margins stand superior. Although the company’s debt-to-equity ratio is lower than industry peers, its interest coverage ratio is relatively modest. On the return front, both ROCE and ROE outpace industry averages, and the order-to-revenue ratio remains comparable to peers. Overall, the company demonstrates stronger financial performance relative to the industry.

In terms of valuation, while the sector trades at an average P/E of around 56x, the company is available at a more attractive multiple of 22x, indicating reasonable pricing. Backed by bright industry prospects, robust fundamentals, and compelling valuations, the company offers promising long-term investment potential for investors.