EPC Order Book
₹2,717 Cr
+0% YoY
Order book provides 2.9x coverage of FY26 EPC revenue; 79% from government-backed projects.
VASCONENGINEERS
Other
15 May 2026
Vascon Engineers Limited — Q4 FY26
Vascon Engineers reported a weak FY26 with consolidated revenue of ₹984 crore (down ~10% YoY) and EBITDA of ₹87 crore (down 13% YoY), impacted by cash flow constraints in two large government projects and organizational changes at a private client.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Vascon Engineers reported a weak FY26 with consolidated revenue of ₹984 crore (down ~10% YoY) and EBITDA of ₹87 crore (down 13% YoY), impacted by cash flow constraints in two large government projects and organizational changes at a private client. PAT fell to ₹49 crore from ₹126 crore, the prior year benefiting from exceptional gains. The EPC order book stood at ₹2,717 crore (2.9x FY26 revenue), with 79% from government-backed projects. Management guided for FY27 revenue of ₹1,200 crore (EPC ₹1,000 crore, real estate ₹200 crore) and aims to build order book to ~₹4,000 crore. Risks include continued slow execution in government projects and aggressive pricing competition. The company is cautiously optimistic, focusing on margin protection and disciplined bidding.
Key Numbers
New EPC Orders Secured
₹762 Cr
-49% YoY
FY26 new orders declined due to disciplined bidding; L1 on additional ₹500 Cr expected soon.
Real Estate Sales Booking
96,735 sq ft
+0% YoY
Booking value of ₹113 Cr; collections at ₹132 Cr. Slow sales in Orchids project.
Unutilized Working Capital
₹337 Cr
+0% YoY
Total sanctioned limits of ₹745 Cr; can support execution of ~₹3,000 Cr additional EPC orders.
Management Guidance
FY27 Revenue Target of ₹1,200 Cr
Management targets consolidated revenue of ₹1,200 crore in FY27, comprising EPC of ₹1,000 crore and real estate of ₹200 crore.
Management guidance revenueOrder Book Target of ~₹4,000 Cr by FY27 End
Company aims to end FY27 with an order backlog of approximately ₹4,000 crore, adding ₹1,500 crore in new orders during the year.
Management guidance growthEPC Margin Guidance of 11-12%
Management indicated willingness to accept EPC margins of 11-12% to be more aggressive in bidding, down from historical 13-14%.
Management guidance marginsCapex of ~₹50 Cr for FY27
Capex requirement for EPC is estimated at 4-5% of revenue, translating to about ₹50 crore for FY27, funded via client advances.
Management guidance capexKey Risks
Government Project Payment Delays
Two major government projects (Sindhudurg and Bihar) faced cash flow crunches, causing revenue shortfall. Payments resumed from March 2026, but risk of recurrence remains.
high · management_commentaryAggressive Competition Pressuring Margins
Intense pricing competition in EPC industry led to lower order inflow; management plans to bid more aggressively at 11-12% margins, which could compress profitability.
medium · analyst_questionSlow Real Estate Sales Momentum
Real estate sales booking of only ₹113 Cr in FY26, with slow offtake in Orchids redevelopment project. New launches (Pawai, Prakash) may face similar headwinds.
medium · analyst_questionInflation Impact on Project Costs
Rising inflation could increase labor and material costs; while government contracts have escalation clauses, private projects may not, potentially squeezing margins.
medium · analyst_questionNotable Quotes
We do not want to be funding our clients... if funds dry up from our client... we will not put money into it.
We are going to be aggressive on real estate cautiously aggressive. We will not be putting in equity to buy land.
We are very capable to execute more than what we did... the shortfall is not due to internal capability.
Frequently Asked Questions
What was Vascon Engineers's revenue in Q4 FY26?
Vascon Engineers reported revenue of ₹253 Cr in Q4 FY26, representing a -9.7% change compared to the same quarter last year.
What guidance did Vascon Engineers management give for FY27?
FY27 Revenue Target of ₹1,200 Cr: Management targets consolidated revenue of ₹1,200 crore in FY27, comprising EPC of ₹1,000 crore and real estate of ₹200 crore. Order Book Target of ~₹4,000 Cr by FY27 End: Company aims to end FY27 with an order backlog of approximately ₹4,000 crore, adding ₹1,500 crore in new orders during the year. EPC Margin Guidance of 11-12%: Management indicated willingness to accept EPC margins of 11-12% to be more aggressive in bidding, down from historical 13-14%. Capex of ~₹50 Cr for FY27: Capex requirement for EPC is estimated at 4-5% of revenue, translating to about ₹50 crore for FY27, funded via client advances.
What are the key risks for Vascon Engineers in FY27?
Key risks include Government Project Payment Delays — Two major government projects (Sindhudurg and Bihar) faced cash flow crunches, causing revenue shortfall. Payments resumed from March 2026, but risk of recurrence remains.; Aggressive Competition Pressuring Margins — Intense pricing competition in EPC industry led to lower order inflow; management plans to bid more aggressively at 11-12% margins, which could compress profitability.; Slow Real Estate Sales Momentum — Real estate sales booking of only ₹113 Cr in FY26, with slow offtake in Orchids redevelopment project. New launches (Pawai, Prakash) may face similar headwinds.; Inflation Impact on Project Costs — Rising inflation could increase labor and material costs; while government contracts have escalation clauses, private projects may not, potentially squeezing margins..
Did Vascon Engineers meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Vascon Engineers Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.