Vikran Engineering Ltd (MAINBOARD)

Vikran Engineering IPO Information

Business Model: Engineering, Procurement & Construction (EPC)

Service Sectors:

Power T&D: EHV substations up to 400kV, distribution solutions

Water Infrastructure: Underground distribution, surface extraction, overhead tanks

Railway Infrastructure

Solar Energy (EPC)

Projects (as of June 30, 2025):

Completed: 45 projects across 14 states | Value: ₹19,199.17 mn

Ongoing: 44 projects across 16 states | Orders: ₹51,202.07 mn

Order Book: ₹24,424.39 mn

Key Government Clients: NTPC, Power Grid Corporation of India, South & North Bihar Power Distribution Co. Ltd., Transmission Corporation of Telangana, and others.

Strength

Asset-light business model – Operates with minimal fixed assets, focusing on project management and execution efficiency, which reduces capital intensity and improves return on capital.

Diversified order book – Strong presence across power transmission & distribution, water, railways, and solar EPC projects, ensuring revenue visibility and reducing dependence on a single sector.

Timely execution track record – Proven ability to deliver complex EPC projects on schedule, strengthening client trust and driving repeat business, particularly from government agencies.

Weakness

Regulatory and Compliance Risk – The Railway Board order (July 26, 2024) recommending a two-year ban for alleged breach of integrity and illegal gratification may adversely impact the company’s reputation, eligibility, and ability to secure future contracts.

Project Execution Risk – Inability to complete projects within contractual timelines could lead to penalties, loss of client trust, and reduced chances of winning new contracts through competitive bidding.

Working Capital Risk – High dependence on trade receivables, contract assets, and inventories exposes the company to liquidity pressures, affecting profitability and cash flow stability.