Vascon Engineers Ltd

Vascon Engineers Limited — Closure of Trading Window from Oct 01, 2026 till the conclusion of 48 hours after the declaration of Unaudited Financial Results for the second quarter and half year ended September 30, 2026

Order details

• Awarding entity: Qualcomm India Private Limited.
• Scope: Block K office facility in Bengaluru with three basements and ground plus 12 floors.
• Contract type and value: Design and Build, GMP contract worth Rs 660.79 crore (including taxes).
• Timeline: Completion within 30 months from site handover.
• Domestic award by Qualcomm India Private Limited.
• Nature: Design and Build, GMP contract.
• Related party: Not applicable.

Ratings assigned

• Long-term facilities rating: CRISIL BBB+/Stable.
• Short-term facilities rating: CRISIL A2.

Rating agency

• Rating agency: CRISIL Ratings Ltd.

Rationale

• Rationale not provided in the excerpt.

Outlook

• Outlook: Stable for the long-term rating.

Financial Performance

• Consolidated revenue INR 152 crores in Q1 FY27 vs INR 221 crores Q1 FY26
• Consolidated EBITDA INR 10 crores; Q1 FY26 had INR 34 crores
• Excluding onetime gain, Q1 FY26 EBITDA ~INR 15 crores
• EBITDA margin ~6% in Q1 FY27; broadly in line with Q1 FY26
• PAT INR 2 crores; Q1 FY26 PAT INR 22 crores
• EPC revenue INR 148 crores; EBITDA INR 13 crores; EPC margin ~9%
• Real Estate revenue INR 4 crores; EBITDA loss INR 4 crores
• Net debt INR 152 crores as of June 30, 2026
• SANCTIONED banking limits INR 760 crores; unutilised INR 355 crores

Operating Update

• EPC order book stands at INR 2,850 crores; external 2,531; internal 319
• RBI Colony order secured for INR 295 crores; LOI of INR 126 crores for Wardha hospital
• Adani Infra India engagement expected to support future EPC inflows

Balance Sheet & Cash Flow

• Net debt of INR 152 crores as of 30-Jun-2026
• Banking limits provide liquidity headroom to mobilize resources

Projects & Capex

• Real estate: booking value FY26 INR 113 crores; Q1 FY27 INR 66 crores
• New real estate bookings: ~30,690 sq ft; collections INR 20 crores
• Orchid Santacruz: cumulative bookings INR 87 crores; Q1 FY27 INR 38 crores
• Launched Tranquil Heights in Powai; Prakash in Santacruz West approvals; launch soon
• Pipeline: Tower of Future (Baner/Pashan) and Ajanta redevelopment in Kharadi; ~1.74 mn sq ft; ~INR 2,000 crores sales value; Vascon ~INR 1,000 crores

Outlook & Guidance

• FY27: target INR 1,500–2,000 crores of new EPC order intake
• Long-term ambition: real estate annual bookings INR 1,200–1,500 crores by FY31

Q&A Highlights

• Bihar Supaul and Sindhudurg EPC projects back on track; ramp-up in 1–2 months
• Royal Rides ropeway project: no revenue this year; project stalled awaiting client progress
• Coimbatore and TOA OC targeted in H2 FY27; Orchid Santacruz OC also targeted this year
• Reliance order canceled mutually due to design changes; not canceled outright
• Adani Infra India collaboration expected to bolster future EPC inflows

Risks & Watchpoints

• Execution timing remains a key risk; two major projects caused near-term delays
• Working capital cycle extended to ~65–70 days from ~45 days; normalization contingent on project progress
• Reliance/Ropeway projects' future scope and timelines uncertain

Meeting Details

• Date: August 14, 2026; Analyst Meet with Investors/Analysts.
• Purpose: discuss unaudited standalone and consolidated results for quarter ended June 30, 2026.
• Audio recording available on Vascon Engineers Limited website.
• Event/organiser: Vascon Engineers Limited.
• Key participants: Company Secretary and Compliance Officer.

Order details

• Awarding entity: Executive Engineer, Public Works Department, Arvi Division, Wardha Nagpur (Maharashtra)
• Nature and scope: Development of 300-bed general hospital at Wardha Nagpur, Maharashtra
• Contract value: Rs.126.39 crore excluding GST
• Domestic entity
• Execution period: 24 months from receipt of order
• Contract type: Item Rate Basis
• Promoter interest: None
• Related party transactions: Not within related party transactions

Business Overview

• EPC and real estate development focused on mid-market Mumbai and Pune projects.
• 40 years of experience; 225+ EPC projects; ~45 million sq ft delivered.
• In‑house design and engineering enable turnkey execution and premium margins.
• Covers government and private sector contracts with visible cash flow.

Operational Highlights

• Total order book at ₹2,850 crore; external EPC book ₹2,531 crore.
• New CPWD orders for RBI Colony in Guwahati worth ₹295 crore.
• Launched Tranquil Heights, Powai; positive initial market response.
• Q1 FY27 real estate bookings: 30,690 sq ft; booking value ₹66 crore.

Financial Performance

• Standalone Q1FY27 revenue ₹151.88 Cr; EBITDA ₹9.73 Cr; EBITDA margin 6%.
• PAT ₹1.93 Cr; Consolidated PAT ₹2.00 Cr.
• EPC revenue ₹148 Cr; RE revenue ₹4 Cr in Q1FY27.
• Total debt ₹338.8 Cr; net debt ₹151.7 Cr; cash ₹187.0 Cr; Lien FD ₹149.8 Cr.

Capital Structure & Liquidity

• Sanctioned working capital ₹760 Cr; utilised ₹405 Cr; unutilised ₹355 Cr.
• Unutilised limits support ₹3,000 Cr additional orders; execution run-rate secured.
• Collateral optimisation unlocked incremental working capital; stronger lender relationships.
• Total cash & bank ₹187.0 Cr; net debt ₹151.7 Cr; Lien FD ₹149.8 Cr.

Strategic Priorities & Outlook

• Aim to secure ₹1,500-2,000 Cr of new EPC orders in FY27.
• Real estate debt optimization to improve liquidity and funding flexibility.
• Project execution acceleration to boost revenue and profitability.
• FY30–FY31E revenue target ₹1,200–₹1,500 Cr.

Risks & Mitigation

• Q1FY27 execution shortfall due to cash flow constraints on two government projects.
• Collateral optimisation and stronger bank support to mitigate liquidity risk.

Governance & Leadership

• Company Secretary Neelam Pipada is Compliance Officer.
• No governance changes announced.

Financial results approved

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Limited Review Reports from Sharp & Tannan Associates issued with unmodified opinion.
• Audit Committee reviewed and recommended the results before Board approval.
• Period covered: quarter ended 30 June 2026.

Capital action approved

• Preferential issue of 2 crore convertible warrants at ₹40 per warrant approved.
• Warrants convertible into equity within 18 months from allotment.
• Allotment to Siddharth Vasudevan Moorthy and Pratik Saraogi.
• 25% of the issue money received to date.
• Extraordinary General Meeting held on 18 May 2026 approved the resolution.

Divestment and consolidation status

• Divestment of ACL and MRPL; abeyance due to transferee dispute.
• Company relinquished control; ceased consolidation from relinquishment date.
• Management states matter under review; appropriate action to follow.

Auditor notes and emphasis

• Emphasis of Matter: divestment noted; LR conclusions not modified.
• Non-review of three subsidiaries and five joint ventures deemed immaterial to the group.
• Auditor reports dated August 12, 2026.

Meeting Details

• Friday, August 14, 2026 at 11:30 AM IST.
• Earnings conference call (group), conducted virtually.
• Event: Q1FY27 Earnings Call.
• Key participants: Whole Time Director & CEO - Real Estate; CFO; Group CEO.
• Purpose: discuss unaudited quarterly results for quarter ended June 30, 2026.
• Invite with dial-in details will be available on the company's website.