Vikran Engineering Ltd. IPO: All You Need To Know

The transmission sector in India is witnessing rising demand driven by electricity consumption growth and capacity addition, with private participation enabled through tariff-based competitive bidding under the Electricity Act, 2003 and the National Tariff Policy, 2006. In the water sector, over 95% of pure water supply projects and 80–90% of combined water and wastewater treatment projects are executed via the EPC route, while Indian Railways’ National Rail Plan 2030 targets a freight modal share of 45% with capacity creation ahead of demand through 2050.

Vikran Engineering Ltd. (VEL) is among the fastest-growing Indian EPC players in terms of revenue growth over FY23–25 versus industry averages and peers. The company has a diversified portfolio across power transmission, distribution, water infrastructure, railways, solar EPC, and smart metering, delivering end-to-end turnkey services. As of June 30, 2025, VEL has completed 45 projects across 14 states with an executed contract value of ₹19,199 million and is executing 44 ongoing projects across 16 states, aggregating to ₹51,202 million, with an order book of ₹24,424 million. Key government clients include NTPC, Power Grid Corporation of India, state power distribution companies, and water and sanitation missions.

Financially, VEL reported revenues of ₹9,158 million in FY25, reflecting a CAGR of 32% since FY23, and EBITDA of ₹1,603 million, a CAGR of ~42%, with margins improving to 17.5% from 15.2%. PAT stood at ₹778 million, a 35% CAGR over FY23, though PAT margin moderated to 8.4% in FY25 versus 9.5% in FY24. The order book at ₹20,443 million in FY25 has remained broadly flat over three years, resulting in a declining revenue coverage ratio. Return ratios moderated with ROE at 16.6% and ROCE at 23.3% in FY25, reflecting equity base expansion and higher capital employed, though still at attractive levels.

Objects of the issue:

1. Funding working Capital requirements- INR 5410 million
2. General Corporate Purposes

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