Vascon Engineers LimitedInfrastructure & ConstructionVASCONEQ
Q1 FY27 concall · earnings callVascon Engineers Limited
Revenue and profitability were impacted by temporary cash flow constraints in two major government EPC projects, but management expects a progressive improvement as execution ramps up in subsequent quarters.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Revenue | ₹152 Cr | — | |
| Consolidated EBITDA | ₹10 Cr | — | |
| EBITDA Margin (adjusted) | 6% | — | |
| Profit After Tax | ₹2 Cr | — | |
| Total EPC Order Book | ₹2,850 Cr | — | |
| Real Estate Booking Value (Q1) | ₹66 Cr | — | |
| Real Estate New Sales (Area) | 30,690 square feet | — | |
| Net Debt | ₹152 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹294.79 Cr+5.2% YoY+47.5% QoQ | ₹75.57 Cr+307.2% YoY+633% QoQ | ₹3.38+302.4% YoY+865.7% QoQ |
| Q2 FY25 | ₹199.80 Cr-8% YoY-27.5% QoQ | ₹10.31 Cr-50.1% YoY+7.4% QoQ | ₹0.35-62.8% YoY-18.6% QoQ |
| Q1 FY25 | ₹275.47 Cr+34.7% YoY-17.9% QoQ | ₹9.60 Cr-19.3% YoY-42.9% QoQ | ₹0.43-20.4% YoY-43.4% QoQ |
| Q4 FY24 | ₹335.42 Cr+2.5% YoY+19.7% QoQ | ₹16.82 Cr-66.1% YoY-9.4% QoQ | ₹0.76-66.7% YoY-9.5% QoQ |
| Q3 FY24 | ₹280.25 Cr+10.3% YoY+29.1% QoQ | ₹18.56 Cr+13.7% YoY-10.2% QoQ | ₹0.84+12% YoY-10.6% QoQ |
TL;DR
- Consolidated revenue declined to INR152 crores from INR221 crores YoY, primarily due to lower EPC execution.
- EPC order book stands at INR2,850 crores, providing strong revenue visibility.
- Real estate business recorded INR66 crores of booking value in Q1 alone, showing encouraging traction.
- Management expects financial performance to improve as execution constraints are addressed and targets INR1,200 crores top line for FY27.
Said on the call
“It has been one of the worst quarters we've had over the last 3 to 4 years, but I think there's nothing structurally wrong that has led to that.”
From the Q&A
| Topic | What management said |
|---|---|
| Real Estate Project Cash Flows | Management estimates pending construction cost for projects is INR300 crores, with expected free cash flow of INR220 crores. |
| Debt Increase | Debt increase attributed to higher working capital needs for EPC (cycle extended from 45 to 65-70 days) and capital infusion for real estate. |
| EPC Project Delays | Bihar Supaul and Sindhudurg projects faced cash flow constraints from clients, but issues are sorted and ramp-up is expected. |
| Royal Rides Project (INR225 Cr) | Project is stalled, only INR10-15 Cr revenue recognized; no revenue expected for the rest of FY27, but order is not cancelled. |
| FY27 Revenue Target | Management maintains target of INR1,200 crores, expecting INR200+ crores from real estate and ~INR1,000 crores from EPC, with Q3/Q4 contributing 70% of the top line. |
| Adani Project Status | Engagement ongoing on 3-4 projects, but construction start is not expected in the next 6 months, possibly moving to Q4 or next year. |
| Preference Issue Objective | Funds raised (INR80 crores over 18 months) are for real estate (60-70%), EPC working capital, and corporate purposes. |
Guidance
- Targeting INR1,500 crores to INR2,000 crores of new EPC order intake during FY27.
- Expect financial performance to improve progressively as execution constraints are addressed.
- Target to achieve INR1,200 crores top line for FY27.
- Real estate aims for annual booking value of INR1,200-1,500 crores by FY31.
- Fund flows for affected government projects expected from August 2026, enabling ramp-up in execution.
Source
Summary written from the transcript filed by Vascon Engineers Limited for the call held on 14 Aug 2026; published 20 Aug 2026, 13:28 IST.
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