SYNOPSIS:
Vikran Engineering, a fast-growing diversified EPC player in power, water and rail infrastructure, stands out with strong order visibility, expanding capacity, robust growth guidance and improving profitability, making it a notable stock to watch.
One of India’s leading power transmission Engineering, Procurement and Construction (EPC) companies, with proven expertise in power distribution EPC covering rural electrification, system strengthening, and smart metering, ensuring energy access for underserved communities and enhancing grid efficiency nationwide, is worth keeping in your radar.
We are talking about Vikran Engineering Limited, an Engineering, Procurement and Construction (EPC) Company. It provides end-to-end services from conceptualisation, design, supply, installation, testing and commissioning on a turnkey basis and has presence across multiple sectors, including power, water, and railway infrastructure.
With a market cap of Rs. 2,796 crores, shares of Vikran Engineering Limited surged around 1 percent to Rs. 109.65 on Wednesday morning trading session, as against its previous closing of Rs. 108.5 on BSE.
The stock made its debut on 3rd September 2025 with a muted listing, opening at Rs. 99.7 on the BSE – just a 3 percent premium to its Rs. 97 issue price – and at Rs. 99 on the NSE.
Management Guidance & Order Book
The company noted that its historical working capital of Rs. 300-400 crore had supported a turnover of approximately Rs. 900 crore. With the current working capital raised from the IPO, management indicated that the business could scale to nearly Rs. 2,500 crore in turnover without requiring further capital infusion. Management also stated that, subject to full deployment of this enhanced working capital, revenue could exceed Rs. 2,000 crores in the next financial year.
As of 30th September 2025, Vikran Engineering reported a total order book stood at Rs. 2,244.8 crore. Power Transmission & Distribution accounted for the largest share at 66.1 percent, followed by Water projects at 32 percent, Railway projects at 1.8 percent, and Solar contributing 0.1 percent.
In terms of client type mix, the order book was diversified across sectors, with the private sector contributing 61 percent, government clients accounting for 26 percent, and PSUs making up the remaining 13 percent. Including new orders secured in October and November 2025, the total order book as of 10th November 2025 exceeds Rs. 4,000 crores.
Business Overview
With a pan-India footprint, the company has completed 45 projects across 14 states and is currently active in 16 states through more than 190 projects and store locations. In addition, the company is preparing to expand into the Middle East market, targeting private-sector EPC opportunities as part of its global growth strategy. Operational strength is driven by an asset-light model, a network of over 3,500 suppliers, and disciplined cost-control practices that enhance efficiency and scalability.
In power transmission, substations, and distribution, the company specialises in constructing high-voltage transmission lines up to 400 kV and substations up to EHV 765 kV (AIS and GIS), operating effectively across challenging terrains and conditions. Its capabilities extend to rural electrification, system strengthening, and smart metering, supporting improved energy access for underserved regions and enhancing grid reliability nationwide.
In water infrastructure, the company provides turnkey solutions for water treatment plants, distribution networks, and rainwater harvesting systems, addressing varied urban and rural water needs across India. With strong expertise in both surface and underground drinking water projects, Vikran Engineering integrates advanced engineering and smart automation to deliver efficient, sustainable, and long-lasting systems.
In the railway infrastructure segment, the company specialises in designing and executing projects involving overhead electrification (OHE), traction substations (TSS), underground EHV cabling, and signalling and telecommunication systems, enabling seamless operational efficiency for both mainline railways and metro networks.
Financial Performance & More
In Q2 FY26, Vikran Engineering reported a revenue from operations of Rs. 176.3 crores, a significant growth of around 11 percent QoQ and YoY both. Meanwhile, the company’s net profit for the quarter stood at Rs. 9.14 crores, representing an impressive increase of nearly 62 percent QoQ and 339 percent YoY. Between FY22 and FY25, the company’s revenue grew at a 3-year CAGR of nearly 24 percent, while net profit surged at a CAGR of more than 98 percent.
In terms of financial ratios, Vikran Engineering has reported a RoE of 20.5 percent and ROCE of 27.2 percent, with a debt-to-equity ratio of 0.27. Further, the stock is currently trading at a higher P/E of 34.2, compared to the industry average of 19.8.
As per the September 2025 shareholding pattern, the renowned ace investor Ashish Kacholia holds a 1.52 percent stake, while Mukul Mahavir Agrawal holds a 1.16 percent stake in Vikran Engineering Limited.
Written by Shivani Singh
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