Vikran Engineering Limited (VIKRAN) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4 and F5-26 Earnings Conference of Vikran Engineering Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are now the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the lesson only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then see it on your touchtone phone. I now hand the conference over to Sir Rakesh Markitkar, Chairman and Managing Director from Vikran Engineering Limited. Thank you and over to you, sir.

Good morning, everyone. This is Rakesh Markitkar. I am Promoter, Chairman, and Managing Director of Vikran Engineering Limited. I extend a warm welcome to all our participants during our Q4 and full-year FY26 earnings conference call. I sincerely appreciate the continued trust and support of our investors, analysts, lenders, and all the stakeholders at Vikran Engineering continues its growth journey. On today's call, I am jointly with our other promoters, Mr. Abhinash Markhelkar, Whole Time Director, and Nakul Markhelkar, Promoter and Whole Time Director, Mr. Ashish Bhaiti, Chief Financial Officers, along with AdFactors IR Team, our Investor Relations Advisors. I hope all of you have had the opportunity to review our financial results, investor presentations, and earning release updated on the stock exchange and on company's website. Before discussing the performance of the quarter and the year, I would like to briefly provide an overview of the company and the strategic progress made during FY26. About the company Vikran Engineering Limited, we are a fast-growing integrated infrastructure EPC company, which now presents as a developer in the solar business. Put together, we are constructing 1.5 gigawatt solar in the projects under construction. This is comprising of, as a developer, around 1 gigawatt and 500 megawatt as a EPC. We have a very strong execution capability across power transmission and distribution system. That is the highest system voltage up to 765 kV, substation transmission line, substation both kind of substation AIS, GIS, and the distribution, this is including the smart metering, this is the major focus of government of India at present. Then, apart from this T&D and renewable energy, we are also having presence in water infrastructure and railway electrification. Over the year, company has built a very strong execution-led reputation with a consistent focus on timely project delivery. As per the record, not a single project got delayed. We are very disciplined in the bidding, operational efficiency, and profitability-led growth. Our core strength lies in executing technically complex projects across the power and renewable energy ecosystem, including very high voltage substation transmission, as I mentioned, along with end-to-end solar EPC solutions. Over the last year, Vicran has further strengthened its positioning as an integrated renewable infrastructure solution provider. The company's execution capabilities are supported by a very strong in-house technical and project management team, long-standing vendor relationship with the deep operational experience across multiple geographies. Today, we have very strong presence in 22 states with 190 locations across the country. And then head office at Thane, where we have our own design engineering, and the professionals who are sitting approximately 220. Out of 1200, the professionals on companies, 222, we are sitting at, we are at headquarter at Thane. Our ability to mobilize parallel execution team, undertake detailed engineering, and creep The pre-project survey and execute projects within the challenging time limit condition to differentiate Vikran engineering in the market. Today, with a diversified and growing order book across both government and private sector clients, the company remains all positions to benefit from India's ongoing investment in renewable power transmission distribution, grid modernization, and industrial development, including smart metering initiatives in the country. I would now like to give the call to Mr. Nakul Marshedkar, who is also promoter and whole-time director, and he will take us through the operational performance of the company.

Thank you so much, Srinivasan. Very good morning, everyone. I would want to talk about the financial year 26 as well as give you insights on what is expected in FY27. FY26 has been strategically significant for Vikran Engineering, marking an important phase in the company's evolution and diversification journey. During the year, we strengthened our position beyond the predominantly power T&D-focused EPC player and expanded meaningfully into renewable energy segment, particularly in solar EPC. Our power T&D and solar business today constitute the majority of our order book, reflecting strong momentum in these sectors and the success of our strategic expansion into renewable energy. The balance order mix is supported by water infrastructure and railway projects, providing a healthy sectoral diversification. A major milestone during the year was our formal entry into solar EPC segment through the execution of multiple marquee projects, including 100 megawatt AC solar project from Illume Energy Maharashtra Solar One, a 400 megawatt AC 580 megawatt DC solar project from NTPC Renewable Limited. We have 600 megawatt, NOPL 600 megawatt, complete end-to-end project from NOPL solar, of which 20 megawatt, that is five locations have already been commissioned, and a few more will be commissioned by the end of this month. These wins and order executions have significantly strengthened our revenue visibility and validate. Vikrant's capability to execute large-scale renewable infrastructure projects. While these project twins strengthen our execution visibility within the solar EP segment, we also have taken a significant strategic step towards expanding our presence within the broader renewable energy ecosystem. By this, I mean our, I am referring to our strategic acquisition of NOPL Solar Private Limited, which has 969 megawatt of PM Kusum solar PPSI with Maharashtra government. Post the quarter end, we completed the strategic acquisition of the company. The acquisition marks a very important step in Zikran's evolution towards becoming an integrated renewable energy infrastructure platform. The portfolio benefits from long-term PPA with MSEDCL and substantial CFA, that is Central Financial Assistance Support, from the central government, providing a long-duration cash flow visibility and strengthening the quality of our business model over long term. To add to this, this project will require an investment of 4200 crores for which we already have a sanction in place from one of a major lender. And this project will lead to a revenue of over 500 crores over the next 25 years with a strong EBITDA margin of 85 to 88%. We believe that this acquisition complements our EPC capabilities and enhances our position within the Indian renewable energy ecosystem. Importantly, this strategic decision aligns closely with broader transformation currently underway within the India's power and renewable energy sector, which continues to create significant long-term opportunities for infrastructure and EPC companies. Now, coming to the power and renewable energy landscape. What we are observing is the operating environment within India's power sector continues to remain highly encouraging, driven by the country's accelerating renewable energy transition. During the FY26, India recorded its highest ever annual non-fossil fuel capacity addition, taking a total installed non-fossil capacity to over 280 gigawatts. With solar imaging as a key growth driver, importantly, India has already achieved 50% of its installed capacity from non-fossil fuel sources, way ahead of its original 2030 target, reflecting the strong structural momentum across renewable energy grid expansion and associated infrastructure development. At the same time, India's transmission and distribution ecosystem continues to address strong investments driven by rising power demand, renewable energy integration, and grid modernization. This continues to create long-term opportunities in transmission line substations, underground cabling, and renewable evacuation infrastructure, all of which we are already presented. Another very important update for all the investors is that our credit rating has been upgraded from triple V plus to an end A minus with a stable outlook. We believe that this reflects the improvement in our financial profile, execution capabilities, order book quality, and institutional credibility. Going forward, our focus remains on building this momentum while continuing to scale the business in a disciplined and sustainable manner. Now, talking about FY27, we've entered this financial year with a cautious confidence focused on scaling the business in a disciplined and sustainable manner as discussed earlier. Our core power and transmission business continues to remain the foundation of the company, supported by a strong sectoral tailwinds arising from rising power demand, renewable energy integration, and continued government investment in the grid infrastructure. We will continue to focus on high-voltage transmission, substation, and underground cabling projects, where we have established execution capabilities. Solar EPCA has now emerged as a key growth pillar for Vikran Engineering. Supported by India's accelerated renewable energy transition and strong policy momentum, we see significant long-term opportunities in this segment. Following the large format projects, Project Wins secured during the FY26, we remain focused on scaling this vertical in a disciplined manner while strengthening our execution and supply chain capabilities. Water infrastructure segment also continues to offer long-term opportunities supported by sustained government focus on water access, irrigation, and waste management. We remain selectively engaged in the segment and continue to evaluate opportunities aligned with our execution and return parameters. In parallel, we are also cautiously evaluating opportunities in the international market, particularly in the Middle East and selective regions of Africa, while also monitoring emerging opportunities in areas such as smart meter, data center infrastructure, with complement to our engineering and EPC capabilities within the country. I would like to now hand over the call to Mr. Ashish Bhaiti, who will take us through the financial performance of the company. Go to you, Ashish.

Good morning, everyone. So thank you, Nakuji, about this, and let me briefly take you through about the financial performance. Hope you have already gone through the results for the Q4 and full year of financial year 26. For Q4 26 performance, revenue from operations were We are at 647 crore as compared to 355 crore in last year, 5.25 quarter 4. Reflecting a healthy year-on-year growth driven by execution momentum across power and T&T business, as well as increasing contribution from the solar EPC projects. Our EBITDA remains strong at 92 crores in quarter four as compared to last year, and as a percentage, it was 14.2%. Fat remains at 56 crores. As again, 38 crores in the corresponding quarter last year. For the full year performance of FY26, revenue from operation, FY26 stood at 1249 crores, which is highest in the history of the grant engineering, as compared to 916 crores in FY25. That is again supported by strong execution across key infrastructure verticals and also ramp-up in newly secured projects in solar. Our EBITDA stood at 175 crores, about, and our EBITDA margins remain at about 14%. PET for FY26 stood at 92 crores against 78 crores, approximately, in FY25. Overall, as far as margin and execution is concerned, our EPC business, the second half of the year, particularly quarter four, contributes a significant larger share of revenue due to execution ramp-up and milestone-based billing and revenue. The margin recognition generally improves as project progresses towards advanced stage, while projects in the initial execution phase carry Slightly lower margin based on the billing milestones and execution costs. The increased contribution in solar EPC projects during the year also had an impact of blended margin as several projects remained in the early stage of execution during FY26. Overall, we remain focused on balancing growth with the financial discipline, maintaining bidding prudence, and also improving operating efficiencies as the business scales further. With this, we would like to open the floor for the questions. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ashok Ajmera from Aitchin Capital Global. Please go ahead.

Thank you for giving me this opportunity. And thank you Rakesh Ji, Nakulji, and Bhayati Ji for such an elaborate explanation, for giving details and information about the company. Having said that, you know, this quarter has been also a decent quarter. Am I audible? Yes, yes, please. Yeah. So, as you know, as was discussed and declared also even in the last quarter, in a quarter before also, So, our margin, you know, EBITDA margin, which used to be in the range of 20 to 24, 25 percent in the earlier years, we have gone down in the last quarter to 13.1 percent or something, and even in this quarter also, I think, 14.5 percent and odd. So, going forward, are we going to be in the same range for the EBITDA and PET, or our EBITDA is going to again take a flip? Going to 18-20% or 22% historically which used to be. So this is my just first question and let me also ask a few more either point of information or some questions. You know that ONIX takeover where the substantial takeover was done. So what is the status of ONIX and the project which was allotted or awarded to ONIX and the financial arrangement also? So, what is the status there, and how do we see the fruits, when and how it is coming, going forward. So, these are my two observations. And then, third one is, in the, you know, West Asian crisis and the geopolitical situation. I don't know how far it is affecting you, because though your imports are mostly from China and some of the other countries, which are not that way affected with this, almost, but how are we affected at all, if at all we are, and how going forward we are in a position to achieve our targets, turnover, and other things. So this is my first round. These are the few observations and the questions.

With reference to the margins what you said, 22% might be for a particular quarter. However, if you see in FY23, 24, 25, last three years, our EBITDA is in the range of 15 to 17% and And this year, particularly, it is 14% mainly on account of there are because of some ZZ1 mission projects receivables got delayed. As you know, I mean, there were some delays. So as a prudent practice, we have taken a provision against those receivables, which will be reversed once we get those receivables, because now we are seeing a very good momentum on those receivables. The receivables also, and the payments are coming, I mean, they started flowing from this financial year.

Sorry to interrupt, but that is also the government receivables, isn't it?

That's right. It's the government receivables. However, as a prudent practice, we take some provision if it is going beyond a particular timeline. So that's where our margins as compared to last three years, which was in the range of 15 to 17 percent, this year you will see that it is about 14 percent. However, as we have discussed that we are very prudent in selecting the projects. We are targeting those projects which are in the similar margin range. And we are hopeful that going forward also will maintain this particular range as far as margins are concerned. For the Onyx project, for the Onyx project, for the Onyx project, Nakulji, would you like to inform us?

So, the Onyx project, now it is still live, but what we are going to do is, since we have already acquired the SPV that Onyx had got the project from, now we are going to replace the Onyx order with the order from SPV directly after the permission from the lender. So, that is also still intact. Now, to answer your third question, you asked about Onyx's involvement in our current project. So, since we've already bought the 100% stake in this company, Onyx is nowhere in picture, and now we are the sole decision makers and sole shareholders in the FPV.

So, you are not facing any problem which Onyx used to face? No, all those issues are over now? Yes, yes, yes.

So, I'm not sure what issues you're referring to when you're talking about Onyx, but as one day...

It wasn't over. Yeah, this was in open, you know, like, whatever were the issues with the lenders or raising funds or whatever it is.

So, considering our financial strength, we are already an A-rated company, whereas Onyx was, I believe, a double B or a triple B rated. I am not sure of their rating. But we've already had multiple rounds of discussion with the senior debt lenders, and they are very much comfortable with Vikrant's proposal and are going forward with the... So, as you might have already observed, we have already commissioned four projects and are trying to commission another two by the end of this month. This is the same project where... We've just started working on these projects from Jan, and in a matter of four months, this is the situation where we are in. There were a few issues that we had faced earlier, but all of those issues have now been resolved since we've already taken over the SPV completely. So, now coming to your fourth question of global impact. Yes, were you saying anything?

No, no, yes, yes, you continue, please.

So, talking about global impact, historically, we have not had a lot of imports directly, but of course, our supply chain is dependent on supplies from China. But as things stand, this war is not causing a lot of issues in our supply chain. And we actually were strategic in procuring a lot of critical items during the last financial year itself before things got worse. So we are very well placed for the next quarter as well. Now, coming to what is going to happen in the next quarter, we are already in... We are in touch with the larger players in our supply chain to somehow hedge this risk of uncertainty. These players are market leaders who have the means to insulate us from any and all market fluctuations.

Okay, one related question. What is the impact of the base, you know, the regulations? Of battery energy supported system, the cell, is that regulation changing and now you have to provide for the non-peak hours of storage and other things, is there? So what kind of impact you are going to face and whether that has been considered in your profit margins and other things?

Yes, yes. Asmirajee, so for us, the projects that we have do not have any best component in them. I believe the policy that you are referring to is for? It's for up-and-coming projects, I think some certain percentage of capacity is expected to be reserved for BESS, right? So we've not yet got any project where there's BESS in our scope, but yes, definitely we've bid for a few projects where BESS is in, you know, as part of our scope. And we are in good terms with a lot of these cell and battery manufacturers and assemblers in India as well as in China. So I don't think this will be a big impact. Rather, this will be healthy for the entire grid's ability considering the peak hours, the generation during the peak hours can be switched to the evening hours. But it will increase the cost of project. Provide, so it is only if you bid for the project that way.

So for us, for us, the impact is zero. In our current portfolio, no BESS is there. Yeah, no, I understand that. I understand that. I just want to give one emphasize on this Onyx project. What, no, no, what everybody, let it be very clear now. See, this onyx with the approval from the off-taker, MS-EDCL, from permission, written permission from the government of Maharashtra and board, we have taken over this company entire project 100% as Vikran Engineering Limited now. This SP we have taken over now. And that the full confidence of the execution to the lenders, to our supply chain complete, that is going with the full confidence. We have commissioned 20 megawatts, and another 20 megawatts we are commissioning in a few days now. So, we are going very confidently on this, and this project is going with complete supply chain management with us, with the customers, and giving you some more information of the project, 80% of this project, we have acquired the land, and then, approximately, out of 969 megawatts, around 200 megawatts. We have started 148 MW. We are in very advanced stage of execution. So very very strong execution progress is going on in this project. Oh that's great.

So our order position which used to be 4,000-4,500 crore, with this onyx this thing included, where do we stand as far as the order book is concerned?

See, we have not announced, we have, actually, we, 5,700 crore is our current order book.

This includes this, I'm sorry to

interrupt, Mr. Ajmera, you may please rejoin the case for more questions.

No, no issue, no issue. I have completed all my, thank you very much and all the best to the management and to the company.

Thank you. Next question is from the line of Sritesh Chhera from Lucky Investment. Please go ahead.

Yes, sir. Thank you for the opportunity. Sir, I have two questions. One, because the shape of the order backlog has obviously changed with a lot of solar projects now. So, for FY27, if you could tell us what kind of execution is possible with and without the NOPL project, because the NOPL order book you have written as an asterisk mark over and above the order book that you are carrying. So, you know, your revenue execution for FF27 with NOPL and without NOPL, and the margins. And my second question is, on NOPL, so since acquisition, what are the milestones that have been achieved? And now, what are the milestones that have to be achieved for a smoother execution of the project? You know, these are my two questions.

So, first thing, thank you for the question. I was not able to get your name, please.

My name is Pritesh. I'm from Lakinas.

Okay, okay. Yes. So, how are you? Yes. Okay, so talking about NOPL, we are pretty confident about our execution as an order pipeline, and hence we are pretty sure that we'll be able to do 2,200 plus crores of revenue next year in FY27, with or without NOPL. And now, so again, I would also want to emphasize on a point where... NOPL is now our subsidiary, and, you know, thinking of a plan without NOPL, it does not make a lot of sense because it would need a lot of commitment and investment from our side as well. So we are very confident about this acquisition and are very, very confident about the benefits that this acquisition is going to, you know, provide to the company in the consolidated balance sheet. So, the margins and everything will be in line, 2,200 plus crores, 2,200, 2,300 plus crores is what we are looking at in FY27. And there's another question that you'd asked, which was? Milestones achieved. Okay. So acquisition happened in April, just at the end of April. So as of now, the milestones that are only there is that we've executed, we've commissioned a couple of more projects, which we were anyways working on, and expected milestones is that by the end of this financial year, We should be able to complete most of the project, and for this, we are fully prepared in terms of funding, in terms of supply chain, in terms of execution. Thank you. So, everything is very clear. The major challenges that generally people face in solar projects is the acquisition of land and evacuation. Both of these issues have been cleared for this project. Since our takeover, we've managed to identify more or less around 85% of the land required for the project. And one of the biggest advantages of this project is that this is spread across multiple locations. So as and when you keep completing a location, your billing starts. So, happy to report that since we've already commissioned 20 megawatts, we are expected to get around 2 crores every month from sale of power from these projects, from these four locations.

And this is for commissioning these projects and that revenue will keep adding accordingly. So there are about 150 odd locations where we have to work and that's how we'll keep achieving these milestones accordingly.

So this 20 megaud is commissioned with effect FI 27, right? The first 20?

Yes, correct.

Okay. Just a follow on here, sir. With respect to the financing line on this project, Does the existing fidancing line rolls over with the new owner of the project, and all you have to make?

Yes, it is. It rolls over. There is just a small evaluation of the new promoter, which is under process, and it will happen.

And apart from the backup, we have also arranged some other financials also, so in case it takes time, we have other backups also.

Okay, and my other question is in terms of extension, does it need any extension of the project with Marashtar MSCBC or Marashtar Government or anything?

Thank you so much for the question. Very, very, very relevant question. So, MNRE has already given the extension till March 27th, and in line with MNRE's extension, even MACD sale also has allowed us time till March 27th. They have given us official extension letter. Yes, yes. The extension letter already is in our, in, with us.

Okay.

We got the extension.

Okay. Nice. Thank you very much.

Thank you. Next question is from the line of Paris Theda from Purple One Vertex Pencil. Please go ahead.

Yes, sir. Thanks. Congratulations for a strong set of results.

Thank you so much.

Yeah. So, my first question is just to confirm, you know, if you guide it for about 2200 crores of revenue for FF27, is that correct?

Yes.

Okay. Sir, what kind of sustainable EBITDA margin now we should sort of factor in?

We should be in line with what we've already committed 14-15% is where we are very confident about. And, uh, hoping, uh, hoping to maintain this. We are very confident, I would say, to maintain these, uh, EBITDA lines.

Right. Sir, uh, what is happening with regards to this trade receivables now, about 1000 crores odd. And, uh, what is the special? Put it on the pending. And, you know, uh, sorry, your... ...transition to... Yeah. I was talking about 1000 crore straight receivables.

Yes.

And what is the specific exposure to JGM now pending? As you said, there is some sort of movement happening there. And when do we expect to turn cash flow positive, sir?

Yeah, so with reference to these JJM projects, those are, I mean, receivables, out of receivables about 25 to 30 percent is from JJM projects. However, it is reducing now because the overall order book size, it is less than 10% from the JGM as the company has not taken any new orders in the last two financial years for water. Also, going forward, we are mainly focusing on solar, so our focus on getting the receivables faster is, I mean, we are diversifying from these water to solar as of now to get the receivables faster. Also, our dependency on government is also reducing because most of these orders, what we have taken newly, is from the private players where the financing arrangement is already done. So that way, this will also help us in reducing the receivable amount.

Are there any high-risk receivables now outstanding? I mean, whether they'll probably tantamount to writing off, do you expect that kind of situation in these receivables?

No, there are no such cases. Even you can look at the history and our prospectus where we have not taken any measure until now. In the company's history also, we were very cautious while choosing the projects, and we are working very closely with the client and their funding arrangement while doing our projects. So that way we don't see any major risk as far as receivables are concerned. As we have explained that as a prudent measure, we have taken some provision, but those are also will be reversed once the amount is received.

This is just last two queries, and now we are growing quite fast, right, and at least intend to grow fast. And the cash flow for operations continue to be negative. So, one is, is there, I mean, a chance where we turn cash flow positive? I think the last time around we were told about FF28, we are looking at turning cash flow positive, that holds for now. Or else are we looking at further equity dilution going forward?

No, so as of now, we don't have any plans for further equity dilution. As far as cash flow, positive cash flows are concerned, yes, because these FY26 and FY27 are the, again, growth push what we have to bring into the company, and that's where you can see our order book, which used to remain about 2,000 crores as cross 5,000 crores, is we have a clear visibility on the future, And we are expecting to grow at a faster pace as of now. Once this pace is stabilized, definitely, I mean, We can see a positive cash flow, which is expected from FI28. Also, with this acquisition of NOPL going forward, I mean, next year, there will be a good amount of EBITDA, which we will be generating from this particular subsidy. So, as a consolidated revenue also, you can see that there will be a good EBITDA and cash flow generation from that project as well.

So, FI28, you continue to hold for cash flow positive operations, most likely, on an annual basis? Okay, fine. Thank you so much.

Thank you. Ladies and gentlemen, before we take the next question, a reminder to all the participants, if you wish to ask a question, please press star and one. We will take our next question from the line of frame Sony and individual investors. Please go ahead.

Hello, I'm Advan.

Yes, please.

Hi, thanks for the opportunity. Sir, I have a question on the same, earlier participant has already, I mean, queried there, but more on an elaborative manner, like, on the receivable side of last year, 605 crore, and for the year, 1,000 crore for this year, like, how much was the exposure for water segment? In terms of the receivers only, also from JGM?

It is about 30 odd percentage from the water side. Balance is from power and water.

And sir, as you have said, the momentum has started from the JGM and the receivers have started converting into cash. So, like, how much amount you have received till now from the water segment only for this year and last year as well?

So, for current year, after our financial year closed in FY27, we have got about 17-18 crores of receivables from Delzio emission projects, and further we are expecting to receive now. So, as compared to last year, this has improved.

All right. Sir, are we anticipating any order flow from the JGM side since the government has announced the JGM 2.0 with the accelerated of 8.2 lakhs per hour of opportunity? So are we seeing any order flow or any query in the side?

So we are very cautious in selecting the projects. As of now, we see a better cash flow and better margins in solar projects, considering the government push also is more towards solar. However, in case we get any good opportunity, we have a qualification to bid, and we can take such opportunity whenever available.

Okay, and there's an order book that you have highlighted on the presentation, which is of around, I believe, 600 odd crores for this year. So, I come in the water segment. Hello. Yes. In the water segment only, so how, what was the exposure of JJM only? Can you elaborate?

Yeah, mainly these projects, I mean, 600 cores, whatever the balance is, water, mainly it is from JJM and some other drinking water supply projects. So we are working in UP, MP, and Chathisgarh for drinking water supply system projects.

Okay. I said the last question was on the data center. Like we have, I think, posted information that we are seeing opportunity in the data centers. Like what kind of opportunity are we seeing or what kind of offering we are providing? Can you put some details on that?

So, very nicely. See, now what is happening? The data center we are focusing because of the reason we have already, out of four pillars of data center, we have presented in three. One is the power, captive power means solar, and for the cooling system means for the water. Since out of four, we have already presented in three, and we have our own designing team, and we have a strong project management skill. And this helped, this is right, actually this is helping us to look into the data center, because the data center has the big private players and they believe in good execution and quality, the project, which is a specialty of Vikran Engineering Limited. So, that is the reason very precisely going a little away from the government projects. We wanted to concentrate with a good quality private project like a data center. In that connection, we started preparing. We have hired a very strong consultant, ENY, in this regard. They are hand-holding us for our preparation, and we are approaching now, started preparing for the inquiries, and we are targeting some order book in this financial year in data center.

Okay, so are we seeing any autoflow like in this year as we have any find any queries or receive any queries from any...

Yeah, yeah, that is going on. So that is going on, but we have set a very slow, a very small target of 100 crores now to start with in the data center.

And what would be the margins?

I am sorry to interrupt, Prem. You may please.

The margins, because we are focused on the margins, so we will be selecting projects accordingly to ensure we maintain that the margin, what we are already there in our solar and power T&D segment.

All right, sir. Thank you. Thank you. Thank you, sir. Thank you very much.

Thank you. Next question is from the line of Ashok Ajmera from Edgekin Global. Please go ahead. I'm sure your line is unmuted. You may please proceed with the question. Ashok, we are unable to hear you. Can you hear us? Hello?

Yeah, can you hear me now? Yes, please. Yeah, thanks for the, permitting me for the second round of some questions, some observations, and some information. So, you know, we have been talking about this large receivables number one. So that government stuck receivables against which we have started making provisions. What is in absolute terms, absolute amount that outstanding is?

So overall, as we see, I mean, there is no sticky receivables. However, as we all know, there were some delays in getting the payments from Jaljian Mission projects, especially on one or two states. So those, I mean, considering the current budget, which is for FY27, we see a very good push on the government side also for JTM projects. So, that way, we don't see any specific issues as far as, I mean, receivables are concerned. The provisions, as we mentioned, it is just a prudent measure of, I mean, accounting. It's not about a specific, for a particular project, we see any risk as far as receivables are concerned.

Okay, I mean, that's appreciated. Hello.

Yeah.

Hello?

Yes, yes, we can hear you.

Yeah, yeah. So, now, you see, we were just talking about this data center, and you already started working on that appointed consultant and this thing. So, what kind of investment are you planning over a period of 2, 3, 5 years on that data center? Whether some of the financials have been worked out already, because it requires, as I believe, the data center requires huge investment. So, what kind of investment we are looking at, and how are we going to plan to raise that kind of investment, and whether it will be prudent when we are already in minus cash flow? So, some color on that.

Sure. So, this is Rakesh Marketsar once again. Let me tell you, we are not going for a development mode or investment mode currently. Our expertise is in the EPC, so we are starting at the EPC. As I mentioned, the data center has four components. Out of those four components, we are already having our presence in three components, like power T&D, evacuation, and then the captive power, that is solar, and water. So, using our own existing capability, we wanted to take up EPC project to start with the data center, which is going to help us in two ways. One is that is going to help us in deploy our execution capability in the data center and the major private sectors where we can really do a good execution and where the cash flow is the better. Number two, this. This is going to give us the further strengthening and the confidence to all the stakeholders because the data center execution is a very precise job, very good job in terms of when it comes to the competence in the EPC. So, this is going to help us further our strengthening our EPC competencies. So, which is going to help us the worldwide what we are looking for in the near future, the overseas project. So, this is going to improve our confidence. Approximately to start with, we are looking for to start within the range of 50 to 100 megawatt data center project on EPC mode.

No, yeah. So, we are taking it as a project for execution for others, not for ourselves, isn't it? No, that's great. Now, the one last question in this round, again, the second round is, what is our total composition of revenue in the existing 2-3 verticals? Like, we have a target of about 2,200 crores or something, as you said, for the FY27. So, what is in percentage terms the composition of say water, other activities, and power?

Approximately 60% will come from solar. And 30% will come from Power T&D. That is, that too very selective, like the 765 kV GIS, AI kind of project from our customers like PowerGrid and NTPC. And the balance, approximately 10%, that too with our existing order book of water. So our focus is to complete the project in the proper way and to bring all our receivables from the water and that is the reason for last 18 months we are not putting for the water. So answering to very precisely 60% solar, 30% power T&D and approximately 10% from the water.

Yeah, because, you know, that clarity is very important because our stock also has suffered very badly, you know, and a lot of volatility is there, you know, from it used to be 120, 130 to come down to 80, 85 range to coming down to 55, 60 rupees range. This all may be because of little, the message has not gone right to the people and we are into so many things. So I think a consolidation required at this stage. And a clear message needs to be given. A lot of clarity has come in today's talk, and I think people will understand that, the potential of Vikran. All the very best, and thank you very much for answering my questions.

Thank you very much for understanding. Yeah.

Thank you. Next question is from the line of Aniket Madhwani from Separate Capital. Please go ahead.

Yeah, hello, Shereen. Hello.

Yeah, yeah, please, Aniketji. Yeah, please, go ahead, Aniketji.

So, as you can see in this presentation, you mentioned the outstanding order book was around 5,700 crores on 22nd May. And so, here I can see there is an additional solar APC order of 14 days. So, is it over and above 5,700 crores? Or is it viewed as an... Thank you.

Yes, that is based on, because the company, the Onyx, which we have acquired, there is a balanced EPC order, which we need to give. So based on arms length price, we can give it to either any other EPC or we can take it in Vikran also. So that depends on the price, what we are getting. However, we are hopeful that being a subsidiary and we are already working on that particular project, we would be able to get this at our time. So, around you can say about 1000 crore would be additional order book which we may expect in coming days,

apart from 5700. And that will be executed in the same financial year, I mean, in SA-27?

So, execution will be, yes, most of the, most of the, I mean, solar project we have to execute in next 12 to 15 months.

And what amount will be executed from 5,700 crores?

So as we discussed, I mean, we are expecting an overall turnover of about 2,200-2,500 crores in FY27. So that's what we will be executing from this particular project, from the autobook.

I'm just trying to understand. Sir, if you will execute 1,000 orders from the solar agency order, and so you are trying to say that you will be only able to execute around 200 orders from the veterans order book, right?

Sir, this is a part of order book. Out of 5,700 crore, what we are saying is we will be able to execute 2,200 crore plus

in FY27. And the additional 1,000 crores you are mentioning is about 2,200 crores. I am trying to listen to that.

So that is the reason we are giving the rent. That is the additional project which once it will be available with Vikran, that will be further surplus on the overall revenue for current and next year.

Okay. Okay. All right. Thank you. Thank you.

Thank you.

Thank you. Next question is from the line of Sitesh Chheda from Lucky Investments. Please go ahead.

Just to follow on, I missed out how much receivables are there from water in your buying sheet now?

So, overall, our exposure from water is about... To 80 crores, to 300 crores approximately, which we have to take from Jalzir Mission projects.

And how much did you provide in the last year? How much provisions you took in F526?

About 20 crores.

Sorry?

About 20 crores.

And that was taken in quarter four?

Yes.

Or throughout the year?

Mostly in quarter four.

Okay. Okay. Okay, sir. Done. Thank you. Thank you.

Thank you. Next question is from the line of Ashutosh Singh, an individual investor. Please go ahead.

Hi. First of all, congratulations to the management. Good morning. I have a few questions based on the liquidity. So, firstly, I was going through the ratios. I found your working capital days are now around the cash conversion cycle is in minus 240. And it seems that it is a stable vendor finance working capital. Because do you think that 596 days will sustain? Because it is increasing since last 3-4 years. And right now the CCC is 240 days in minus. So, my question is whether it is sustainable that we will keep getting more and more credit from the vendors, or what is the target of declining these or improving these in the near future?

I'm not sure how we are getting minus, but otherwise, overall, our net working capital, if we see, I mean, we have a positive net working capital, which we have invested, and that's why the overall cash flow is actually going into operating activity, mainly into working capital. So, though we are having a very good positive epitaph in the last two, three years, but Because of the investment in working capital, our cash flow from opting activities is negative.

No, I'm not talking, sorry, sorry, let me put it in. I'm not talking about the cash flow from operating activity. My question is, first of all, the vendor, the payable has been increased almost 60%. Earlier year it was 470 crores, this year it is 788 crores. So it seems, and working capital borrowings are fairly balanced. So it seems that it is financed from the, taking more and more credit from the vendors. So, either we can take borrowing or we can take more credit. So, my question is that 596 table days, is it sustainable in future? Or if we'll sustain this, okay, otherwise there might be some increase or huge increase in borrowings going to happen. So that is my observation that I was going to, I want clarification that whether it is sustainable, we will get it funded from the vendor, vendor queries or how we are going to control this.

Apologies for the line getting disconnected.

Yeah, so with reference to your question about the predators, yes, we are, we, I mean, because of the last quarter, in Q4, we have done a lot of procurements and work done in Q4, and that's where the craters are slightly higher, same with predators as well, and going forward, Remember, if we streamline the overall, I mean, progress of the project, which is expected in InSolar as compared to other InSolar projects. Our overall receivables as well as payables, both should be in normal range.

Okay. Okay. Okay.

I hope that provided clarity to you on the question.

Yes, yes, yes. No problem. No problem. And my second question is, what is the...

I'm calling from Ashutosh. You may please rejoin the gift for more questions. We have other participants waiting for the term.

Thank you. Thank you.

Ladies and gentlemen, kindly limit your questions to one per participant. In case of call-off question, please rejoin the queue. We will take our next question from the line of Aryan Bhatia from In-Bet Research. Please go ahead.

Thank you. Thank you for that question.

I'm sorry, your voice is not clearly audible. Will it be possible for you to get your mic a bit closer?

Speak a slight.

Yes, please. Am I audible? No, not really.

Arian, can you use your handset mode, please, if you are using any external device?

How much question is on the local solar project? So, additional 1,400 solar project. Why we have not included that in our order book?

Because we have not yet given the order. We have not yet placed the order. So, that's why it is just a prospective project that we are yet to have. The documentation has not yet happened. So, just we have been prudent. That's it. Nothing is.

And second question.

I'm sorry to interrupt. Arian, one question at a time, please. Thank you. Next question is from the line of Deya from Sapphire Capital. Please go ahead. I love her. So what sort of growth are you expecting in the next two to three years?

Two to three years is honestly...

Yeah, as far as the next year is concerned, as we already mentioned, that we are expecting 2,200 crore plus, and going forward also, we are expecting a growth rate, which is, I mean, which will be higher. However, based on the future order book, which we are going to book in current financial year, based on that, we can better foresee our growth in the future. It all depends on how the financial arrangement and how the execution will happen for the current existing order book, because we have a huge order book as of now in our hand, which is very, I mean, And we are very comfortable for current year as well as next year.

So, in short, what MyCG is trying to tell you is that we have visibility for the next two years. Three years would be a long, unrealistic expectation for us to, you know, provide actual figures on with, you know, backing from data. So, we can look at around 3,000 crores plus for FY28. But providing SIGAS for FY29 would be a bit problematic as per the current status. I hope that answered your question.

Okay, sir. And the pipeline apart from the... I'm sorry to interrupt Diyah. Please rejoin the key for more questions. Thank you. Next question is from the line of Vaibhav Chanda, from Krijana Research and Analytics. Please go ahead.

Yeah. Am I audible?

Yes, you are audible.

Yeah. So, good morning. First of all, congratulations on good set of numbers. My first question is regarding the project-related expenses in our P&O, which have grown to almost 2.7 times than compared to previous years. So are we expecting it to remain in the same line in terms of percentage of turnover? Please share some light on it.

So, when we look at a particular project, it is the overall direct cost, which what we look at, because at times for, let's say for a solar project, maybe the material cost is slightly higher as compared to labor or maybe a particular project of power, which may have a slightly higher service cost as compared to materials. This overall direct cost, including material cost, as well as subcontractor and other director cost, we look at in total. And due to change in composition of product and service, this may keep on changing. However, we are confident that overall, as far as overall direct margins and EBITDA margins are concerned, we are in a comfortable range.

Thank you.

Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the confidence over to Mr. Rakesh market curve for closing comments. Over to you, sir.

Thank you very much, ladies and gentlemen. So, we have meaningful strengthen and diversified our business through our entry into solar EPC expansion of our order book, our strategic initiatives to strengthen our existing portfolio, and apart from this, we are very keen to strengthen. Our exhibition capability to the new area for the data center because this is a need of power. If you see the requirement of the data center across the globe, it is a huge demand and there is a scarcity of the good EPC companies in this segment. So we are very keen to maintain the momentum what we set of our growth. If we say the CAGR, we are able to maintain 35 to 36% for the last three years. And then FL27 will be far better because we have sitting on a very strong order book. And our confidence level is gone up now. And then because of our continuous improvement in our execution, confidence, and strategies, so we are moving very confidently. So we look forward to get all the help and support from all our stakeholders in future also. So, thank you very much for our joining for the discussion, and we wanted to give the same confidence and our commitment what we explained you just now. Hopefully, that we are going to have a very cordial understanding in the future too. Thank you very much.

Thank you. On behalf of Vigran Engineering Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your line.