Vascon Engineers Ltd

- The company does not want to excessively borrow from NBFCs until project approvals are secured to avoid repayment pressure. - Two of the four new projects already have capital tied up (INR250 crores gross debt increased from INR174 crores). - Additional capital requirement for the remaining two projects is INR70-80 crores, at defined approval stages. - Total capital needed for these four projects over the next two years is INR80-100 crores. - Strategy includes short-term financing and equity infusion at the project level through partners via profit-sharing or stock underwriting at subsidized rates. - The company is not looking to raise equity in the short term and is focused on organic growth. - Debt on the EPC segment will be maintained within small BG (bank guarantee) limits.

- Vascon Engineers plans a capital requirement of about INR 80-100 crores over the next 2 years for launching four real estate projects. - The capital will be used primarily for launch costs, marketing, initial site expenses, premium FSIs, and government challan payments; no land purchases are involved, as land parcels are already tied up. - The funding strategy includes short-term financing and equity infusion from project-level partners who may enter via profit sharing or underwrite stock at subsidized rates. - The company aims to avoid excessive borrowing from NBFCs until project approvals are in hand to manage repayment pressures. - No significant new asset acquisitions or outright land purchases are planned; Vascon will continue focusing on an asset-light model via joint ventures and redevelopment in current cities. - For EPC segment capex, small investments to augment assets are planned to support a 20-25% organic growth target, avoiding heavy borrowing.

- EPC segment expects 20%-25% annual growth, targeting INR1,200 crores revenue for FY26 and around INR1,450-1,500 crores for FY27. - Current EPC order book stands at INR2,902 crores, providing strong visibility for 2-3 years. - Real estate revenue guidance for FY26 is INR175-200 crores. - Real estate has pending revenue of INR300-400 crores to be recognized from completed projects. - Four new real estate projects to be launched with revenue potential of INR1,100-1,200 crores over 4-5 years. - Combined from launched and upcoming projects, real estate revenue potential is around INR1,500 crores over next 4 years. - Real estate growth to be non-linear but expected to steady with asset-light JV model. - Focus remains in current cities Pune, Mumbai, Coimbatore; no expansion to new cities planned short-term. - Order inflows in EPC are cautious due to competitive pricing but expected to improve in next 9 months.

- EPC segment projected to grow at 20% to 25% annually over the next 2-3 years, with revenue targets rising from INR1,200 crores in FY '26 to INR1,450-1,500 crores in FY '27. - EPC segment PBT margin guidance for FY '26 is around 8-9%, with hopes to push towards 10% in future. - Real estate segment revenue expected at INR175-200 crores in FY '26, with EBITDA margin of 15-17%. - Four real estate projects launching over next 12-15 months with revenue potential of INR1,100-1,200 crores and unrecognized revenue of INR300-400 crores from past projects. - Capital requirement for new real estate projects estimated at INR80-100 crores in next 2 years. - Company aims to maintain organic growth via internal accruals without short-term equity raise. - Strong EPC order book of INR2,902 crores (~2.9x FY '25 EPC revenue) provides good revenue visibility for 2-3 years. - EPS expected to improve inline with revenue growth and margin enhancements.

- As of June 30, 2025, the EPC order book stands at INR2,902 crores (2.9x FY'25 EPC revenue). - Breakdown: INR2,469 crores from external EPC contracts and INR433 crores from internal real estate projects. - Approximately 73% of orders are government-backed, ensuring timely payments and strong cash flow. - The company aims for 20%-25% annual growth in the EPC segment. - Challenges noted in order inflow with no significant wins in the last 6-8 months; lost some orders worth INR700-750 crores narrowly. - Efforts to increase private sector exposure while maintaining government projects. - Real estate projects include 4 active projects with a combined sealable area of 0.77 million sq ft. - Pending revenue: INR300-400 crores from already launched projects. - Four upcoming projects with revenue potential of INR1,100-1,200 crores to be launched in next 12-15 months. - Overall, INR1,500 crores+ revenue from 8 projects expected over 4-5 years.