Any current/future new fundraising through debt or equity?

Vascon plans to raise INR 70-80 crores capital in the near future to fund ongoing real estate projects, including 3 Mumbai projects and the Baner Pashan project. The Mumbai projects' funding shortfall, initially expected to be raised via QIP, is now being met partly by GMP sale proceeds and partly by interim short-term borrowing. No immediate plans for further QIP (equity fundraising) as market conditions are currently not favorable for equity issuance. The interim short-term debt will be extinguished when the market is favorable to raise funds through equity mode. For EPC business, th

Any current/future capex/capital investment/strategic investment?

Vascon plans to invest around INR 70-80 crores in the near future for ongoing real estate projects: - Approximately INR 20-30 crores required for three Mumbai projects (shortfall after QIP and GMP sale proceeds). - INR 30-40 crores planned for the Baner Pashan project in Pune (~1 million sq ft). Baner Pashan project funding will partly come from short-term capital and equity raise when market conditions improve; project launch expected post-2025 with construction starting earliest in 2026. GMP sale proceeds (~INR 100 crores) already received and mostly used for Mumbai projects; additional

Future growth expectations in sales/revenue/volumes?

EPC segment shows strong growth, with Q3 FY25 revenue up 48% YoY and 9 months FY25 up 37% YoY. Robust EPC order book of INR 3,179 crores, nearly 4x FY24 EPC revenue, indicating strong future execution and revenue. Real estate segment expected to improve from FY26 onwards, with multiple projects launching in 2025-26. Upcoming real estate projects (Mumbai redevelopment, Powai, Baner Pashan) expected to significantly contribute to revenue. Real estate sales bookings in 9 months FY25 were 47,658 sq. ft. (INR 30 crores), with optimism for growth ahead. Management confident of sustained EPC order in

Future growth expectations in earnings/operating earnings/profits/EPS?

Vascon expects EBITDA margin to improve from the current ~8% to around 8.5%-9% by FY25 end, driven by increased revenue from the higher-margin Real Estate segment in Q4 and beyond. Real Estate revenue contributions are anticipated to rise significantly from FY26 onwards, boosting overall profitability. EPC segment remains robust with a strong order book of INR 3,179 crores and expected steady execution over the next 3 years, supporting sustainable growth. Company targets INR 1,500 crores order booking for FY25, expected to be achieved by April 2025, with planned fresh orders in Maharasht

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at around INR 3,200 crores with an average execution timeline of 3 years (Page 8). The company has already booked approximately INR 500 crores of orders for FY25 and targets to book an additional INR 1,000 crores by April 2025, aiming for a total of INR 1,500 crores in fresh orders (Page 8-9). The order pipeline is positive with opportunities in Maharashtra, Tamil Nadu, UP, and Bihar. The Maharashtra elections are over, boosting confidence in orders from that region (Page 8). Internal projects constitute INR 464 crores of the order backlog, with external EPC projects

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Vascon Engineers LtdQ4 FY26Realty

Vascon Engineers Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹36P/E: 16.2Market Cap: ₹791 CrSector: Realty

Management growth scorecard

Revenue

Category 2

Margin

Category 2

Fundraise

Yes

Order

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→EPC segment shows strong growth, with Q3 FY25 revenue up 48% YoY and 9 months FY25 up 37% YoY.
→Robust EPC order book of INR 3,179 crores, nearly 4x FY24 EPC revenue, indicating strong future execution and revenue.
→Real estate segment expected to improve from FY26 onwards, with multiple projects launching in 2025-26.
→Upcoming real estate projects (Mumbai redevelopment, Powai, Baner Pashan) expected to significantly contribute to revenue.
→Real estate sales bookings in 9 months FY25 were 47,658 sq. ft. (INR 30 crores), with optimism for growth ahead.
→Management confident of sustained EPC order inflow post Maharashtra elections and expanding pipelines in other states.
→Target of INR 1,500 crores order booking in EPC expected by April 2025, supporting medium-term growth.
→Overall, real estate and EPC segments combined expected to drive growth over next 4-5 years, with real estate margins enhancing EBITDA.

Margin guidance

Category 2

→Vascon expects EBITDA margin to improve from the current ~8% to around 8.5%-9% by FY25 end, driven by increased revenue from the higher-margin Real Estate segment in Q4 and beyond.
→Real Estate revenue contributions are anticipated to rise significantly from FY26 onwards, boosting overall profitability.
→EPC segment remains robust with a strong order book of INR 3,179 crores and expected steady execution over the next 3 years, supporting sustainable growth.
→Company targets INR 1,500 crores order booking for FY25, expected to be achieved by April 2025, with planned fresh orders in Maharashtra, Tamil Nadu, UP, and Bihar to maintain ~20% EPC growth for 3-4 years.
→Profitability in Q3 and 9 months FY25 included one-time gains from divestment of GMP Technical Solutions, with net profit at INR 76 crores in Q3, supported by improving operational efficiencies.
→Management remains confident about continued top-line growth and margin improvement fueled by project launches and enhanced execution discipline.

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Fundraise plans

Yes

→Vascon plans to raise INR 70-80 crores capital in the near future to fund ongoing real estate projects, including 3 Mumbai projects and the Baner Pashan project.
→The Mumbai projects' funding shortfall, initially expected to be raised via QIP, is now being met partly by GMP sale proceeds and partly by interim short-term borrowing.
→No immediate plans for further QIP (equity fundraising) as market conditions are currently not favorable for equity issuance.
→The interim short-term debt will be extinguished when the market is favorable to raise funds through equity mode.
→For EPC business, there is a CC (cash credit) limit of INR 60-70 crores with interest around 10%, showing ongoing use of short-term debt.
→The company remains bullish on future fundraising aligned with project timelines and market conditions but has no confirmed immediate new debt or equity fundraising besides stated short-term borrowing.

Order book

→Current order book stands at around INR 3,200 crores with an average execution timeline of 3 years (Page 8).
→The company has already booked approximately INR 500 crores of orders for FY25 and targets to book an additional INR 1,000 crores by April 2025, aiming for a total of INR 1,500 crores in fresh orders (Page 8-9).
→The order pipeline is positive with opportunities in Maharashtra, Tamil Nadu, UP, and Bihar. The Maharashtra elections are over, boosting confidence in orders from that region (Page 8).
→Internal projects constitute INR 464 crores of the order backlog, with external EPC projects making up INR 2,715 crores (Page 2).
→The company is bullish and targeting continued EPC order growth of 20% over the next 3-4 years (Page 8).

Capex plans

Yes

→Vascon plans to invest around INR 70-80 crores in the near future for ongoing real estate projects:
→ - Approximately INR 20-30 crores required for three Mumbai projects (shortfall after QIP and GMP sale proceeds).
→ - INR 30-40 crores planned for the Baner Pashan project in Pune (~1 million sq ft).
→Baner Pashan project funding will partly come from short-term capital and equity raise when market conditions improve; project launch expected post-2025 with construction starting earliest in 2026.
→GMP sale proceeds (~INR 100 crores) already received and mostly used for Mumbai projects; additional short-term loans may be raised to fund approvals and early works.
→No plans to hold commercial assets for rental income; preference for liquidating assets and reinvesting in new projects.
→Future real estate projects target mid and upper-mid residential segments and commercial developments, excluding affordable housing.

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