Vascon Engineers Ltd

- The company dropped the earlier proposed QIP program (Rs. 100-125 crores) due to market conditions and unwillingness to dilute equity drastically. - Instead, funding needs are being met through increased debt. - Current borrowings are well-managed, mostly below 15%, with expectations of rollover within 6-8 months. - The company is optimizing debt cost, converting higher-cost debt to lower-cost debt where possible. - Real estate funding needs involve purchasing FSIs and approvals, requiring some investment and borrowing. - No specific plans to launch Phase-2 of Vascon GoodLife affordable housing, but land monetization through other options like hotels or commercial projects is being considered. - The company has untied working capital limits of around Rs. 370 crores to support order execution. - Overall, there is no immediate new equity raising; focus is on managing and optimizing existing debt and exploring non-equity routes for funding.

- The company is actively involved in capital investments primarily related to purchasing FSIs (Floor Space Index) and approvals necessary to launch real estate projects like Powai, Baner, and Prakash, leading to increased borrowing. - No current plans for launching Phase-2 of Vascon GoodLife’s affordable housing segment due to market challenges; however, alternative commercial uses (hotels, commercial properties) for remaining land are being considered. - Real estate debt is expected to continue rising moderately to support incremental projects, with an emphasis on cost-effective debt optimization. - The Adani partnership involves early-stage involvement in design and planning, with new contracting methodologies being developed, though concrete orders and revenue are expected only after about six months. - Working capital is being optimized through better collateral leverage and improved bank guarantee terms to support growth and liquidity without additional security. - EPC segment is focused on capturing Rs. 3,000 crores incremental orders with sustained execution and growth.

- FY 2026 revenue target of Rs. 1,200 crores is unlikely to be achieved due to delays in key projects, with current expectations to match or slightly improve on last year's levels. - Key projects have slowed, causing a shortfall of approximately Rs. 100 crores, Rs. 30-50 crores, and further delays stemming from government approvals. - Management expects these are temporary delays, not losses in contract value or scope, aiming to catch up in FY 2027. - FY 2027 EPC revenue target is projected around Rs. 1,400 crores, with a return to growth trajectory. - The company aims to maintain EBITDA margin aspirations of 10%-12%. - Strong EPC order book of Rs. 2,825 crores provides visibility for the next 2-3 years. - Expansion into private clients is targeted, seeking to increase private sector exposure from 20% to 40%. - Execution momentum and project approvals are expected to improve, supporting growth in subsequent quarters.

- FY 2026 revenue target of Rs. 1,200 crores now unlikely to be achieved due to delays in key projects, but no loss in overall contract value—delay only in revenue recognition. - Management expects to maintain revenue levels similar to or slightly better than last year for FY 2026. - FY 2027 revenue target remains optimistic at Rs. 1,350 to Rs. 1,400 crores, anticipating catch-up growth. - EBITDA margin aspiration for FY 2026 remains at 10-12%, though current margins reflect pressures due to delayed projects. - Profit after tax declined 55% in nine months FY 2026 versus previous year, partly due to absence of exceptional gains. - Real estate segment expected to contribute more consistently in future, supported by ongoing projects and a robust pipeline. - Management views current challenges as temporary blips; working on execution improvements and order book growth to resume profit trajectory.

- As of December 31, 2025, Vascon Engineers Limited's total order book stands at Rs. 2,825 crores. - This order book is approximately 2.8 times the FY 2025 EPC revenue, providing strong visibility for the next 2-3 years. - The company secured new EPC orders aggregating Rs. 646 crores during the year so far, including: - Rs. 225 crores order from Royal Rides Private Limited (April 2025). - Rs. 161 crores order from MSEB for Saudamini Building, Haji Ali Mumbai (Q2 FY 2026). - Rs. 220 crores order from Navi Mumbai Municipal Corporation for Super Speciality Hospital at Belapur (Q3 FY 2026). - Currently L1 (lowest bidder) for orders totaling Rs. 1,300 to Rs. 1,500 crores in regions like Tamil Nadu and Karnataka. - The company aims to secure Rs. 3,000+ crores incremental EPC orders by April 2027 to sustain growth.