Vascon Engineers Q2 FY27 Results (NSE: VASCONEQ)
Signal: Growth reaccelerated
The read
The quarter marks a sequential EPC execution rebound, with consolidated revenue up 65.9% QoQ to 25209 lakh and PAT up 547.8% QoQ to 1302 lakh, but the thesis remains fragile because real estate lost 56 lakh, finance cost rose 59.6% YoY to 491 lakh and H1 operating cash flow was negative 11114 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹252.09 Cr | +11.7% | +65.9% |
| EBIT | ₹17.75 Cr | +21.6% | |
| Net profit | ₹13.02 Cr | +13.9% | |
| EPS | ₹0.56 | +12.0% | |
| EBIT margin | 7.49% |
P&L walk
Consolidated revenue was 25209 lakh, +11.7% YoY and +65.9% QoQ, with gross margin at 14.0%, EBIT at 1775 lakh and PAT at 1302 lakh; EPC drove the recovery while real estate remained loss-making and operating cash flow was -11114 lakh for H1FY27.
Segments
EPC is driving the consolidated recovery, with revenue of 25052 lakh, +11.5% YoY, and segment result of 3623 lakh, +15.5% YoY; real estate contributed only 157 lakh of revenue and remained loss-making at -56 lakh.
Key positives
- EPC revenue reached 25052 lakh, +11.5% YoY and +69.7% QoQ, while EPC segment result rose 15.5% YoY to 3623 lakh.
- Consolidated PAT increased 13.9% YoY to 1302 lakh and 547.8% QoQ, with EPS rising 12.0% YoY to ₹0.56.
- Consolidated and standalone results were closely aligned: consolidated PAT was 1302 lakh versus standalone PAT of 1312 lakh, indicating limited subsidiary drag in the quarter.
Key concerns
- Real-estate development remained loss-making at -56 lakh despite 157 lakh of quarterly revenue, so the second business remains a drag rather than an earnings contributor.
- Finance cost increased 59.6% YoY to 491 lakh, while H1 operating cash flow was negative 11114 lakh against PAT of 3390 lakh.
- Inventory rose to 83319 lakh from 73650 lakh at March 31, 2026, increasing working-capital intensity despite the sequential revenue recovery.
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