Vikran Engg. Q2 FY27 Results (NSE: VIKRAN)
Signal: Margin pressure
The read
The near-term inflection is weaker operating profitability: Q2 revenue grew 24.9% YoY to ₹220.1 crore, but EBITDA declined 20.8% to ₹20.1 crore and margin contracted 530bps to 9.1%; H1 revenue growth of 26.5% to ₹424.1 crore coexisted with nearly flat H1 EBITDA of ₹48.1 crore, while the ₹6,257.53 crore order book provides execution visibility but not yet margin visibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹220.1 Cr | 24.9% | N/A |
| Net profit | ₹7.9 Cr | -13.2% | |
| EBIT margin | 9.1% |
P&L walk
Standalone Q2 revenue grew 24.9% YoY to ₹220.1 crore, but EBITDA declined 20.8% to ₹20.1 crore and margin contracted 530bps to 9.1%; H1 revenue still rose 26.5% to ₹424.1 crore while H1 EBITDA was broadly flat at ₹48.1 crore.
Key positives
- Standalone H1 revenue increased 26.5% YoY to ₹424.1 crore, while H1 PAT rose 71.6% to ₹25.4 crore.
- Order book stood at ₹6,257.53 crore as at 31 October 2026, with Solar accounting for 60% and Power T&D 29%, supporting medium-term execution visibility.
- The company secured ₹120.69 crore and ₹153.76 crore POWERGRID orders for 400 kV GIS and AIS substation extensions.
- IREDA sanctioned term-loan financing of up to ₹2,941.19 crore at a stated interest rate of 9.15% for the 969 MW AC solar EPC project.
Key concerns
- Q2 EBITDA declined 20.8% YoY to ₹20.1 crore even as revenue grew 24.9%, resulting in a 530bps EBITDA-margin contraction to 9.1%.
- H1 EBITDA was broadly flat at ₹48.1 crore, up only 0.1% YoY against 26.5% H1 revenue growth, indicating limited operating profit conversion during the scale-up.
- Solar represented 60% of the ₹6,257.53 crore order book, increasing execution concentration around the 969 MW AC solar EPC project and its 152 locations.
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