As Vikran Engineering gears up for its INR 772 crore IPO between 26–29 August 2025, investor chatter is growing louder. Backed by marquee investors like Ashish Kacholia and Mukul Agrawal, the company has positioned itself as a high-margin, diversified EPC (Engineering, Procurement and Construction) player with exposure to power, water, railways, and solar infrastructure.
But every IPO story eventually circles back to the same question: how does the company compare with its listed rivals? This Vikran Engineering vs peers debate is crucial, because investing in an infra EPC business is not just about a promising pipeline, but also about relative strength in margins, returns, and valuations. Vikran Engineering will step onto a stage already crowded with seasoned players like Kalpataru Projects International, KEC International, Techno Electric, SPML Infra, Bajel Projects, and Transrail Lighting.
2. Vikran Engineering vs Peers: Group Landscape
The EPC sector is crowded with established heavyweights and niche specialists. Vikran Engineering will be benchmarked against:
- Kalpataru Projects International (KPIL): One of India’s largest EPC players with a global footprint across power T&D, oil & gas, and railways.
- KEC International: A diversified EPC major with exposure to power, civil, railways, solar, and pipelines, backed by RPG Group.
- Techno Electric & Engineering: A specialist in power infrastructure EPC with consistently strong margins.
- Bajel Projects: Recently carved out of Bajaj Electricals, focusing on T&D projects but still building scale.
- SPML Infra: A veteran infra developer with projects across water, waste management, and power, but with inconsistent performance.
- Transrail Lighting: A mid-cap player active in transmission, distribution, and pole manufacturing, showing solid return ratios.
Against this backdrop, Vikran is smaller in scale but notable for its superior profitability metrics and growing order book.
3. Revenue & Scale Comparison
On the topline front, Vikran may be smaller than the industry giants, but FY25 numbers highlight its strong growth momentum and rising presence in the EPC landscape
| Company | Revenue | CAGR FY23–25 (%) | Order Book |
|---|---|---|---|
| Vikran Engineering | 915.8 | 32.2 | 2,044.3 |
| Bajel Projects | 2,598.2 | 97.9 | 2,984.0 |
| Kalpataru Projects | 22,315.8 | 16.8 | 64,495.0 |
| Techno Electric | 2,268.7 | 65.4 | 10,951.6 |
| SPML Infra | 770.6 | (6.6) | 3,000.0 |
| KEC International | 21,846.7 | 12.4 | 33,398.0 |
| Transrail Lighting | 5,307.8 | 29.8 | 15,915.0 |
📌 Key Insights:
- Growth Edge: With a 32% revenue CAGR, Vikran is expanding faster than the industry giants; only Bajel and Techno posted higher growth rates.
- Order Book Strength: At 2.2x revenue, Vikran’s order book ensures 2–3 years of execution visibility, comparable to Kalpataru and Transrail.
4. Profitability & Margins
Scale isn’t everything in EPC; margins and execution efficiency matter more. Here’s how FY25 numbers compare:
| Company | EBITDA Margin (%) | PAT Margin (%) | EBITDA | PAT |
|---|---|---|---|---|
| Vikran Engineering | 17.5 | 8.4 | 160.2 | 77.8 |
| Bajel Projects | 2.3 | 0.6 | 59.2 | 15.5 |
| Kalpataru Projects | 8.2 | 2.5 | 1,834.1 | 567.3 |
| Techno Electric | 13.0 | 17.4 | 294.4 | 422.9 |
| SPML Infra | 5.5 | 5.8 | 42.7 | 47.9 |
| KEC International | 6.9 | 2.6 | 1,503.9 | 570.7 |
| Transrail Lighting | 12.7 | 6.1 | 673.4 | 326.6 |
📌 Key Insights on Vikran Engineering vs Peers:
- Margin Leader: Vikran’s 17.5% EBITDA margin is the highest in the peer set, making it one of the most efficient EPC operators alongside Techno Electric.
- PAT Margin Superiority: At 8.4%, Vikran beats every peer except Techno Electric (17.4%). Bajel, KEC, and Kalpataru struggle with thin bottom-line margins despite scale.
- Execution Quality: Despite being small, Vikran converts a higher share of revenue into profits — a positive indicator for investors.
5. Return Ratios – Gauging Capital Efficiency
Returns are critical in EPC businesses, where high capital requirements often dilute shareholder value. FY25 return metrics highlight the stand of Vikran Engineering vs Peers:
| Company | ROE (%) | ROCE (%) | Net Worth (INR Cr) |
|---|---|---|---|
| Vikran Engineering | 16.6 | 23.3 | 467.9 |
| Bajel Projects | 2.3 | 9.0 | 666.3 |
| Kalpataru Projects | 8.8 | 15.0 | 6,468.9 |
| Techno Electric | 11.3 | 7.9 | 3,739.6 |
| SPML Infra | 6.2 | 4.5 | 770.1 |
| KEC International | 10.7 | 15.7 | 5,347.5 |
| Transrail Lighting | 17.4 | 32.4 | 1,881.1 |
📌 Key Insights:
- Efficiency Edge: Vikran’s ROE (16.6%) and ROCE (23.3%) are stronger than Kalpataru, KEC, and Techno, though Transrail outperforms on both counts.
- Weak Links: Bajel and SPML remain laggards in returns, highlighting weak capital productivity despite sizeable net worth.
- Investor Comfort: Vikran’s ability to generate high returns despite a smaller scale underlines its efficient use of equity and capital.
6. Vikran Engineering vs Peers: Is Vikran Engineering IPO Fairly Priced?
With IPO pricing at INR 92–97 per share, valuation metrics matter the most. Here’s the Vikran Engineering peer comparison:
| Company | P/E (x) | P/BV (x) | P/S (x) | EV/EBITDA (x) |
|---|---|---|---|---|
| Vikran Engineering (IPO) | 32.1 | 3.8 | 2.7 | ~13–14 |
| Bajel Projects | 188.0 | 4.2 | 0.9 | 24.5 |
| Kalpataru Projects | 31.3 | 3.4 | 0.9 | 12.1 |
| Techno Electric | 40.4 | 4.7 | 7.2 | 30.9 |
| SPML Infra | 43.0 | 2.6 | 2.8 | 23.3 |
| KEC International | 35.9 | 4.1 | 1.0 | 15.5 |
| Transrail Lighting | 28.0 | 5.7 | 1.8 | 13.4 |
📌 Key Insights:
- IPO Pricing: Vikran’s P/E 30.49–32.15x places it in line with Kalpataru (31x), below Techno (40x) and Bajel (188x), and above Transrail (28x).
- Reasonable Valuation: At a P/BV of 3.8x and P/S of 2.7x, valuations look justified given higher margins.
- Overall, Vikran IPO is fairly priced relative to peers.
7. Balance Sheet & Liquidity – Debt Under Control
EPC businesses are notorious for leverage and liquidity stress. Vikran’s balance sheet looks relatively stable:
| Company | Debt/Equity | Current Ratio |
|---|---|---|
| Vikran Engineering | 0.58 | 1.52 |
| Bajel Projects | 0.24 | 1.13 |
| Kalpataru Projects | 0.65 | 1.26 |
| Techno Electric | 0.01 | 4.70 |
| SPML Infra | 0.48 | 1.78 |
| KEC International | 0.69 | 1.19 |
| Transrail Lighting | 0.34 | 1.31 |
📌 Key Insights:
- Comfort Zone: Vikran’s debt-to-equity of 0.58 is moderate, better than KEC and Kalpataru but higher than Techno’s near-zero leverage.
- Liquidity Adequate: Current Ratio of 1.52 provides a cushion, above Bajel, Kalpataru, and KEC.
- IPO proceeds earmarked for working capital (INR 541 Cr) will further strengthen liquidity.
8. Vikran Engineering vs Peers: Operational Efficiency
Efficiency ratios reveal how well EPC companies sweat their assets:
| Company | Fixed Asset Turnover (x) | Inventory Turnover (x) |
|---|---|---|
| Vikran Engineering | 101.3 | 11.6 |
| Bajel Projects | 33.5 | 17.3 |
| Kalpataru Projects | 10.2 | 12.2 |
| Techno Electric | 60.1 | 134.6 |
| SPML Infra | 297.8 | 15.2 |
| KEC International | 20.3 | 14.2 |
| Transrail Lighting | 13.0 | 7.7 |
📌 Key Insights:
- Standout Efficiency: Vikran’s 101x fixed asset turnover is among the best, second only to SPML’s unusually high 298x.
- Inventory Management: Vikran’s 11.6x is competitive.
- Investors value such efficiency as it highlights the company’s ability to deliver more with less capital invested.
Verdict – Where Does Vikran Stand?
Vikran Engineering peer comparison shows that the company presents a mixed but largely positive picture:
- Scale: Much smaller than Kalpataru or KEC, but faster growth (32% CAGR) than large incumbents.
- Profitability: Among the best in the sector, with EBITDA margins superior to most peers.
- Returns: Strong ROE/ROCE, exceeded only by Transrail.
- Valuations: IPO priced fairly, not expensive like Bajel or Techno.
- Balance Sheet: Moderate leverage, improving with IPO infusion.
- Efficiency: Asset productivity is a strong differentiator, pointing to disciplined operations.
📌 Key Takeaway:
Vikran Engineering is not yet in the same league as Kalpataru or KEC in terms of scale, but where it punches above its weight is profitability and efficiency. In an EPC sector where wafer-thin margins and high leverage are common, Vikran’s ability to deliver double-digit margins, maintain decent returns, and run a lean balance sheet makes it a compelling peer play. For investors betting on India’s infra push, Vikran may be the dark horse in the EPC space — small in size, but high in quality.