The IPO of Vikran Engineering, a fast-emerging EPC (Engineering, Procurement & Construction) company, has created quite a buzz in Dalal Street. With marquee investors like Ashish Kacholia and Mukul Agrawal already on board, retail investors are curious:
- What exactly does Vikran Engineering do?
- Where does its revenue come from?
- How strong are its financials and order book?
- And most importantly, is it worth subscribing to?
So, without wasting your precious time, let’s dive straight into Vikran Engineering IPO review:
#1 Vikran Engineering IPO Snapshot & Company Overview
Vikran Engineering is coming up with an INR 772 crore IPO between 26–29 August 2025 at a price band of INR 92–97 per share, to be listed on NSE & BSE.
- Fresh Issue: INR 721 crore
- Offer for Sale (OFS): INR 51 crore
- Retail Allocation: 35%
- Promoter Holding (Pre-IPO): ~93% (led by Rakesh Ashok Markhedkar at 59%)
Notably, ace investors Ashish Kacholia and Mukul Agrawal feature in the top shareholders list, giving this IPO additional credibility.
#2 Vikran Engineering Business Model & Revenue Streams
At its core, Vikran Engineering is not just a contractor but a turnkey infrastructure solutions provider. Its business spans across critical sectors — power, water, railways, and renewable energy. The company’s strategy is simple yet powerful: diversify projects across sectors with high government spending and long-term growth visibility.
🔌 Power Transmission & Distribution
- Vikran has executed projects up to 765kV Extra High Voltage (EHV) substations and 132–400kV transmission lines.
- Its expertise extends to distribution networks and bay extension works for railway electrification.
- Why this matters: With India’s focus on expanding power connectivity and reducing losses, this vertical ensures steady, recurring contracts from both state utilities and central schemes.
💧 Water Infrastructure
- Projects include underground water pipelines, surface water extraction systems, overhead tanks, and house service connections.
- These are largely urban and semi-urban projects — critical in states like Uttar Pradesh and Madhya Pradesh, where water infrastructure remains underpenetrated.
- Why this matters: The Government’s “Har Ghar Jal” and smart city initiatives provide multi-year revenue visibility in this space.
🚆 Railways Electrification & Infra
- The company executes 132kV lines, overhead equipment (OHE), and bay extension works for electrification projects.
- With Indian Railways targeting 100% electrification by 2030, this vertical opens a strong, scalable revenue stream.
☀️ Solar EPC & Smart Metering
- Vikran also offers solar EPC services for ground-mounted projects.
- Its smart metering solutions align with India’s push towards digital energy efficiency.
- Why this matters: While still a smaller part of revenue, these areas represent high-margin, high-growth opportunities.
📊 Order Book Strength
As of 30 June 2025, Vikran’s order pipeline looks robust:
- Completed Projects: 45 worth INR 1,919.92 crore
- Ongoing Projects: 44 worth INR 5,120.21 crore across 16 states
- Pending Order Book: INR 2,420.44 crore
Vikran Engineering’s order book ensures 2–3 years of predictable topline visibility, a critical factor for investors evaluating an EPC player.
In short, Vikran Engineering business model thrives on sectoral diversification, reducing dependence on any single vertical, while positioning itself in government-backed infrastructure growth stories.
#3 Financial Performance & Valuation Snapshot
Vikran Engineering has delivered consistent growth in revenues and profits over the past three years:
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 524.31 | 785.95 | 915.85 |
| Net Profit | 42.84 | 74.83 | 77.82 |
| Net Margin (%) | 8.17% | 9.52% | 8.50% |
- Margins: EBITDA at ~17%, comparable to peers like Kalpataru.
- Returns: ROCE at 23.34% and RONW at 16.63%, though expected to moderate post-IPO dilution.
- Leverage: Debt-to-equity ratio reduced from 1.18 in FY23 to 0.58 in FY25. IPO proceeds (INR 541 crore earmarked for working capital) should further strengthen the balance sheet.
Valuation:
- EPS (Post-Issue): INR 3.02
- P/E: ~30.49x – 32.15x at the upper band
- Notably, Vikran Engineering IPO is fairly priced against its peers like Bajel Projects (185x), SPML Infra (44.3X) and in line with Kalpataru Projects (30.9X).
#4 Vikran Engineering IPO Review: Strengths
When evaluating an EPC (Engineering, Procurement & Construction) business, two things matter the most: execution capability and order book visibility. Vikran Engineering scores reasonably well on both fronts.
- Diversified Revenue Base: Unlike many EPC companies that rely heavily on a single segment, Vikran has successfully spread its wings across power transmission & distribution, water supply infrastructure, railway electrification, and solar EPC. This strategic diversification ensures that downturns in one segment do not disproportionately hurt the overall revenue stream.
- Healthy Order Book: As of June 2025, the company boasts a project pipeline worth INR 5,120 crore, of which an impressive INR 2,420 crore remains unexecuted. This backlog not only secures 2–3 years of revenue visibility but also indicates strong demand for Vikran’s turnkey execution capabilities. A robust order book is often the lifeline of EPC firms, and Vikran is comfortably placed in this regard.
- Proven Execution Track Record: Over the past few years, Vikran has successfully delivered 45 large-scale projects across 14 states, ranging from 400kV transmission lines to 765kV EHV substations, underground water distribution networks, and solar plants. This ability to execute complex projects under stringent timelines enhances its reputation and helps in securing repeat business.
- Policy & Government Tailwinds: The government’s aggressive focus on infrastructure spending — particularly in power reforms (Revamped Distribution Scheme), Jal Jeevan Mission, and renewable energy — offers multi-year growth visibility. Since a large chunk of Vikran’s revenue is linked to such schemes, the company is positioned to ride these policy-driven opportunities.
#5 Vikran Engineering IPO Review: Risks & Challenges
While the growth story looks promising, prudent investors must also weigh the risks before committing capital.
- Working Capital Intensive Business Model: EPC businesses are notorious for their stretched cash cycles. Contractors usually deploy capital upfront for raw materials and labour, while payments from government clients are received much later. This mismatch often leads to elevated working capital requirements. Although IPO proceeds will ease this pressure, execution delays or payment bottlenecks could reignite liquidity stress.
- Overdependence on Government Contracts: While government-backed infra projects provide scale and visibility, they also expose companies to policy changes, bureaucratic delays, and slow tendering processes. Any disruption in public spending or change in political priorities could materially impact Vikran’s revenue flow.
- Margin Sustainability: Vikran currently enjoys healthy EBITDA margins of around 17.5%, but maintaining these margins is challenging. Rising commodity costs (steel, cement, copper) and labour inflation could erode profitability if project contracts lack cost-escalation clauses.
#6 Shareholding Pattern & Prominent Investors
The shareholding structure highlights both strong promoter control and marquee external investors.
- Promoters:
- Rakesh Ashok Markhedkar – 59.02%
- Vipul Markhedkar – 7.24%
- Nakul Markhedkar – 7.24%
- Kanchan Markhedkar – 7.24%
Together, the Markhedkar family holds over 80% stake, ensuring strong promoter commitment and alignment.
- Prominent External Shareholders:
- India Inflection Opportunity Fund – 5.82%
- Ashish Kacholia – 2.14%
- Everest Finance & Investment – 2.14%
- Mukul Agrawal – 1.48%
The entry of Kacholia and Agrawal is particularly noteworthy. Both investors have a history of identifying scalable businesses in infrastructure, manufacturing, and financial services. Their presence is not just symbolic; it signals confidence in Vikran’s long-term prospects and acts as a trust-building factor for retail investors.
#7. Vikran Engineering IPO Review: Where Will the Money Go?
The company intends to raise INR 772 crore, of which INR 721 crore is a fresh issue and the rest is an Offer for Sale.
- INR 541 crore will go toward working capital requirements — a critical need in EPC businesses. This infusion should help smoothen execution and reduce dependency on high-cost borrowings.
- The balance will be used for general corporate purposes
Final Words
The Vikran Engineering IPO review reveals more than just financials — it showcases how a fast-growing EPC player is positioning itself at the intersection of India’s power, water, and infrastructure boom. With a healthy order book, expanding project portfolio, and proven execution skills, the company stands to benefit from the country’s massive infra push.
The confidence of ace investors like Ashish Kacholia and Mukul Agrawal adds an extra layer of credibility, signalling that seasoned eyes see long-term value here.
In essence, the Vikran Engineering IPO is the best bargain, not an overhyped gamble. It is a bet on India’s infrastructure story and the company’s ability to deliver consistently.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
Very comprehensively analysed to give a clear vision ahead.
Reviews sre convinced.