Q1 2027 Vascon Engineers Ltd Earnings Call Transcript
Key Points
- Secured a INR295 crores order from CPWD for the RBI Colony in Guwahati, strengthening its presence in large government-led infrastructure projects.
- Received an LOI worth INR126 crores from Maharashtra PWD for a 300-bedded hospital in Wardha, adding to its healthcare and government infrastructure portfolio.
- Total EPC order book stands at approximately INR2,850 crores, providing strong revenue visibility at about 3 times FY26 EPC revenue.
- Real estate bookings showed strong early traction, with INR66 crores in Q1 FY27, already surpassing the INR113 crores achieved in all of FY26.
- EPC EBITDA margin improved to 9% in Q1 FY27 from 8% in Q1 FY26, demonstrating healthy project-level profitability despite lower execution volumes.
- Strengthened banking relationships with total sanctioned limits of approximately INR760 crores, of which INR355 crores remains unutilized, providing financial flexibility.
- Strategic engagement with Adani Infra India Limited is expected to support future order inflows and strengthen the EPC order book over the medium term.
- Consolidated revenue from operations declined to INR152 crores in Q1 FY27 from INR221 crores in Q1 FY26, primarily due to lower EPC execution.
- Consolidated EBITDA fell to INR10 crores from INR34 crores in Q1 FY26, impacted by lower revenue and a one-time gain in the prior year.
- EPC execution was moderated by temporary cash flow constraints in two major government projects (Bihar Supaul and Sindhudurg), impacting revenue recognition.
- Net debt increased to approximately INR152 crores as of June 30, 2026, with working capital cycle stretching from 45 days to 65-70 days.
- The Royal Rides project in Goa remains stalled with no client feedback, and no revenue is expected from it in FY27.
- Real Estate segment reported an EBITDA loss of INR4 crores due to timing of project revenue recognition and associated costs.
- The Adani Infra projects are still in early stages, with construction unlikely to start within the next six months, delaying potential revenue.
Ladies and gentlemen, good day, and welcome to the Vascon Engineers Limited Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Akhilesh Gandhi from Stellar Investor Relations. Thank you, and over to you, Mr. Gandhi.
Thank you, Avirat. Good morning, everyone. I, Akhilesh Gandhi, on behalf of Stellar Investor Relations, welcome you all to the Vascon Engineers Q1 FY27 earnings conference call. We shall be sharing the key operating and financial highlights for the first quarter ended on June 30, 2026.
Today, we have senior management team of Vascon Engineers. We have Dr. Santosh Sundararajan, he's the Group CEO. Along with him, we have Mr. Raveesh Rao, he's the Chief Executive Officer for Real Estate. And along with him, we also have Mr. Somnath Biswas, he's the Chief Financial Officer.
Before we begin, I would like to state that this call may contain some of the forward
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