Vikran Engineering’s share price surged over 15% to ₹99.96 on 24 December 2025 after it announced a Rs 2,035-crore solar EPC order from Onix Renewables. For investors tracking renewable energy and small-cap infrastructure stocks, this move highlights growing momentum in India’s solar EPC sector.
This article explains the order details, financial performance, growth outlook, and potential risks for investors evaluating Vikran Engineering.
Table of Contents
- Overview of Vikran Engineering’s Solar Order
- Vikran Engineering Company Profile & Business Segments
- Vikran Engineering Financial Performance & Ratios
- Vikran Engineering Share Price & Valuation
- Market Outlook and Growth Opportunities
- Investor Risks and Challenges
- Frequently Asked Questions (FAQs)
Vikran Engineering Limited has secured a ₹2,035.26-crore turnkey EPC contract (₹2,216 crore including GST) from Onix Renewables for developing 600 MW AC solar power projects across Maharashtra.
Key project highlights:
-
Scope includes design, engineering, procurement, supply, erection, testing, and commissioning of solar PV modules and inverters.
-
The project is scheduled for completion within 12 months.
-
With this deal, Vikran’s order book surpasses ₹4,000 crore, nearly double its FY25 revenue.
Chairman Rakesh Markhedkar stated that the contract aligns with India’s clean energy mission and strengthens Vikran’s renewable portfolio alongside its power transmission and water infrastructure segments.
This development is significant for investors exploring opportunities in renewable EPC companies with an increasing solar focus.
Founded in 2008 and headquartered in Thane, Maharashtra, Vikran Engineering specialises in engineering, procurement, and construction (EPC) services across:
- Power transmission and distribution (up to 765kV)
- Substations and water infrastructure
- Railway electrification and solar EPC projects
Key Corporate Facts:
- Workforce: 109 employees
- Presence: Operating in over 14 Indian states
- Client mix: 61.7% government, 18.4% PSU, 19.9% private sector
- Landmark clients: NTPC, PGCIL, and state electricity boards
- IPO listed in September 2025 at ₹97/share
The company’s strategic shift towards renewable energy signals its ambition to diversify revenue streams and improve profitability margins.
Vikran Engineering has demonstrated consistent revenue growth.
FY25 Financial Highlights:
- Revenue: ₹9,159 million (up 16.5% YoY)
- Net income: ₹778 million (8.5% net margin)
- Earnings per share (EPS): ₹4.35
- Return on Equity (ROE): 16.6%
- Return on Capital Employed (ROCE): 23.3%
Q2 FY26 Highlights:
/content-assets/2782fcd8478a4ff0805a4044b5157c7c.png)
- Revenue: ₹179 crore (12% QoQ growth)
- EBITDA: ₹28 crore
- Credit rating: Upgraded to IVR A-/Stable, indicating stronger liquidity
However, free cash flow stood at ₹-1,317 million due to high working capital needs, reflecting liquidity challenges typical in EPC businesses.
Following the contract win, Vikran Engineering shares are trading around ₹106, up approximately 15%.
/content-assets/22cb8745a46a40ccaf647f5040f659f8.png)
Stock Metrics (as of December 2025):
| Metric |
Value |
| Current Price |
₹106 |
| 52-Week High/Low |
₹116.64 / ₹91.70 |
| Market Capitalisation |
₹2,837 crore |
| PE Ratio |
33x |
| PB Ratio |
6.21x |
| Promoter Holding |
56.2% |
| FII Holding |
4.0% |
| DII Holding |
9.0% |
| Retail Holding |
26.0% |
Analysts have maintained a “BUY” outlook, reflecting optimism over order inflows and project diversification, although valuations have turned moderately expensive.
To assess how the recent solar EPC order has reflected in market pricing, check the Vikran Engineering share price, updated charts, and key valuation ratios.
The Rs 2,035-crore Onix Renewables order significantly strengthens Vikran’s renewable energy profile. With a growing order book exceeding ₹4,000 crore and a project pipeline of ₹3,000-₹4,000 crore, the company is well positioned to benefit from:
- India’s expanding solar power capacity addition target is 280 GW by 2030.
- Increasing number of solar EPC tenders across states.
- Government focus on integrating transmission, water, and renewable segments.
Vikran’s ability to scale efficiently will determine whether it can transition from a small-cap EPC player to a mid-cap renewable engineering company.
Want to see how Vikran Engineering compares with other listed EPC peers benefiting from infrastructure and renewable spending? Check the Construction sector stocks to review company-wise performance, valuation metrics, and sector trends.
Despite strong order inflows, investors must weigh execution and financial risks.
Key risks to monitor:
- Heavy dependence (62%) on government contracts leading to tender delays and policy risks.
- High receivable days (253) and working capital cycle (149 days) limiting liquidity.
- Execution challenges for large-scale solar projects across multiple sites.
- Competition from established renewable EPC players.
- Historical integrity breach in railway tender raises compliance vigilance needs.
While valuation multiples trail peers like Techno Electric, Vikran’s solar order book expansion adds upside potential if execution remains timely.
There’s an insightful video by NDTV Profit that examines Vikran Engineering’s order pipeline and how larger contracts could shape its future performance — you should watch it for business-level clarity.
1. Why did Vikran Engineering’s share price rise by 15%?
The stock surged after the company secured a Rs 2,035-crore solar EPC order from Onix Renewables, which nearly equals its market capitalisation and expands its order book to over ₹4,000 crore.
2. What does this order mean for Vikran’s business outlook?
The project enhances revenue visibility in the renewable energy segment and supports diversified growth beyond power transmission.
3. Is Vikran Engineering a good investment now?
Analysts maintain a bullish medium-term view due to the order pipeline and improved credit outlook, but investors should monitor liquidity constraints and execution risks.
4. What are the key financial strengths and weaknesses of Vikran Engineering?
Strengths include rising revenue, high ROE, and diversified clients. Weaknesses involve high working capital, limited cash flow, and project execution risks.
5. Who are Vikran Engineering’s major clients?
Key clients include NTPC, Power Grid Corporation, and multiple state utilities, accounting for over 60% of its government-linked business.