Vascon Engineers Ltd. has experienced a significant downturn in 2025, with its stock price plummeting over 35% this year and falling 58% from its 52-week high of Rs 83.90 last July.
Vascon Engineers Ltd. has experienced a significant downturn in 2025, with its stock price plummeting over 35% this year and falling 58% from its 52-week high of Rs 83.90 last July.
Shares of Vascon closed 0.99% higher at Rs 34.37 apiece on the National Stock Exchange last Thursday, compared to a 0.33% decline in the benchmark Nifty.
Amid volatility in broader markets, especially with steep corrections in the mid-cap and small-cap stocks, here are the company-specific financial and operational metrics of the business.
Revised Revenue Guidance
Vascon divested its stake in subsidiary GMP Technical Solutions to Shinryo Corp. for Rs 155–157 crore in July 2024. Initially, the management was optimistic on exceeding the last financial year's revenue despite divesting its stake in the subsidiary, which contributed to Rs 270 crore last fiscal.
Now, it plans to match the fiscal 2024 revenue of Rs 1,000–1,050 crore in the current fiscal. In the next fiscal, the company has guided for a revenue guidance of Rs 1,200 crore.
Higher Order-Inflow Hope
In the first nine months of the current fiscal, the order book stood at Rs 3,179 crore as against a revenue of Rs 1,026 crore. Taking the last four quarters and the guidance given by the company into consideration, it leads to a book/bill ratio of 3.1 times, showing medium-term visibility for the business.
Vascon has guided for Rs 1,000-crore order inflow guidance, out of which it has secured Rs 500 crore so far.
QIP Plans On Hold
The qualified institutional placement, initially slated for board approval in the first quarter, has been put on hold since the second quarter due to unfavourable market conditions and dilution at prevailing prices.
Instead, the company was eyeing to raise Rs 125 crore through debt. As of the first half of the fiscal, the gross debt is at Rs 233 crore as compared to Rs 152 crore in the last fiscal.
Another important aspect is also the shareholding. Of the 30.9% stake held by the promoters, 29.7% shares are pledged as of December 2024, according to data.
Real-Estate Business
The real-estate business contributed to 4% of the revenue in the first nine months of the current fiscal, a sharp drop from 9.5% in the last fiscal and 7.2% in fiscal 2023 due to lower recognition on account of the project completion method that the company follows.
As a consequence, the real-estate margin fluctuated on a year-on-year basis, while the engineering, procurement and construction business margin remained stable at 10% levels.
The company's latest foray is in the Mumbai market for redevelopment projects under 2 lakh sq ft and aims to increase its focus in markets like Mumbai and Pune. However, one setback for the segment was the Supreme Court's stay order on crucial environment clearances, effectively halting progress on key projects like the Powai project.
The management remained optimistic, projecting that once the environmental clearances were obtained, the company can unlock Rs 250–300 crore in revenue, signalling the potential for a strong rebound in this sector.
The company expects to receive a couple of occupancy certificates next year and see higher blended margins in the fourth quarter of fiscal 2026.
Outlook
Vascon has a strong order book and is focussing on the EPC sector. The management has guided for a 20% annual growth in the EPC business over the next three–four years.
The company has set a target of achieving Rs 1,500 crore in revenue within the next three–five years.
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