Vascon Engineers has received a Letter of Intent valued at ₹131.58 crore (excluding GST) from Reliance Industries Limited for the construction of 04 Nos G+12 FLL Type Buildings for Sector-3 at the RG Expansion Project in Jamnagar. The work has been awarded on a Bill of Quantities (BOQ) basis and is to be completed within 19 months from the date of receipt of order.

Order Details

The key details of the contract are summarised below:

Significance of the Contract

The ₹131.58 crore deal with Reliance Industries Limited highlights Vascon Engineers' ability to secure high-value contracts from marquee clients. The project involves the construction of multi-storey residential-type buildings at the RG Expansion Project in Jamnagar, reflecting the company's capabilities in large-scale construction. This order is expected to contribute meaningfully to the company's order book, reinforcing its position in the construction and engineering sector. The company has also confirmed that the contract does not fall under related party transactions and that no promoter or promoter group has any interest in the awarding entity.

Vascon Engineers Limited convened a Board of Directors meeting on May 11, 2026, at its Pune registered office, approving audited financial results for the quarter and year ended March 31, 2026, along with a comprehensive reconstitution of its board and committees. The company subsequently released an investor presentation on May 12, 2026, providing a detailed overview of its financial performance, order book, working capital position, and real estate pipeline. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company also submitted newspaper clippings confirming publication of its audited financial results in the Financial Express (English Edition) and Loksatta (Marathi Edition) on May 12, 2026. Further, pursuant to Regulation 46(2)(oa)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company disclosed the audio recording of its Analyst Meet with Investors/Analysts held on May 13, 2026, covering the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The audio recording is available on the company's website at www.vascon.com/investors/quarterly-financials-presentations .

Financial Performance: FY26 Results

The board approved the Audited Financial Statements — both Standalone and Consolidated — for the fourth quarter and full financial year ended March 31, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed and recommended by the Audit Committee prior to board approval.

The following table summarises the key standalone and consolidated financial metrics:

The investor presentation further provides a quarterly breakdown of P&L highlights. Key figures from the presentation are as follows:

Segment Performance

The company operates across two primary business segments — Engineering, Procurement and Construction (EPC) and Real Estate Development. The EPC segment remained the dominant revenue contributor for FY26.

On the segment results front, the EPC segment reported standalone results of Rs. 12,198 Lakhs for FY26 versus Rs. 13,966 Lakhs in FY25, while Real Estate Development reported Rs. 316 Lakhs against Rs. 977 Lakhs in the prior year. The investor presentation's segmental P&L (after allocation) further details the FY26 performance:

Balance Sheet Highlights

As at March 31, 2026, standalone total assets stood at Rs. 2,33,848 Lakhs, up from Rs. 2,12,551 Lakhs as at March 31, 2025. Consolidated total assets were Rs. 2,36,123 Lakhs compared to Rs. 2,12,845 Lakhs in the prior year. Standalone equity attributable to owners of the company was Rs. 1,14,817 Lakhs as at March 31, 2026, versus Rs. 1,09,252 Lakhs as at March 31, 2025. The consolidated balance sheet from the investor presentation is summarised below:

Debt Position and Working Capital

As on March 31, 2026, the company's total debt stood at Rs. 298.60 Cr, compared to Rs. 201.90 Cr as on March 31, 2025 and Rs. 174.68 Cr as on March 31, 2024. Net debt as on March 31, 2026 was Rs. 91.41 Cr, against Rs. 16.62 Cr as on March 31, 2025. Total cash and bank balance (including fixed deposits) stood at Rs. 207.19 Cr as on March 31, 2026, with lien FDs of Rs. 155.30 Cr.

The company's working capital position as presented is as follows:

The company noted that the un-utilised working capital limit supports Rs 3,000 Cr of additional orders, backed by a strong pipeline. Lender-led collateral optimisation has also unlocked incremental working capital without additional security.

EPC Business and Order Book

The EPC segment currently executes approximately 3.7 msft per annum, operating at 90% utilisation, with a project and engineering team of 500+ personnel. The total EPC business order book stands at Rs. 2,717 Cr, comprising an external order book of Rs. 2,387 Cr and an internal order book of Rs. 330 Cr. Key external orders include a Government Medical College at Sindhudurg, Maharashtra (Rs. 279 Cr), Medical Colleges at Suphal, Bihar (Rs. 275 Cr), Navi Mumbai Hospital NMMC (Rs. 219 Cr), Hospital Building at Moshi, Pimpri Chinchwad (Rs. 216 Cr), and Pune Police Staff Quarters (Rs. 214 Cr), among others. For FY27, the company is targeting new EPC orders of Rs 1,500–2,000 Cr.

Real Estate Business and Pipeline

The company's ongoing real estate projects span a total project area of 0.78 msft (Vascon share: 0.65 msft), with total sales of Rs. 331 Cr, collections of Rs. 250 Cr, and revenue recognised of Rs. 126 Cr across four active projects. The near-term launch pipeline covers a Vascon share saleable area of 0.82 msft with an expected sales value of Rs. 1,110 Cr, as detailed below:

Additionally, other pipeline projects (Kalyani Nagar — Commercial and Residential, both JDA) represent a combined Vascon saleable area of 0.80 msft and an expected sales value of Rs. 880 Cr. The company is also focused on realigning debt funding for the Real Estate segment in a cost-efficient manner and expediting completion of ongoing projects.

Key Notes and Disclosures

Several notable disclosures accompanied the financial results:

• Investment Sale: In the quarter ended June 2025, the company entered into a Share Purchase Agreement with M/s. Samhi Hotels Limited to sell its investment in optionally convertible redeemable debentures (Nos. 67,26,394) of Ascent Hotels Private Limited, converted into equity shares in the ratio of 1:1, for a consideration of Rs. 45 Crs. The profit from the sale of investment is Rs. 17.50 Crores (net of cost of investment and other direct expenses).
• Almet Corporation Limited Dispute: The company's Share Transfer Agreement for divesting its entire shareholding in Almet Corporation Limited, dated March 31, 2025, has been placed in abeyance due to a dispute among the partners of Ramanuj Venture. The matter is subjudice and under review. The company has ceased to consolidate Almet Corporation Limited from the date control was relinquished, in accordance with Ind AS 110.
• Labour Code Impact: Following the Government of India's notification of four Labour Codes on November 21, 2025, the company recognised an incremental past service cost impact of Rs. 59.02 Lakhs as an employee benefit expense in the current reporting period, in accordance with Ind AS 19.
• New Subsidiary: During the quarter ended March 2026, the company acquired 100% stake in Kanchi Properties Private Limited, which became a wholly owned subsidiary effective March 31, 2026. Pre-acquisition reserves of Rs. 33.45 Lakhs have been recognised as Capital Reserve in the Consolidated Financial Statements in accordance with Ind AS 103.

Board Reconstitution and Leadership Changes

The board meeting also approved a series of significant changes to the company's leadership and board composition, effective primarily from May 15, 2026:

Consequent to the change in board composition, all board committees were reconstituted effective May 15, 2026. Mr. S. Balasubramanian was designated as Chairman of the Audit Committee, while Ms. Tara Subramaniam was appointed Chairperson of the Nomination and Remuneration Committee. The Stakeholders Relationship Committee will be chaired by Ms. Sowmya Iyer, and the Corporate Social Responsibility Committee will be chaired by Mr. Siddharth Vasudevan Moorthy.

The audited financial results were certified by Sharp & Tannan Associates, Chartered Accountants (Firm Registration No. 109983W), with an unmodified audit opinion issued on May 11, 2026. The board meeting commenced at 2:00 PM and concluded at 4:00 PM.