Vascon Engineers Limited , a prominent player in the construction and real estate sector, has reported strong financial results for the first half of fiscal year 2026 (H1 FY26) and provided guidance for future growth. The company's performance highlights its resilience and growth potential in a competitive market.

Financial Highlights and Growth Targets

Vascon Engineers showcased impressive growth in H1 FY26:

The company's revenue growth of 12.75% year-over-year demonstrates its strong market position and execution capabilities.

Vascon Engineers has provided guidance for 20% annual growth in EPC revenue and profit before tax. This target is supported by the company's robust order book and strategic partnerships.

Robust Order Book and New Order Targets

Vascon Engineers maintains an order book of Rs 2,800 crores, providing visibility for future growth:

• External EPC Orders: Rs 2,411 crores
• Internal Orders: Rs 389 crores

Notably, 74% of the order book comprises government projects, which may offer execution visibility and predictable cash flows.

The company is targeting Rs 1,500-2,000 crore in new EPC orders for FY26. Recently, Vascon Engineers secured new orders worth Rs 386 crores from Royal Rides Private Limited and Saudamini Building MSEB HCL.

Strategic Developments

Vascon Engineers has entered into a Memorandum of Understanding with Adani Group as an execution partner, potentially opening up new avenues for growth. This partnership could contribute to the company's growth targets.

The company is also undergoing a de-pledge process for promoter shares, with approval received from SBI, which may improve investor confidence.

Financial Position and Working Capital

As of September 30, 2025, Vascon Engineers reported a net debt of Rs 54 crores. The company has stated that it has working capital support to handle Rs 3,000 crore in additional orders, providing a foundation for its growth plans.

Real Estate Segment Performance

The real estate segment of Vascon Engineers showed the following results in H1 FY26:

• New sales bookings: 64,541 sq.ft.
• Sales value: Rs 74 crores
• Total collections: Rs 88 crores

Vascon Engineers is focusing on real estate debt optimization and faster project completion to improve margins in this segment.

Outlook

With its order book, strategic partnerships, and focus on operational efficiency, Vascon Engineers appears positioned to pursue its targeted 20% annual growth. The company's approach to both EPC and real estate segments, along with its emphasis on government projects, may provide a foundation for future growth in the construction and real estate sectors.

Vascon Engineers Limited , a prominent player in the engineering and construction sector, has released its unaudited financial results for the quarter and half-year ended September 30, 2025, showcasing revenue growth amid ongoing divestment issues.

Financial Performance

The company, which operates in two segments: Engineering, Procurement and Construction (EPC) and Real Estate Development, reported the following key financial metrics:

Despite the modest increase in net profit and EBITDA, the company experienced a slight contraction in its EBITDA margin.

Corporate Developments

Divestment Dispute

The company disclosed a significant development regarding its divestment plans. Vascon Engineers had entered into a Share Transfer Agreement dated March 31, 2025, to divest its entire shareholding in Almet Corporation Limited. However, due to a dispute among transferees, this agreement has been kept in abeyance and is currently under review.

Previous Divestment

Prior to this, Vascon Engineers had successfully sold its investment in optionally convertible redeemable debentures of Ascent Hotels Private Limited for ₹45 crores, generating a profit of ₹17.50 crores.

Audit and Review

The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors. The company's auditors issued an unmodified limited review report but highlighted an emphasis of matter regarding the ongoing divestment issue with Almet Corporation Limited.

Outlook

While Vascon Engineers continues to show revenue growth, the company faces challenges in its divestment strategies. The ongoing dispute regarding the Almet Corporation Limited shareholding transfer could potentially impact future financial planning and corporate restructuring efforts.

Investors and market observers will likely keep a close watch on how Vascon Engineers navigates these corporate challenges while maintaining its operational performance in the coming quarters.

Note: All financial figures are in Indian Rupees (₹) unless otherwise stated.