Vikran Engineering has entered into a significant loan agreement worth ₹491.5 million with Onix Renewable, marking a major financial transaction for the renewable energy company.

Loan Agreement Details

The financial arrangement between Vikran Engineering and Onix Renewable represents a substantial commitment, with the loan value reaching ₹491.5 million. This agreement establishes a formal lending relationship between the two entities.

Strategic Implications

This loan agreement positions Onix Renewable to access significant capital resources through its partnership with Vikran Engineering. The substantial funding amount suggests potential strategic initiatives, project development, or operational requirements that necessitate this level of financial support.

The transaction highlights Vikran Engineering's leadership role in providing financial support within the renewable energy sector. Such financial arrangements often facilitate business expansion, infrastructure development, or operational enhancement initiatives.

Vikran Engineering Limited has voluntarily withdrawn its credit rating from CARE Ratings Limited, marking the end of its formal credit assessment process for bank facilities. The withdrawal was completed on January 28, 2026, following the company's request and approval from its lenders.

Credit Rating Withdrawal Details

The rating agency withdrew all outstanding ratings for the company's bank facilities after receiving a formal request from Vikran Engineering Limited along with a no-objection certificate from the lenders. Prior to withdrawal, the facilities were rated under the 'Issuer Not Cooperating' category.

The withdrawal was executed in accordance with CARE's policy on withdrawal of ratings, as announced in their press release dated January 28, 2026.

Company's Financial Position

Despite the rating withdrawal, CARE Ratings' final assessment highlighted both strengths and challenges in the company's operations. The company reported improved financial performance in recent periods.

Order Book and Business Diversification

The company maintains a robust order book worth ₹2,412 crore, providing revenue visibility of 2.63 times its total operating income for FY25. The order book demonstrates strong diversification across sectors and geographies.

Geographically, the order book spans multiple states with concentration in Uttar Pradesh (29.02%), Madhya Pradesh (22.63%), Karnataka (11.67%), and Andhra Pradesh (11.07%).

Operational Challenges

The rating agency had noted certain operational constraints before the withdrawal. The company faced stretched working capital cycles, with gross current asset days increasing to 517 days in FY25 from 430 days in FY24. The average maximum utilization of fund-based and non-fund-based limits remained high at 97.54% and 83.3% respectively in the 12 months ended June 2025.

Cash flow from operations remained negative at ₹147.79 crore in FY25, compared to ₹57.81 crore negative in FY24. The company's unencumbered cash and cash equivalents stood at approximately ₹2.50 crore at FY25.

Business Operations

Vikran Engineering Limited, incorporated in 2008, operates in the power transmission and distribution sector, executing projects up to 400 kV voltage level on an engineering, procurement, and construction basis. The company has diversified into water infrastructure and railway segments, offering comprehensive solutions including civil works, track laying, overhead electrification, and signaling systems. The company benefits from experienced management with over three decades of industry experience and maintains 44 orders in hand, with the top 10 orders constituting 71.80% of the total unexecuted order book.