Vikran Engineering Limited , a prominent player in the engineering sector, has recently received a significant tax demand order from the Ayodhya tax authority. The company is now gearing up to challenge this order through legal channels.

Details of the Tax Demand

The Office of the Deputy Commissioner Sultanpur Sector-1, Ayodhya, Uttar Pradesh, has issued a demand order to Vikran Engineering under Section 74A(1) r/w 74A(5)(ii) of the CGST Act, 2017. The order, dated November 18, 2025, outlines the following financial implications:

The demand covers the period from April 2023 to March 2025, highlighting potential discrepancies in the company's tax filings and Input Tax Credit (ITC) claims during this timeframe.

Company's Response

Vikran Engineering has stated that it plans to file an appeal against this order based on advice from its tax consultants. The company maintains that it expects no financial implications from this demand, suggesting confidence in its position.

Disclosure and Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Vikran Engineering promptly disclosed this information to the stock exchanges on November 19, 2025. This transparency aligns with regulatory requirements and keeps shareholders informed of significant developments.

Looking Ahead

While the tax demand is substantial, Vikran Engineering's decision to appeal indicates its belief in a favorable resolution. Stakeholders will be watching closely as this situation unfolds, particularly regarding any potential impact on the company's financial position and operational strategies.

As the appeal process commences, it remains to be seen how this tax dispute will be resolved and what implications, if any, it may have for Vikran Engineering's future operations and financial planning.

Vikran Engineering Limited , a leading engineering, procurement, and construction (EPC) company, has reported a robust performance for the first half of fiscal year 2026, along with significant new order wins in the solar energy sector.

Financial Highlights

• Revenue for H1 FY26 stood at INR 176.00 crores, marking a 13.60% year-on-year growth.
• EBITDA margins showed improvement compared to the previous year.
• Profit After Tax (PAT) rose significantly to INR 14.80 crores from INR 6.30 crores in H1 FY25.

Major Order Wins

Vikran Engineering has secured two substantial solar EPC contracts totaling INR 1,997.00 crores:

1. A INR 355.00 crore project from Ellume Energy MH Solar One Private Limited for a 100 MW solar power project in Maharashtra.
2. A landmark INR 1,642.00 crore project from Carbonminus Maharashtra One Project Limited.

These orders mark Vikran's formal entry into the Solar EPC space and align with the company's strategy to diversify into renewable energy.

Order Book and Revenue Visibility

• The company's order book now exceeds INR 4,000.00 crores, providing strong revenue visibility across Power, Water, and Railway infrastructure segments.
• The current order book is expected to be executed within 18 months, offering clear revenue visibility for FY26 and FY27.

Segment-wise Performance

As of the latest data:

Management Commentary

Rakesh Markhedkar, Promoter, Chairman, and Managing Director, stated, "We are confident of sustaining our growth trajectory, backed by a robust order book, a favorable industry outlook, and our continuous focus on execution excellence."

Future Outlook

• The company aims to expand into infrastructure EPC projects within the private sector.
• Vikran is exploring opportunities in international markets, particularly in Africa and the Middle East.
• Plans to strengthen presence in the Water segment and pursue opportunities in emerging areas such as data centers and smart metering.

Financial Strategy

• The proceeds from the recent IPO are being strategically deployed to enhance working capital and expand operational capabilities.
• The company's credit rating has been upgraded to A- stable by India Ratings, reflecting consistent performance and financial prudence.

Vikran Engineering's strong order book, diversification into solar EPC, and focus on high-margin projects position it well for continued growth in the infrastructure and renewable energy sectors.