Vikran Engineering Gets Credit Rating Upgrade from Infomerics

Vikran Engineering Limited has received a credit rating upgrade from Infomerics Valuation and Rating Limited. The upgrade covers multiple banking facilities totaling ₹460.40 crores, reflecting the company's improved operational performance and strengthened financial position.

Credit Rating Upgrade Details

Infomerics Valuation and Rating Limited has upgraded Vikran Engineering's credit ratings from IVR BBB+/Stable to IVR A-/Stable. The comprehensive upgrade demonstrates enhanced creditworthiness and operational improvements.

Facility Type	Amount (₹ Crores)	Previous Rating	Upgraded Rating
Long Term Bank Facilities	140.40	IVR BBB+/Stable	IVR A-/Stable
Long Term/Short Term Bank Facilities	280.00	IVR BBB+/Stable/IVR A2	IVR A-/Stable/IVR A2+
Short Term Bank Facilities	40.00	IVR A2	IVR A2+

Rating Rationale and Key Factors

The rating upgrade is attributed to several positive developments in the company's operational and financial metrics. Infomerics highlighted improved scale of operations as a primary driver, alongside substantial increases in the company's order book position.

The rating agency continues to derive comfort from multiple structural strengths:

Experienced promoters with established expertise in the same line of business
Comfortable capital structure supporting operational requirements
Strong financial risk profile with improved metrics
Geographical and sector diversification reducing concentration risks
Stable demand outlook for the industry segment

Regulatory Compliance and Documentation

The credit rating upgrade was communicated to stock exchanges under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The detailed rating rationale has been published on Infomerics Valuation and Rating Limited's official website for stakeholder reference.

This upgrade represents a significant milestone in Vikran Engineering's credit profile, potentially improving access to financing and reducing borrowing costs across its banking relationships.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.52%	+17.15%	-3.86%	+5.27%	+5.27%	+5.27%

Vikran Engineering shares jumped 14% after securing a substantial work order worth ₹2,035.26 crores from Onix Renewables Limited for solar plant development. The company officially announced this major contract, highlighting its growing presence in the renewable energy sector through a comprehensive press release filed under Regulation 30.

Project Overview and Contract Details

The contract involves the development of a 600 MW AC solar plant across multiple locations in the State of Maharashtra. This turnkey EPC (Engineering, Procurement, and Construction) project encompasses the complete spectrum of solar plant development activities, with execution expected within a 12-month timeline.

Parameter	Details
Order Value	₹2,035.26 crores (excluding GST)
Total Value	₹2,216.40 crores (including all taxes and GST)
Project Capacity	600 MW AC
Location	Multiple sites in Maharashtra
Execution Timeline	12 months
Client	Onix Renewables Limited (SPV)

Management Commentary

Rakesh Markhedkar, Chairman and Managing Director of Vikran Engineering Limited, expressed confidence about the project's significance. He stated that this order marks an important milestone for the company and reflects strong momentum in their renewable energy EPC business. The management views this as a clear vote of confidence in their engineering depth, project management capabilities, and ability to deliver large-scale solar projects.

Company Profile and Current Market Position

Vikran Engineering Limited operates as a diversified EPC player with expertise across Power Transmission & Distribution, Water Infrastructure, and Railway Electrification, supported by capabilities in Solar EPC and Smart Metering. The company provides end-to-end turnkey solutions spanning conceptualization, design, supply, installation, testing, and commissioning.

Company Highlights	Details
Market Cap	₹2,237.00 crores
Sector	Capital Goods - Electrical Equipment
Classification	Small Cap
Projects Completed	45 projects across 14 states
Vendor Network	3,500+ vendors
Business Model	Asset-light with in-house design expertise

Scope of Work

The project involves a comprehensive turnkey EPC solution covering design and engineering services, procurement of all necessary equipment and materials, supply chain management, complete installation services, erection, testing, and commissioning activities, and supply of solar PV modules and inverters.

Strategic Significance and Market Impact

This substantial order represents a significant milestone for Vikran Engineering in the renewable energy sector. The ₹2,035.26 crore contract value is notable when compared to the company's current market capitalization of ₹2,237.00 crores, indicating the substantial scale of this project relative to the company's size. The company has completed projects with clients including NTPC, Power Grid Corporation of India, state utilities, and public health departments, demonstrating its track record in large-scale infrastructure development.

The market responded positively to this development, with Vikran Engineering shares surging 14% following the announcement of the order win from Onix Renewables.