Vikran Engineering Limited has voluntarily withdrawn its credit rating from CARE Ratings Limited, marking the end of its formal credit assessment process for bank facilities.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.

Vikran Engineering shares surged 9.50% to touch ₹110.35 on Monday following the company's announcement of securing Letters of Award (LOAs) for solar power projects with 45.75 MW AC capacity in Madhya Pradesh. The company has achieved a significant milestone with its order book reaching ₹5,000.00 crore and expects to begin FY26 with an order book ranging from ₹5,500.00 to ₹5,700.00 crore.

Solar Project Win Details

The projects have been granted under the PM KUSUM-C scheme by M.P. Urja Vikas Nigam Limited and will be implemented in Vidisha district for supplying power to Madhya Pradesh Power Management Company Limited (MPPMCL). These solar power plants will be developed under the Surya Mitra Krishi Feeders Scheme, a feeder solarisation initiative supported by the Ministry of New and Renewable Energy.

Stock Performance

The stock has demonstrated strong momentum with impressive gains across multiple timeframes. Over the past week, Vikran Engineering shares have rallied 17.93%, while the two-week performance shows a gain of 14.61%, reflecting sustained buying interest and robust short-term uptrend.

Order Book Growth Trajectory

The company's current order book has reached ₹5,000.00 crore, driven by increased requests for solar transmission and distribution projects. According to projections, Vikran Engineering expects to begin FY26 with an order book ranging from ₹5,500.00 to ₹5,700.00 crore, representing potential growth of 10.00% to 14.00%.

Strategic Market Position

Vikran Engineering will serve as the Renewable Power Generator (RPG) for these grid-connected solar PV-based plants. The company noted that the LOAs were issued by a domestic government entity and the contracts are not classified as related party transactions. This award further enhances the company's presence in decentralised and utility-scale solar projects, particularly those linked to national renewable energy programmes such as agricultural feeder solarisation, positioning it favorably in India's expanding clean energy infrastructure development space.