1. At a Glance
Let’s start with the fun part — numbers that make builders blush and auditors sigh. Vascon Engineers Ltd, the Pune-based construction maverick that’s been around since 1986, has decided to look young again. As of November 2025, the stock trades at₹59, with amarket cap of ₹1,334 croreand aP/E ratio of 16.3x. Sales for the latest quarter came in at₹226 crore, up12.9% YoY, while profit after tax touched₹11.4 crore, a solid43.6% jump YoY.
The company’s return on capital employed (ROCE) stands at7.76%, and its return on equity (ROE) is6.59%— modest numbers that say, “we’re not flashy, but we’re alive.” Debt is a manageable₹275 crore, translating into aDebt-to-Equity of 0.24x. And that promoter pledge? A spicy27.7%, because what’s a desi realty stock without a little drama.
So yes, Vascon has traded stability for ambition, selling subsidiaries, tying up with Adani, and pulling in government EPC orders faster than bureaucrats can print tenders. Let’s dig into how this midcap veteran is suddenly acting like it has a 25-year-old CEO with startup energy.
2. Introduction
Once upon a time, Vascon Engineers was the go-to name for reliable construction in Pune — a steady company building campuses, offices, and hospitals while quietly staying out of gossip columns. Then, one fine day, it decided: “Bhai, safe khel ke kya fayda?”
Suddenly, it’s all action —Rs. 3,365 crore order book, partnerships withAdani, and even aredevelopment project in Mumbai. The company that built theIGI Airport multi-level car parkandSymbiosis Collegeis now talking about medical colleges, IT parks, and luxury homes.
Earnings are growing — FY25 saw a71% profit growth, and the trailing twelve-month sales are up35%. For a company that once spent half its life in EPC contracts and the other half waiting for client payments, this feels like Vascon 2.0: fitter, faster, and apparently ready for a QIP of₹125 croreto fund its next construction binge.
But as every Indian investor knows, real estate and EPC companies are like Bollywood marriages — exciting, unpredictable, and occasionally lit by a scandalous sale (see: their 2024 offload ofGMP Technical Solutionsto Japan’s Shinryo Corporation for₹157 crore).
Let’s see if this makeover is real progress or just a builder’s “repainting” job.
3. Business Model – WTF Do They Even Do?
In one line: Vascon builds everything, from government hospitals to private towers, and occasionally sells the family silver to pay for the next project.
The business is split into two core verticals:
1. EPC Segment– Started in 1998, this is Vascon’s bread and butter. Think government contracts:medical colleges in UP and Bihar,metro sheds,police housing, andairport terminals. Around85%of EPC orders come from government clients, giving them both revenue stability and sleepless nights (because who knows when the cheque clears).
2. Real Estate Segment– This is where Vascon plays the long game. FromForest EdgetoWindermere,Goodlife, andTower of Ascend, these projects are spread across Pune, Coimbatore, and beyond. The real estate division contributed about4%to FY24 revenue but provides the brand value and margin kick.
There’s also a smallerManufacturing & BMSvertical, making up28%of revenue — likely the remnants of their now-sold GMP Technical unit.
In FY24, Vascon clocked anEPC order book worth ₹1,800 crore— itshighest ever— including juicy contracts like₹514 crore from Bihar Medical Servicesand₹416 crore from Capgemini for a Chennai IT
park.
So, in short: they build stuff, sell stuff, sometimes sell the companies that build stuff, and keep collecting government tenders like Pokémon cards.
4. Financials Overview
| Metric (₹ crore) | Sep Q2FY26 (Latest) | Sep Q2FY25 (YoY) | Jun Q1FY26 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 226 | 200 | 221 | 12.9% | 2.3% |
| EBITDA | 16 | 14 | 13 | 14.3% | 23.1% |
| PAT | 11.4 | 7.9 | 10.9 | 43.6% | 4.6% |
| EPS (₹) | 0.51 | 0.46 | 0.99 (annualized) | 10.9% | — |
Commentary:Revenue is growing steadily, but the real surprise is that PAT margin is holding above5%, despite real estate’s volatile nature. TheOther Incomespike last year (₹108 crore) remains an elephant in the balance sheet, but at least this quarter, the profits are from core operations. Annualized EPS of₹2.04translates into a reasonableP/E of 16.3x— not expensive by realty standards.
5. Valuation Discussion – Fair Value Range (Educational)
Let’s crunch numbers like good old auditors.
a) P/E Method:TTM EPS = ₹6.37Industry P/E = 38xIf we assume Vascon deserves a discount (because of lower ROE and government exposure), say15x–20x,Fair Value Range = ₹95 – ₹127 per share (educational purpose only).
b) EV/EBITDA Method:EV = ₹1,391 croreTTM EBITDA = ₹118 crore (FY25 base)EV/EBITDA = 11.7x currently.Industry range = 10–15x → suggests current valuation is fair to slightly rich.
c) DCF (Quick & Dirty):Assuming free cash flow of ₹10 crore (based on erratic history), growing at 10% for 5 years, discounted at 12%, terminal growth 3%, we get intrinsic value around₹55–₹80.
🧾Educational Fair Value Range: ₹55 – ₹120 per share.(Disclaimer: For educational purposes only, not investment advice.)
6. What’s Cooking – News, Triggers, Drama
Vascon’s newsroom looks like a soap opera directed by a CFO.
- Adani Partnership (Sept 2025):Vascon signed an MoU with the Adani Group as anexecution partnerforthree Mumbai projects spanning 13.15 million sq. ft.. The five-year partnership could increase turnover by 30%.
- Saudamini Redevelopment Project (Oct 2025):A₹161 croreLOI from MSEB Holding for the redevelopment of Mahalaxmi’s Saudamini complex.
- Luxury Project Launch (Mar 2025):A₹300 crorepremium residential launch in Mumbai — because no builder wants to skip the “luxury” tag.
- Subsidiary Sales:After
1 thought on “Vascon Engineers Ltd Q2FY26 – From IGI Airport Car Parks to Adani Partnerships: Pune’s Veteran Builder Is Suddenly Acting Like a Startup”
thabks