Pune-based construction company Vascon Engineers has received a confirmed work order worth ₹126.39 crore, excluding GST, from the Executive Engineer, Public Works Department, Arvi Division, Wardha-Nagpur, Maharashtra. According to latest reports, the order is for the development of a 300-bed general hospital at Wardha-Nagpur, Maharashtra. The work has been awarded on an Item Rate Basis (a pricing model where payment is made based on actual quantities of materials and labor used against pre-agreed rates) and is scheduled to be completed within 24 months from the date of receipt of the order. The ₹126.39 crore order represents approximately 56% of the company's average quarterly revenue of ₹224.82 crore, providing strong near-term revenue visibility.
As reported by multiple sources, the order has been awarded by a domestic entity and falls under the domestic business category. Vascon Engineers confirmed that none of its promoter or promoter group members has any interest in the entity awarding the work. The company also stated that the project does not fall under the ambit of related-party transactions, ensuring transparency in the award process. With this latest addition, the total disclosed order book stands at ₹742.17 crore across 4 orders, providing coverage for 3.30 quarters of average quarterly revenue. This backlog diversifies the client base beyond recent reliance on large private sector contracts, with the addition of a domestic government infrastructure project.
This latest award follows the company's earlier announcement on June 10 regarding a ₹347.43 crore Letter of Intent from the Central Public Works Department, Guwahati Division, for demolition and redevelopment of RBI Quarters at Zoo-Narengi Road Colony in Guwahati, Assam. The company had previously informed that this project involves demolition and redevelopment of RBI Quarters at Zoo-Narengi Road Colony, Guwahati, Assam. The current hospital order value of ₹126.39 crore is consistent with the mid-range size of recent wins, though smaller than the ₹347.43 crore CPWD contract secured earlier in the fiscal year.
Despite securing the new hospital project, Vascon Engineers shares declined 2.87% to close at ₹31.17 on the BSE following the latest developments. The company reported challenging financial performance in Q4 FY26, with consolidated net profit declining 83.54% to ₹5.72 crore compared to ₹34.77 crore in Q4 FY25. Net sales tumbled 34.61% year-on-year to ₹253.08 crore in Q4 FY26, reflecting the impact of execution challenges on revenue conversion. The company's annual revenue has declined from ₹1,089.90 crore in FY25 to ₹983.70 crore in FY26, representing a YoY growth of -9.7%. Order inflow velocity has also decelerated significantly, with Q2FY27 inflow dropping to ₹131.58 crore from robust Q1FY27 inflows of ₹610.59 crore.
