Pune-based construction company Vascon Engineers Ltd has secured a significant contract worth ₹131.58 crore from Reliance Industries Limited for construction works at its Jamnagar expansion project. According to reports from CNBC TV18, the order is for the construction of four G+12 FLL-type buildings for Sector-3 at the RG Expansion Project, Jamnagar. The contract has been awarded on a Bill of Quantities (BOQ) basis and is domestic in nature, with completion scheduled within 19 months from the date of receipt of the order.
Despite securing the major contract, Vascon Engineers reported challenging quarterly results for Q4FY26. As reported by CNBC TV18, the company's revenue declined 32% year-on-year to ₹259 crore, compared to ₹385 crore in the same period last year. Operating performance remained under pressure, with EBITDA falling 61% to ₹16 crore from ₹42 crore a year earlier. EBITDA margins narrowed significantly to 6% from 11% in the corresponding quarter last year. Net profit dropped sharply by 83% to ₹6 crore, compared to ₹34 crore in Q4FY25, with the company noting that the year-ago quarter had benefited from an exceptional gain of ₹75 crore.
Despite the weak quarterly performance, Vascon Engineers maintains a robust order book position. According to CNBC TV18, the company reported a total order book of ₹2,717 crore. External EPC orders accounted for ₹2,387 crore of the total order pipeline, while EPC project inflows during FY26 stood at ₹762 crore. This substantial order book provides visibility for future revenue generation and demonstrates the company's continued ability to secure major construction projects despite current operational challenges.
The market responded negatively to the mixed news, with Vascon Engineers shares ending at ₹33.32, down by ₹1.75, or 4.99% on the BSE. As reported by CNBC TV18, this decline reflects investor concerns over the company's quarterly performance despite the significant contract win from Reliance Industries. The market reaction highlights the current challenges facing the construction sector and investor expectations for improved operational performance.
