Vikran Engineering’s Board of Directors has authorised the issuing of corporate guarantees of up to Rs. 3,400 crore. The company stated in a regulatory filing that the guarantees were given to its fully owned subsidiaries to make it easier for them to obtain credit facilities from banks, financial institutions, and/or other lenders for the advancement and execution of their individual business operations and solar projects.
The Board of Vikran Engineering also gave the Corporate Affairs Committee permission to conclude the terms and conditions and execute the relevant agreements and other papers in relation to the proposed corporate guarantees during its meeting on Friday, July 10, 2026.
The Board of Directors has also approved the infusion of promoter contribution of up to Rs. 1,160 crore, in one or more tranches, into the company’s wholly owned subsidiaries to meet the promoter contribution requirements under the respective project financing arrangements and the business requirements of the subsidiaries.
The promoter contribution may be infused through subscription to equity share capital, unsecured loans, Non-Convertible Debentures (NCDs), Optionally Convertible Debentures (OCDs), quasi-equity, or any other permissible instruments, or a combination thereof, as may be determined from time to time based on the financing arrangements and business requirements of the respective subsidiaries.
Vikran Engineering provided a segment-wise breakdown of its order book during its latest investor call, stating that around 49% of its order book is from the solar segment. The company also spoke about scaling up its presence as a solar project developer and said it is currently executing around 1.4 GW of projects, either as a developer or as an EPC contractor.
Among these projects, the company said it is developing the 969 MW NOPL Solar project as a developer. It added that solar EPC projects will continue to remain one of its key focus areas.
Currently, its solar portfolio includes an EPC order worth around Rs. 3,500 crore for the solar module supply of a 961 MW project, spread over 25 years, with an estimated annual revenue potential of Rs. 550 crore and high EBITDA margins. Providing a segment-wise overview, the company said solar accounts for 49% of its order book, followed by power transmission & distribution (T&D), water, and railway.
Regarding the acquisition of NOPL Solar, Vikran Engineering stated that it purchased a 100% share in the company, which is building 969 MW of solar projects. The company will function as both an EPC contractor and a developer. Additionally, it stated that the project uses non-DCR solar panels for cost-effectiveness and material availability, with a favourable PPA rate of more than Rs. 3.07 per unit.
The project is qualified for a subsidy of about Rs. 1.05 crore per MW, totalling more than Rs. 1,000 crore, according to the business. Additionally, the project is anticipated to have EBITDA margins of 85–88% and an annual revenue potential of approximately Rs. 525 crore.
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