Vectras Enprocon
What they do: The company undertakes EPC work for oil and gas stations, midstream and downstream pipelines, and related civil, electrical and instrumentation facilities. It earns project revenue as work milestones are completed and certified for clients in the public and private sectors.
By IPO Milega Research · Published
Revenue grew at a 48.5% CAGR from FY2024 to FY2026, with FY2026 revenue of ₹119.8 crore and net profit of ₹20.84 crore using the extracted financial figures.
- GMP (unofficial)
- +0%
- ₹0 a share
- Opens
- 30 Oct
- in 2 days
- Min. investment
- ₹2,52,000
- 2400 shares
GMP is an unofficial grey market indication. GMP updated 28 Oct, 11:05 IST.
- Price band
- ₹99-105
- Lot size
- 2400 shares
- Min. investment
- ₹2,52,000
- Issue size
- Approx 53.05 Crores
- Open30 Oct 2026
- Close3 Nov 2026
- Allotment4 Nov 2026
- Listing6 Nov 2026
Overview
₹105 (+0.00%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹40 Cr
- Fresh issue
- To selling shareholders
- ₹10 Cr
- Offer for sale
- Repayment / prepayment, in full or part, of certain outstanding borrowings availed by Company₹14 Cr32%
- To Meet Working Capital Requirements of Company₹20 Cr45%
- General Corporate PurposesNot stated
- Offer for sale: goes to selling shareholders₹10 Cr23%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials6.0
- Performance7.0
- Flexibility6.0
- Timing5.0
- Risk4.0
Strong revenue and profit growth, alongside a substantial order book, supports moderate gains potential. Persistent negative operating cash flow, borrowing needs and customer concentration temper the outlook.
Strengths4
- Completed 521,772 inch-diameter piping, 1,430.43 inch-kilometres of pipeline and four combined station works since incorporation.
- Held an unexecuted order book of ₹18,327.88 lakh across 34 projects as of September 30, 2026; book-to-bill was 2.55 times for the six-month period.
- Reported two projects completed ahead of schedule, by 160 days and 62 days, respectively.
- Expanded pipeline project activity and geographic reach beyond Gujarat into states including Maharashtra, Punjab, Bihar and Odisha.
Concerns5
- The top 10 customers generated 97.29% of revenue in the six months ended September 30, 2026, and Gujarat and Maharashtra contributed 87.92%, creating significant concentration risk.
- EPC operations require substantial working capital; short-term borrowings were ₹2,648.38 lakh at September 30, 2026, and growth and profitability may not be sustained.
- Project estimation errors, cost increases, material or labour shortages, subcontractor issues, delays, penalties and cancellations could reduce margins and disrupt cash flows.
- The order book of ₹18,327.88 lakh may be delayed, changed, cancelled or unpaid; the company also depends on concentrated suppliers, with the top 10 accounting for 68.64% of FY2026 purchases.
- Oil-and-gas EPC demand, financing conditions and supply chains are exposed to economic, geopolitical, natural-disaster, pandemic, regulatory and tax disruptions.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum2,52,0002 lots, 2400 shares
- Retail Maximum2,52,0002 lots, 2400 shares
- S-HNI Minimum3,78,0003 lots, 3600 shares
- S-HNI Maximum8,82,0007 lots, 8400 shares
- B-HNI Minimum10,08,0008 lots, 9600 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 2 | 2400 | 2,52,000 |
| Retail Maximum | 2 | 2400 | 2,52,000 |
| S-HNI Minimum | 3 | 3600 | 3,78,000 |
| S-HNI Maximum | 7 | 8400 | 8,82,000 |
| B-HNI Minimum | 8 | 9600 | 10,08,000 |
Timing
5.0/10The book-built structure includes QIB, non-institutional and individual investor allocations, with an anchor investor option that can support demand formation. The approximately ₹53.05 crore issue is modest in scale and suited to the SME platform. The offer information does not establish a clear timing advantage, so the issue merits a mid-range score.
- Time to market
- The offer is organized through standard book-building and ASBA processes, with a monitoring agency appointed for proceeds. These features support execution readiness, but no stated strategic urgency or market catalyst points to especially favorable timing.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- BSE SME
Key milestones
- 30 Oct 2026IPO Opens
- 3 Nov 2026IPO Closes
- 4 Nov 2026Basis of Allotment
- 5 Nov 2026Refunds Initiated
- 5 Nov 2026Credit to Demat Account
- 6 Nov 2026Listing Date
Financials
6.0/10- Revenue
- ₹120 Cr
- +48.9%
- Profit after tax
- ₹15.43 Cr
- +51.7%
- Net margin
- 12.9%
- +0.2 pts
- Assets
- ₹74.94 Cr
- +61.2%
- Return on equity
- 21.52%
- Debt to equity
- 0.59
- Current ratio
- 1.97
- Revenue CAGR
- 48.5%
- ROCE
- 19.69%
- Return on net worth
- 21.52%
- NAV per share (₹)
- 31.23
- Price to book
- 3.36
Financial performance trend
Amount ₹ in croresRevenue grew at a 48.5% CAGR from FY2024 to FY2026, with FY2026 revenue of ₹119.8 crore and net profit of ₹20.84 crore using the extracted financial figures. Growth and profitability are strong, while negative operating cash flow across FY2024-FY2026, rising borrowings and working-capital requirements weigh on fundamentals.
Borrowings totalled ₹31.36 crore at September 30, 2026, including current and non-current borrowings. The IPO details provided do not state that proceeds will repay debt. Borrowings are substantial relative to equity, alongside persistent negative operating cash flow.
Fresh issue goes to the company. OFS goes to the selling shareholders.
Not stated.
Issue amounts, issue objects and selling-holder rationale are not stated; whether the IPO raises capital or provides an exit for existing holders is unclear.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks3
- Operational risks4
- Regulatory risks3
High customer and regional concentration, working-capital needs, EPC execution exposure and compliance delays create material risk; disclosed material litigation is nil.
How the company offsets these
No specific operating mitigations are stated. Disclosed material litigation is nil, and a board-approved materiality policy sets litigation and creditor disclosure thresholds.
Financial risks3
- Substantial working-capital requirements and short-term borrowings of ₹2,648.38 lakh at September 30, 2026.
- Growth and profitability may not be sustained; project cost overruns, penalties, cancellations or delayed payments could harm cash flows and margins.
- Outstanding trade payables total ₹429.36 lakh at September 30, 2026, including ₹78.68 lakh to material creditors.
Market risks3
- High customer concentration and geographic concentration in Gujarat and Maharashtra.
- Dependence on oil-and-gas EPC investment, which may weaken during economic, political or geopolitical disruption.
- No prior trading market for the shares, with potential volatility, limited liquidity, price pressure from share sales and dilution from future issuances.
Operational risks4
- EPC execution is exposed to estimation, materials, supplier, labour and subcontractor risks, delays, penalties and cancellations.
- Orders or letters of intent in the ₹18,327.88 lakh order book may be delayed, changed, cancelled or unpaid.
- Supplier concentration, with the top 10 suppliers accounting for 68.64% of FY2026 purchases, could cause increased costs or disruption.
- Natural disasters, pandemics and supply-chain disruptions could interrupt operations.
Regulatory risks3
- Statutory filing and payment delays could result in penalties or other consequences.
- Oil-and-gas EPC operations depend on regulatory approvals and are exposed to regulatory and tax changes.
- Foreign-investment and takeover restrictions, differences in shareholder rights and applicable Indian tax on share gains may affect investors.
Performance
7.0/10Vectras Enprocon delivers EPC services for oil and gas pipelines, combined stations and related civil, electrical and testing work, earning revenue mainly from project contracts. Revenue and profit grew strongly through FY2026, supported by rising project execution and a larger order book; persistent negative operating cash flows and rapid expansion temper the performance assessment.
- Historical growth
- Revenue grew at a 48.51% CAGR from ₹5,431.89 lakh in FY2024 to ₹11,980.20 lakh in FY2026. PAT rose at a 62.95% CAGR, from ₹581.19 lakh to ₹1,543.27 lakh. Revenue increased about 48% in each of FY2025 and FY2026., Revenue CAGR: 48.51%; PAT CAGR: 62.95% between FY2024 and FY2026.
- Market comparison
- The company operates in a fragmented, competitive EPC market. The prospectus describes larger multinational and domestic competitors as having greater financial resources, execution capacity and access to broader services or technology. It provides no quantified peer financial comparison, so relative margins and growth cannot be assessed.
- Future potential
- India’s oil consumption is projected in the prospectus to rise 50% by 2030, while natural gas consumption is projected to increase from 64 BCM in 2019 to 115 BCM in 2030. Vectras Enprocon’s order book provides near-term project visibility, though delivery, working-capital needs and competition will affect conversion into cash and earnings.
- Operational consistency
- Growth and profitability have been consistent across the three reported financial years, and the order book remained substantial. Cash conversion is weaker: working-capital movements, especially inventory increases, contributed to recurring operating outflows. Revenue also depends heavily on project execution, with combined station and pipeline work forming the core business.
- Experience
- Promoters Naynesh Kanubhai Patel and Maheshkumar Gopalbhai Patel have over 17 and 16 years of oil and gas EPC experience, respectively. The company reports a supporting management team across finance, compliance, project management and engineering.
- Track record
- The company reports early completion of selected projects, a growing order book and a 35.71% bid-win ratio for the six months ended September 30, 2026. Negative operating cash flows across the reported periods remain a financial execution concern.
Key achievements
- 01Completed 521,772 inch-diameter piping, 1,430.43 inch-kilometres of pipeline and four combined station works since incorporation.
- 02Held an unexecuted order book of ₹18,327.88 lakh across 34 projects as of September 30, 2026; book-to-bill was 2.55 times for the six-month period.
- 03Reported two projects completed ahead of schedule, by 160 days and 62 days, respectively.
- 04Expanded pipeline project activity and geographic reach beyond Gujarat into states including Maharashtra, Punjab, Bihar and Odisha.
Flexibility
6.0/10The company bids for public and private sector projects, serves a range of oil and gas infrastructure clients, and has expanded beyond Gujarat into several states. Its recent move into pipeline work broadens its addressable project opportunities, though revenue remains concentrated in oil and gas EPC.
Revenue and profit have grown, and the current ratio was 5.45 at March 31, 2026. However, operating cash flow was negative in each reported period, while debt-to-equity rose from 0.34 in FY2024 to 0.59 in FY2026.
The company uses in-house engineering and operations teams, contracts site labour, and can source materials from approved vendors or receive them from clients. It reports timely project completion and plans resources and mobilisation around project requirements.
Vectras Enprocon shows moderate flexibility, supported by rapid growth, a substantial order book and expansion into pipeline projects and multiple states. Its tender-driven EPC model and varied procurement arrangements support responsiveness. Recurring negative operating cash flows and rising debt-to-equity constrain financial flexibility.
- Product diversification
- Services span combined oil and gas station works, midstream and downstream pipelines, civil infrastructure, electrical and instrumentation work, and inspection, testing and safety audits. Stations and pipelines remain the core activities, with allied services contributing a smaller share of revenue.
- Future adaptability
- A 34-project unexecuted order book of ₹18,327.88 lakhs, expanding pipeline capabilities and work across multiple states support further growth. Potential is tempered by recurring operating cash outflows, a rising debt-to-equity ratio and concentration in oil and gas EPC.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.