Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Vascon Engineers Limited (NSE: VASCONEQ) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Akhilesh Gandhi — Investor Relations
Somnath Biswas — Chief Financial Officer
Santosh Sundararajan — Group CEO
Unidentified Speaker
Analysts:
Himanshu Upadhyay — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Wescon Engineers Limited’s Q4 and FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation. Should you need assistance during the conference call, please signal an operator by pressing star10.0 on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Akhilesh Gandhi from Stellar Investor Relations.
Thank you. And over to you Mr. Gandhi.
Akhilesh Gandhi — Investor Relations
Thank you. Good morning everyone. Sorry
Operator
Akhilesh, your voice is breaking. Please come in the network area.
Akhilesh Gandhi — Investor Relations
Hello. Is it better now?
Operator
You may try speaking.
Akhilesh Gandhi — Investor Relations
So. Welcome to engineers quarter four and FY26 earnings conference call. We shall be sharing the key operating and financial highlight for the full quarter and the financial year ended on March 31, 2026. We have with us today the senior management team of Pascon Engineers Limited. We have Dr. Santosh Sundara Rajan, he’s a group CEO. With him we also have Mr. Ravish Rao, Chief Executive Officer for Real Estate segment.
Somnath Biswas — Chief Financial Officer
And
Akhilesh Gandhi — Investor Relations
We also have Mr. Somnath Biswas, Chief Financial Officer. But before we begin, I would like to state that this call may contain some of the forward looking statements which are completely based upon the company’s beliefs, opinions and expectations as of today. The statements made in today’s call are not a guarantee of future performance and also involve unforeseen risks and uncertainties. The company also undertakes no obligation to update any forward looking statements reflect development that occur after statement is made documenting the company’s financial performance including the investor presentations have already been uploaded and the stock exchange and company website.
I now invite Dr. Stately Open Company’s performance for the quarter and Financial ended on 26th and after his opening remarks we’ll open the floor for question answer session. Thank you. And over to you sir.
Santosh Sundararajan — Group CEO
Good morning everyone. I warmly welcome you all to the earnings conference call of Vascon engineers for the fourth quarter and financial year ending March 31, 2026. Thank you for joining us today. I hope you have all had the opportunity to review our financial results and the investor presentation which we have uploaded on the stock exchange and the company’s website before I begin discussing the business performance. I would like to mention that FY26 was a special year for Wascom as we have completed 40 years of our journey.
Over the last four decades we have continued to build the company with a strong focus on execution, quality, financial discipline, long term relationships and responsible growth. I sincerely thank all our clients, partners, employees, lenders and shareholders for their continued trust and support. Coming to the performance for the year, FY26 witnessed stable operational performance despite certain temporary external challenges that we faced. During the year, the company reported a 12% decline in revenue compared to FY25.
However, project execution conditions have gradually started normalizing across our key sites. Throughout the year the company remained focused on execution discipline, productivity improvement, cost control and maintaining steady project progress. During the year, we significantly strengthened our banking relationships and our working capital position. As of today, our total sanctioned working capital limits stand at approximately 745crores including both fund and non fund based limits out of which 337 crores remains unutilized.
Further, SBI completed a revised assessment of our working capital facilities with improved commercial terms including better collateral leverage and lower bank guarantee margins. These improved terms have enhanced liquidity, improved cash flow efficiency and strengthened our ability for faster project mobilization. With stronger banking support now in place, our available working capital capacity can support execution of nearly 3,000 crores of additional EPC orders coming to our EPC business. The EPC segment continues to remain the cornerstone of Vascon’s growth journey.
Over the years we have successfully completed more than 225 projects covering 45 million square feet across India. Our integrated turnkey execution model and in house design and engineering capabilities continue to remain key strengths for the company. We continue to focus on large high value projects across healthcare, institutional infrastructure, industrial and residential segments. Our strong execution track record has helped us build long term relationships with marquee clients such as Ames, NBCC, Citco, MMRDA, Capgemini and Vedanta.
During FY26 our EPC revenue stood at approximately 928 crores. The moderation in EPC revenue during the year was primarily due to cash flow constraints in two major government projects and internal organization changes at a major private client which impacted on site decisions and project schedules. During FY26 we secured new EPC orders worth approximately 762 crores across marquee projects like Royal Rides, Saudamini in Haji Ali, mseb, Navi, Mumbai Municipal Corporation Specialty Hospital and Lotus park in Ahmedabad.
Further to that, we are also L1 currently for two projects valued to a total of about 500 crores where we are expecting the LOI soon. As of 3-31-2026 our total order book stands at approximately 27.17crore which is nearly 2.9 times of FY26 EPC revenue and therefore provides a strong revenue visibility over the next two to three years. Importantly, around 79% of the order book is from government backed projects providing better receivable visibility and stronger payment security. Despite aggressive pricing competition in the EPC industry during FY26, the company remained disciplined in its bidding strategy with a focus on execution, quality, margin protection, healthy cash flows and sustainable long term growth which resulted in a relatively lower order book during the year going forward.
Considering the current business environment, the company intends to pursue projects a bit more aggressively with calibrated margin expectations to strengthen order inflows and business growth. Coming to the Real Estate Business Operational progress across our real estate portfolio remains stable during FY26. During the year we achieved sales booking of approximately 96,735 square feet with booking value of around 113 crore while collections stood at approximately 132 crore. Our current portfolio includes projects such as Tulips, Phase 3 in Coimtur, Tower of Ascent in Karadi, Orchids, Redevelopment in Santa Cruz and Good Life in Kaligaon, further strengthening our real estate leadership team.
The company has appointed Mr. Ravish Rao as CEO for the real estate business. Mr. Rao holds a Bachelor’s degree in Electronics Engineering along with a Master’s degree from the Indian Institute of Management, Kolkata. He brings over 20 years of extensive experience in the real estate sector with strong expertise across PNL management, institutional fundraising, operational excellence, organizational transformation and customer centric business growth. Prior to joining Wescom, he had leadership positions with reputed organizations like Shapooji Palanji and Everstone Group.
At the same time, our near time pipeline remains strong with projects such as Powai Prakash Housing Society and Tower of Future in Baner to be launched soon. Coming to the financial performance of FY26, the company reported a consolidated total income of 984 crores for FY26 as compared to 1090 crore in FY25. The decrease in revenue is in line with the factors discussed in the opening remarks. EBITDA for FY26 stood at 87 crore has against 100 crore in FY25. PAT for FY26 is 49 crores compared to 126 in FY25.
The higher profit in the previous year was primarily driven by the exceptional gains arising from the sale of gmp. During the year, we strengthened our liquidity position, improved banking support, maintained a healthy order book, expanded strategic relationships and continued building a strong future project pipeline. With project activities gradually stabilizing across sites, stronger banking support, healthy working capital availability and the strong order book position, we believe the business is entering a more stable operational phase.
Going forward with that, we now welcome your questions. Thank you.
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask questions may please press Star and one on their touchtone phone. If you wish to withdraw yourself from the question quiz, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rajendra from RK Ventures. Please go ahead.
Unidentified Speaker
Hello sir. Good morning. Hello.
Operator
Yes sir, you’re audible. Please receive.
Unidentified Speaker
Yeah, my question is first, I recently saw a building erected within a short Spanish with the technology named as precast and prefab. So I wanted to know whether this. Have we adopted this kind of technology or what is your view on that technology? And secondly, the appointment of Mr. Ravish Rao is. I want to. What are the thoughts behind it and are you aggressively going to go for the real estate division? I just wanted to know. Please throw some light on that. Thank you.
Questions and Answers:
Santosh Sundararajan
Yeah. So your first question. See, there is precast and prefab in the market. These are methods of construction which are very popular in places like Singapore and a lot of Europe where labor is much more expensive than it is in India. And they also have the infrastructure available in these countries to transport massive tonnage of, you know, precast slabs or precast elements from factory to site. In India. We are still, you know, a stage away from reaching those kind of utilization of this technology.
It has come. There are a couple of vendors who are able to do it. We have done in a smaller scale in a few projects. But to do a complete precast project, the cost is generally higher at this point of time than doing it in the old fashioned cast in situ method. And most of our projects with government are, you know, the design or the technology that is used for construction is decided by our client. Only in our own real estate projects do we get to make such decisions of, you know, deciding which technology to go with.
And as of now, the residential projects we’re doing in real estate do not really support us to use this. But we are very well aware of this technology. We have in fact made advances on our TOA project to come one step closer where we are using another technology which is a combination of steel with pre stressed concrete with normal, you know, steel, all three. I mean, I’m talking of cold formed or hot rolled structural steel, but not. This is, this is a deviation from what other people are doing in terms of composite structures.
This is a combination of all three elements. So we are experimenting with that in our own project. If that goes well, we think that’s a good step Vaston will be taking forward to come somewhere in between precast and cast institute where we can reduce labor and still control costs. To answer your second question, see, we are going to be aggressive on real estate, cautiously aggressive. We have always maintained over the last three, four years we are not putting in equity to buy land. Can you hear me?
Unidentified Speaker
Yes, sir.
Santosh Sundararajan
Yeah. So we will not be putting in equity to buy land. Our method will be, you know, joint ventures or redevelopments. And so we look at that as glorified contracting where essentially added to the contracting part we bring the sales, marketing and you know, do a sort of a DP model or, you know, the margins overall expected in this model is higher than the EPC that we are doing for others. And so we will stick to this. We have a brand which is well established in this part of the country. We are operating only in Pune, Mumbai and Coimbatore at this point of time.
And we have some work already lined up. We intend to ensure that, you know, we do not borrow too much and go into a cash flow problem. So we are not in a hurry, desperate hurry of any sorts. But at the same time, real estate will grow. It has to do much more than it is currently doing. It has not yet reached levels that we are capable of doing or we should be doing even to sustain overheads. And so we thought some leadership thought was needed. You know, we did have Mr. Rajesh Matre who was with us two, three years ago.
He then moved on and we didn’t appoint CEO for the last year plus. But we really felt we needed good leadership to take that part of the business forward. And hence we were very happy to find Ravish who seems to be the perfect fit for our corporate culture as well as this line of business.
Unidentified Speaker
Thank you, sir. Thank you very much. That’s all from my
Santosh Sundararajan
Side.
Operator
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Himanshu Padhyay from State. Please go ahead.
Himanshu Upadhyay
Yeah, hi, good morning. My first question is we Had a few flow projects. Okay. Royal Rides, NMC and Sudamani. Okay. Based on the ppt, what we have shared, what is the status now and are we going to complete the projects within the timeline? What were initially announced or will it lead to certain period? And also last quarter there was some discussion on payment being slower from the government side in the projects. What is the status now? Both these things. I’m very sorry, I couldn’t
Santosh Sundararajan
Hear the first part of your message at all. It was all silent. Could you just repeat your your questions please?
Operator
Yeah. So first question was on Royal, right? Mr. Rupadia, please use your handset sir, because your voice is muffled.
Himanshu Upadhyay
One second. Yeah,
Operator
Sure.
Himanshu Upadhyay
Am I audible now?
Santosh Sundararajan
Yes,
Operator
Yes.
Himanshu Upadhyay
Yeah. So my first question was on Royal rights. Okay. NMMC and Darmini. What is the progress now and will it lead to any delay in these projects because of the last few quarters being slow and what is in last quarter? Also there was some discussion of lower payments in some of the government related projects. What is the status now and has the payments started being timely or there is still some amount of delay what you are seeing?
Santosh Sundararajan
Yes, so see there is. Royal Ride has not yet started at site. So we are not in a position to, you know, execute anything or raise a bill yet. It has been longer than we anticipated. We hope in the next quarter or so that this project will kick off. So we have not realized any revenues from that project although the project is very much live at this point of time. As regards these government projects, we had a major cash flow crunch from two projects which is Sindhudurg as well as the support project in Bihar over the last year.
And in both these projects we could, you know, we, I mean we fell based out of the target that we should have done over the year. We had an option. I mean I’ll make this, you know, as a strategy of the company. Over the last three, four, six months we’ve been grappling with this, Somnath and me on what do we do to deal with this situation. There are only two options on the table. One was to, you know, borrow and keep the momentum going at site. If we had done that, maybe we would be on a borrowing of 50, 60 crores and that would have led to 100 plus crore of revenue.
Because the fronts were available at site, we could have executed work and you know, achieved our 1100 target for EPC. However, as a company strategy we have always maintained over the years which we have learned from our experiences. You know, 10, 12 years ago when we went through a really Bad patch that in epc we really do not want to be funding our clients. You know, if we do have cash flows, we would rather fund real estate of ourselves rather than funding our EPC clients projects. And so the discipline is very clear that if funds dry up from our client and that particular account, we have a different bank account for each project.
And that account is not able to fund the project anymore. We will not put money into it. And so we stuck to our strategy, we stuck to this corporate philosophy. And therefore we let go knowingly, we let go of the revenue. But we have not therefore, you know, created a huge amount of debtor status at this point of time. And I think between the devil and the deep sea, I think we would choose this as a better place to be in coming to today. From March onwards, both these projects have started paying and the work we have remobilized over April and the work has started again both at Sindhu Durg as well as Bihar.
In Bihar, very much in full flow in Sindhu, we are in the process of restarting the work. And so we are hopeful that. See the good part is none of this turnover has gone away from our order book. There has been no cancellation of order or reduction of order. It is just postponement. So the order that couldn’t be executed last year will hopefully now get executed over this current year.
Himanshu Upadhyay
Okay. And one more thing, the way the things are or the scenario is, it seems next one or two years could be quite inflationary. Okay, what are your thoughts there and how are you bidding? Because one of the important or the largest component for us is labor cost. Okay. And labor is not a direct pass through for us. Okay. And in last few quarters you have stated that there is high intensity of competition. Okay. And margins also may not be what we want, but we want to go slightly lower, around 10, 11% to get the orders.
But in this scenario, how are you bidding and how are you strategizing? And also the projects which are getting delayed because of government or some other issues. Okay, how are you means operationally, how are you making them more efficient and more cost focused looking at the scenario, what we have over next two years?
Santosh Sundararajan
Sure. So see, there are two parts to the question. One, you’re absolutely right. I mean, we are now quite wary that inflation is going to go up. The effects of the war are not yet seen and they are going to be seen over the next few months. In some ways, sure, they will affect the margin. I mean, I cannot say that we can protect ourselves in all directions, but the Good news is in most of our government projects we have inflation linked indices which will give us escalations as we go about the job, month on month.
So these sort of even cover labor. Not that directly that we can build the exact amount of inflation that we see in labor. But the indices get updated month on month. Sometimes it is equity index, sometimes it’s the central index from Delhi. Whichever index is written in the contract, we would get compensated for escalations in cost overall material plus labor to a decent extent because of this. On the private side, yes, labor is generally not covered. But our exposure to the private sector, thankfully at this point of time is not much either.
So we will be looking for projects. Yes, we will be trying to go aggressive on margins because we have not taken enough order as we wanted to. But we will be looking for projects that cover us on escalations. And to answer your second part of the question, the delays that have happened at site, again, the escalations will be available to us. However, when we take a call. You know, when some of these things happen, yes, on those projects, a little bit of margin, you know, maybe a half a basis point would get affected if there’s a six month delay, you know, because we get covered for escalations.
But the cost of idling at site over this period is not easy to recover. Although we will be making our claims eventually some of these things will go to arbitration. And if we win, we may recover much more than the profit anticipated. But speaking, we could expect, you know, 0.5% dip in one or two projects.
Himanshu Upadhyay
And one last question, then I’ll join back in the queue. We are having the preferential shares. Okay. At rupees 40. We are raising those shares. Okay. Can you tell the purpose of it and how are you thinking about though it’s a very small capital, but still over a period of time. What is your thought process and the purpose for that?
Santosh Sundararajan
So you would be aware, more than a year ago we were trying to do a QIP that didn’t go through. The prices then came down. All over the last two years, you know, we’ve been saying that we do need a little bit of equity capital, especially in the real estate side, you know, because we do not either we look for project level equity or we look for a company level equity to rather than borrow at a very nascent stage for the real estate. So that QIP didn’t pan through. We were waiting. Now at this point of time, we did get a strategic investor who is very bullish on the company, who is Also strategic and would ideally be helping us, you know, with certain projects and growth going forward.
And so and Mr. Vasudevan and family, they also felt that it’s the right time, you know, the share price had dropped to as low as 40. They also felt it’s a time that they need to back the company and raise their holding a little bit as much as they could. So combination of these two, I think we came up with this 80 crore. We do not want to go much higher and dilute at low share price at the same time. A little bit of breather equity within the company is welcome at this stage. So all factors put together, we took this call.
Himanshu Upadhyay
Okay, I’ll join back in queue for further queries. Yeah, thanks.
Operator
Thank
Santosh Sundararajan
You.
Operator
Anyone who wishes to ask questions may please press star and one. Now we’ll take the next question from the line of Varun Shivram from Choice Institutional Equities. Please go ahead.
Himanshu Upadhyay
Hi sir. Am I audible?
Unidentified Speaker
Yes,
Operator
Yes.
Himanshu Upadhyay
Good morning sir. So basically had a few questions on the execution capability and balance sheet quality. So from an execution capability standpoint, as we look at the company the annual construction throughput would scale up and we would need additional investments in machinery. Right. So what would be helpful if you could share the FY26 and FY27 capex plans. So what we will be planning and what you have done in FY26.
Santosh Sundararajan
Yes, our CapEx in EPC is not more than 4 to 5% of the top line. That’s all we would need to invest in terms of machinery or shuttering equipment that we would need at early stage when the project starts. So if you’re looking at a target of, you know, thousand to twelve hundred crores next year then we will be needing only about 50 crores of capex now to fund this capex. Also normally the good part in EPC we have advances available from clients against bank guarantees. And so we would not be having to borrow externally to fund this CAPEX requirement, if at all.
Also we do have at this stage a decent amount of assets within the company. So maybe this 50 crore could even come down a bit. We would see case to case depends on what kind of project. Sometimes the projects need specific kind of shuttering material like my one or table forms which we might not have enough in stock and then we would have to invest. Some projects do not need that kind of investment. We may have cranes and other machinery available with us in which case the investment or capex could be much lower to start a project.
So but in all in all it’s not a big worry in terms of funding that because we do get advances from our clients.
Himanshu Upadhyay
Understood sir, thanks for the detailed answer. Moving to the next question, sir, FY26 appears to be relatively softer than originally expected across few metrics. So internally have there been any organizational or process level changes that we have made to improve execution, project selection and improve our consistency going forward?
Santosh Sundararajan
To be honest, see, we’ve had a good run with the government over the last three, four years. We’ve always maintained it. You know, we’re very bullish about working for the government. It has been timely payment all the, all along. This is the first time. And when we make projections, also to be honest, when we make projections, we do buffer in, you know, about a 7, 8 to 10% chance of one project, you know, probably getting stuck or not paying on time. We do factor in a little bit before we project our numbers.
But this was really unfortunate that three projects at one go, three big projects which were, you know, executing, which were running at full speed at one go, stop paying us. And so we had no choice but to face the shrink, you know, as I said otherwise we had to pump in money which we did not want to do. And so we said let’s face it, going forward in terms of looking for projects, we’ve always been cautious, we’ve always been trying to look for projects that are better paymasters in terms of, you know, hospitals in which commonly doesn’t stop or projects in Tire 3 tier 2 areas where it is not politically sensitive and good quality private clients.
So that is what even our current order book is. So I think on that front it is just bad luck that last year elections in Bihar led to this situation in Bihar. I mean we are at the end of the day, I would say vulnerable to some of these risks. Fingers crossed going ahead strategy for bidding would remain pretty much the same. I don’t think we have erred badly on that front. It’s a little bit of bad luck which I hope you know, doesn’t reoccur for us this year.
Somnath Biswas
And just to add on this, let’s say basically whatever the shortfall you are talking about,
Santosh Sundararajan
What
Somnath Biswas
You projected
Santosh Sundararajan
Is not due to the lack of internal capability or something like that. It is only a strategic call has been taken by us not to pump money or invest our equity capital to run the government project. Otherwise this number could have go up. But then there is no point of pumping money and then creating huge receivable in the system. So that is a strategy call has been taken by us. It is not. The shortfall is not due to internal capability or something like that. So we are very capable to execute more what he did as of now.
Himanshu Upadhyay
Understood, sir. So basically then, how should we look at FY27 across, like growth in revenue and order book and then looking at our debt levels going forward?
Santosh Sundararajan
Yes, yes. FY27 again. Now time to stick our neck out. I would say we were going to do 1200 last year. We’ve slipped. We are below 1000. We would be targeting to do 1200 in this coming year as our, you know, top line including real estate and EPC. EPC should cross thousand, real estate should cross 200. Put together, we can take a target of 1200 is what we have internally seen. And as I said, I mean this is after buffering in a bit of pessimism inside. We don’t want to be extremely optimistic. The second part of the question.
Yeah. In terms of order booking, order booking, we are currently at an order backlog of 2700 crores which is lower than where we want to be for sure. As I mentioned in my remarks that we are L1 currently in about 500 crores. Hopefully in the next few days we will, will be able to back those orders. So this order backlog will go to 3200. Last year we wanted to take an order book of 1500 crores. We’ve achieved 760. If we add this 500, it still goes to 1260. There’s still a shortfall of about 200 crores, but that would be what it was for the previous year.
This year we want to take another 1500 crores excluding the 500 I’m talking about. So we want to end the year at around 4000 crores, which we wanted to do last year. But we want to end this year with about 4,000 crores. Crores of order backlog, close to 4,000 crores
Himanshu Upadhyay
Now continuing on the order book. So the execution in S27 would be H1 heavy or H2 heavy. So how should we look at it?
Santosh Sundararajan
Execution is always H2 heavy in our, I mean if you look at historically all our numbers, you know, quarter two is rains, quarter one is just about scaling up. Quarter three and quarter four is where the numbers really come in. Only last year was an anomaly for us because we were doing, we were on that up to achieve 1200, 1100 plus on EPC, 1100 on EPC. And Q1 and Q2 were going fine. Q3 and Q4 because of these cash flow issues. You know, hit us bad. But if, if no such things happen then generally execution is always edge too heavy.
Himanshu Upadhyay
Understood. Some management earlier mentioned being. So we had mentioned the L1 on a sizable order by L1. So could you provide an update on how much of that has been converted into final order in our books? And what about the current bid pipeline? What does that look like?
Santosh Sundararajan
Yes, we got about 300 crores in the last few months. Two orders which we have already declared. Currently we are L1 in about 500 crores which we are hoping to receive soon. Beyond that we are actually also aggressively at the last stage of bidding for about, you know, 2000 crores of orders. Three, four big projects which we are very hopeful to back. But again it might take a couple of months before those decisions are out from the client.
Himanshu Upadhyay
The last would be a bookkeeping question. Sir. On the balance sheet, so on the loans and other financial assets line item, is there any part related to old receivables advances, any amounts that will take longer to recover in it?
Somnath Biswas
Nothing.
Santosh Sundararajan
I
Somnath Biswas
Mean we,
Santosh Sundararajan
We keep providing for. I mean our auditors make sure that we keep providing for really old receivables or stock receivables on the EPC front. So generally whatever is receivables in the book, we do hold good that we do not see them as under risk at this point of time.
Himanshu Upadhyay
We’re having internal policy of market provisioning also. So whatever the old disabled though we are pursuing and we are quite hopeful to get this
Santosh Sundararajan
Thing done. But as a prudent policy we kept on doing some bucket provision. So. So that there will. There will be no shock in case of any eventuality which is very unlikely. But that will not going to impact anymore.
Himanshu Upadhyay
Understood. So thank you for taking all my questions and all the best.
Santosh Sundararajan
Thank you.
Operator
Thank you. The next question is from the line of Himanshu Padhyay from Steadfold. Please go ahead.
Himanshu Upadhyay
Yeah, so on the cash only. Okay. In last one year the debt has risen by around 85 crores. Okay. We had a 50 crore of PAT. Okay. What would be the major investments be made in FY26 in what businesses or places? Secondly also can you tell what was the operating cash generated? EPC business and real estate business separately. Just to have a clarity of where the money is going on and where it is not going
Santosh Sundararajan
To. The announcement by any augmentation of that primarily has gone into the real estate as well. As we communicated earlier also since we dropped the QIP plan. So obviously the real estate required some capital inflow. Otherwise it could not go Through So that already we have communicated earlier conference call also whatever the date has been raised majorly through the. It has been put into the real estate business only to maintain the project continuity. And all these things that EPC EPC operating cash flows is 20 negative and RE is 100 negative.
So as because that the money has been pumped into the increased. That’s it.
Himanshu Upadhyay
No, EPC is minus 20 the operating cash flow. You are saying. And real estate is how much. Okay. And on our residential projects any execution and thought process. Because some of the projects are still moving very slowly. Okay. In terms of sales. Okay. Anything what we can do means.
Santosh Sundararajan
Your observation is correct. So that’s it. Passing what we did. We. We got rubbish in our system to boost up the cells. The first thing we did. And while quite hopeful that this will see. Basically if you look at that the sales is slow in terms of the altitude concern. Otherwise the other projects are more or less whatever the ongoing. The sales is clearly done some closer and parting is there which is always there. Some 10, 5, 10% is always remain which is sold at the latter stage. But Orchid what is happening that one that this is a upper long gap.
Eventually these are fast redevelopment project in Bombay. So typical mindset in Bombay redevelopment project. Unless project comes to a reasonable level. The attraction doesn’t go be very fair enough. So now we are at the fixed lag level. A lot of inquiries happening. So that traction is quite quite a bit now. And at the same time the number what you are talking. That is only the number sales we are talking which has been registered. But there are a couple good amount. A couple of bookings are there which is still not registered.
That’s why it is not coming into the report portfolio. So actual number is slightly heavy higher than what we are talking about. But at the same time that inquiry level has gone up drastically. And we are hoping to convert this inquiry into the sales very soon. So we have a. We have. We have our internal target month to month on month and quarter on quarter. Which Ravish is aggressively following. And is tracking all the channel partners and system to get it done executed properly. So we are quite focused to get this sales converted.
Himanshu Upadhyay
Okay. And one more thing on the residential side now if I means what does our brand should stand for? Because we have had a CICU generally on that business. Okay. And now also the new CEO has a pretty good profile. Okay. If we look at his background and everything. But somehow this business is not really grown. And historically we had financial constraints. But what are the priorities we are setting for Him. And also where does we want the brand to stand for? Because at some point the sales momentum and the sales value or the per square feet depends on the brand’s strength.
Okay, so on, on that front, what are we thinking and doing? Some thoughts on that will be helpful. And how are we looking at our own brand or we are trying to build?
Santosh Sundararajan
So I think, see we do, we do have a strong brand. I do not, you know, the brand recall has sort of slipped over the last few years. But even today in Pune, the brand is a very strong brand. We’ve never lost value on our brand. The quality of construction of projects that we deliver is very well known to the customers. And so. But you are right that given this brand, we have been underperforming in real estate over the last three, four years. You know, it has taken us a year or two longer than we thought to, you know, kickstart this part of the business.
I mean 2016, 17, we were down on both lines of business. Then we’ve, you know, given a flip to the EPC business which has sort of gone to levels of organic growth. The real estate at 100 and 200 crore levels of execution which the EPC was doing 300 crores, 350 crores and it was not sustainable to cover the overheads at that point of time. The real estate is in that same situation for us at the bottom of the curve where we are doing only, you know, 100, 200 crores a year and turnovers like this will not be doing justice to the Vascon brand will not be covering our real estate overheads.
And so that is definitely not where we want to be. We should be crossing 300, 400 where we will then be seeing, you know, good PBTs coming from the real estate side in line with this. However, see we do not, we are facing a little bit of slow sales as you mentioned in both telegram which took us a year plus and now in Orchids we also took a call, same like in epc, we took a call last year that we do not want to borrow additionally another 100 crores and launch two more projects before getting our house in order as far as Orchids and couple of the old projects are concerned.
So we said we’ll take a breather for a few months. We do have Powai launch and we do have Prakash launch, both of which are lined up for this year which will then help us achieve much higher turnovers going forward. And yeah, so it has been slower than it than we wanted it to be. It is much lower than where it should be for the Vascon brand. We are very well aware. And so that’s why you know we re energizing the team with a new sales team under Ravish and giving it a fresh push so that over the next two, three years we start climbing the curve and then don’t look back.
Himanshu Upadhyay
Okay, thank you and best of luck.
Santosh Sundararajan
Thank you.
Operator
Thank you. The next question is from the line of Rizmic Oza from nine Race Equi Research. Please go ahead.
Somnath Biswas
Yeah. Hi. Thanks for the opportunity. So my question now on the real estate side. First one whatever the value of projects which are there in pipeline, the current under construction as well as future if you can help us in terms of what is the pre sale and collections for the next two to three years it will help us in terms of understanding the cash flows. That’s my first question.
Santosh Sundararajan
Just to answer your first part is that say whatever the four project is currently ongoing and another four is on the pipeline. So if you look at that four project which is ongoing which is having a substantial sales and all this thing though it is not being recognized in the system. But if this whole project is having a total top line in the range of close to 600 crore out of which 125has been recognized. Another 100475 to be recognized over a span of 18 to 24 months. Max to max. So
Somnath Biswas
Okay.
Santosh Sundararajan
And then other four is also in the pipeline out of which power is to be announced very soon. It is on the verge of Launch and probably Q2 or Q3 the Prakashi will also be launched. But if. What about the 4 project in the pipeline? The total top line is almost 1100 crore. So which will be spanned over next four years horizon you can take. So.
Somnath Biswas
Okay, okay. And. And since no in real estate you only book the revenue once the project is completed and handed over how the timelines pan out. Actually handover is happening in FY 2728 or it is spilling to FY 29.
Santosh Sundararajan
No, no. That whatever the 44 ongoing project I were talking about that almost close to 500 crores revenue will be recognized. So out of which 50% more. More than 50% we are expecting to be recognized in FY 2627 and balance 50% in 2728.
Somnath Biswas
Okay, okay, okay. Nice to hear that. And the second question sir was that you know this MOU we have signed with Adani Group for execution. If you can just actually you know provide some color on what kind of potential revenue and ebitda margins you can generate from this MOU in the next two to three years.
Santosh Sundararajan
And very sorry, we really not having any concrete data to, you know, sort of answer that question. We have a very open MOU with Adani. They’ve chosen as one of their partners. Whenever we do talk to them. There is huge pipeline of projects. These numbers could be mind boggling, you know, if I start throwing out what we are in discussion with them. But however, I think till ground breaks on these projects and we have a real order in hand, we do not want to be speculating on the numbers that these could lead to.
We are currently talking on at least four, five projects with them. They’re taking longer. These are all projects. So the method that they have used is to bring in a construction partner at a very early stage, which is what we are also realizing that they want us to be involved at a very nascent stage of the project. The approvals are still pending in these projects. The detailed planning and the design is in process from their side. And they just want us to be by the side in all of these meetings so that we add value stage by stage at this, you know, in all these stages so that by the time it comes to construction, it is a very construction friendly design which Vascon as a construction partner has been privy to from the beginning conceptualized stage of the project.
So that is their method. And therefore we’ve been invited to many such meetings. We are participating in a lot of such meetings. But we are still a few months away from any of these projects actually breaking ground at the site. And when that happens and we have a hardcore, you know, loi in hand with a value, we’ll start projecting numbers,
Somnath Biswas
But only number as of now, what we can project that whatever the Cobalt project assigned to us,
Santosh Sundararajan
That is the area wise value is almost 13 million square feet. Yeah. So that is the number we have. But once you zero down to the exact contract value and all this thing, then we will be in position to understand what kind of EBITDA margin are having on these things.
Somnath Biswas
Okay. Okay, thanks. Thanks for the update. Small clarification. These are all the EPC projects or real estate projects where you are tying up with them.
Santosh Sundararajan
For us it is all EPC budget.
Somnath Biswas
Okay, so is it safe to assume that the margins actually, you know, will not be compromised in whatever margins you are making today in the EPC business that at least should flow in when this order is 55?
Santosh Sundararajan
Yeah, I mean see if the margin is going to be already we are at a stage where, you know, we were looking at 13, 14. We’re saying we will come down to 12 and 11 to be a bit aggressive this year. So if the margin, they expect us to compromise beyond this then the choice is always ours. I don’t think we want to be working for free.
Somnath Biswas
Okay, okay. And a follow up question sir is that suppose you get a thousand crore order for example. Hypothetically do you have that bandwidth for execution or indirectly, you know what is the annual contracts at full utilization that you all can, you know, generate or execute on the APC side in terms of revenue if you can just help us.
Santosh Sundararajan
Yeah. At this point of time, in fact we are a bit plush on the bandwidth part because we had scaled up, we were going to do 1100 last year. You know, we were very much equipped to do that. And then we have underperformed for reasons that we’ve already mentioned. And so going forward we have, you know, our ability to execute till about 1500 crores at this point of time is not a problem at all per year in terms of assets, capex senior staff, we are well equipped to reach those kind of numbers. So that is not a challenge.
As Soma pointed out, the reason for the lower numbers last year was not, not really anything to do with execution capability.
Somnath Biswas
Right. And last question sir is you know, what is the BG limits we have today and to what extent? Actually you can fund inter projects on your own with the BG limits.
Santosh Sundararajan
See today we have unutilized visual limit, almost 350core. So apart from the BG whatever we have. So total working capital limit is close to 754 we have now. So out of which almost 300 crore plus BG limit is still unutilized which can easily back almost.
Somnath Biswas
Thank you. That’s it from my side and best of luck. Thank you so much sir.
Santosh Sundararajan
Thank you.
Operator
Thank you ladies and gentlemen, that was the last question for today. I now hand the conference over to Dr. Santosh Sundararajan for closing comments. Thank you. And over to you.
Santosh Sundararajan
Thanks everyone for joining us today and for your continued support towards vscom. Despite temporary execution challenges during the second half of previous year, it was still an important year for us where we strengthened our liquidity position, our banking relationships and our overall foundation. With gradual normalization across project sites and a healthy order book in hand and improving execution momentum, we remain confident about the opportunities ahead and our ability to deliver sustained long term growth.
Thanks for your support, thanks for the faith in the company and I’ll see you all again next quarter.
Operator
Thank you sir. Thank you. Members of the management. On behalf of VCON engineers, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.