Vectras Enprocon Ltd IPO

Vectras Enprocon Ltd IPO is open till 3 Nov 2026. Price band ₹99–₹105, lot 1200 shares, GMP +₹0 (0%). Check dates and allotment, and apply for your whole family on Allotly.

About Vectras Enprocon Ltd

Vectras Enprocon Limited is a Gujarat-based engineering, procurement and construction (EPC) company operating in the midstream and downstream segments of the oil and gas industry. Incorporated in May 2021, the company undertakes pipeline construction, combined oil and gas station works, and associated infrastructure projects across various states in India. Its services include design, engineering, procurement, construction, testing, and commissioning of cross-country pipelines, spur pipelines, city gas distribution networks, oil and gas terminals, and stations. The company also undertakes mechanical, electrical, and civil works at refineries, petrochemical complexes, gas processing units, and petroleum depots. Additionally, Vectras Enprocon provides civil infrastructure services, including site development, road construction, foundations, and drainage systems. Its other services include…

Strengths

• As of September 30, 2026, Vectras Enprocon had an unexecuted order book of Rs 183.28 crore comprising 34 projects, with a book-to-bill ratio of 2.55 times, providing visibility for future growth. Combined oil and gas station works accounted for Rs 116.29 crore (63.45%) of the order book, followed by pipeline works at Rs 59.46 crore (32.44%) and other allied services at Rs 7.53 crore (4.11%).
• The company has completed certain projects ahead of their scheduled completion dates. According to the RHP, the company completed one public sector project 160 days ahead of schedule in FY23, while a private sector project was completed 62 days early in FY24.
• The company has expanded its geographical presence beyond Gujarat. As of September 30, 2026, Gujarat accounted for Rs 112.90 crore (61.60%) of its order book, followed by Chhattisgarh at Rs 26.38 crore (14.40%), Maharashtra at Rs 21.57 crore (11.77%), Bihar at Rs 9.33 crore (5.09%) and Punjab at Rs 6.52 crore (3.55%). This geographical diversification could help the company access a wider range of project opportunities and reduce its dependence on a single state.
• The company has seen an increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 54.32 crore in FY24 to Rs 80.48 crore in FY25 and Rs 119.80 crore in FY26, while PAT increased from Rs 5.81 crore in FY24 to Rs 10.17 crore in FY25 and Rs 15.43 crore in FY26.
• The company claims to have in-house design and operations teams for project planning and execution. As of September 30, 2026, it had 990 permanent employees, including 911 in operations, 21 in quality assurance and control, and 15 in health, safety, and environment.
• The company is ISO 9001:2015 certified for Quality Management Systems, ISO 45001:2018 for Occupational Health and Safety Management Systems, ISO 14001:2015 for Environmental Management Systems, and ISO 27001:2022 for Information Security Management Systems.

Risks

• The company depends heavily on a limited number of customers for its revenue. Its top 10 customers contributed Rs 53.14 crore (97.84%), Rs 77.30 crore (96.04%), and Rs 110.54 crore (92.27%) to revenue from operations in FY24, FY25, and FY26, respectively. Loss of major customers, reduced orders, or payment delays could adversely affect the company's revenue, cash flows, and profitability.
• The company relies on a limited number of suppliers for raw materials and components. Purchases from its top 10 suppliers amounted to Rs 16.93 crore (72.87%) in FY24, Rs 14.45 crore (61.67%) in FY25 and Rs 23.34 crore (68.64%) in FY26. During the six months ended September 30, 2026, these purchases stood at Rs 7.79 crore (45.23%). Any disruption in supplies, quality issues, or an increase in procurement costs could delay project execution and reduce profitability.
• The company derives a significant portion of its revenue from combined oil and gas station works. This segment contributed Rs 46.50 crore (85.59%), Rs 51.36 crore (63.82%), and Rs 45.64 crore (38.09%) to revenue from operations in FY24, FY25, and FY26, respectively. Any adverse change in demand for these services, increased competition, or delays in project awards could affect the company's revenue and financial performance.
• The company generates a substantial portion of its revenue from Gujarat and Maharashtra. These two states collectively contributed Rs 50.29 crore (92.59%) in FY24, Rs 72.21 crore (89.72%) in FY25, and Rs 85.68 crore (71.52%) in FY26. Any adverse changes in regional economic conditions, government policies, or oil and gas infrastructure investments could affect the company's operations and profitability.
• The company reported negative cash flows from operating activities of Rs 1.29 crore, Rs 4.44 crore, and Rs 5.10 crore in FY24, FY25, and FY26, respectively, followed by Rs 3.14 crore during the six months ended September 30, 2026. These outflows were primarily driven by increasing working capital requirements, particularly inventory accumulation, along with changes in receivables, other assets, and liabilities. Sustained negative operating cash flows could increase the company's dependence on external financing and affect its ability to fund ongoing projects and expansion plans.
• The company relies on third-party service providers for labour, drilling, and excavation activities. Expenses related to these services amounted to Rs 12.93 crore (23.81% of revenue from operations) in FY24, Rs 33.51 crore (41.64%) in FY25, and Rs 55.10 crore (45.99%) in FY26. Delays, labour shortages, or deficiencies in services provided by these contractors could lead to project delays, cost overruns, and contractual penalties.
• The company's net trade receivables stood at Rs 8.86 crore in FY24, Rs 19.05 crore in FY25, and Rs 21.16 crore in FY26. Credit sales have been rising over the years, and any delay or default in collecting payments from customers could affect the company's working capital, cash flows, and financial condition.
• As of September 30, 2026, the company had aggregate outstanding borrowings of Rs 31.36 crore, including secured outstanding debt of Rs 22.99 crore. Certain financing agreements impose restrictions on changes in ownership, capital structure, investments, and other business decisions. Any failure to meet repayment obligations or comply with lender conditions could result in enforcement against secured assets and restrict the company's financial and operational flexibility.
• The company has reported delays in filing statutory forms with the Registrar of Companies, including a 116-day delay in filing Form DPT-3 in FY26 and a 71-day delay in filing Form AOC-4 for FY23. It has also disclosed delays in depositing provident fund, ESIC, and TDS dues, including a 202-day delay in a provident fund deposit relating to July 2024. Any future non-compliance or regulatory penalties could increase costs and adversely affect the company's financial condition.

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