Analysis: Viviana Power Tech Ltd.

Growth thesis

Viviana Power Tech is an EPC contractor for power transmission and distribution lines up to 400kV, executing projects across more than ten states with an order book of INR 1,312.53 crore as of August 2026 and a bidding pipeline exceeding INR 2,600 crore. The company also runs a power transformer manufacturing business (first facility up to 20 MVA by end FY27) and has secured two battery energy storage system (BESS) projects in Gujarat and Rajasthan. The competitive structure is fragmented with many players, but Viviana's selective bidding historically produced high returns, with H1 FY26 EBITDA margin at 19.52%. However, on the latest call management guided to a sustainable annual EBITDA margin of 9-9.5% as it scales into larger tenders, a deliberate shift from a niche high-margin player to a scale EPC, with a long-term PAT margin target around 9%.

The persistence of the economics relies on execution credentials built over years of delivering projects in varied geographies, creating repeat demand from utilities. The new transformer manufacturing unit provides integration, converting steel and copper into specialized transformers, a process that takes years to replicate because prequalification must be built from scratch starting at 5.5 MVA, not from Aarsh's limited 500 kVA. The BESS projects, with estimated EBITDA margins of ~80% and a 12-year revenue stream, add a high-margin annuity layer once operational. Switching costs for utilities are moderate, but the company's track record and selective bidding discipline give it a defensible position in a market where competition exists but large players like L&T and KEC are not the only entrants. The margin guide, though lower than historical, still beats the industry average for EPC, suggesting some pricing power.

Over the next 18-24 months (through early 2028), Viviana will commission its first transformer facility, already being inaugurated by end of August 2026, and reach 20 MVA capacity by end of FY27 (March 2027), then develop 132kV, 63MVA class transformers in FY28. The BESS projects are expected to receive final notices, GUVNL approval in Gujarat and land approval in Rajasthan, in the coming quarters, after which the 18-month execution period begins with revenue starting after completion. The existing order book, combined with unexecuted orders plus L1 of around INR 840 crore and a pipeline of over INR 1,400 crore under evaluation, supports the FY27 revenue target of INR 875-910 crore. Based on the earlier stated trajectory from the December 2025 call, FY28 revenue is likely to exceed INR 1,300 crore as the transformer plant contributes its first revenues and larger bids materialize. The company aims to bid for projects of INR 1,000-2,000 crore within two years, a step change from its current single-largest bid of INR 120 crore.

In the December 2025 call, management guided to FY26 revenue of INR 560+ crore and FY27 of INR 900+ crore; the August 2026 call reaffirmed FY27 at INR 875-910 crore, a slight but understandable tightening. They also promised to raise working capital limits to INR 250+ crore; while that was delayed, they used NCDs as contingency and now say existing limits suffice for FY27. The order book has declined from INR 1,400+ crore in December 2025 to INR 1,312 crore in August 2026, reflecting execution, but the pipeline has expanded. The divestment of non-core units (Viviana Life Spaces and Aarsh Transformers, contributing <5% of revenue) is progressing as stated, with no impact on operations. They are courting institutional investors for long-term capital, a positive signal. Overall, they have held to their headline targets and are delivering on capacity-building promises, such as the transformer facility inauguration timeline.

The path to FY30 revenue of INR 2,000-2,200 crore and PAT of INR 200+ crore, implying ~10% PAT margin, is visible through order book conversion and the new verticals. For the next 18-24 months, near-term earnings visibility comes from the INR 1,312 crore order book, which will convert into revenue over the next 2-3 years, and the expected LOA of ~INR 100 crore from DGVCL. The key assumptions are that BESS approvals come through without further delay, the transformer manufacturing ramps up on schedule to 20 MVA and then to 132kV, and the EBITDA margin holds at the guided 9-9.5% level. The single most important watchpoint is the timing of BESS project approvals and the transformer facility's successful prequalification and customer orders. If either gets stuck, the revenue trajectory slips, but the core EPC business remains robust given the large tenders available. The margin compression from 19% to 9.5% is structural as they take on larger, lower-margin projects; this is an acceptable trade-off if volumes grow as guided, but it must be monitored against the PAT target.

Research report

companyname: Viviana Power Tech Limited ticker: VIVIANA sector: Power Infrastructure – EPC, Transformer Manufacturing, Battery Energy Storage Viviana Power Tech is a power infrastructure EPC contractor and equipment manufacturer headquartered in Vadodara, Gujarat. It was founded in 2014 by Nikesh Choksi, who brought 38 years of power-sector experience including roles at GETCO, Torrent Power and Adani Group companies, and listed on the NSE Emerge platform in September 2022 before migrating to th...