Vascon Engineers has picked up a fresh construction order worth Rs 126.39 crore, to build a 300 bed general hospital in Wardha, Maharashtra.

The Letter of Intent came from the Public Works Department’s Arvi Division in Wardha, part of the Nagpur region.

It covers the full development of the hospital and has been awarded on an item rate basis, meaning payment gets calculated against the actual quantity of work completed at rates fixed in advance.

Vascon has 24 months from the date it received the order to finish the project. The company also confirmed this isn’t a related party transaction, so there’s no conflict of interest tied to promoters or group entities on the other side of the deal.

The timing is worth noting. Vascon own numbers haven’t looked great lately. Consolidated net profit for the March quarter fell 83.54% year on year to Rs 5.72 crore, down sharply from Rs 34.77 crore in the same period last year.

Net sales dropped too, falling 34.61% to Rs 253.08 crore. A project this size helps fill out the order book right as the company heads into a fresh financial year.

Hospital and healthcare infrastructure has been picking up as a segment for construction firms, with several state governments putting more money into expanding public health facilities in smaller towns.

Vascon Engineers is based in Pune and works across engineering, procurement and construction, alongside residential, commercial, industrial and institutional projects.

For a firm coming off a rough quarter, landing a government hospital contract of this scale is the kind of order that can steady the pipeline, even if it won’t undo the profit decline on its own.

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