Vision Infra

Vision Infra reported robust financial results for H1 FY26, with revenue growing by 45% to INR 281 crores. This strong top-line growth translated into a 40% increase in EBITDA to INR 72 crores and a 47% rise in PAT to INR 21 crores, demonstrating healthy operational leverage. Management expressed confidence in H2 FY26, expecting performance to be better than H1 and projecting full-year FY26 revenue to exceed INR 550 crores.

The company continues to capitalize on the Indian government's significant focus and budget allocation for infrastructure, including express highways, national highways, airports, railways, and metro projects. Vision Infra positions itself as a one-stop solution provider, leveraging its fleet of 450 equipment and strong teams to serve major corporates like L&T, Tata Projects, and IRB. The company is particularly focused on road maintenance, airport projects, and elevated infrastructure, aligning with government priorities.

Vision Infra operates through two main verticals: rental and refurbishment. The rental segment offers both fixed monthly billing and output-based billing, while the refurbishment vertical involves acquiring, refurbishing, and reselling equipment. This synergy ensures a young and healthy fleet, with approximately 85% of the fleet expected to be completed within 3 years, enabling cost-effective service delivery and contributing to the company's stability and growth.

The company recently raised INR 130-140 crores, with plans to allocate 60% towards new equipment, 20% for working capital, and 20% for corporate funds. Approximately INR 60-80 crores from this fundraise will be directed towards capex, with the same capex target planned for the next 2-2.5 years. Management aims to maintain a debt-to-equity ratio of 1:1 or less over the next 2.5 years, indicating a balanced approach to funding growth through both equity and debt.

The refurbishment segment demonstrated strong growth, with 80-85% of its business coming from exports to a globally diverse market including Europe, Middle East, Africa, South America, and Oceania. This growth is driven by India's competitive pricing in the worldwide equipment market. Despite this, the segment experienced some margin contraction in H1 FY26, which management is actively working to improve, while aiming to maintain a 50-50 revenue mix between refurbishment and rental over the next 2-3 years.

Vision Infra emphasizes its young fleet and latest technology to ensure efficiency and output, providing cost-effective services. While corporate overhead saw a year-on-year increase due to the addition of new verticals, management believes there is no further scope for significant increases. The company is aggressively working on improving its EBITDA margins over the next 2-3 years, expecting better growth in FY27 due to increased capital deployment and continued focus on bottom-line improvement.