V.L.Infraprojects Ltd — Q4 FY26 earnings call

Call held 8 Jun 2026

Management summary

V.L. Infraprojects Limited reported strong financial performance for FY26, with significant year-on-year growth in revenue, EBITDA, and PAT, driven by robust project execution and order inflow. The company maintains a healthy order book of INR 280 crores and aims for 20-25% revenue growth in FY27 and FY28, supported by strategic diversification into new geographies and sectors like Power and Railways. However, operating cash flow was negative, and PAT margins remain constrained by the competitive environment.

Highlights

  • FY26 Total Income of INR 150.04 crores, up 23.8% YoY.

  • FY26 EBITDA of INR 16.53 crores, up 25.7% YoY, with margins at 11.02%.

  • FY26 PAT of INR 8.42 crores, up nearly 20% YoY.

  • Strong 3-year CAGR for Revenue (48.67%), EBITDA (51.01%), and PAT (56.19%).

  • Order book of approximately INR 280 crores, with INR 150 crores of new orders executed in FY26.

Concerns

  • PAT margin remains around 5.6%, with management citing competitive business as a limiting factor for significant expansion.

  • Operating cash flow for FY26 was negative INR 4 crores, attributed to inventory, loans, and advances.

  • Retention money outstanding across all projects is approximately INR 6 crores.

Key financials

3 periods

Headline

  • ROE
    16.7%
  • ROCE
    18.1%
  • PAT Margin
    5.6%

H2 FY26

  • Total Income
    ₹87.12 Cr
    YoY +26.6%
  • EBITDA
    ₹8.85 Cr
    YoY +28.1%
  • PAT
    ₹4.4 Cr
    YoY +26.8%

FY26

  • Total Income
    ₹150.04 Cr
    YoY +23.8%
  • EBITDA
    ₹16.53 Cr
    YoY +25.7%
  • PAT
    ₹8.42 Cr
    YoY +20%
  • EBITDA Margin
    11%

What they filed

Q4 FY26: revenue up 70.6%, net profit up 33.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue51 51 52 69 63 +24%87 +71%
EBITDA5 5 6 7 8 +60%9 +80%
Net profit3 3 4 3 4 +33%4 +33%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹280 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹151 Cr

Execution

Almost 60% of the current order book is executable in the current financial year.

Pipeline

L1 awaiting loa

Works under process

The company closed FY26 with 18 ongoing projects and an order book of approximately INR 280 crores, having executed over INR 151 crores of orders during the year. The bid-to-win ratio is around 25%.

Source: Prepared remarks

Capital allocation

medium confidence
  • Debt Debt disclosed
    • New borrowing HDFC Bank renewals and BG limits enhanced to expand business
    Yes, we also we got our HDFC Bank renewals in the current year and we got BG limits enhanced so that we can expand our business with using BG limits.
  • Liquidity Liquidity disclosed Operating net cash flows were negative INR 4 crores due to inventory, loans, and advances. Retention money outstanding is around INR 6 crores.
    Cash flow is around INR4 crores negative in the final cash flow statement. So we have realized everything in the revenue as per certified. So our operating net cash flows are around INR4 crores negative because of our inventory and our loans and advances.

Guidance & targets

Revenue

  • Revenue Growth Rate Revenue · FY27 · High confidence 20-25%
    At present, as per our order book, INR280 crores order balances are there, and we are targeting for already INR150 crores projects are in working stage, working stage means in under discussions. So to maintain the previous years' growth rate, we will try to maintain previous years' growth rate around 20% to 25% growth rate, we will get the order book for definitely sure.

    — Rajagopal Reddy

  • Revenue Growth Rate Revenue · FY28 · High confidence 20-25%
    No, '27, '28 it will continue.

    — Rajagopal Reddy

Margin

  • EBITDA Margin Margin · Sustainable · High confidence above 12-13%
    Okay, okay. So can EBITDA margin sustainably move above 12% to 13%? Yes.

    — Rajagopal Reddy

Diversification

  • Entry into New Sectors Diversification · FY27 · High confidence Power and Railways
    '27, '28, we definitely have to diversify. As I said, we have to go into a new sector, and we must execute in '27. Some part of this turnover should be from the Power and Railways.

    — Rajagopal Reddy

What to watch in Q1 FY27

EBITDA Margin

Next quarter / Sustainable
Current 11.02% (FY26)
Target Above 12-13%

Why it matters

Sustained improvement in EBITDA margin is crucial for overall profitability and reflects operational efficiency gains.

Okay, okay. So can EBITDA margin sustainably move above 12% to 13%? Yes.

Risks & concerns

  • Competitive business environment

    medium

    The competitive nature of the business limits significant PAT margin expansion.

    Management acknowledged

  • Negative operating cash flow

    medium

    Operating cash flow was negative INR 4 crores in FY26 due to inventory, loans, and advances.

    Management acknowledged

  • Project delays due to external factors

    medium

    Right of Way (ROW) issues in scattered water projects can cause time delays, which are considered during tender quoting.

    Management acknowledged

  • Geographic concentration and payment delays

    medium

    While Gujarat offers timely payments, other states, despite potentially higher margins, may experience payment delays, posing a challenge for diversification.

    Analyst acknowledged

  • Outstanding retention money

    low

    Approximately INR 6 crores in retention money is outstanding across projects.

    Management acknowledged

Q&A highlights

6 direct
PAT margin expansion challenges Direct
It is a competitive business. Due to that, profits we cannot expect becoming double, triple like that. There will be a little bit growth compared to previous years.

Highlights the inherent margin limitations in the competitive construction sector and management's realistic outlook on profitability.

Asked by Ashish Kumar

EBITDA margin sustainability Direct
Okay, okay. So can EBITDA margin sustainably move above 12% to 13%? Yes.

Provides a clear target range for future EBITDA margins, indicating management's confidence in improving operational efficiency.

Asked by Ashish Kumar

Raw material cost sensitivity and pass-through Direct
There will be a price variation clauses in the tenders for pipe supply. ... In almost all the projects, price escalation will be there for the price.

Clarifies the mechanism for mitigating raw material price volatility, which is a key risk in EPC contracts.

Asked by Ashish Kumar

Order book sufficiency for future growth Direct
Definitely, we can. Our order book will increase in the coming 10 months also to achieve the turnover projections, like previous years' growth if we want to maintain the same turnover growth, definitely we can achieve.

Reassures on the company's ability to sustain growth despite the current order book size, by indicating expected new order wins.

Asked by Vinod Shah

Slowdown in new tenders under Jal Jeevan Mission Direct
There is no slowdown. Everybody asks for the Jal Jeevan Mission. The last two years it was a little bit slow, last two years. For the coming two years, it will be good as the Central Government has extended this scheme up to 2028.

Addresses concerns about the pipeline of government projects, confirming continued opportunities in the water sector.

Asked by Vinod Shah

Geographic diversification and payment experience Partial
Our search is going on, but Gujarat is the best place for getting timely payments as per my experience. ... Compared to Gujarat, there will be good margins, but payments will be a little bit delayed.

Reveals the trade-off between higher margins in new geographies and the reliability of payments, influencing diversification strategy.

Asked by Parag Dave

Negative operating cash flow Direct
Cash flow is around INR4 crores negative in the final cash flow statement. So we have realized everything in the revenue as per certified. So our operating net cash flows are around INR4 crores negative because of our inventory and our loans and advances.

Highlights a key liquidity concern, explaining the reasons behind the negative cash flow from operations.

Asked by Mayur Parekh

Impact of large project delays on revenue guidance Partial
FY27, it's not like that. In general, government projects, that too water sector, these projects are in a scattered locations. Like if you consider one project, the works will be around 50 to 60 villages spread over an area, pipeline as well as civil work, underground sumps, overhead tanks, like that. In that, due to ROW issues, there are time delays. We will consider all those things and we will quote the tender.

Acknowledges the potential for project delays due to external factors like Right of Way (ROW) issues, but implies these are factored into project planning and bidding.

Asked by Riya Jain

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY26

V.L. Infraprojects Limited achieved a significant milestone in FY26, crossing the INR 150 crores revenue mark for the first time, with total income reaching INR 150.04 crores, representing a robust 23.8% year-on-year growth. EBITDA increased by 25.7% to INR 16.53 crores, leading to an improved EBITDA margin of 11.02%. Net profit (PAT) also saw a healthy increase of nearly 20%, reaching INR 8.42 crores, demonstrating strong project execution and efficient resource utilization.

Healthy Order Book and Future Growth Outlook

The company closed FY26 with an order book of approximately INR 280 crores, having executed over INR 151 crores of orders during the year. This provides a book-to-bill ratio of 1.4x based on FY26 revenue. Management expects to maintain a 20-25% year-on-year revenue growth rate for FY27 and FY28, supported by an anticipated increase in the order book, with INR 150 crores of works currently under process. The bid-to-win ratio stands at around 25%.

Strategic Diversification and Geographic Expansion

Currently focused on water infrastructure, including sewerage networks, irrigation projects, and pipelines, V.L. Infraprojects is actively pursuing diversification into new sectors like Power and Railways, with execution expected to commence in FY27. Geographically, while Gujarat remains a strong base due to timely payments, the company is expanding its footprint with growing contributions from Telangana and Madhya Pradesh, and exploring opportunities in Odisha and Bihar.

Operational Efficiency and Margin Management

The company aims for its EBITDA margin to sustainably move above 12-13%, up from 11.02% in FY26. Management noted that PAT margins are around 5.6%, acknowledging the competitive nature of the business. Raw material costs, primarily for pipes, are managed through price variation clauses in almost all tenders, based on RBI indices, ensuring pass-through without significant lag.

Working Capital and Liquidity Considerations

Operating cash flow for FY26 was negative INR 4 crores, primarily due to inventory, loans, and advances. The company has approximately INR 6 crores in retention money outstanding across its projects. To support growth and new orders, V.L. Infraprojects has secured HDFC Bank renewals and enhanced its Bank Guarantee (BG) limits, indicating sufficient working capital support for FY27 and FY28.

Government Initiatives and Sector Outlook

The outlook for the water infrastructure sector remains highly encouraging, driven by government initiatives such as Jal Jeevan Mission, Amrut, and Nal Se Jal Yojana. Management confirmed no slowdown in new tenders for Jal Jeevan Mission, which has been extended until 2028. The company's expertise across the entire project lifecycle, from procurement to operation and maintenance, positions it well to capitalize on these opportunities.

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