Virtual Galaxy Infotech September profit rises to Rs 15.44 crore

Virtual Galaxy Infotech Limited reported net profit of Rs 15.44 crore for the quarter ended September 30, 2026, up from Rs 9.20 crore in the June quarter, as revenue from operations increased to Rs 64.21 crore from Rs 40.38 crore. The board approved the unaudited standalone results on November 13, 2026.

How did Virtual Galaxy Infotech perform in the September 2026 quarter?

Virtual Galaxy Infotech increased September-quarter revenue from operations by Rs 23.83 crore sequentially to Rs 64.21 crore, while net profit rose by Rs 6.24 crore to Rs 15.44 crore. Total income was Rs 64.35 crore, including other income of Rs 14.52 lakh, compared with total income of Rs 40.39 crore in the quarter ended June 30, 2026.

Profit before tax increased to Rs 21.87 crore in the September quarter from Rs 12.98 crore in the preceding quarter, while total expenses rose to Rs 42.49 crore from Rs 27.41 crore. Basic earnings per share increased to Rs 6.21 from Rs 3.70, and diluted earnings per share rose to Rs 5.95 from Rs 3.56.

What changed in Virtual Galaxy Infotech’s costs and tax charge?

Virtual Galaxy Infotech’s expenses rose by Rs 15.08 crore between the June and September 2026 quarters, less than the Rs 23.96 crore increase in total income. Cost of materials consumed was the largest disclosed cost line at Rs 24.95 crore, up from Rs 10.26 crore, while employee benefit expense increased to Rs 3.81 crore from Rs 3.45 crore.

Depreciation and amortisation amounted to Rs 8.86 crore in the September quarter, compared with Rs 8.76 crore in the June quarter, and finance costs increased to Rs 86.80 lakh from Rs 84.04 lakh. Other expenses declined to Rs 4.00 crore from Rs 4.07 crore; the company reported no exceptional or extraordinary items in either quarter. Net tax expense rose to Rs 6.43 crore from Rs 3.78 crore as profit before tax increased.

How did Virtual Galaxy Infotech’s half-year results compare?

Virtual Galaxy Infotech reported revenue from operations of Rs 104.58 crore for the six months ended September 30, 2026, compared with Rs 86.13 crore for the corresponding six months ended September 30, 2025. Half-year net profit was Rs 24.64 crore, up from Rs 22.02 crore in the comparative period presented by the company.

Total expenses for the latest half year were Rs 69.89 crore against Rs 55.47 crore a year earlier, while profit before tax rose to Rs 34.85 crore from Rs 31.06 crore. Depreciation and amortisation increased to Rs 17.62 crore from Rs 6.66 crore, whereas other income declined to Rs 15.75 lakh from Rs 39.77 lakh. Basic earnings per share were Rs 9.91, compared with Rs 9.17.

Virtual Galaxy Infotech said it voluntarily adopted quarterly financial reporting from the quarter ended December 31, 2025, having previously followed the half-yearly framework applicable to SME-listed entities. It also said all activities relate to its main business and are conducted in India, so there is no separate reportable business or geographical segment.

What changed in Virtual Galaxy Infotech’s assets and cash flow?

Virtual Galaxy Infotech’s total assets increased to Rs 322.06 crore at September 30, 2026 from Rs 299.14 crore at March 31, 2026. Tangible assets under development rose to Rs 57.87 crore from Rs 9.78 crore, while intangible assets under development rose to Rs 22.40 crore from Rs 12.36 crore, taking the combined under-development balance to Rs 80.27 crore.

Cash and cash equivalents fell to Rs 11.41 crore at September 30 from Rs 31.18 crore at March 31, while trade receivables increased to Rs 42.50 crore from Rs 32.16 crore. Long-term borrowings increased to Rs 40.30 crore from Rs 35.93 crore, but short-term borrowings declined to Rs 7.64 crore from Rs 12.45 crore.

Net cash from operating activities was Rs 38.68 crore for the six months ended September 30, 2026, while net cash used in investing activities was Rs 56.87 crore. Investing cash outflows included Rs 48.09 crore for tangible assets under development and Rs 10.04 crore for intangible assets under development. The March 31, 2026 cash-flow comparator is a full-year figure rather than a corresponding half-year period.

What is the status of Virtual Galaxy Infotech’s share warrants?

Virtual Galaxy Infotech had 12.43 lakh convertible share warrants outstanding at September 30, 2026, with none converted into equity shares. The warrants were allotted on April 23, 2026 to the promoter and promoter group at an issue price of Rs 159 per warrant, and each warrant can convert into one equity share of Rs 10 within 18 months of allotment.

The company had received 25% subscription consideration, or Rs 4.94 crore, against the warrants by September 30. The total amount received or receivable was Rs 19.77 crore, comprising Rs 14.83 crore for working capital and Rs 4.94 crore for other general corporate purposes. Of the amount received, Rs 4.94 crore had been utilised for other general corporate purposes, leaving Rs 1 unutilised.

Money received against share warrants stood at Rs 4.94 crore in shareholders’ funds at September 30, while share capital was unchanged at Rs 24.87 crore. Reserves and surplus increased to Rs 218.23 crore from Rs 193.59 crore at March 31. The statutory auditor issued an unmodified limited-review conclusion, and the company reported no investor complaints received or pending as of September 30.

Conclusion

Virtual Galaxy Infotech’s September-quarter result showed sequential growth in revenue, profit before tax and net profit, with revenue reaching Rs 64.21 crore and net profit reaching Rs 15.44 crore. For the half year, revenue rose to Rs 104.58 crore and net profit to Rs 24.64 crore, while tangible and intangible assets under development expanded to a combined Rs 80.27 crore.

The disclosed matters to watch are the use of the Rs 14.83 crore earmarked for working capital under the warrant issue, the remaining 75% warrant consideration, and whether the 12.43 lakh warrants are converted during their 18-month exercise period from the April 23, 2026 allotment date. The company’s next financial disclosures can also show whether receivables of Rs 42.50 crore and development assets continue to change.