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Vision Infra Equipment Solutions Limited FY26: growth-led year, expanding services, and a balance sheet that raised questions

Vision Infra Equipment Solutions Limited (VIESL) reported its audited results for the half year and year ended 31 March 2026 with a sharp step-up in scale and profitability. For FY26, total income stood at INR621.9 crore, up from INR454.4 crore in FY25. EBITDA increased to INR171.4 crore (from INR128.4 crore), while PAT rose to INR66.0 crore (from INR34.1 crore).

The company positioned itself as a one-stop infrastructure equipment partner with two operating engines: equipment rentals and refurbishment/trading. It highlighted a rental fleet of about 545 units, an order book of about INR248 crore, and EBITDA margin of about 27.6 percent for FY26.

FY26 performance in numbers

The investor presentation provided a three-year performance table and a detailed profit and loss statement for H1 FY26, H2 FY26 and full years.

In H2 FY26, total income was INR334.1 crore and PAT was INR44.4 crore, versus INR287.8 crore and INR21.6 crore in H1 FY26.

Operating model and what changed in FY26

VIESL described a dual model across rentals and refurbishment/trading. In the concall Q&A, management gave a revenue mix of around 51 percent from refurbishment and 49 percent from rental. The company also discussed two pricing structures for rentals: time-based pricing and output-based pricing, where activities such as milling, crushing, piling, paving and stabilization are delivered as service outcomes.

A key operational theme for FY26 was moving from being a pure equipment rental provider to a broader integrated execution partner in selected activities. Management said it strengthened asphalt and concrete paving capabilities, enabling captive end-to-end services. It also added piling rigs to address opportunities in elevated infrastructure projects.

Management also stated the company implemented an ERP platform in FY26, describing it as a strategic milestone to strengthen transparency, operational control and scalability.

Accounting change that affected profitability comparability

On the earnings call, management stated that during the year it switched depreciation from the WDV method to the straight-line method. In response to a question on impact, management said the impact on the bottom line for the full year would have been around INR20 crore.

Management also said the asset life assumption remained 12 years and that the change was driven by a desire to match a relatively constant rental revenue profile with depreciation expense.

Balance sheet expansion and the “other current liabilities” debate

The balance sheet in the presentation showed a sharp increase in total assets to INR875.5 crore in FY26 from INR514.5 crore in FY25, driven mainly by growth in PPE, intangibles and CWIP to INR471.1 crore (from INR271.3 crore).

One of the most discussed items on the concall was “other current liabilities,” which increased to INR191.8 crore in FY26 from INR41.6 crore in FY25. Management attributed this to fixed asset purchases done on extended credit terms from OEM suppliers, describing these as capex purchase creditors rather than borrowings.

A participant pointed out that if such credit terms extend beyond 12 months, classification may need to be revisited. Management acknowledged the point during the discussion, while reiterating that the amounts are supplier credit. In the call, management cited payment terms such as 360 to 720 days in one exchange and 270 to 360 days in another.

FY27 outlook: growth, capex and profitability targets

Management provided explicit guidance for FY27 on the call:

• Revenue growth target of about 25 percent to 30 percent.
• Capex plan of about INR100 crore to INR150 crore.
• PAT margin expectation for next year around 12 percent, with commentary that 12 to 13 percent is a reasonable range.

Management also reiterated an ambition to double revenue over the next three years and said debt reduction would be a clear priority in coming years, citing internal accruals and better cash flows as the intended route.

New opportunity area: mining (but only rentals)

Management discussed entering mining as an opportunity area while keeping the model aligned with core competence. It stated the company has already done crushing and screening activities in iron ore, and that its focus would remain equipment rental rather than contract mining. Management also said it expects to receive some order for tippers in the next coming quarter and has started procurement due to long lead times.

Takeaways

FY26 was a strong year on reported growth and profitability for Vision Infra Equipment Solutions, with total income of INR621.9 crore and PAT of INR66.0 crore. The company also broadened its offerings through end-to-end asphalt and concrete road services and added piling rigs.

At the same time, the call highlighted two areas investors are likely to track closely: comparability after the depreciation method change and the balance sheet classification and unwind of large OEM credit-backed liabilities reported under other current liabilities. Management’s FY27 guidance of 25 to 30 percent revenue growth and INR100 to 150 crore capex sets a clear near-term operating framework.