V.L. Infraprojects FY26: Crossing ₹150 crore as the order book stays strong

V.L. Infraprojects ended FY26 with a clear milestone. Total income rose to ₹150.02 crore, up 23.76 percent year on year. EBITDA grew 25.67 percent to ₹16.53 crore, with an EBITDA margin of 11.02 percent. Net profit increased 19.94 percent to ₹8.42 crore, translating into a PAT margin of 5.61 percent.

The management commentary credits the year’s performance to strong execution across water supply and other infrastructure projects, timely delivery, and resource optimisation. The company also highlighted fresh order wins during the year, which it believes strengthens long-term revenue visibility.

What drove FY26 performance

V.L. Infraprojects positions itself as an EPC contractor focused on water infrastructure, sewerage, and irrigation, with capabilities spanning pipeline procurement, civil works, electro-mechanical installations, and O&M services. In FY26, the revenue mix shows the business remains anchored in water infrastructure.

Water infrastructure contributed 76.79 percent of FY26 revenue, making it the primary driver. Building construction contributed 19.21 percent. Irrigation projects and road construction were relatively small at 2.95 percent and 1.05 percent, respectively.

The operating result shows modest margin expansion at the EBITDA line versus FY25, while PAT margin was slightly lower than FY25. Finance costs increased to ₹4.27 crore in FY26 from ₹2.61 crore in FY25, which matters for a working-capital heavy EPC model.

Segment mix and execution footprint

The company’s FY26 segment split indicates increasing diversification beyond water infrastructure, mainly through building construction. Still, water remains the core. The order book mix by segment also reflects this, with water pipeline projects making up 86.47 percent of the order book, followed by road construction at 11.60 percent.

Geographic diversification has progressed over the last three years. Gujarat remains the largest contributor, but its share has reduced from 89.74 percent in FY24 to 67.16 percent in FY26. Madhya Pradesh increased sharply to 18.16 percent in FY26, while Telangana contributed 14.68 percent.

This shift is also visible in the order book’s geographic mix. Gujarat accounts for 68.78 percent of the order book, with Telangana at 13.38 percent and Madhya Pradesh at 17.84 percent.

Customer concentration, another common risk in government EPC businesses, appears to have improved. The top 5 customers’ revenue contribution fell to 43.12 percent in FY26 from 70 percent in FY25 and 80.50 percent in FY24, indicating a broader customer base than before.

Order book and near-term visibility

V.L. Infraprojects reported a total order book of ₹217.64 crore as of FY26, with an execution timeline of 12 to 18 months. H2 FY26 order inflow was ₹95.12 crore, and the bid pipeline was stated at ₹150 crore.

The order book trend shows a reduction from FY25 levels. The order book stood at ₹238.77 crore in FY25 and ₹217.65 crore in FY26. The company’s investment case therefore leans on the combination of ongoing execution and continued order inflow to keep revenue momentum intact.

The company also listed several ongoing water supply projects in Gujarat with expected completion dates ranging from December 2026 to August 2027. These include projects such as Telav, Jalandra, Shela, Hadaf, Abdasa, and Balasinor WSS and UGD.

Financial position and cash flow reality

On the balance sheet, net worth increased to ₹50.33 crore in FY26 from ₹41.91 crore in FY25. Debt levels rose on the current portion, with current borrowings increasing to ₹26.51 crore from ₹17.92 crore, while non-current borrowings declined to ₹1.66 crore.

The company reported a current ratio of 2.00 in FY26, slightly lower than 2.14 in FY25. Debt to equity stood at 0.56 in FY26 versus 0.49 in FY25. Interest coverage declined to 3.69 from 4.86, aligning with the increase in finance costs.

A key point for investors is the cash flow statement. Operating cash flow remained negative in FY26 at -₹4.10 crore, although it improved from -₹15.39 crore in FY25. This is consistent with management’s own stated risk that cash flows depend on milestone-based billing and collections. In a government EPC model, better execution and billing discipline can improve cash conversion, but the presentation does not quantify targets for this.

Strategy and sector tailwinds

Management’s outlook commentary points to a supportive sector environment driven by government initiatives such as Jal Jeevan Mission and AMRUT. The presentation also cites a broader infrastructure capex push in India and highlights budget allocations for water-related schemes.

Against this backdrop, the company’s stated way forward includes:

1. Strengthening its core water supply and sewerage EPC focus and targeting larger, technically complex contracts.
2. Increasing the share of O&M services and repeat orders.
3. Expanding geographically, with emphasis on Telangana, Madhya Pradesh and Karnataka, and entering new markets like Uttar Pradesh and Odisha.
4. Improving working capital and cash flow visibility.
5. Enhancing execution capacity through project management systems, manpower and equipment.

These points are directionally clear, but they are largely qualitative. The presentation does not provide numeric targets for FY27 revenue growth, margin aspirations, cash flow targets, or capex plans.

Takeaways

V.L. Infraprojects delivered a strong FY26 on the income statement, crossing ₹150 crore in total income with steady margins and growth in profit. The order book remains sizable at ₹217.64 crore, and customer concentration has reduced meaningfully compared with FY24 and FY25.

At the same time, the cash flow profile remains an area to track, with operating cash flow negative for the second consecutive year. Management has acknowledged the EPC model’s dependence on milestone billing and highlighted disciplined billing and collection as a mitigation lever.

If the company can sustain order inflows while improving working capital conversion, it could strengthen the quality of earnings alongside its scale-up in the water infrastructure EPC segment.