VPRPL September-quarter revenue falls 43% as net loss returns

Vishnu Prakash R Punglia Limited reported revenue from operations of Rs 168.186 crore for the quarter ended September 30, 2026, down 43% from Rs 295.685 crore a year earlier, and posted a net loss of Rs 25.294 crore against a Rs 3.650 crore profit. Exceptional items of Rs 35.692 crore outweighed pre-exceptional profit.

Why did VPRPL’s September-quarter revenue fall 43%?

VPRPL’s revenue from operations fell by Rs 127.499 crore year on year, to Rs 168.186 crore in the September 2026 quarter from Rs 295.685 crore in the September 2025 quarter. Total income declined to Rs 181.207 crore from Rs 297.909 crore, including other income of Rs 12.721 crore in the latest quarter.

The half-year figures showed a wider contraction in absolute terms. Revenue from operations for the half year ended September 30, 2026 was Rs 306.364 crore, compared with Rs 572.090 crore in the corresponding 2025 period, a reduction of Rs 265.726 crore. Total income for the latest half year was Rs 320.645 crore, against Rs 575.600 crore a year earlier.

VPRPL said it and its jointly controlled operations operate exclusively in construction and infrastructure development in India, which it treats as one operating segment under Indian Accounting Standard 108. Its standalone accounts include proportionate results from 21 jointly controlled operations, but exclude VPRPL-KALPATARU JV because a dispute with Kalpataru Enterprises prevented access to that joint operation’s financials.

How did VPRPL return to a September-quarter net loss?

VPRPL recorded a net loss of Rs 25.294 crore for the September 2026 quarter, compared with net profit of Rs 3.650 crore in the prior-year quarter. It reported profit before tax and exceptional items of Rs 3.047 crore, but Rs 35.692 crore of exceptional items resulted in a loss before tax of Rs 32.645 crore.

The September-quarter loss was narrower than the Rs 39.316 crore loss reported in the June 2026 quarter. Basic and diluted earnings per share were negative Rs 2.03 for September 2026, compared with positive Rs 0.29 in September 2025, reflecting the shift from profit to loss.

For the half year ended September 30, 2026, VPRPL reported a net loss of Rs 64.611 crore, against net profit of Rs 10.655 crore in the corresponding 2025 half year. Loss before tax was Rs 83.010 crore, including Rs 35.692 crore of exceptional items, while the preceding-year half year had profit before tax of Rs 13.879 crore.

The unaudited results were reviewed by the audit committee and approved by VPRPL’s board on November 14, 2026. The company said Banshi Jain & Associates issued a limited review report dated November 14, 2026, in line with the filing under Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations.

What did the ECL reversal change in VPRPL’s costs?

VPRPL reported negative other expenses of Rs 12.379 crore in the September 2026 quarter, compared with other expenses of Rs 12.589 crore a year earlier. The result footnote said this negative expense reflected reversal of an expected credit loss, or ECL, provision of Rs 15.760 crore made during the June 2026 quarter.

The company also said it reviewed and changed its ECL estimates for trade receivables under Indian Accounting Standard 109 during the period. It said that change lowered ECL provision and loss for both the September quarter and the half year by Rs 64.007 crore.

The lower expense did not prevent a reported quarterly loss because the Rs 35.692 crore exceptional charge exceeded the Rs 3.047 crore profit before tax and exceptional items. Construction expenses increased to Rs 117.968 crore from Rs 97.640 crore a year earlier, while material consumed fell to Rs 20.427 crore from Rs 101.181 crore.

Total expenses declined to Rs 178.160 crore from Rs 294.543 crore, broadly tracking the lower revenue base. Finance costs declined to Rs 13.881 crore from Rs 17.894 crore, while employee-benefit expense decreased to Rs 11.274 crore from Rs 16.440 crore in the year-on-year comparison.

Which exceptional items affected VPRPL’s September results?

VPRPL booked Rs 35.692 crore of exceptional items in the September 2026 quarter and half year in connection with the Bikaner railway-station project awarded to VPRPL-KSIPL BKN JV. North West Railway Jaipur rescinded that engineering, procurement and construction contract on May 11, 2026, then encashed performance bank guarantees and forfeited security deposits of Rs 19.947 crore on October 5, 2026.

The provision included Rs 19.947 crore of expected credit loss and Rs 15.745 crore for expected loss in work-in-progress inventory at the project site. VPRPL said it filed Civil Writ Petition S.A.W. No. 1214/2026 before the Rajasthan High Court at Jodhpur, where the matter was pending final hearing and adjudication when the results were approved.

A separate Jaipur-Sawai Madhopur doubling-project contract was rescinded on January 13, 2026. VPRPL had provided Rs 9.964 crore as expected credit loss in the quarter ended December 31, 2025 and year ended March 31, 2026, and said its related petition, S.A.W. No. 1213/2026, was also pending final hearing.

Management said it expects to succeed in both proceedings, citing what it described as strong legal and factual grounds and a high likelihood of contract restoration and reversal of the adverse actions. Those are management’s expectations, while the financial results retain the stated provisions for the railway-project matters.

What do VPRPL’s liquidity and balance-sheet figures show?

VPRPL reported total assets of Rs 1,831.223 crore as of September 30, 2026, down from Rs 1,880.251 crore at March 31, 2026. Total equity declined to Rs 566.248 crore from Rs 629.950 crore, while total liabilities increased to Rs 1,264.975 crore from Rs 1,250.301 crore.

Borrowing composition changed during the six months. Long-term borrowings increased to Rs 243.080 crore from Rs 59.451 crore, while short-term borrowings decreased to Rs 370.460 crore from Rs 590.094 crore. Trade receivables rose to Rs 591.540 crore from Rs 576.768 crore, while inventories declined to Rs 723.364 crore from Rs 782.545 crore.

Cash and cash equivalents stood at Rs 39.5 lakh on September 30, 2026, compared with Rs 81.6 lakh on March 31, 2026. The half-year cash-flow statement showed positive operating cash flow of Rs 53.712 crore, positive investing cash flow of Rs 9.012 crore, and financing cash outflow of Rs 63.145 crore, producing a Rs 42.1 lakh decrease in cash.

VPRPL said delayed collection of receivables from government departments and government-backed authorities had created temporary liquidity constraints and led it to slow operations temporarily. Management cited improved debtor realisation, revenue rising from Rs 137.878 crore in June 2026 to Rs 168.186 crore in September 2026, promoter support and ongoing operations in its going-concern assessment.

Conclusion

VPRPL’s September-quarter result combined a 43% year-on-year revenue decline with a return to net loss. The reversal of Rs 15.760 crore of ECL provision reduced other expenses, but did not offset the Rs 35.692 crore exceptional charge related to the Bikaner railway-station project and the lower revenue level.

The next disclosures to watch are progress in the two Rajasthan High Court petitions, particularly the Bikaner matter, and collection of government-related receivables. VPRPL’s stated plan rests on improved debtor realisation, a recovery in quarter-on-quarter revenue, continued promoter support and the resumption of operating activity after its temporary slowdown.