VVIP Infratech FY26: Softer Year, But FY27 Guidance Points to a Sharp EPC Rebound

VVIP Infratech Limited reported a mixed FY26. Revenue fell year on year in both standalone and consolidated numbers, and profit also declined. The company linked the slowdown to weaker momentum in government infrastructure projects, including a meaningful deceleration in Jal Jeevan Mission activity.

On a standalone basis, revenue from operations for FY26 was INR 260.64 crore versus INR 277.05 crore in FY25. Standalone EBITDA for FY26 was INR 36.98 crore and PAT was INR 22.67 crore. For H2FY26, revenue was INR 130.71 crore and PAT was INR 8.99 crore.

Consolidated performance, which includes the real estate business through VVIP Realtech Private Limited, showed revenue from operations of INR 346.50 crore in FY26 compared with INR 370.66 crore in FY25. Consolidated EBITDA was INR 71.55 crore in FY26 versus INR 78.07 crore. Adjusted PAT after minority interest was INR 30.07 crore for FY26, compared with INR 36.11 crore in FY25.

FY26 performance: revenue declined, margins held up

The presentation positions VVIP as a technical infrastructure EPC company with capabilities across sewage treatment plants (SBR-based STPs), sewerage networks, water supply systems, and electrical distribution and substations up to 33 kV. The year, however, was defined by slower government project execution, which translated into lower billing momentum.

Standalone FY26 margins were presented as resilient, supported by better execution and mix. The presentation highlights a tilt toward water and wastewater work, which the company associates with stronger profitability. Consolidated margins remained materially higher than standalone, with FY26 consolidated EBITDA margin indicated at about 20.6 percent (the consolidated income statement table shows 21 percent), which the presentation attributes to operating leverage and better margins in real estate projects.

Order book visibility and the operating engine

A central anchor in the presentation is the order book. As of 31/03/2026, the company disclosed total construction work contract value of INR 1,242.10 crore, with outstanding value of INR 636.75 crore. The construction book is largely tied to water infrastructure programs, STPs and sewerage, and electrical works, with employers including UP Jal Nigam, Uttarakhand Peyjal Nigam, UPCL, PVVNL, and Noida Authority, as well as large EPC counterparties on Jal Jeevan Mission packages.

In addition, the company disclosed an operations and maintenance book with contract value of INR 261.78 crore and outstanding value of INR 119.76 crore. The presentation’s narrative repeatedly connects wastewater projects with a longer O&M runway, including a stated 15-year O&M annuity tail.

This combination is positioned as a differentiator. The company’s pitch is that technical EPC credentials in SBR-based STPs and medium voltage electrical systems help it operate in a more specialized segment of government contracting, where qualification thresholds limit competition.

Real estate contribution: higher margins, minority interest effects

Through its subsidiary VVIP Realtech Private Limited, the group operates residential real estate projects. The presentation frames the real estate vertical as a profitability catalyst, highlighting in-house EPC execution as a cost and execution advantage.

The project table in the presentation discloses three active developments:

VVIP Namah in Ghaziabad: sale value INR 500 crore, booked value INR 352 crore, and collections of INR 280 crore, with 51 percent ownership.

VVIP Addresses in Greater Noida West: sale value INR 900 crore, booked value INR 409 crore, and collections of INR 118 crore, with 100 percent ownership.

VVIP-Yamuna on the Yamuna Expressway: sale value INR 750 crore, booked value INR 395 crore, and collections of INR 60 crore, with 51 percent ownership.

The ownership structure matters because the consolidated income statement includes a minority interest line. In FY26, minority interest was INR 12.59 crore versus INR 14.11 crore in FY25, and the company reports adjusted PAT after minority interest to reflect earnings attributable to shareholders.

Balance sheet cues: standalone leverage and cash movement

The standalone balance sheet shows net worth increasing to INR 180.48 crore as of 31/03/2026 from INR 157.81 crore as of 31/03/2025. At the same time, borrowings increased and cash reduced year on year.

Long-term borrowings rose to INR 19.34 crore from INR 2.75 crore, while short-term borrowings increased to INR 42.30 crore from INR 34.95 crore. Cash and cash equivalents declined to INR 22.80 crore from INR 34.76 crore. Standalone interest expense in FY26 was INR 6.39 crore compared with INR 4.92 crore in FY25.

On the consolidated balance sheet, the presentation shows significant changes between FY25 and FY26, including higher total assets and changes in inventories and other current liabilities. However, the presentation provides only summarized line items and does not explain the drivers of the large year-on-year movements.

FY27 outlook: explicit growth and margin guidance on EPC

The most direct forward guidance in the deck is for the standalone infrastructure-EPC business. Management stated expectations of 50 to 55 percent standalone revenue growth in FY27. This is linked to an effective order book of INR 837 crore, including an INR 81 crore Bhadohi STP LOA, and management described this as providing 2 to 3 years of revenue visibility as execution shifts toward longer-cycle STP and water mandates that bill from FY27.

For profitability, management guided for standalone EBITDA margins of 14 to 16 percent in FY27 and standalone PAT margins of 9 to 11 percent. The presentation ties the margin profile to operating leverage and a higher share of SBR-based STP work that carries longer O&M tenures.

Management also stated that it is selectively pursuing INR 300 to 500 crore tenders alongside the steady INR 50 to 150 crore cadence, positioning for the next AMRUT 2.0, RDSS, and Jal Jeevan cycles. The intent, as stated, is to build depth beyond the current effective order book into FY28 and beyond.

For real estate, the presentation commentary is qualitative rather than numeric guidance. It states that demand is measured but consistent and that three projects are billing in parallel, with Namah moving toward delivery, Addresses progressing through construction, and Yamuna building sales velocity after launch.

Land acquisitions: pipeline creation with defined launch windows

The presentation also includes two specific land acquisitions positioned as future growth drivers.

First, VVIP Realtech Pvt. Ltd., described as a step-down subsidiary, acquired land at Block-A, Madhuban Papudham, Ghaziabad through a GDA auction. The total transaction value is INR 150 crore, with INR 37 crore (25 percent) already paid and the balance payable in half-yearly installments. The project highlights state an estimated saleable area of about 11 lakh sq ft, projected gross revenue of INR 800 crore, expected launch within 6 to 7 months after statutory approvals, and a completion timeline of 4 years from launch.

Second, a group company acquired a land parcel for VVIP Namah Phase-2 at Aditya World City, NH-24, Ghaziabad through NCLT under the IBC process. The presentation states an estimated saleable area of about 5 lakh sq ft, projected gross revenue of INR 450 crore, expected launch in December 2026, and a completion timeline of 4 years from launch.

Takeaways

VVIP Infratech’s FY26 numbers reflect a slower year in government infrastructure execution, with revenue and profit declining year on year. The company’s investment case in the presentation rests on two pillars: a sizeable disclosed order book for the EPC business and higher consolidated margins supported by real estate.

The FY27 guidance is unusually explicit for the standalone EPC segment, with a 50 to 55 percent revenue growth target and a 14 to 16 percent EBITDA margin band. Execution against the outstanding order book and conversion of the tender pipeline into awarded work will be key monitoring points. On the real estate side, the presentation provides clear project metrics and outlines new land additions with expected launch timelines, but it does not provide consolidated revenue or profit guidance for FY27.