GVPTECH - GVP Infotech

📊 NSE: GVPTECH 🏢 Computers - Software - Medium / Small 📅 Last Updated: 12/13/2025 22:44

💰 Financial Performance

Revenue Growth by Segment

Total revenue decreased 82.11% YoY from Rs. 3325.11 Lakhs to Rs. 569.02 Lakhs. The decline is primarily attributed to a transition towards a new business vertical for PA-PG (Payment Aggregator-Payment Gateway) services.

Geographic Revenue Split

Not disclosed in available documents, though operations are primarily India-based.

Profitability Margins

Net Profit Ratio declined from 8.53% in FY24 to -46.45% in FY25. Return on Net Worth dropped from 1.67% to -1.59% due to the shift from net profit to a net loss of Rs. 264.32 Lakhs.

EBITDA Margin

EBITDA margin turned negative at -45.87% in FY25 compared to 9.69% in FY24, with EBITDA falling from Rs. 322.25 Lakhs to a loss of Rs. 261.01 Lakhs.

Capital Expenditure

The company incurred significant costs for IT infrastructure to support the new PA-PG business vertical; specific absolute INR Cr values for total capex were not disclosed.

Credit Rating & Borrowing

The company is rated 'CARE D; ISSUER NOT COOPERATING' as of August 2025, indicating default on bank facilities totaling Rs. 100.00 Cr (Rs. 30.00 Cr Long Term and Rs. 70.00 Cr Long/Short Term).

⚙️ Operational Drivers

Raw Materials

IT and electronic products including tablets, TVs, and mobile phones represent the primary traded goods, though specific cost percentages are not disclosed.

Capacity Expansion

The company is expanding its operational capacity to meet demand for software development services and digital payment infrastructure (PA-PG vertical).

Raw Material Costs

Not disclosed as a percentage of revenue; however, inventory levels decreased significantly alongside the 82.11% revenue drop.

Manufacturing Efficiency

Not applicable as the company operates in the IT trading and services sector.

📈 Strategic Growth

Growth Strategy

The company is pivoting to a new business vertical for PA-PG (Payment Aggregator-Payment Gateway) and expanding software development services. This strategy involves high initial business development and infrastructure costs to capture long-term demand in digital payments.

Products & Services

IT products (tablets, TVs, mobile phones), infrastructure support services, technical support, operations outsourcing, and PA-PG services.

Brand Portfolio

GVP Infotech (formerly Fourth Dimension Solutions).

New Products/Services

Launch of the PA-PG (Payment Aggregator-Payment Gateway) business vertical.

Market Expansion

Targeting expansion in the software development and digital payment infrastructure markets in India.

🌍 External Factors

Industry Trends

The IT sector is shifting toward integrated digital payment solutions and outsourced technical support, though it remains fragmented with high pricing pressure.

Competitive Landscape

The IT and software development sector is highly competitive with numerous players vying for the same client projects.

Competitive Moat

The company lacks a durable competitive advantage as evidenced by its 'CARE D' credit rating and the necessity of offering discounts to compete.

Macro Economic Sensitivity

Highly sensitive to digital transformation trends and government spending on smart governance and education projects.

Consumer Behavior

Increasing demand for digital payment gateways and outsourced IT infrastructure support.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013 and international quality control norms for IT product development.

Legal Contingencies

The statutory auditor's report includes a 'Basis for Qualified Opinion' regarding provisions for doubtful debts related to Minosha India Ltd and RUDSICO.