VINDHYATEL - Vindhya Telelink

📊 NSE: VINDHYATEL 🏢 Construction 📅 Last Updated: 12/14/2025 15:08

💰 Financial Performance

Revenue Growth by Segment

Cable segment revenue grew 33.05% to INR 792.22 Cr in FY25 from INR 595.41 Cr. EPC segment revenue declined 6.21% to INR 3,304.87 Cr from INR 3,523.63 Cr due to execution slowdowns. Standalone revenue for Q2 FY26 was INR 952.67 Cr, up 10.52% YoY.

Geographic Revenue Split

Not specifically disclosed, but the company executes EPC projects across various Indian geographies, with a significant concentration in Uttar Pradesh for the State Water Sanitation Mission (SWSM).

Profitability Margins

Consolidated net profit margin moderated to 5.00% in FY25 from 6.91% in FY24. Standalone PAT for FY25 was INR 115.48 Cr, a decline of 25.53% YoY. Q2 FY26 standalone PAT was INR 30.78 Cr, down 4.04% YoY.

EBITDA Margin

Consolidated EBITDA margin moderated to 6.65% in FY25 from 7.27% in FY24. Standalone EBITDA for FY25 was INR 277.17 Cr, down 12.94% YoY. Cable segment margins fell to ~4% from 10-11% due to lower high-margin OFC sales.

Capital Expenditure

The company is undertaking strategic capacity augmentation at its cable facility in Rewa, M.P. Standalone purchase of property, plant, and equipment was INR 15.56 Cr in H1 FY26 compared to INR 4.71 Cr in H1 FY25.

Credit Rating & Borrowing

CARE A+ (Negative outlook as of July 2025, revised from Stable). Short-term rating reaffirmed at CARE A1+. Finance costs increased 15.61% to INR 101.78 Cr in FY25 due to higher working capital borrowings.

⚙️ Operational Drivers

Raw Materials

Copper, Optical Fiber, FRP Rods, Glass Rovings, and specialty chemicals. Copper and fiber represent the primary cost components for the cable segment.

Capacity Expansion

Ongoing capacity augmentation at the Rewa (M.P.) cable facility to modernize and increase production of specialty and solar cables.

Raw Material Costs

Raw material price volatility, particularly in copper, impacts margins. Cable segment margins fell to 4% in FY25 due to a shift toward copper cables which have thinner, more volatile margins.

Manufacturing Efficiency

Focus on capacity utilization at the Rewa plant; strategic shift toward high-margin specialty and solar cables to improve segment efficiency.

Logistics & Distribution

Not specifically disclosed in available documents.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Achieving growth through capacity expansion at the Rewa facility, focusing on high-growth specialty and solar cable segments, and executing a healthy EPC order book of INR 6,150 Cr (as of Sept 2025) which provides 2-3 years of revenue visibility.

Products & Services

Fiber Optic Cables (OFC), Copper Cables, Specialty Power Cables, Railway Rolling Stock Cables, E-Beam Solar PV Cables, and EPC Contracting/Turnkey Services for Telecom, Energy, and Water sectors.

Brand Portfolio

Vindhya Telelinks Limited (VTL), part of the MP Birla Group.

New Products/Services

Expansion into specialty cables and E-Beam Solar PV cables; these segments provided strong revenue momentum in FY25.

Market Expansion

Expanding EPC execution across diverse geographies and sectors including telecom, energy, and water sanitation.

Market Share & Ranking

Strong market position in the supply of Optical Fibre Cables (OFCs) to the Indian telecom sector.

Strategic Alliances

The company operates through various joint operations and associates within the MP Birla Group to leverage financial and operational synergies.

🌍 External Factors

Industry Trends

Slowdown in OFC demand in FY25, but recovery is expected in FY26. Increasing demand for solar and specialty cables is a key growth driver.

Competitive Landscape

Intense competition in both the EPC and cable industries, particularly in large tender-based government orders.

Competitive Moat

Moat derived from being part of the resourceful MP Birla Group, long-standing customer relationships, and a diversified portfolio across cables and EPC services.

Macro Economic Sensitivity

Sensitive to government infrastructure spending and interest rate cycles. Interest coverage ratio fell 29.49% to 2.65x in FY25 due to higher interest costs.

Consumer Behavior

Not applicable as the business is primarily B2B and B2G.

Geopolitical Risks

Resilient performance despite global upheaval and protectionist trade measures affecting trade patterns.

⚖️ Regulatory & Governance

Industry Regulations

Subject to trade protectionist measures and government budgetary allocations for infrastructure projects.

Environmental Compliance

Incorporating ESG principles into core operations to foster sustainable growth; EHS compliance reviews conducted at regular intervals.

Taxation Policy Impact

Standalone direct taxes paid (net) were INR 30.21 Cr in H1 FY26 compared to INR 27.78 Cr in H1 FY25.

Legal Contingencies

Auditor reports include an 'Emphasis of Matter' regarding certain subsidiaries, but specific INR values for pending court cases are not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Execution risks in large EPC projects, raw material price volatility (copper/fiber), and the ability to maintain PBILDT margins above 7% on a sustained basis.