💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations declined by 52.21% YoY, falling from INR 170.06 Cr in FY2023-24 to INR 81.27 Cr in FY2024-25. This was primarily driven by a significant decrease in sales during the year.

Profitability Margins

Operating Profit Margin fell from 81.99% to 19.97% (a 75.64% decrease) because the previous year included high-margin land sales. Net Profit Margin plummeted from 145.68% to -26.54% (a 118.22% decrease), resulting in a net loss of INR 21.90 Cr in FY2024-25 compared to a profit of INR 247.49 Cr in FY2023-24.

EBITDA Margin

The EBITDA margin saw a sharp decline as earnings before interest, tax, and depreciation were significantly lower than the previous year. The Interest Coverage Ratio dropped by 99.83% from 15.39 to 0.03, indicating a severe reduction in the ability to meet interest obligations from operating profits.

Credit Rating & Borrowing

The Debt-Equity Ratio improved by 54.58%, decreasing from 0.49 to 0.22 as the company repaid significant amounts of debt during FY2024-25.

⚙️ Operational Drivers

Raw Materials

Construction materials including steel, cement, and other commodities represent the primary input costs, though specific percentage breakdowns are not provided. The company noted rising commodity prices as a significant cost pressure.

Raw Material Costs

Raw material costs are impacted by commodity inflation. The company is facing a 'pressing need' to adopt alternative construction methods to reduce dependence on manual labor and mitigate rising material costs.

📈 Strategic Growth

Growth Strategy

The company plans to achieve growth through a preferential issue of 10,85,00,000 fully convertible warrants at INR 9.20 per warrant to raise approximately INR 99.82 Cr. Strategically, the firm is focusing on delivering existing projects in core markets, reducing debt, and improving debt quality while rationalizing capital expenditure.

Products & Services

Real estate development projects, construction contracts, and residential/commercial properties.

Brand Portfolio

Vipul Limited.

Market Expansion

The company continues to focus its business strategy on its core markets, though specific new regions are not named in the report.

Strategic Alliances

The company operates through various subsidiaries, joint ventures, and associates, though specific partner names for new JVs were not provided in the current period.

🌍 External Factors

Industry Trends

The real estate sector is the second-largest employment provider in India but faces severe manual labor shortages. There is a sector-wide shift toward technology-driven construction methods to ensure project timelines are met despite labor volatility.

Competitive Landscape

The company competes in the real estate development and construction contract sector, which is currently exposed to high commodity inflation and regulatory risks.

Competitive Moat

The company relies on its intellectual capital and a workforce of 56 skilled employees. However, the moat is currently weakened by legal restraints and a qualified audit opinion regarding the recoverability of INR 9.80 Cr in investments.

Macro Economic Sensitivity

Highly sensitive to economic cycles and interest rates, as evidenced by the 99.62% drop in Return on Capital Employed (from 51.03% to 0.2%) following a slowdown in the real estate sector.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to RERA and SEBI (LODR) regulations. The company must comply with new revenue accounting standards for construction contracts, which require complex estimations of 'stage of completion' and 'costs to complete'.

Environmental Compliance

The company is focusing on decarbonization and energy efficiency measures to attract capital from net-zero committed investors.

Taxation Policy Impact

The company reported a deferred tax credit of INR 44.53 Cr in the previous year, but no current tax expense was recorded for FY2024-25 due to the reported loss.

Legal Contingencies

The Hon’ble NCLT, New Delhi (CP No. 205/ND/2025) issued an order on December 10, 2025, restraining the company from alienating or encumbering any immovable or movable assets, land, licenses, or receivables. The company also faces risks regarding the recoverability of INR 9.80 Cr in unquoted equity instruments in loss-making subsidiaries.

⚠️ Risk Analysis

Key Uncertainties

The statutory auditor has raised concerns about the company's ability to continue as a 'going concern' due to material uncertainties. There is a significant risk of management override in estimating the recoverable amount of investments where net worth has eroded.

Third Party Dependencies

High dependency on a pool of skilled manual labor and third-party legal panels for managing pending litigations.

Technology Obsolescence Risk

The company identifies a 'pressing need' for technology adoption in construction to mitigate labor-related disruptions.

Credit & Counterparty Risk

The company faces recoverability risks on loans and financial instruments advanced to joint ventures and subsidiaries, especially where those entities have no active projects under development.