💰 Financial Performance

Revenue Growth by Segment

The company achieved a total revenue of INR 271 Cr in FY25, a 17% increase from INR 232 Cr in FY24. In H1FY26, revenue reached INR 168 Cr, growing 21% YoY. The mining segment is projected to contribute INR 140-150 Cr in FY26, representing approximately 37-40% of the targeted INR 375 Cr annual revenue.

Geographic Revenue Split

The company is primarily positioned as a mid-size infrastructure leader in Tamil Nadu, with significant project clusters in Chennai, Tuticorin (Mullakadu), and Krishnagiri (Shoolagiri). While specific percentage splits by state are not disclosed, the focus remains heavily on the Tamil Nadu southern corridor for water and industrial projects.

Profitability Margins

Net Profit After Tax (PAT) for FY25 was INR 29 Cr (11% margin) compared to INR 28 Cr (12% margin) in FY24. For H1FY26, PAT rose to INR 25 Cr, a 13% YoY increase. The slight margin compression from 12% to 11% in FY25 was driven by increased operational scaling and competitive bidding environments.

EBITDA Margin

EBITDA margin stood at 18% for FY25 (INR 49 Cr) compared to 21% for FY24 (INR 48 Cr). In H1FY26, EBITDA grew 16% YoY to INR 37 Cr. The company maintains a long-term average EBITDA margin of ~20%+ (FY22-FY25) by focusing on high-margin projects exceeding a 16% threshold.

Capital Expenditure

The company maintains a strategy of owning its equipment to improve margins, currently holding 80+ units of owned equipment. While specific INR Cr capex for FY26 is not explicitly totaled, the company emphasizes robust internal cash flows to fund requirements with limited debt.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company reports a post-tax ROCE of 17% and ROE of 19% for FY25, indicating efficient capital use. Management notes that growth is being achieved with 'very, very limited debt requirements' due to robust internal cash flows.

⚙️ Operational Drivers

Raw Materials

Key raw materials include M-Sand (Manufactured Sand), construction aggregates, and mineral sand. These are critical for the EPC and infrastructure segments, which represent a significant portion of the INR 370+ Cr value of projects executed to date.

Import Sources

Sourcing is primarily domestic, with key operations and sites located in Tamil Nadu (Chennai, Krishnagiri, Tuticorin) and Jharkhand (Bokaro).

Key Suppliers

Not specifically named, though the company collaborates with leading concrete OEMs and maintains its own production facilities for M-Sand and aggregates to control the supply chain.

Capacity Expansion

The company operates 80+ units of owned equipment and has executed 37+ projects over 28 years. Current expansion is focused on the water segment, including a 60 MLD seawater desalination plant at Mullakadu, Tuticorin.

Raw Material Costs

Not disclosed as a specific percentage of revenue; however, the company uses an enterprise-wide cost optimization initiative and renegotiations with contractors to manage margin resilience against raw material volatility.

Manufacturing Efficiency

The company achieved a 21% growth rate in H1FY26, outperforming the industry benchmark of 8%-10%, driven by higher production volumes in M-sand and improved price realizations through a favorable product mix.

Logistics & Distribution

Not disclosed as a specific percentage; however, the company's mining and aggregate production is strategically located near project sites (e.g., Tamil Nadu) to optimize distribution costs.

📈 Strategic Growth

Expected Growth Rate

21%

Growth Strategy

Growth will be achieved through a three-pronged strategy: 1) Scaling the M-Sand and mining business (projected INR 140-150 Cr in FY26); 2) Executing the diversified order book of INR 527 Cr (as of Sept 2025), including the INR 220 Cr SIPCOT desalination project; and 3) Expanding into high-margin environmental engineering and municipal solid waste management.

Products & Services

Infrastructure EPC (Roads, Bridges, Metro, Rail), M-Sand, Construction Aggregates, Seawater Desalination plants, Water Pipelines, and Municipal Solid Waste Management services.

Brand Portfolio

Vishnusurya, Quarry King (Inventory Software), Edit Log (Compliance Software).

New Products/Services

New focus on Seawater Desalination (60 MLD plant) and Hybrid Annuity Model (HAM) projects which provide long-term O&M (Operations & Maintenance) annuity income post-commissioning.

Market Expansion

Expanding from a Tamil Nadu stronghold into broader environmental engineering markets, evidenced by the INR 24 Cr order at SAIL’s Bokaro Steel Plant in Jharkhand.

Market Share & Ranking

Positioned as a leading mid-size infrastructure company in Tamil Nadu, outperforming the industry growth benchmark (21% vs 8-10%).

Strategic Alliances

Formed a consortium for the INR 2,217 Cr SIPCOT desalination project (Vishnusurya's share is INR 220 Cr). Also utilizes Joint Ventures to access cutting-edge technologies and larger project bids.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable urbanization and waste management. Vishnusurya is positioning itself by securing waste management and water desalination contracts, aligning with India's clean energy and water security objectives.

Competitive Landscape

Faces intense competition in the infrastructure sector; differentiates through a 'customer-centric approach' and focusing on projects with EBITDA margins above 16%.

Competitive Moat

The company's moat is built on 28+ years of execution experience, a large fleet of 80+ owned equipment units (reducing third-party reliance), and a diversified portfolio that prevents over-reliance on a single infrastructure sub-sector.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending; the Union Budget 2025-26 allocation of INR 11.21 lakh crore for infrastructure acts as a primary growth driver.

Consumer Behavior

Not applicable (B2B/B2G model); demand is driven by government policy and industrial infrastructure needs.

Geopolitical Risks

Minimal direct exposure mentioned, though global economic volatility is noted as a risk factor for funding availability in the broader infrastructure sector.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by strict regulatory frameworks, environmental norms, and government policies regarding project awards and execution timelines.

Environmental Compliance

Strict adherence to environmental norms is required for mining and EPC; the company uses a dedicated team to ensure compliance and avoid project delays or legal hurdles.

Taxation Policy Impact

The company faces audit scrutiny regarding TDS reconciliation, which caused minor variances in trade receivables (e.g., 1% variance in Q2 Sept-2024).

Legal Contingencies

The company has pending legal and disputed claims related to taxation and litigation, identified as a 'Key Audit Matter.' Specific case values are referenced in Note 31 of the standalone financial statements (not fully detailed in the text provided).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Dependence on Government Projects,' where policy changes or funding constraints could impact cash flows. Another risk is 'Unbilled Revenue' (INR 46.95 Cr), which involves high judgment regarding recoverability.

Geographic Concentration Risk

High concentration in Tamil Nadu, particularly for water and industrial projects, making it sensitive to state-level policy shifts.

Third Party Dependencies

Dependency on government entities for timely payments; delays can strain liquidity and operational flexibility.

Technology Obsolescence Risk

The company is mitigating tech risks by implementing 'Quarry King' and 'Edit Log' software for inventory and audit trail management.

Credit & Counterparty Risk

Exposure to government entities may lead to payment delays. Auditors highlighted a 29% variance in trade receivables in Q3 Dec-2024 (INR 7.14 Cr) due to customer non-acceptance of invoices over workmanship issues, later rectified.