💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) declined by 16.05% YoY to INR 1,237.42 Cr in FY25 from INR 1,473.87 Cr in FY24. The Water Supply Projects (WSP) segment remains the largest contributor, representing 59% of the INR 5,363.4 Cr order book, while the Railway segment has grown to 32% of the order book.

Geographic Revenue Split

The order book is concentrated in Rajasthan at 48%, followed by Uttarakhand at 15%, Uttar Pradesh at 9%, Madhya Pradesh at 8%, and Chhattisgarh at 4%, with the remaining 16% spread across 6 other states.

Profitability Margins

Net Profit After Tax (PAT) margin declined to 4.74% in FY25 from 8.29% in FY24, primarily due to increased provisioning for expected credit losses and higher interest costs. Return on Equity (ROE) fell significantly by 1579 bps to 7.81% in FY25.

EBITDA Margin

PBILDT margin stood at 12.56% in FY25, a decline of 170 bps from 14.26% in FY24, driven by execution delays and elevated cost pressures.

Capital Expenditure

The company raised INR 373.11 Cr through an IPO (INR 308.61 Cr) and pre-IPO placement (INR 64.50 Cr), with INR 217 Cr specifically earmarked for working capital and general corporate purposes.

Credit Rating & Borrowing

The long-term bank facilities were downgraded to 'CARE BBB; Negative' from 'CARE BBB+; Stable' in June 2025 due to high working capital intensity and a decline in interest coverage to 2.29x.

⚙️ Operational Drivers

Raw Materials

Major raw materials include steel, cement, and specialized pipes for water supply projects, though specific percentage splits per material are not disclosed.

Capacity Expansion

VPRPL maintains an in-house equipment fleet and testing labs to execute all projects internally, reducing reliance on third-party subcontractors and improving quality control.

Raw Material Costs

Profitability is susceptible to input price fluctuations; however, a significant portion of the order book includes in-built price escalation clauses to mitigate this risk.

Manufacturing Efficiency

The company follows an EPC-only model using internal resources for all stages of construction to ensure quality assurance and tighter control over project timelines.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is targeted through sectoral diversification into Railways (now 32% of order book) and Roads (9%), and geographic expansion into 11 states. The company is leveraging a robust order book of INR 5,363.4 Cr, providing revenue visibility of 4.33x of FY25 TOI.

Products & Services

Engineering, Procurement, and Construction (EPC) services for water supply schemes, railway infrastructure, roads, and urban civic development.

Brand Portfolio

Vishnu Prakash R Punglia Limited (VPRPL)

New Products/Services

Strategic entry into high-value railway projects, with new order wins in this segment totaling INR 1,134 Cr in the recent period.

Market Expansion

Expanding beyond the Rajasthan stronghold into states like Uttar Pradesh, Uttarakhand, and Madhya Pradesh to reduce regional concentration.

Market Share & Ranking

Recognized as a prominent player in the Water Supply Projects (WSP) segment in Rajasthan with a growing national footprint.

Strategic Alliances

Secured joint venture orders to participate in large-scale, multi-disciplinary infrastructure projects.

🌍 External Factors

Industry Trends

The infrastructure sector is projected to grow at a CAGR of 10.05% to reach USD 3.03 billion by 2029, driven by central and state government focus on water resource development.

Competitive Landscape

Operates in a highly fragmented and competitive tender-driven industry where projects are awarded based on technical experience and the lowest bid price.

Competitive Moat

Durable advantage stems from 40 years of promoter experience, an established track record with government clients, and an asset-light EPC model supported by an internal equipment fleet.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending (Jal Jeevan Mission, AMRUT 2.0) and interest rate volatility, which impacts debt servicing capabilities.

Consumer Behavior

Shift in government procurement toward large-scale, multi-disciplinary projects requiring collaborative participation and digital monitoring.

⚖️ Regulatory & Governance

Industry Regulations

Adheres to SEBI Regulations and the Companies Act; as an 'Infrastructure Company,' it is exempted from certain provisions of Section 186 regarding loans and investments.

Legal Contingencies

No disclosure required for insolvency applications; the company reported no transactions requiring disclosure for major legal disputes in the year under review.

⚠️ Risk Analysis

Key Uncertainties

Execution risk is high as 34% of the order book is at a nascent stage and 50% of orders are slow-moving due to land and design delays.

Geographic Concentration Risk

Rajasthan accounts for 48% of the total order book, posing a regional concentration risk.

Third Party Dependencies

High dependency on government fund allocations; timely release of funds is crucial as unbilled revenue and work-in-progress have adversely impacted cash flows.

Technology Obsolescence Risk

The company is mitigating technology risks by integrating ERP-based systems to automate processes and enable real-time monitoring of financial data.

Credit & Counterparty Risk

Counterparty credit risk is low as majority orders are from government entities, but liquidity is constrained by high utilization of bank limits (94% for fund-based).