VR - V R Infraspace

📊 NSE: VR 🏢 Construction 📅 Last Updated: 12/14/2025 14:49

💰 Financial Performance

Revenue Growth by Segment

The company operates in residential and commercial real estate. Consolidated net profit for H1 FY26 reached INR 302.01 Lakhs, a 79.6% increase compared to INR 168.13 Lakhs in H1 FY25, driven by project execution in Vadodara.

Geographic Revenue Split

100% of operations and revenue are concentrated in Vadodara, Gujarat, specifically focusing on high-footfall zones and Tier II peripheries.

Profitability Margins

Consolidated Net Profit for H1 FY26 was INR 302.01 Lakhs, significantly exceeding the full-year FY25 profit of INR 264.61 Lakhs. Standalone net profit for H1 FY26 was INR 90.60 Lakhs compared to INR 212.94 Lakhs for the full FY25.

EBITDA Margin

Consolidated Profit Before Tax (PBT) for H1 FY26 stood at INR 221.60 Lakhs, compared to INR 424.43 Lakhs for the full year FY25. Core profitability is impacted by high finance costs of INR 416.01 Lakhs in H1 FY26.

Capital Expenditure

Consolidated purchase of fixed assets amounted to INR 29.58 Lakhs for the half-year ended September 30, 2025.

Credit Rating & Borrowing

The company maintains a low debt-equity ratio to remain resilient to interest rate volatility. Standalone short-term borrowings were INR 202.06 Lakhs as of September 30, 2025, with zero long-term borrowings reported on a standalone basis.

⚙️ Operational Drivers

Raw Materials

Construction materials including steel, cement, and bricks; specific percentage of total cost not disclosed.

Import Sources

Sourced locally within Gujarat, India, to support projects in the Vadodara region.

Capacity Expansion

Expansion is focused on Tier II peripheries of Vadodara and the launch of 'V R Capital' to diversify the portfolio.

Raw Material Costs

Construction expenses are a primary cost driver; inventory adjustments for H1 FY26 were INR 216.38 Lakhs (Consolidated), reflecting ongoing project development cycles.

Manufacturing Efficiency

Focuses on smart technology and construction methods to improve execution speed and quality.

📈 Strategic Growth

Expected Growth Rate

79.60%

Growth Strategy

Growth will be achieved through the launch of 'V R Capital', expansion into Tier II peripheries of Vadodara, adoption of ESG principles, and strengthening digital customer touchpoints to enhance sales efficiency.

Products & Services

Residential apartments, commercial office spaces, and leased retail/commercial spaces.

Brand Portfolio

V R Infraspace, V R One, V R Capital.

New Products/Services

Launch of 'V R Capital' and incorporation of ESG-compliant sustainable high-quality spaces.

Market Expansion

Targeting Tier II peripheries of Vadodara for new residential and commercial developments in FY 2025-26.

Strategic Alliances

Partnership firms contribute to profit, with a share of profit from partnership firms amounting to INR 117.48 Lakhs in H1 FY26.

🌍 External Factors

Industry Trends

Growing demand for sustainable urban living and smart construction in Tier II Indian cities; industry is shifting toward ESG-compliant developments.

Competitive Landscape

Competes with local developers in the Vadodara real estate market; differentiates through 'first-mover' retail targeting.

Competitive Moat

Moat is built on strategic land positioning in high-footfall zones and a low debt-equity ratio, providing financial resilience against competitors with higher leverage.

Macro Economic Sensitivity

Highly sensitive to interest rate volatility and economic slowdowns affecting the real estate and leasing sectors.

Consumer Behavior

Shift toward digital customer touchpoints and demand for high-quality, sustainable urban spaces.

Geopolitical Risks

Minimal direct impact as operations are localized in Vadodara, Gujarat.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RERA and local building norms in Gujarat; requires significant legal diligence for land titles.

Environmental Compliance

Incorporating ESG principles into all new projects to meet evolving sustainability standards.

Taxation Policy Impact

Effective tax rate includes current tax of INR 58.90 Lakhs for H1 FY26 (Consolidated).

Legal Contingencies

Pending GST appeals for FY 2018-19 (INR 17.42 Lakhs) and FY 2019-20 (INR 18.62 Lakhs), totaling INR 36.04 Lakhs before the State Tax Officer, Vadodara.