Vvip Infratech Q4 FY25 earnings call
In brief
VVIP Infratech posts Rs. 373 cr consolidated FY25 revenue, 30% growth; targets Rs. 1,000 cr in 2-3 years
- Management's tone
- Confident
- What was said
- Leaned positive
- Guidance
- First guidance issued
- Analyst pushback
- Low
- Stock, next session
- −4.68% (Nifty 50 −0.70%)
- Consolidated FY25 revenue Rs. 373 cr (+30% YoY), EBITDA Rs. 78 cr (+154% YoY) at 21% margin; PAT Rs. 36 cr at 9.7% margin and ROE 23%.
- Order book stands at Rs. 869 cr split 39% STP/sewer, 37% electrical (RDSS) and 24% Jal Jeevan Mission; bid pipeline of Rs. 448 cr.
- Management targets Rs. 1,000 cr total company revenue in next 2-3 years and conservative 40% CAGR in EPC vertical.
- Real estate (Vibhor Vaibhav Infrahome, 90% sub) targets ~Rs. 300 cr revenue in FY26, with VVIP Namah contributing ~Rs. 200 cr.
- First post-listing earnings call after BSE listing under symbol VVIPIL; plans to provide quarterly updates going forward.
An AI read of the company's transcript · the filing
The numbers
The quarter, Q4 FY25
| This quarter | A year ago | Last quarter | Margin | |
|---|---|---|---|---|
| Revenue | ₹200 cr | — | — | |
| EPS (₹) | ₹8.12 | — | — |
From the company's filed results for the quarter ended 31 Mar 2025 (consolidated), not from the call.
What moved the numbers, as management explained it
- Higher volume drove ~30% standalone revenue growth, with management citing economies of scale and lower procurement cost; EBITDA margin expanded to 14% from 12%.
- Consolidated EBITDA jumped 154% (Rs. 30 cr to Rs. 78 cr) as the 90% real estate subsidiary contributed a richer mix, lifting blended margin from 11% to 21%.
- Jal Jeevan Mission receivables were stuck for 2-3 months (Dec-Jan) on central review of state projects, now resolved; ~Rs. 15-16 cr JJM receivables remain outstanding at year-end.
- Effective tax rate (~32% in FY25) elevated by VVIP Namah LLP tax (~35%); VVIP Infra parent sits at 26-27% post surcharge.
The numbers management led with
- Order book: Rs. 869 crores as of call date
- VVIP Namah sellable area: 6,21,000 sq ft, top line ~Rs. 500 cr, booked Rs. 180 cr so far
- VVIP Addresses inventory: 12 lakh sq ft, 71% share (~Rs. 850-900 cr), ~30% area booked in 4 months (65 flats)
- Yamuna Expressway project: 25 acres, ~12 lakh sq ft sellable, Rs. 800 cr top line
Guidance
Guidance on this call
| What | For | What management said |
|---|---|---|
| Total company revenue | FY27-FY28 | Take total company to Rs. 1,000 crores in the next two, three years. |
| EPC vertical CAGR (Infrastructure (EPC)) | — | Conservative CAGR of around 40% year-on-year in the EPC vertical. |
| Real estate revenue (Namah + Addresses) | FY26 | Around Rs. 300 crores of turnover in FY26 from the two running projects Namah and Addresses. |
| VVIP Namah turnover (Real Estate) | FY26 | Around Rs. 200 crores turnover to be booked from VVIP Namah in FY26. |
| Infra sustainable operating margin (Infrastructure (EPC)) | — | Sustainable operating margin in infra business in the range 15% to 17%. |
| Real estate sustainable EBITDA margin | — | Real estate EBITDA margins sustainable in the range 20% to 25%. |
| Blended sustainable EBITDA margin | — | Blended sustainable EBITDA margin 17% to 18%. |
| Order book execution (Infrastructure (EPC)) | FY26 | Plan to execute 80% to 90% of order book in FY26. |
| Bank exposure increase | FY26 | Bank exposure to rise by only Rs. 10-15 cr in FY26 (fund based +10 cr, non-fund based +25 cr pending). |
The business
By business
Infrastructure (EPC)
Civil and electrical infra across STPs (SBR tech), sewerage/water networks (incl. Jal Jeevan Mission) and electrical distribution under RDSS. Standalone FY25 turnover Rs. 279 cr (+29% YoY); EBITDA Rs. 40 cr at 14% margin (vs 12%).
Standalone turnover Rs. 279 cr (+29% YoY) · Standalone EBITDA Rs. 40 cr (+51% YoY) · Standalone EBITDA margin 14% (vs 12% prior year) · Standalone ROI 22% · Order book Rs. 869 cr · STP/sewer order book Rs. 335 cr (39%) · RDSS electrical order book Rs. 326 cr (37%) · Jal Jeevan Mission order book Rs. 207 cr (24%) · Bid pipeline Rs. 448 cr · Win ratio 40-50% last year
Outlook: Conservative 40% YoY CAGR in EPC; aim to execute 80-90% of Rs. 869 cr order book in FY26; sustainable operating margin 15-17%.
Real Estate
Through 90% subsidiary Vibhor Vaibhav Infrahome (to be 100%). Three projects: VVIP Namah (Ghaziabad, 6.21 lakh sq ft, top line ~Rs. 500 cr, 51% share), VVIP Addresses (Greater Noida West, 12 lakh sq ft, Rs. 1,200 cr, 71% share) and new Yamuna Expressway (~12 lakh sq ft, ~Rs. 800 cr). Total construction cost ~Rs. 900 cr.
Subsidiary holding 90% (to be 100%) · Consolidated revenue Rs. 373 cr (+30% YoY) · Consolidated EBITDA Rs. 78 cr (+154% YoY) margin 21% · Consolidated PAT Rs. 36 cr (+80% YoY) margin 9.7% · Consolidated ROE 23% · VVIP Namah top line ~Rs. 500 cr · Rs. 180 cr already booked · VVIP Addresses top line ~Rs. 1,200 cr (71% share) · VVIP Addresses 30% area booked (65 flats in 4 months) · Yamuna project top line ~Rs. 800 cr · Colors adjacent parcel adds 4 lakh sq ft to Namah pipeline
Outlook: FY26 real estate revenue target ~Rs. 300 cr; sustainable EBITDA margin 20-25%; sell-as-you-build policy with no inventory carry.
Balance sheet, capex and funding
- Fund based limit Rs. 35 cr, non-fund based limit Rs. 75 cr, bank guarantees Rs. 95 cr across SBI, ICICI and HDFC Bank.
- Plans to raise fund based by Rs. 10 cr and non-fund based by Rs. 25 cr in FY26; bank exposure to rise only Rs. 10-15 cr this year.
- Debt-equity ratio stated at 2.22x currently, with room up to 1:1 for working capital; no firm fundraising plan as of call.
- Inventory Rs. 224 cr consolidated (Rs. 150 cr real estate including land and WIP, Rs. 74 cr EPC WIP); standalone inventory cycle ~74 days.
- Received Rs. 38 cr collections in April 2025 out of March receivables; CC ROI ~9.5%; ~10% retention money held per contract.
The industry, as management sees it
Government EPC pipeline remains robust across the Rs. 3 lakh cr RDSS scheme for distribution, Jal Jeevan Mission for rural water, and the Yamuna cleaning drive. India currently treats only 28% of the 72,368 MLD/day wastewater generated, implying 5-10 years of structural growth in STP/sewerage before rural coverage begins. Management is selectively bidding in MP, Rajasthan and Delhi.
Risks management named
- Working capital and bank guarantee limits may need enhancement as business scales
- Sewer/STP execution pace structurally slower than electrical distribution work
- Possible fundraising dilution if aggressive bid pipeline converts at 40-50% historical win rate
Q&A
Q&A dynamics were friendly and confirmation-heavy rather than adversarial - this being the maiden call. Dominant themes: real estate project economics (Namah, Addresses, Yamuna - sellable area, bookings, FY26 revenue split), working capital and JJM receivables normalization, sustainable margin structure by vertical (infra 15-17%, real estate 20-25%, blended 17-18%), and execution pace on the Rs. 869 cr order book. Surya Nayak was the most probing analyst on per-project economics. No material pushback - analysts accepted management's narrative on growth and margins. Topics that received less direct clarity: precise timing/instrument of potential fundraising, and the D/E interpretation (CFO's '2.22x' seems anomalous but was stated).
Not answered directly
- Fundraising timing and instrument
- Detailed D/E mechanics (2.22x vs 1:1 comment)
- Quarterly results cadence (chairman only verbally committed to quarterly updates)
- Full disclosure of undisclosed L1 bids (only Bhopal Rs. 145 cr mentioned)
Asked for a number, answered without one
- EPC contract value per square foot for real estate projects: Said net realizable value differs by project and location; gave only per sq ft revenue realisation (Rs. 7,500 to over Rs. 10,000) but not per sq ft EPC construction cost.
- Sustainable consolidated tax rate: Stated VVIP Namah LLP carries ~35% rate, VVIP Infra parent ~26-27% post surcharge; consolidated 'would be more than 30%' but did not commit to a single sustainable figure.
- Future debt-equity target level: Gave current ratio of 2.22x and said bank comfort extends up to 1:1; did not commit to a specific target ratio or quantum of debt raise.
- Capital raise plans: Said 'we do not have plans as of now' but acknowledged fundraising is possible if tender pipeline materialises; no firm plan or quantum given.
Every question, with its answer
1. Working capital and JJM receivables
Agastya Dave, CAO Capital
Question. JJM receivables have been a sector problem; your inventory and receivables both spiked. Are you also facing receivable pressure and will it resolve in 1-2 quarters?
Answer, Management, VVIP Infratech. There were two-three months of stress in JJM in Dec-Jan due to central government's review of state government projects. Now payments are back on track and projects running full-fledged. Total JJM debtor exposure is Rs. 15-16 cr. Rs. 38 cr was collected in April alone out of March outstanding receivables.
Follow-up. Are you seeing growth in electrical/substation work and will electrical be a growth driver?
Answer. Growth will be a mix from STP and electrical. RDSS scheme is central government with Rs. 3 lakh cr allocation; VVIP bids for both water and electrical tenders but main focus remains water - currently electrical tenders are more aggressive.
2. Real estate revenue recognition
Agastya Dave, CAO Capital
Question. How will revenue be recognized for the two new real estate projects (Rs. 800-900 cr each, ~4-year completion, 6-7 month launch)? How much in FY26 and FY27?
Answer, Management, VVIP Infratech. VVIP Addresses is 12 lakh sq ft, Rs. 1,200 cr project, 71% share = Rs. 850-900 cr; Yamuna project registry next week, launch in 6-7 months. Revenue booked on percentage of completion basis. Yamuna turnover won't come in FY26. From VVIP Namah and Addresses, ~Rs. 300 cr revenue expected in FY26, ~Rs. 400 cr in FY27.
Follow-up. What is your execution plan for the Rs. 869 cr EPC order book in FY26 and what growth/margins to expect?
Answer. Chairman: tendered work picked up momentum in last quarter; new energy post-IPO; expects to finish 80-90% of current order book in FY26 with new tenders adding to FY27. Company target of Rs. 1,000 cr total revenue in 2-3 years. Real estate EBITDA sustainable at 20-25%, infra at 15-17%, blended 17-18%.
3. Inventory and turnover guidance
Paras Chheda, Purpleone Vertex Ventures
Question. Inventory rose to Rs. 225 cr - is this real estate WIP and is there any unsold inventory? Separately, will you execute Rs. 500 cr EPC + Rs. 300-400 cr real estate = Rs. 700-800 cr revenue this year?
Answer, Management, VVIP Infratech. Rs. 224 cr consolidated inventory includes Rs. 74 cr EPC WIP and Rs. 150 cr real estate (including land cost at Yamuna/Namah and Rs. 60-70 cr in VVIP Addresses). EPC inventory days = 74 (~3 months). EPC vertical targets 40% YoY CAGR; real estate ~Rs. 300 cr in FY26 feasible.
Follow-up. What is sustainable margin in real estate vs infra, and what is the bid pipeline?
Answer. Infra sustainable operating margin 15-17%, real estate EBITDA 20-25%, blended 17-18% sustainable. Bid pipeline is Rs. 448 cr precisely. Last year win ratio was 40-50%.
4. Real estate project-level economics
Surya Nayak, Sunidhi Securities and Finance
Question. Detail the RERA sellable area, booking status and revenue split for VVIP Namah, VVIP Addresses and Yamuna over next 3-4 years including net sales and net EBITDA?
Answer, Management, VVIP Infratech. VVIP Namah: 6,21,000 sq ft sellable, ~Rs. 500 cr top line, Rs. 180 cr booked so far, Rs. 320 cr remaining, target Rs. 200 cr in FY26; project completion in 15-16 months. VVIP Addresses: 12 lakh sq ft, Rs. 1,200 cr total, 71% share = Rs. 900 cr, JV/JDA model, construction started Dec'24, turnover to be booked over next 4 years. Yamuna: 25 acres, 12 lakh sq ft sellable, min Rs. 800 cr top line, registry pending. Total construction cost to be incurred across three projects = Rs. 900 cr (captive EPC work for VVIP).
Follow-up. How much of the EPC value of real estate projects will accrue to VVIP Infratech and what is the realizable value vs cost?
Answer. Construction is 100% in-house; EPC share is 100% of the Rs. 900 cr construction cost. Average realization: Namah Rs. 7,500-8,000/sq ft; Addresses >Rs. 10,000/sq ft; Yamuna ~Rs. 8,000/sq ft. Remaining construction cost: Namah Rs. 100 cr, Addresses Rs. 450 cr, Yamuna Rs. 350 cr.
5. Water vs electrical receivables
Surya Nayak, Sunidhi Securities and Finance
Question. How are receivables trending in water EPC vs RDSS electrical?
Answer, Praveen Tyagi, Chairman, VVIP Infratech. Meerut water work Rs. 220 cr, Roorkee electrical Rs. 150 cr - electrical completes faster because 80% is supply payment (cables/transformers from factories). Sewer/STP is street work, slower at 18 months per project. Current execution pace on electrical is aggressive.
Follow-up. Philosophical question - do you sell inventory quickly or hold for price appreciation?
Answer. 100% in the first category - sell at whatever rate and move forward. There is not a single inventory in old projects; sometimes regret not holding given price appreciation since possession.
6. Geographic and vertical expansion
Surya Nayak, Sunidhi Securities and Finance
Question. Government civil works margins are thin - why bid for them? Are you expanding beyond UP/Uttarakhand?
Answer, Management, VVIP Infratech. Bidding selectively for NBCC/CPWD building works at good margins - won't take low-margin work. Currently bidding in MP (Bhopal, Indore), Rajasthan, and Delhi. Have come L1 in Bhopal (Rs. 145 cr); LOI pending. Also chasing Delhi Yamuna cleaning/STP work near Rs. 400 cr.
Follow-up. What is your fund-based and non-fund-based limit with bankers? Are you seeing any fund gap?
Answer. CFO Prashant Wahi: Fund-based limit Rs. 35 cr with SBI, ICICI, HDFC; non-fund-based Rs. 75 cr; bank guarantees Rs. 95 cr. Two pending proposals: +Rs. 10 cr fund-based, +Rs. 25 cr non-fund-based. Bank exposure to rise only Rs. 10-15 cr this year; can use mobilization advances.
7. VVIP Addresses absorption
Mo Shahi, Mo Limited
Question. Update on absorption rate for VVIP Addresses launched in January 2025 - how much is booked and how much is left?
Answer, Management, VVIP Infratech. Total inventory at VVIP Addresses ~285 lakh sq ft; 215 lakh sq ft belongs to VVIP (71% share). In four months since launch, ~65 flats booked = ~30% of VVIP's share. Inventory absorption tracking ahead of internal plan.
8. Capital structure and fundraising
Mehul Kheshani, Mehul Kheshani Investments
Question. What is the ROI on existing CC limits, and are you planning any fundraising given expansion plans?
Answer, Management, VVIP Infratech. Average ROI on CC limit ~9.5%. No firm fundraising plan today, but given aggressive bid pipeline the Company may explore fundraising options if tender conversion materializes. No specific timing or instrument disclosed.
Partly answered.
9. Real estate revenue booking FY26
Aryan Oswal, Finterest Capital
Question. Confirm revenue potential for VVIP Namah (Rs. 500 cr, your share Rs. 255 cr) and what will be booked in FY26? Also revenue from VVIP Addresses?
Answer, Management, VVIP Infratech. Namah - own 51% (rest partners); turnover consolidated on total basis, profit share on 51%. ~Rs. 200 cr turnover target in FY26. Addresses - 4 months into construction; Rs. 125-150 cr inventory sold; expect Rs. 100 cr turnover bookable in FY26 (~25% completion as per POC method), +/- 5-10%.
10. Revenue confirmation and government receivables
Dinesh Kulkarni, Finsight Group
Question. Confirm 30-40% growth in EPC plus Rs. 300 cr real estate = ~Rs. 700 cr revenue this year. Also, is the UP government withholding receivables like some peers are reporting?
Answer, Management, VVIP Infratech. Growth and revenue mix confirmed. Retention money of ~10% is withheld per contract terms until project handover - standard practice, not a stress. No current receivables stress; April collections of Rs. 38 cr out of March outstanding demonstrate normalcy.
Follow-up. Do you see water EPC growth tapering or sustaining for next 3-4 years?
Answer. Growth will continue in sewer. India currently treats only 28% of the 72,368 MLD/day wastewater generated. Massive 5-10 year opportunity in cities/towns before rural coverage even begins.
11. Balance sheet, debt and tax
Paras Chheda, Purpleone Vertex Ventures
Question. What is the targeted debt-to-equity ratio going forward? And confirm Rs. 100 cr Addresses + Rs. 200 cr Namah = Rs. 300 cr real estate revenue. Also, sustainable tax rate?
Answer, Management, VVIP Infratech. D/E currently 2.22x (as stated by CFO); can comfortably go up to 1:1 level. SBI/HDFC/ICICI relationship provides ample scope for working capital lines. Rs. 300 cr FY26 real estate revenue confirmed. Tax: VVIP Namah is LLP taxed at ~35%; VVIP Infratech corporate at 26-27%; consolidated ~30%+.
Partly answered.
12. Bidding economics and pipeline
Chinmayi Upadhyay, Moneybee Investment Advisors
Question. What performance guarantee/EMD percentage on bidding? How many competitors per tender? Any new real estate project plans beyond the three discussed?
Answer, Management, VVIP Infratech. EMD typically 1-2%, not more than 2%. Minimum 7-8 competitors per tender. Generally bid projects above Rs. 100 cr. No new real estate launch right now - focused on delivery. VVIP Namah target delivery January 2026.
13. Inter-segment revenue clarification
Pradeep Choudhary, Samartha Capital Advisors
Question. Inter-segment revenue of Rs. 85 cr in full year - explain what it relates to and clarify growth math?
Answer, Management, VVIP Infratech. The 40% growth refers to the government EPC business only against the Rs. 869 cr order book. Real estate captive work of Rs. 900 cr sits separately. Building construction work (NBCC-type) of Rs. 80 cr is clubbed in the contractor segment; corrected slip of tongue to Rs. 869 cr order book.
14. MP bidding opportunity
Sameera Amida, Unknown (Individual Investor)
Question. A water EPC Company in MP is facing bank guarantee/fraud issues. Will VVIP benefit and have you bid for that work?
Answer, Management, VVIP Infratech. Bhopal and Indore tenders worth ~Rs. 500 cr have been bid. VVIP is L1 in Bhopal for Rs. 145 cr; LOI pending. Not disclosed in order book yet. Also bidding across Indore and other MP opportunities.
What was said
Topic by topic, in the order it was spoken
Welcome and Listing Context · Praveen Tyagi (Chairman)
- Maiden earnings call after recent BSE listing under symbol VVIPIL; thanks investors for support.
- Management positioned as beneficiary of India's infrastructure growth and urbanisation with EPC plus real estate platform.
- Roadmap: business segment overview, H2/FY25 financial results, key projects, growth plans.
Business Segments Overview · Vaibhav Tyagi (MD)
- Single infrastructure reporting segment with three sub-verticals: STP, sewerage/water networks, electrical distribution up to 33 KVA.
- SBR technology STP projects executed up to 56 MLD in Ghaziabad, 40 MLD Shahjapur, 21 MLD and 14 MLD at other sites; 15-year O&M attached.
- Real estate operated through 90% subsidiary Vibhor Vaibhav Infrahome Pvt Ltd (to become 100% subsidiary); ~75 lakh sq ft delivered historically in NCR.
- Currently two projects in execution - VVIP Namah (Ghaziabad) and a Greater Noida West project covering ~18 lakh sq ft over next 3-4 years.
Order Book and Real Estate Pipeline · Vaibhav Tyagi (MD)
- Order book of Rs. 869 cr as of call date: STP Rs. 335 cr, electrical (RDSS) Rs. 326 cr, JJM/water supply Rs. 208 cr.
- Two new land parcels acquired - VVIP Addresses (Greater Noida West) and Yamuna Expressway - each ~20,000 sq m with expected revenue of Rs. 800-900 cr.
- Projects awaiting regulatory approvals; expected launch in 6-7 months.
Financial Performance FY25 - Standalone · Amit Rastogi (Strategy Head)
- Standalone revenue Rs. 279 cr vs Rs. 216 cr LY (29% growth); EBITDA Rs. 40 cr vs Rs. 26.5 cr (51% growth); EBITDA margin expanded to 14% from 12%.
- PAT margin improved to 9.4% from 8%; standalone ROI at 22%.
- Driven by higher volumes, ~30% turnover growth enabling economies of scale, lower procurement cost and operating efficiencies.
Financial Performance FY25 - Consolidated · Amit Rastogi (Strategy Head)
- Consolidated revenue Rs. 373 cr vs Rs. 285 cr LY (30% growth); EBITDA Rs. 78 cr vs Rs. 30 cr (154% growth).
- Consolidated EBITDA margin expanded sharply to 21% from 11%; PAT Rs. 36 cr vs Rs. 20 cr (80% growth); PAT margin 9.7% vs 7%.
- Consolidated ROE ~23%; improvement driven by real estate contribution in addition to EPC operating leverage.
Order Book Mix Detail · Amit Rastogi (Strategy Head)
- STP/sewerage order book ~39% (Rs. 335-350 cr), Jal Jeevan Mission ~24% (Rs. 207-208 cr), RDSS electrical ~37% (Rs. 326 cr).
- All order book pertains to government EPC tenders; Rs. 900 cr captive real estate construction work sits separately.
- Q&A session opened to investors.
In their words
We have to take it to Rs. 1,000 crores in the next two, three years.
There is not a single inventory in our old projects... we have 100% in the first option. Whatever is being sold at whatever rate should be sold.
After the launch of our IPO there is an energy in the Company among every staff, within us... we will finish 80% to 90% of the work we have with us.
To check next time
What management committed to on this call, or the dates they gave.
- Execution progress on Rs. 869 cr order book with FY26 target of 80-90% completion.
- Real estate revenue of ~Rs. 300 cr for FY26, including ~Rs. 200 cr from VVIP Namah and ~Rs. 100 cr from VVIP Addresses.
- VVIP Addresses booking progress beyond current 30% area sold; project to be delivered over 4 years.
- Yamuna Expressway project launch within 6-7 months subject to approvals; registry expected within a week.
- LOI receipt for Bhopal L1 of Rs. 145 cr currently excluded from order book.
- Decision on fundraising as MP/Rajasthan/Delhi tender pipeline (Rs. 400-500 cr in MP alone) is won.
Transcript
We have not transcribed this call's recording. Read the company's transcript (PDF).
The stock after the call
| After the call | Close | Stock | Nifty 50 |
|---|---|---|---|
| Next session Tue 27 May 2025 | ₹195.70 | −4.68% | −0.70% |
| 5 sessions Mon 2 Jun 2025 | ₹191.70 | −6.62% | −1.14% |
| 20 sessions Mon 23 Jun 2025 | ₹189.00 | −7.94% | −0.12% |
From the close of Mon 26 May 2025, ₹205.30: the close before the call day (the call's time is not on file). Adjusted daily closes; the move includes everything else that happened in those sessions.