| Experience Management:
Mr. Arnav Kishore and Mrs. Neetu Kishore are the key promoters of VIPL and have more than two decades of expertise in the toll management sector. The business has been able to sustain enduring relationships with both suppliers and customers for more than ten years. As of Sep’26, the company has an outstanding order book of Rs. 199 crore from reputable clients which majorly consist of Govt. organization and reputed private players. Acuite believes the company will continue to get benefited from the promoters experience and established market presence.
Healthy Financial risk profile:
The financial risk profile marked by healthy net worth, low gearing and healthy coverage indicators. Total tangible net worth improved to Rs.124.90 crore in FY 26 (Prov.) from Rs. 113.50 crore in FY 25 driven by accretions to reserves. Gearing stood low at 0.15 times in FY 26 (Prov.) against 0.25 times in FY 25. Debt protection metrics stood healthy with Interest coverage ratio and debt servicing coverage ratio stood at 8.68 times and 6.76 times in FY 26 (Prov.). ToL/TnW and Debt/EBITDA stood at 1.07 times and 1.13 times in FY 26 (Prov.). Acuite believes that financial risk profile is expected to remain healthy supported by absence of debt funded capex plan.
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| Decline in scale of Operation:
VIPL's operating income declined to Rs. 141.89 crore in FY26 (Prov.) from Rs. 181.56 crore in FY25, primarily due to delays in project execution following the implementation of mandatory STQC certification requirements for electronic equipment used in highway toll management systems. The transition to STQC-certified OEMs led to procurement delays, particularly from Q2FY26 onwards, impacting execution and billing milestones. However, the company has since aligned its sourcing with certified suppliers and reported revenue of Rs. 89.80 crore during April-August 2026, indicating improvement in execution levels. Further, the healthy unexecuted order book of Rs. 199.29 crore provides adequate revenue visibility over the near term. Operating profitability moderated significantly, with the EBITDA margin declining to 9.91% in FY26 (Prov.) from 16.68% in FY25, mainly due to lower revenue while employee costs remained largely unchanged. The company retained its workforce in anticipation of a recovery in business activity and to ensure timely execution of future orders. Consequently, the PAT margin declined to 7.72% in FY26 (Prov.) from 12.36% in FY25. Acuite believes that scale of operation may improve however timely execution amid change in govt. regulation and influx of new of orders will remain key monitorable.
Intensive Working Capital Cycle:
The working capital profile remained intensive, with GCA days increasing to 477 days in FY26 (Prov.) from 368 days in FY25, mainly due to higher receivables and increased other current assets. Debtor days rose to 404 days in Fy 26 (Prov.) from 343 days in FY 25, largely on account of the company's milestone-based billing structure, wherein revenue is recognized upon material dispatch while collections are linked to the achievement of contractual milestones. Further, around 40% of FY26 revenue was booked in Q4, resulting in elevated year-end receivables. The receivables position is also supported by AMC and maintenance contracts, where a portion of payments is received periodically over the contract tenure, contributing to the elongated collection cycle.Inventory days remained moderate at 22 days in FY26 (Prov.) compared to 15 days in FY25. Other current assets increased to Rs. 20.42 crore in FY 26 (Prov.) from Rs. 5.88 crore in FY 25, primarily due to higher GST credit receivables. Creditor days also increased to 281 days in FY 26 (Prov.) from 222 days in FY 25, reflecting the company's ability to avail extended credit terms from suppliers, which partially supports its working capital requirements. While the collection cycle remains stretched, Acuité believes recoveries are likely to materialize, supported by the company's established clientele, milestone-linked payment structure, and track record of timely collections.
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