Vishal Nirmiti IPO

Strengths · 8

• 01Profit rose sharply in FY2025 and held there, going from Rs 3.45 crore in FY2024 to Rs 23.64 crore in FY2025 and Rs 24.98 crore in FY2026.
• 02Revenue has grown from Rs 247.93 crore in FY2024 to Rs 324.86 crore in FY2025 and Rs 344.13 crore in FY2026.
• 03EBITDA more than doubled in two years, from Rs 23.14 crore in FY2024 to Rs 51.13 crore in FY2026, an EBITDA margin of 15.10%.
• 04Return on net worth is 33.87% and return on capital employed is 28.02%.
• 05Net worth has more than doubled, from Rs 38.12 crore in FY2024 to Rs 86.34 crore in FY2026, while borrowing came down slightly from Rs 91.75 crore to Rs 87.42 crore.
• 06PSC sleepers go to Indian Railways and DFCCIL, buyers whose track renewal and new line work is funded from the railway budget.
• 07It works in two segments, manufacturing and services, and has units in seven states, so it is not tied to one site or one order type.
• 08The company has been in business since 1994 and employed 420 people as on 30 June 2026.

Risks · 9

• 01Growth has slowed sharply. Revenue rose about 6% and profit about 6% in FY2026, after profit had jumped nearly seven times the year before, so FY2025 looks like the exception rather than the trend.
• 02FY2024 profit was only Rs 3.45 crore on revenue of Rs 247.93 crore, which shows how thin the earnings can get in a bad year.
• 03Borrowing of Rs 87.42 crore is almost the whole net worth of Rs 86.34 crore, a debt to equity ratio of 1.01.
• 04The profit margin is thin at 7.37%, which is normal for construction but leaves little room when a contract runs over cost.
• 05The issue is priced at 23.26 times post issue earnings on an EPS of Rs 9.46, against 17.45 times on a pre issue EPS of Rs 12.61.
• 06Rs 75 crore of the Rs 178 crore issue goes to working capital and Rs 19 crore repays term loans, so most of the money does not add capacity.
• 07This is a fresh issue combined with an offer for sale, so a part of the money goes to the selling shareholders and not to the company.
• 08Railway and irrigation work is won through tenders, where rates are set by the buyer and payments are slow, and order flow depends on government spending.
• 09Promoter holding falls from 73.42% to 49.4%, taking the nine-member promoter group just below a half share.

Vishal Nirmiti Limited was incorporated in 1994 and was earlier called Sejal Farms Private Limited. It is a civil engineering, manufacturing and construction company whose main product is the pre-stressed concrete sleeper used on railway track.

The manufacturing side makes PSC sleepers for Indian Railways, DFCCIL and private customers, and fabricates MS pipes, MS liners and penstock pipes for hydro power, lift irrigation, water supply and other infrastructure work. The services side does job work on pipes, liners and penstock pipes, makes pre-cast and pre-stressed items such as noise barriers and cable ducts, builds hydro-mechanical structures, and takes on construction contracts, windmill power generation, transportation, leasing and scrap sale.

It works across Maharashtra, Madhya Pradesh, Gujarat, Himachal Pradesh, Uttar Pradesh, Odisha and Karnataka. As on 30 June 2026 it employed 420 people.

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