Vishnu Prakash R Punglia Limited (VPRPL.NS) Earnings Call Transcript & Summary
November 17, 2025
Earnings Call Speaker Segments
Operator
operatorLadies and gentlemen, good day, and welcome to the Vishnu Prakash R Punglia Limited's Q2 and H1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Hena Khatri from Valorem Advisors. Thank you, and over to you, ma'am.
Hena Khatri
attendeeThank you, Sagar. Good evening, everyone, and a very warm welcome to you all. My name is Hena Khatri from Valorem Advisors. We represent the Investor Relations of Vishnu Prakash R Punglia Limited or a VPRPL. On behalf of the company, I'd like to thank you all for participating in the company's earnings call for the second quarter and first half of the financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from those anticipated. Such statements are based on management beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward-looking statements and making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr. Manohar Lal Punglia, Managing Director; Mr. Jayant Pungalia, Project Coordinator; and Mr. Sarfaraz Ahmed, Chief Financial Officer.Thank you, and over to you, sir. Mr. Manohar.
Manohar Punglia
executive[Foreign Language]
Sarfaraz Ahmed
executiveThank you. Good evening, everyone. The operating revenue for the second quarter stood at INR 296 crores, which decreased by around 12% year-on-year basis. EBITDA for the quarter stood at INR 24 crores, declining by around 50% year-on-year basis with EBITDA margin at 8.2%. Net profit for the quarter was INR 4 crores with a PAT margin of 1.2%. For the first half, revenue stood at INR 572 crores, declining by 3% year-on-year. EBITDA stood at INR 56 crores, down 32% year-on-year basis with an EBITDA margin of 9.84%. Profit after tax stood at INR 11 crores with a PAT margin of 1.87%. Before moving ahead, I would like to briefly address the movement in margins during the quarter. The moderation in EBITDA and PAT margin was largely due to higher working capital utilization during the early part of the quarter, slower repayment releases from water supply projects and initial mobilization expenses on newly commenced project. These are temporary impacts. Additionally, we have recognized an ECL provision of INR 8.5 crores based purely on the aging of receivables. This is a notional conservative provision and does not reflect any concern regarding recoverability. With receivable inflows improving significantly from October and with external borrowing reducing due to increased promoter support, we expect interest cost to be declined and margins to gradually improve as execution picks up in the second half of the year. Now coming to the liquidity and balance sheet update. We have demonstrated a strong financial discipline during the first half of the financial year. Total banking and nonbanking financial company exposure reduced to INR 488 crores as of September '25 compared to INR 648 crores in March '25. Promoter support has been significant with interest-free unsecured loan increasing from INR 60 crores in March '25 to around INR 229 crores in September '25. This reduction in external borrowing, coupled with higher promoter support will meaningfully lower interest costs in the coming quarter. Receivable collections have also improved, added by significant payment release from Rajasthan government in October. Execution has been stable across water supply and railway segments, and we expect further improvement as fund flow normalized heading into Q3 and Q4. Now I'll request Mr. Jayant Pungalia to provide operational highlights for the quarter under review.
Jayant Pungalia
executiveThank you, sir. Good evening, everyone. During the quarter, project execution remained steady across our ongoing works. We achieved an on-time delivery rate of over 90%, supported by efficient deployment of manpower, machinery and materials. Our teams have been working across multiple states and overall site progress has been stable despite the industry-wide challenges earlier in the year. Our order book stands at over INR 5,001 crores, providing clear visibility for the next 2 to 3 years. The mix continues to remain well diversified across water supply, civil infrastructure and railway-related projects, along with specialized works for public sector undertaking. This balanced portfolio supports execution stability and gives us strong visibility across segments. On the business development side, our bidding pipeline remains healthy at over INR 3,000 crores with tenders submitted in roads, bridges, urban infrastructure and renewable linked construction. We continue to evaluate opportunities selectively, aligned with our strategy and execution capabilities. Internally, our focus remains on operational efficiency, backward integration and disciplined cost control. Our in-house manufacturing, testing and maintenance facilities continue to support delivery quality and help us maintain cost competitiveness. [Technical Difficulty] Building pipeline and improving liquidity across key states, we expect execution momentum to strengthen further in the coming quarters. With this, we can now open the floor for the question and answer session.
Operator
operator[Operator Instructions] Our first question comes from the line of Rajesh Bhandari form NAKODA ENGINEERS.
Rajesh Bhandari
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language] that is reflecting onto the next profit. [Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language] why it can't be resolved?
Sarfaraz Ahmed
executive[Technical Difficulty]
Operator
operatorThe line for the management has been disconnected. Please stay connected to while we reconnect the line for the management back. Ladies and gentleman, we have the line for the management reconnected. Yes sir, please go ahead.
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Operator
operatorSir, may we request you to return to the queue for any follow up questions.
Rajesh Bhandari
analyst[Foreign Language] whether it is resolved now.
Jayant Pungalia
executive[Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Operator
operatorOur next question comes from the line of Lokesh Kashikar from SMIFS Institutional Equities.
Lokesh Kashikar
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language] Payments are getting released or it is still stuck?
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Operator
operatorSorry to interrupt sir, you are sounding a little bit distant right now.
Lokesh Kashikar
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language] 13%, 13.5% margin during H2 is a possibility?
Sarfaraz Ahmed
executive[Foreign Language]
Operator
operator[Operator Instructions] Our next question comes from the line of Shashikant Srinivasan, an investor.
Unknown Attendee
attendeeI have 2 questions. The first one is more of a request, right? I am an individual investor with a significant investment in VPRPL, and I'm from the southern part of India. So the first 10 minutes was spoken in Hindi. I couldn't understand anything. I think it's a fair expectation that a company which has gone for an IPO across India, they communicate in English, that will be great. Even if there is a summary, that will be great, right? I totally appreciate Mr. Jayant and Mr. Sarfaraz' commentary, that was great, right? So that is just a request. The second question I have -- that will be great. Even a summary, right, whatever Manohar sir had spoken for 10 minutes, a 2-minute summary in English will be great, right? A lot of my friends also have invested from southern part of India. So I'll just move on to the second question. My main question is, I totally appreciate the promoters' infusion, I think, in the month of September. The only challenge I faced was I have been invested from INR 250 levels. I think the stock price came all the way from INR 180 to INR 90, right? Day in, day out, there was continuous selling day in, day out, right? Was there no other way to infuse the money, which led to so much drop in the stock price from INR 180 levels to INR 90 levels, right? It is very, very sad and disappointing as a retail investor who put so much faith in the company because nowhere else you would see this kind of a heavy selling in the market crash in the stock price by 50%. That's all my question.
Manohar Punglia
executiveYes, sir. Thank you for your appreciation. And there are multiple options we are looking for. But as you know that this is a need of time and this investment supports a lot to the company. That's why we have taken decision, this type of decision. And this is a big support from the promoters.
Unknown Attendee
attendeeI will continue to remain invested. I hope that from Q3, the numbers become better so that the stock price goes back to the earlier levels.
Operator
operator[Operator Instructions] Our next follow-up question comes from the line of Rajesh Bhandari from NAKODA ENGINEERS.
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analystAverage of the project is a kind of JV.
Sarfaraz Ahmed
executive[Foreign Language]
Rajesh Bhandari
analystWhat is BNG? what is RBI-PL JV?
Sarfaraz Ahmed
executiveThese are the supportive company [Foreign Language]
Rajesh Bhandari
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Operator
operatorOur next question comes from the line of Akhil Jain, an investor.
Unknown Attendee
attendeeInfusion of funds [indiscernible]
Operator
operatorSorry to interrupt, sir. Sir, your line was breaking, and we could not get the first part of the question, if you can please repeat.
Unknown Attendee
attendeeYes. So my question was on the infusion of funds from the promoters. So how much of that is actually used as working capital? And how much of that is used to repay debt? And my second question is that -- so we are already facing trade receivable problem from the past couple of quarters. And right now, we see that there's a INR 56 crore increase from last quarter, Q2 to Q3 -- sorry, Q1 to Q2 in terms of trade receivables. So shouldn't this come down as a suiting factor? I mean, why the trade receivables is still going up, shouldn't it come down in the downward trajectory? And when can we expect that?
Jayant Pungalia
executive[Foreign Language]
Unknown Attendee
attendeeOne more question, you mentioned that you have received some funds in October. So can you give us any idea how much has 50% received?
Jayant Pungalia
executive[Foreign Language] out of which 50% portion from Rajasthan govern.
Unknown Attendee
attendeeAnd how much more are we expecting in the current quarter?
Jayant Pungalia
executive[Foreign Language]
Operator
operatorOur next question comes from the line of Digvesh Rathi, an investor.
Unknown Attendee
attendee[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Unknown Attendee
attendee[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Unknown Attendee
attendee[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Unknown Attendee
attendee[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Unknown Attendee
attendee[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Unknown Attendee
attendee[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Operator
operatorOur next follow-up question comes from the line of Lokesh Kashikar from SMIFS Institutional Equities.
Lokesh Kashikar
analyst[Foreign Language] or we have bought more projects during H1?
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Sarfaraz Ahmed
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language] Order inflows and order awarding has been dried up within the last 2 years. So competition we are seeing, it will be healthy and cut throughout. So do you thing [Foreign Language]. There will be undercut of the pricing [Foreign Language]. So what is your view on that.
Jayant Pungalia
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Jayant Pungalia
executive[Foreign Language]
Lokesh Kashikar
analyst[Foreign Language]
Operator
operatorLadies and gentlemen, we will take that as the last question for today. I now hand the conference over to the management for closing comments.
Jayant Pungalia
executiveThank you all for participating in this earnings conference. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Valorem Advisors. Thank you.
Operator
operatorThank you. On behalf of Vishnu Prakash R Punglia Limited, that concludes the conference call. Thank you for joining us, and you may now disconnect your lines.
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