- Vishal Nirmiti’s ₹682 Crore Order Book Is Growing Faster Than Revenue
- Why Vishal Nirmiti’s Profit Margins Improved Despite Slower Revenue Growth
- Why Vishal Nirmiti Is Using the IPO to Fund Working Capital and Reduce Debt
- Indian Railways Drives Revenue, but Customer Concentration Remains High
- Author’s Take - The Next Phase Depends More on Execution Than Order Wins
Vishal Nirmiti Limited operates in a part of infrastructure that is easy to overlook but important to understand. It manufactures railway concrete sleepers, steel pipes and other infrastructure products while also providing project-related services.
In FY26, the company reported ₹338.68 crore in revenue from operations. Manufacturing contributed about 75% of this revenue, while services contributed the remaining 25%. Railway concrete sleepers alone accounted for ₹215.03 crore, making them the largest contributor to the business.
What makes the IPO worth analysing is not just the existing revenue base. The company’s order book has increased from ₹359.79 crore in FY24 to ₹682.47 crore in FY26. An order book is simply the value of confirmed work that has not yet been fully executed. A larger order book can provide better visibility into future revenue, but it also increases the amount of money needed to fund raw materials, labour and project execution.
That is especially relevant here because Vishal Nirmiti plans to use ₹75 crore of IPO proceeds for working capital and another ₹19 crore for debt repayment.
For readers still getting familiar with the structure of an IPO, the distinction between a fresh issue and an offer for sale can be useful. IPO types: fresh issue vs OFS explained
Vishal Nirmiti’s ₹682 Crore Order Book Is Growing Faster Than Revenue
Vishal Nirmiti’s revenue grew from ₹242.88 crore in FY24 to ₹318.52 crore in FY25 and then to ₹338.68 crore in FY26. The pace of growth, however, slowed sharply in FY26. Revenue increased just 6.33% during the year after growing 31.14% in FY25. At the same time, the company’s order book continued to expand. It reached ₹682.47 crore in FY26 compared with ₹359.79 crore in FY24 this creates an important distinction. A strong order book shows that demand exists, but it does not automatically become revenue. Projects must still be executed on time, customers need to accept the work and payments must eventually be collected.
The company also depends heavily on institutional customers. Indian Railways contributed ₹137.27 crore or 40.56% of FY26 revenue. Government entities together contributed ₹144.21 crore or 42.61%.
Customer concentration is even higher when viewed more broadly. The top five customers generated 85.33% of revenue while the top ten accounted for 92.91%.So, the company’s future growth depends not only on receiving new orders but also on successfully converting a concentrated order base into actual revenue. That makes order execution one of the most important numbers to track after the IPO.
Why Vishal Nirmiti’s Profit Margins Improved Despite Slower Revenue Growth
One of the more encouraging trends in Vishal Nirmiti’s financials is that profitability improved faster than revenue. EBITDA increased from ₹23.14 crore in FY24 to ₹46.48 crore in FY25 and ₹51.13 crore in FY26. EBITDA refers to operating profit before interest, tax, depreciation and amortisation. In simple terms, it gives a rough picture of how profitable the core business is before financing and accounting costs. The EBITDA margin improved from 9.53% in FY24 to 15.10% in FY26.
Net profit followed a similar pattern. It increased from ₹3.45 crore in FY24 to ₹23.64 crore in FY25 and ₹24.98 crore in FY26. Part of this improvement came from the company’s changing revenue mix. Services contributed only 11.74% of operational revenue in FY24 but increased to 24.99% by FY26. The document indicates that this growing services contribution supported higher margins. This is worth watching because the business may gradually become less dependent on pure manufacturing volumes if services continue to become a larger contributor. However, investors should avoid assuming that margins will keep increasing at the same pace.
Raw materials such as steel wire, cement and aggregates are bought without long-term fixed-price contracts. Any sharp increase in input prices could therefore affect profitability if the company cannot pass those costs on to customers quickly.
Why Vishal Nirmiti Is Using the IPO to Fund Working Capital and Reduce Debt
The ₹145 crore IPO is entirely a fresh issue. Of the proceeds, ₹75 crore is proposed to be used for working capital while ₹19 crore is planned for repayment or prepayment of existing loans. The remaining proceeds will be used for general corporate purposes.
The size of the working capital allocation is significant because infrastructure businesses often spend money much before they collect it. Vishal Nirmiti needs to purchase raw materials, manufacture products, move them to project locations and wait for customers to make payments.
Its working capital requirement is projected to increase from ₹59.15 crore in FY26 to ₹164.41 crore in FY27. Trade receivables, or money still due from customers, stood at ₹63.38 crore in FY26 and the collection period was 59 days. This explains why working capital forms the largest specific use of IPO proceeds. The company has still generated positive cash flow from operations. Operating cash flow stood at ₹27.73 crore in FY24, ₹38.20 crore in FY25 and ₹27.15 crore in FY26.
That is a useful distinction. The business is not reporting profit without producing any operating cash. However, the projected jump in working capital means the amount of cash required to support future execution could increase materially. Debt also remains relevant. Total debt declined from ₹91.75 crore in FY24 to ₹87.42 crore in FY26 while net worth increased to ₹86.34 crore. This brought the debt-to-equity ratio down from 2.37 times to 1.01 times and the proposed ₹19 crore debt repayment from IPO proceeds could reduce leverage further. The more important test, though, will be whether fresh working capital allows the company to execute more orders without debt beginning to rise again.
Indian Railways Drives Revenue, but Customer Concentration Remains High
Vishal Nirmiti has built long-term relationships with important institutional customers. Repeat customers contributed ₹320.40 crore or 95.13% of operational revenue in FY26. Ten major customers have been associated with the company for more than ten years. This indicates that execution history and customer relationships are meaningful advantages.
The company also benefits from technical qualifications. Its railway sleeper business requires vendor registration with the Research Designs and Standards Organisation under the Ministry of Railways. Such approvals can make it harder for new competitors to enter certain railway contracts. But strong customer relationships also create concentration. Indian Railways alone accounts for more than 40% of revenue. The top five customers contribute more than 85%.
Geographic concentration is similarly high. Maharashtra, Madhya Pradesh and Gujarat together generated 87.38% of FY26 revenue. This means the company currently has limited diversification if spending slows in one important region or if a large customer delays a project. For investors, this makes diversification an important medium-term indicator.
Growth in hydropower projects, steel pipes, precast products or new geographies would gradually reduce dependence on railway sleepers and a small number of customers.
The company has already entered more specialised areas such as precast noise barriers and cable ducts for the Mumbai-Ahmedabad high-speed rail project as well as penstock pipes for pumped-storage hydropower projects. That diversification is still developing, but it could become increasingly important.
Author’s Take - The Next Phase Depends More on Execution Than Order Wins
Vishal Nirmiti enters the IPO with several favourable operating trends. Its order book has expanded, margins have improved, operating cash flow has remained positive and leverage has declined from earlier levels.
At the same time, the company is entering a phase where execution becomes more demanding. The order book has grown much faster than recent revenue. Working capital requirements are projected to rise sharply. Debt remains meaningful and revenue is highly concentrated among a few customers and states.
For this reason, the most useful numbers to track after the IPO may not be headline order wins alone. Investors should watch how quickly the ₹682.47 crore order book converts into revenue, whether operating cash flow keeps pace with profit, how the ₹75 crore working capital allocation is used and whether debt declines after the proposed repayment.
Together, these indicators will show whether Vishal Nirmiti can turn a larger infrastructure opportunity into a stronger and more scalable financial profile.
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