Vindhya Telelinks Limited

VTL benefits from being part of the well-established and diversified MP Birla Group, which has long-standing interests across cement, jute, carbide, power cables, optical fibre cables, guar gum, and power capacitors. The group operates through reputed entities such as Birla Corporation Limited (CARE AA; Stable/CARE A1+), BCL,and Universal Cables Limited (UCL; rated: ‘CARE A; Stable/ CARE A1’). MP Birla group also own 50% ownership in Hindustan Gums & Chemicals Limited (rated: ‘CARE A+; Stable/

VTL benefits from a well-diversified business model comprising two key segments—cable manufacturing and EPC services. The EPC division remains the dominant contributor, accounting for ~80% of the company’s revenue in FY25 (76% in 9MFY26) and has consistently contributed over 75% of total revenue in the last three fiscals, underscoring the company's execution capabilities and strong positioning in large-scale Government of India funded infrastructure projects. The cable division manufactures a br

As of March 31, 2025, VTL reported a strong unexecuted order book of ₹6,784 crore, representing ~1.67x its FY25 operating income. Order book reduced from ₹6,167 crore (1.51x of FY24 revenue) from December 31, 2025, unexecuted order book stands at ₹5,812 crore despite of slow execution with new upcoming projects at slow pace, the company’s exposure to the JJM remains a key driver. Going forward, VTL’s ability to rebuild and expand its order book, particularly through fresh project wins under JJM

On the financial side, VTL’s capital structure moderated over time. Overall gearing increased to 0.26x as on March 31, 2025 (PY: 0.15x), primarily due to higher utilisation of working capital borrowings driven by elevated receivables and inventory levels , while adjusted gearing (including corporate guarantees) rose to 0. 33x from 0.22x. In FY26, the company availed an additional ₹200 crore loan to support its working capital requirements, reflecting continued pressure on liquidity and total deb

VTL derives ~80% of its revenue from the EPC segment, which also accounts for ~97% of the outstanding order book as on March 31, 2025. Execution of large and complex projects, such as the SWSM water project in Uttar Pradesh, carries risks associated with procedural delays, weather disruptions, or site-level challenges. Around 58% of the current order book pertains to energy sector projects backed by central utilities, which mitigates credit risk to some extent. However, ~32% orders relate to

The company’s main raw materials in the cable segments include copper, aluminium, compounds, and optical fibre. The company procures copper mainly from Hindalco and partially imports it. These purchases are mostly on credit basis or backed by letters of credit (LCs). The other important raw material is optical fibre, which is procured from a group company, Birla Furukawa Fibre Optics Private Limited (rated: ‘CARE BBB+; Stable/ CARE A2’). For EPC orders, the company mostly has price escalation cl