Virtual Galaxy Infotech Limited (VGINFOTECH)
📢 Recent Corporate Announcements
Virtual Galaxy Infotech Limited has issued the notice for its 29th Annual General Meeting (AGM) scheduled for September 24, 2026, via Video Conferencing. Key agenda items include the adoption of FY26 financial statements, confirmation of the interim dividend of Re. 1.00 per share (10% of face value) as the final dividend, and approval of material related-party transactions with Finverse Private Limited and Paynext Private Limited. Additionally, shareholders will vote on variations in IPO objects and the appointment of Mr. Sunil Kulkarni as a Non-Executive Director at a monthly remuneration of Rs 2 Lakhs.
- 29th AGM scheduled for September 24, 2026, at 10:00 AM IST via VC/OAVM
- Confirmation of interim dividend of Re. 1/- per equity share (10% on FV Rs 10) as final dividend for FY26
- Shareholder voting cut-off date set for September 16, 2026; e-voting window runs September 21 to September 23, 2026
- Special business includes approval of material related-party transactions and variation in IPO objects
- Appointment of Mr. Sunil Kulkarni as Professional Non-Executive Director proposed at Rs 2 Lakhs/month remuneration
Virtual Galaxy Infotech announced that its Board has approved entering into material Related Party Transactions (RPT) with group companies Finverse Pvt Ltd and Paynext Pvt Ltd for ₹45.00 crore each (total ₹90.00 crore), subject to shareholder approval. The Board also approved the variation and reallocation of IPO proceeds towards Data Centre upgrades, marketing, and working capital. In addition, fintech veteran Sunil Kulkarni (ex-CEO of Oxigen Services) was appointed as Additional Non-Executive Director to drive Payment Aggregator (PA) and PPI initiatives ahead of the AGM on September 24, 2026.
- Approved material Related Party Transactions with Finverse Pvt Ltd and Paynext Pvt Ltd for ₹45.00 crore each (total ₹90.00 crore)
- Proposed reallocation of IPO proceeds from product enhancement hiring to Data Centre upgrades, marketing, and working capital
- Appointed Sunil Kulkarni (35+ years experience, 15 years as CEO/JMD of Oxigen Services) as Additional Non-Executive Director
- Annual General Meeting scheduled for September 24, 2026, with cut-off date on August 28, 2026
Virtual Galaxy Infotech's Board has approved material Related Party Transactions of ₹45.00 crore each (total ₹90.00 crore) with group entities Finverse Pvt Ltd and Paynext Pvt Ltd, subject to shareholder approval. The Board also approved varying and reallocating IPO proceeds previously earmarked for manpower hiring and business development towards Data Centre upgradation, marketing, and working capital. Additionally, fintech veteran Sunil Kulkarni was inducted as Additional Non-Executive Director to support upcoming Payment Aggregator (PA) and PPI initiatives. The Annual General Meeting is scheduled for September 24, 2026.
- Approved material Related Party Transactions of ₹45.00 crore each with Finverse Pvt Ltd and Paynext Pvt Ltd (total ₹90.00 crore).
- Reallocated IPO proceeds from product maintenance hiring towards Data Centre upgradation, marketing, and working capital.
- Appointed Sunil Kulkarni (former CEO of Oxigen Services) as Additional Non-Executive Director.
- Convened the Annual General Meeting on September 24, 2026, with an e-voting cut-off date of August 28, 2026.
Virtual Galaxy Infotech's Board approved material related party transactions (RPTs) worth Rs 45.00 crore each (total Rs 90.00 crore) with group entities Finverse Private Limited and Paynext Private Limited, subject to shareholder approval. The Board also approved reallocating unutilised IPO proceeds from product manpower hiring and marketing toward data centre upgrades, marketing, and working capital. Additionally, fintech veteran Sunil Kulkarni (ex-CEO of Oxigen Services) was appointed as an Additional Non-Executive Director to support proposed Payment Aggregator (PA) and PPI licenses. The AGM is scheduled for 24th September 2026.
- Approved material RPTs of Rs 45.00 crore each with group companies Finverse Pvt Ltd and Paynext Pvt Ltd
- Proposed reallocation of IPO proceeds toward Data Centre Upgradation, Marketing, and Working Capital
- Appointed Sunil Kulkarni (35+ years experience, 15 years at Oxigen Services) as Additional Non-Executive Director
- Convened Annual General Meeting (AGM) for 24th September 2026 with cut-off date of 28th August 2026
Virtual Galaxy Infotech Limited has submitted its quarterly business update titled 'Q1 FY27 EARNINGS UPDATE August, 2026' to the exchange under Regulation 30 of SEBI LODR. The filing covers performance highlights for the quarter ended June 30, 2026. However, specific revenue and profitability figures are not detailed in the cover letter extract.
- Submitted quarterly business update titled 'Q1 FY27 EARNINGS UPDATE August, 2026'
- Covers operational and financial performance for the quarter ended June 30, 2026
- Filing made pursuant to Regulation 30 of SEBI LODR Regulations on August 26, 2026
Virtual Galaxy Infotech Limited has secured a Purchase Order valued at approximately ₹5.45 crore (exclusive of taxes) from Mizoram Cooperative Apex Bank Ltd. The contract entails upgrading the bank's Core Banking Solution (CBS) on an ASP model across its Head Office and 36 branches, along with mobile and internet banking. The engagement includes a 2-month implementation timeline followed by a 5-year contract comprising one-time setup and monthly recurring ASP fees. The company has served this client since 2012, highlighting client retention.
- Order value of approximately ₹5.45 crore (exclusive of applicable taxes)
- Contract duration of 5 years post a 2-month implementation period
- Covers CBS upgradation for Head Office and 36 branches plus mobile/internet banking
- Client relationship extension with Mizoram Apex Bank, an existing customer since 2012
Virtual Galaxy Infotech Limited has issued a clarification to the National Stock Exchange regarding Note No. 7 in its quarterly financial results. The company noted that it has been listed on the NSE SME platform since 19 May 2025 and initially followed half-yearly reporting before voluntarily adopting quarterly reporting from 31 December 2025. The company explained that comparative figures for the quarter ended 30 June 2025 were absent because quarterly reporting was not mandatory during that period. Management confirmed that the note is an explanatory disclosure and does not constitute an audit qualification or adverse observation.
- Listed on the NSE SME Platform since 19th May, 2025 under a half-yearly reporting framework
- Voluntarily transitioned to quarterly financial reporting effective from the quarter ended 31st December, 2025
- Clarified absence of comparative figures for the three months ended 30 June 2025 due to prior reporting framework
- Explicitly stated that Note No. 7 is not an audit qualification, modification, or adverse observation by Statutory Auditors
Virtual Galaxy Infotech reported a revenue of Rs 40.38 Cr for the quarter ended June 30, 2026, with a net profit of Rs 9.20 Cr. The company saw a sequential decline in revenue compared to the Rs 54.66 Cr reported in the March 2026 quarter. A significant rise in depreciation to Rs 8.76 Cr reflects recent heavy infrastructure investments, including the MIHAN-SEZ campus. Additionally, the company progressed with its fundraise, receiving Rs 4.94 Cr (25% upfront) from the allotment of 12,43,432 promoter warrants at Rs 159 each.
- Revenue from operations for Q1 FY27 stood at Rs 40.38 Cr, a sequential decline from Rs 54.66 Cr in the previous quarter.
- Net profit reached Rs 9.20 Cr for the quarter, resulting in a basic EPS of Rs 3.70.
- Depreciation and amortization expenses surged to Rs 8.76 Cr, up from Rs 4.97 Cr in the corresponding period last year.
- Allotted 12,43,432 convertible warrants to promoters at Rs 159 per warrant, raising an initial Rs 4.94 Cr.
- Utilized Rs 4.90 Cr of the warrant proceeds for general corporate purposes as of the reporting date.
Virtual Galaxy Infotech Limited has scheduled a physical institutional investor meeting on August 21, 2026, in Mumbai. The meeting will include both group and one-on-one interactions from 10:00 AM to 7:00 PM. The company recently reported significant scaling, with revenue growing from INR 49 Cr to INR 86 Cr in half-yearly periods while maintaining a 25.57% PAT margin. Discussions will be restricted to publicly available information, ensuring no unpublished price-sensitive information is shared.
- Investor meeting scheduled for Friday, August 21, 2026, at Grand Hyatt, Mumbai.
- Full-day interaction window from 10:00 A.M. to 7:00 P.M. involving management representatives.
- Company maintains a 25.57% PAT margin despite scaling revenue from INR 49 Cr to INR 86 Cr.
- Planned workforce expansion to 1,000+ professionals to support the MIHAN-SEZ technology campus.
Financial Performance
Revenue Growth by Segment
Revenue from operations grew 88.9% YoY in FY25 to INR 120.14 Cr, and continued with 20.27% YoY growth in H1 FY26 reaching INR 86.13 Cr, driven by CBS implementation in cooperative banks and SaaS adoption.
Geographic Revenue Split
Operations span 20 Indian states and international markets including Tanzania, Malawi, Ethiopia (Africa), UAE (GCC), and Asia Pacific; export revenue witnessed significant growth in FY25.
Profitability Margins
PAT margin remained stable at 26.73% in FY25 (vs 26.52% in FY24) and was 25.57% in H1 FY26; management targets a consistent range of 25% for future projects.
EBITDA Margin
EBITDA margin was 46.24% in FY25 (INR 55.55 Cr) and 45.07% in H1 FY26 (INR 38.82 Cr), reflecting a slight compression from the 50.38% recorded in FY24.
Capital Expenditure
Capitalized INR 14.21 Cr in intangible assets during H1 FY26 for software under development; ongoing construction of an integrated technology campus in MIHAN-SEZ, Nagpur.
Credit Rating & Borrowing
Debt-Equity ratio improved significantly to 0.43 in FY25 from 0.94 in FY24 following IPO proceeds and partial debt repayment; borrowing costs not explicitly disclosed.
Operational Drivers
Raw Materials
Technical manpower and software developers represent the primary input cost, with employee expenses accounting for 60-70% of capitalized software development costs.
Capacity Expansion
Current workforce of 400+ professionals as of Nov 2025; planned expansion to onboard 1,000+ new professionals within the next two years to support the MIHAN-SEZ facility.
Raw Material Costs
Employee expenses are the dominant cost; INR 14.21 Cr was capitalized in H1 FY26 for software development, of which ~INR 8.5 Cr to INR 9.9 Cr was employee-related.
Manufacturing Efficiency
Net fixed asset turnover ratio was 1.03 in FY25, down from 2.03 in FY24, reflecting recent heavy investments in infrastructure and capitalized software.
Strategic Growth
Expected Growth Rate
20.27%
Growth Strategy
Growth will be achieved through workforce augmentation (1,000+ staff), completion of the MIHAN-SEZ technology campus, and enhancing the 'e-Banker' flagship product with AI and cybersecurity features. The company is also expanding its footprint in the GCC and African markets (Ethiopia) to leverage early successes in Tanzania and Malawi.
Products & Services
Core Banking Software (e-Banker), Digital Payment Solutions (V-Pay), ERP Implementations, e-Governance platforms, and AI-driven platforms (Virtual VANI AI).
Brand Portfolio
e-Banker, V-Pay, Audit Flux, FinFlow, Transact Core, Virtual VANI AI.
New Products/Services
Launch of AI-integrated modules for cooperative banks and 'Virtual VANI AI' expected to contribute to top-line growth in H2 FY26.
Market Expansion
Targeting expansion in 20 Indian states and international growth in Ethiopia and the GCC region within the next 24 months.
External Factors
Industry Trends
The IT industry is shifting toward AI-driven, cloud-native SaaS models; VGIL is positioning itself as an 'AI-first' company to capture this 20% YoY growth trend.
Competitive Landscape
Competes with regional and domain-specific IT providers in the BFSI and e-governance sectors.
Competitive Moat
Moat is built on the proprietary 'e-Banker' CBS platform which has high switching costs for cooperative banks; 28+ years of domain expertise in rural BFSI provides a durable competitive advantage.
Macro Economic Sensitivity
Highly sensitive to Digital India initiatives and government spending on e-governance and financial inclusion in rural sectors.
Consumer Behavior
Increasing demand for digital transformation and secure digital payment platforms like V-Pay among rural and cooperative banking customers.
Geopolitical Risks
Exposure to developing economies in Africa (Tanzania, Malawi, Ethiopia) and the GCC region.
Regulatory & Governance
Industry Regulations
Compliance with ISO-IEC 27001-2022 (Security), ISO-IEC 20000-1-2018 (Service Management), and BFSI-specific regulatory norms for banking software.
Risk Analysis
Key Uncertainties
Accounting policy regarding the capitalization of employee expenses (INR 14.21 Cr) and the credibility of the current small-scale auditor are key investor concerns.
Geographic Concentration Risk
Significant revenue concentration in 20 Indian states, though international expansion is mitigating this.
Technology Obsolescence Risk
Mitigated by ongoing R&D in AI, machine learning, and cloud-native enterprise solutions.
Credit & Counterparty Risk
Investor concerns regarding the genuineness of reported numbers due to negative or weak cash flows despite high reported profits.
