VIRINCHI - Virinchi
📢 Recent Corporate Announcements
Virinchi Limited's subsidiary, Virinchi Health Care Private Limited (VHPL), has allotted 52.22 lakh equity shares to promoter Viswanath Kompella for a total consideration of •7.83 crore. This transaction, executed via warrant conversion at •15 per share, has reduced Virinchi Limited's stake in the subsidiary from 100% to 51%. VHPL is a significant contributor to the group, accounting for 30.73% of the consolidated turnover in FY24-25. While the company remains a subsidiary, the substantial 49% minority interest now held by the promoter will impact future consolidated net profit attributable to shareholders.
- Promoter Viswanath Kompella acquired a 49% stake in VHPL for •7.83 crore
- Virinchi Limited's ownership in the healthcare subsidiary diluted from 100% to 51%
- VHPL contributed •92.54 crore (30.73%) to consolidated revenue in FY2024-25
- The allotment was based on an independent enterprise valuation of •312.08 crore for VHPL
- A total of 52,22,000 warrants were converted into equity shares as of March 9, 2026
Virinchi Limited has successfully allotted 13,15,715 equity shares to Vivo Bio Tech Limited, a promoter group entity, following the conversion of warrants issued on a preferential basis. The shares were issued at a price of Rs. 28 per share, which includes a premium of Rs. 18. The company received the remaining 75% application money, totaling approximately Rs. 2.76 crore, to complete the conversion. This move increases the total issued and subscribed share capital to Rs. 108.80 crore, representing 10,87,96,896 equity shares.
- Allotment of 13,15,715 equity shares to Promoter Group entity Vivo Bio Tech Limited
- Issue price of Rs. 28 per share including a premium of Rs. 18 per share
- Receipt of Rs. 2,76,30,015 representing the final 75% payment for warrant conversion
- Total paid-up share capital increased to Rs. 108,79,68,960 divided into 10.88 crore shares
Virinchi Limited shareholders have approved two major special resolutions through a postal ballot concluded on February 23, 2026. The resolutions facilitate investment by a related party into Virinchi Health Care Private Limited, a 100% subsidiary, and the issuance of convertible equity warrants by the same entity. Both proposals received strong support from public shareholders, with over 92% voting in favor. This move is expected to provide necessary capital for the healthcare division's operations or expansion.
- Approval for related party investment in 100% subsidiary Virinchi Health Care Private Limited
- Issuance of convertible equity warrants by the healthcare subsidiary approved
- Resolution 1 (Investment) passed with 92.7% majority representing 2,558,985 votes in favor
- Resolution 2 (Warrants) passed with 92.61% majority representing 2,556,489 votes in favor
- Promoters and promoter group abstained from voting as they were interested parties
Virinchi Limited has successfully allotted 20,70,000 equity shares to Vivo Bio Tech Limited, a member of the Promoter Group, following the conversion of warrants. The allotment was executed at an issue price of Rs. 28 per share, which includes a premium of Rs. 18. The company received the remaining 75% of the application money, totaling approximately Rs. 4.35 crore, to complete the conversion. This move increases the company's total paid-up share capital to Rs. 107.48 crore, represented by over 10.74 crore shares.
- Allotment of 20,70,000 equity shares to Promoter Group entity Vivo Bio Tech Limited
- Conversion price set at Rs. 28 per share, including a premium of Rs. 18 per share
- Receipt of Rs. 4,34,70,000 representing the final 75% payment for the warrants
- Total issued and subscribed share capital increased to 10,74,81,181 equity shares
- The transaction demonstrates promoter commitment and provides a capital infusion of over Rs. 4.3 crore
Virinchi Limited reported a consolidated revenue of ₹76.89 crore for Q3 FY26, showing a 24.5% sequential recovery from Q2 but a 6.7% decline year-on-year. The company returned to a consolidated net profit of ₹1.60 crore, recovering from a massive ₹13.67 crore loss in the previous quarter. Standalone performance was notably stronger, with net profit rising 152% YoY to ₹8.38 crore. Despite the quarterly recovery, the company remains in a consolidated net loss of ₹11.70 crore for the nine-month period ending December 2025.
- Consolidated Revenue for Q3 FY26 at ₹76.89 crore, up 24.5% QoQ but down 6.7% YoY
- Consolidated Net Profit of ₹1.60 crore vs a loss of ₹13.67 crore in Q2 FY26
- Standalone Net Profit surged to ₹8.38 crore from ₹3.32 crore in the same quarter last year
- SaaS Business (US Fintech) led segment performance with ₹40.20 crore revenue and ₹8.39 crore profit
- Health Care Services contributed ₹25.55 crore to revenue with a segment profit of ₹3.13 crore
Virinchi Limited reported a consolidated revenue of ₹76.89 crore for Q3 FY26, marking a 24.5% recovery from the previous quarter. The company successfully returned to a consolidated net profit of ₹1.60 crore, reversing a heavy loss of ₹13.67 crore in Q2 FY26. Standalone performance was notably stronger, with net profit jumping 152% YoY to ₹8.38 crore, primarily driven by the SaaS and IT services segment. However, on a consolidated basis, both revenue and profit remain lower compared to the same quarter last year (Q3 FY25).
- Consolidated Revenue stood at ₹76.89 Cr, up 24.5% QoQ but down 6.7% YoY.
- Returned to Consolidated Net Profit of ₹1.60 Cr vs a loss of ₹13.67 Cr in Q2 FY26.
- Standalone Net Profit grew 152% YoY to ₹8.38 Cr from ₹3.32 Cr.
- Consolidated Finance Costs remain high at ₹7.85 Cr for the quarter.
- SaaS Business (US Fintech) remains the primary driver of standalone profitability, contributing ₹40.20 Cr to revenue.
Virinchi Limited has allotted 17,14,285 equity shares to Vivo Bio Tech Limited, a member of the promoter group, following the conversion of warrants issued on a preferential basis. The shares were issued at a price of Rs. 28 each, including a premium of Rs. 18 per share. The company received approximately Rs. 3.60 crore, representing the remaining 75% of the application money required for the conversion. This transaction increases the company's total paid-up equity capital to Rs. 105.41 crore.
- Allotment of 17,14,285 equity shares of Rs. 10 each at a premium of Rs. 18 per share
- Receipt of Rs. 3,59,99,985 as the final 75% payment for warrant conversion
- Shares allotted to Vivo Bio Tech Limited, part of the Promoter Group
- Total paid-up share capital increased to 10,54,11,181 equity shares
Virinchi Limited has successfully allotted 1,050,000 equity shares of Rs. 10 each following the conversion of warrants issued on a preferential basis. The shares were issued at a price of Rs. 25 per share, which includes a premium of Rs. 15. The company received the remaining 75% of the application money, amounting to approximately Rs. 1.97 crore, from a public category investor. This conversion has increased the company's total paid-up share capital to approximately Rs. 103.70 crore.
- Allotment of 10,50,000 equity shares to Manumon Chettiar under the public category
- Issue price fixed at Rs. 25 per share, including a premium of Rs. 15 per share
- Receipt of Rs. 1,96,87,500 representing the 75% balance payment for the warrant conversion
- Total subscribed share capital increased to 10,36,96,896 equity shares
Virinchi Limited is seeking shareholder approval to issue 52.22 lakh convertible equity warrants in its wholly-owned subsidiary, Virinchi Health Care Private Limited, to the company's promoter, Mr. Viswanath Kompella. The warrants are priced at ₹15 each, valuing the healthcare subsidiary at an enterprise value of ₹312.08 crore. Upon conversion, the promoter's stake in the subsidiary will rise to a maximum of 49%, while Virinchi Limited will retain a controlling 51% stake. This move aims to infuse capital into the healthcare arm while maintaining management control by the parent company.
- Issue of 52,22,000 convertible warrants in Virinchi Health Care Private Limited to Promoter Viswanath Kompella.
- Warrants priced at ₹15 per unit, aggregating to a total investment of approximately ₹7.83 crore.
- Healthcare subsidiary valued at an enterprise valuation of ₹312.08 crore by an IBBI-registered valuer.
- Parent company Virinchi Limited to reduce stake from 100% to a minimum of 51% post-conversion.
- Warrants are convertible within 36 months with 25% of the price payable upfront.
Virinchi Limited's board has approved a proposal for its promoter, Mr. Viswanath Kompella, to invest in its material subsidiary, Virinchi Health Care Private Limited. The investment involves the issuance of 52,22,000 convertible equity warrants at a price of Rs. 15 per warrant, based on an enterprise valuation of Rs. 312.08 crore for the subsidiary. This transaction will result in the promoter holding up to 49% of the subsidiary's post-issue equity capital. The capital infusion is intended to improve liquidity and strengthen the subsidiary's balance sheet for long-term growth.
- Promoter Mr. Viswanath Kompella to acquire up to 49% stake in material subsidiary Virinchi Health Care
- Issuance of 52,22,000 convertible equity warrants at Rs. 15 per warrant (FV Rs. 10 + Premium Rs. 5)
- Subsidiary enterprise valuation pegged at Rs. 312.08 crore by an independent valuer
- Warrants have a conversion tenure of 36 months from the date of allotment
- Investment aimed at improving liquidity and strengthening the subsidiary's balance sheet
Virinchi Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The report, issued by Aarthi Consultants Private Limited, covers the period from October 1, 2025, to December 31, 2025. It confirms that the company has processed all dematerialization requests within the mandated 15-day window. This is a standard administrative filing required to ensure the integrity of electronic shareholding records.
- Compliance certificate issued for the quarter ending December 31, 2025
- Registrar and Transfer Agent (RTA) confirmed processing of security certificates within 15 days of receipt
- Security certificates received for dematerialization were mutilated and cancelled as per SEBI norms
- Depository names were updated as the registered owners in the company's records
Virinchi Limited has filed a report regarding the re-lodgement of transfer requests for physical shares for the period from December 1, 2025, to January 6, 2026. This disclosure is in compliance with SEBI Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/97. The report, issued by Registrar Aarthi Consultants Limited, confirms that no requests were received during this timeframe. As a result, there were zero approvals or rejections, making this a routine administrative update with no operational impact.
- Zero (NIL) requests were received for the re-lodgement of physical share transfers during the period.
- The report covers the specific window from December 1, 2025, to January 6, 2026.
- Zero (NIL) requests were processed, approved, or rejected by the Registrar and Share Transfer Agent.
- The filing adheres to the special window requirements mandated by the SEBI circular dated July 2, 2025.
Virinchi Limited has approved the allotment of 74,00,000 convertible equity warrants to Vivo Bio Tech Limited, a promoter group entity. The warrants are issued at Rs 28 each, with the company receiving 25% (Rs 5.18 crore) upfront and the remaining 75% due upon conversion within 18 months. This move is expected to increase the promoter group's stake from 37.51% to 41.71% upon full conversion of this tranche. The funds will likely support the company's capital requirements or growth initiatives.
- 74,00,000 warrants allotted to promoter group entity Vivo Bio Tech Limited at Rs 28 per warrant.
- Immediate cash inflow of Rs 5.18 crore representing 25% of the total issue price.
- Promoter group shareholding projected to rise to 41.71% from 37.51% after conversion.
- Warrants are convertible into equity shares on a 1:1 basis within a maximum period of 18 months.
Virinchi Limited has approved the allotment of 86,00,000 convertible equity warrants to Vivo Bio Tech Limited, a promoter group entity. The warrants are issued at a price of Rs. 28 each, with the company receiving 25% (Rs. 6.02 crore) of the total consideration upfront. The remaining 75% is payable within 18 months upon conversion into equity shares. This move is expected to increase the promoter group's stake from 37.51% to 42.34% on a fully diluted basis, indicating strong internal confidence.
- Allotment of 86,00,000 convertible warrants to promoter group entity Vivo Bio Tech Limited
- Issue price set at Rs. 28 per warrant, including a premium of Rs. 18
- Immediate capital infusion of Rs. 6.02 crore representing 25% of the total subscription amount
- Promoter holding projected to increase from 37.51% to 42.34% upon full conversion
- Warrants are convertible into equity shares within a maximum period of 18 months
Virinchi Limited has approved the allotment of 40,00,000 convertible equity warrants to IT Peer Technologies LLC on a preferential basis. The warrants are issued at a price of Rs. 28 per unit, with the company receiving 25% (Rs. 2.80 crore) of the total consideration upfront. The remaining 75% (Rs. 21 per warrant) is payable within 18 months for conversion into equity shares. This allotment is part of a larger shareholder-approved plan to issue up to 2 crore warrants.
- Allotment of 40,00,000 convertible warrants at an issue price of Rs. 28 (Face Value Rs. 10 + Premium Rs. 18)
- Immediate capital infusion of Rs. 2.80 crore representing 25% of the total subscription amount
- Warrants are convertible into equity shares on a 1:1 basis within a maximum period of 18 months
- Allottee IT Peer Technologies LLC belongs to the Public category, increasing public shareholding post-conversion
- Total equity base to expand from 10.26 crore to 10.66 crore shares upon full conversion of these warrants
Financial Performance
Revenue Growth by Segment
SaaS business revenue grew 4.4% YoY to INR 133.37 Cr in FY25 from INR 127.69 Cr in FY24. Healthcare segment revenue declined 25% in FY23 to INR 136.16 Cr due to lower post-Covid IP flow and doctor attrition.
Geographic Revenue Split
IT segment revenues are 100% export-oriented, catering exclusively to the North American market.
Profitability Margins
Operating profitability declined to ~32% in 9MFY2025 from ~36% in 9MFY2024. PAT for FY25 stood at INR 0.48 Cr, a significant decline from INR 13.48 Cr in FY24.
EBITDA Margin
EBITDA for FY25 was INR 96.39 Cr, representing a 15.3% decline from INR 113.88 Cr in FY24.
Capital Expenditure
The group has expansion plans in the healthcare segment including tertiary care hospitals in multiple metros; however, specific INR Cr values for future capex are not disclosed in available documents.
Credit Rating & Borrowing
The group maintains a moderate financial risk profile with an interest coverage ratio of 2.65 times and a Debt to EBITDA of 2.90 times as of March 31, 2024.
Operational Drivers
Raw Materials
Key operational inputs include medical consumables and pharmaceuticals for healthcare (estimated 20-30% of hospital costs) and cloud hosting/IT infrastructure for SaaS operations.
Capacity Expansion
Current healthcare capacity is 600 beds at Hyderabad. Planned expansion includes tertiary care hospitals in Metro 1, 2, 3, and 5 locations.
Raw Material Costs
Not disclosed as a specific percentage of revenue; however, healthcare margins are susceptible to the rising costs of medical supplies and specialized talent.
Manufacturing Efficiency
Healthcare efficiency is measured by IP flow and bed occupancy; revenue declined in FY23 due to lower IP flow post-Covid.
Strategic Growth
Expected Growth Rate
3%
Growth Strategy
Growth is driven by a 'Bundling and Unbundling' strategy across SaaS, Data Centers, and Healthcare. Key initiatives include the launch of the V23 Healthcare Aggregator app and expanding tertiary care hospital capacity in major metros.
Products & Services
Q-Fund (SaaS for fintech), Tertiary Care Hospital services, V23 Healthcare App, and IDC Infrastructure services.
Brand Portfolio
Virinchi Hospitals, Q-Fund, V23 Medical Solutions.
New Products/Services
V23 Healthcare Aggregator app targets reaching 100 million families in 10 years.
Market Expansion
Targeting expansion into 5 major Metros for tertiary healthcare services.
Strategic Alliances
The group utilizes inorganic acquisitions as part of its vertical growth strategy.
External Factors
Industry Trends
The healthcare industry is shifting toward digital aggregation (V23 app) and tertiary care, while the IT sector is evolving toward specialized fintech SaaS like BNPL processing.
Competitive Landscape
Operates in a highly competitive healthcare sector with significant reputational risks and a crowded North American IT services market.
Competitive Moat
Sustainable moat derived from a 30-year track record in IT and the niche dominance of the Q-Fund product in the North American subprime lending market.
Macro Economic Sensitivity
High sensitivity to North American economic cycles and fintech lending regulations due to 100% export IT revenue.
Consumer Behavior
Shift toward digital-first healthcare solutions and tertiary care preference post-pandemic.
Geopolitical Risks
Trade barriers or changes in US immigration/IT service policies could impact the SaaS division.
Regulatory & Governance
Industry Regulations
Subject to stringent healthcare regulatory frameworks, medical malpractice laws, and North American financial service regulations for IT products.
Taxation Policy Impact
Average net profit for CSR calculation was INR 13.53 Cr, with a CSR obligation of INR 0.27 Cr.
Legal Contingencies
Secretarial audit reports no major bearing events or significant pending litigation for the financial year ended March 31, 2025.
Risk Analysis
Key Uncertainties
Talent risk (attrition of specialized doctors) and geographic concentration risk in the North American IT market.
Geographic Concentration Risk
100% of IT segment revenue is from North America; healthcare is concentrated in Hyderabad, Telangana.
Third Party Dependencies
High dependency on specialized medical professionals to maintain hospital IP flow and revenue.
Technology Obsolescence Risk
Risk of SaaS product obsolescence mitigated by the launch of the V23 digital healthcare platform.
Credit & Counterparty Risk
Intensive working capital cycle suggests potential risks in receivables management from fintech clients and insurance providers.