Virtual Galaxy Q4 net profit jumps 196% to ₹14.5 crore
Virtual Galaxy Infotech reported robust financial results for Q4 and FY26, with Q4 net profit rising 196% to ₹14.5 crore and revenue increasing 189% to ₹54.7 crore. For the full year, revenue grew 52% to ₹182.1 crore, driven by AI-led solutions and a strong order book. The company targets ₹500 crore revenue by FY29 and signed a strategic agreement with Botswana Development Corporation.
*this image is generated using AI for illustrative purposes only.
Virtual Galaxy Infotech reported a 196% year-on-year increase in net profit to ₹14.5 crore for the quarter ended March 31, 2026, driven by robust deal execution and rising demand for AI-led solutions. Revenue from operations for Q4 FY26 grew 189% to ₹54.7 crore, while EBITDA rose 178% to ₹27.7 crore, maintaining a margin of 50.7%. For the full financial year, the company recorded a 52% increase in revenue to ₹182.1 crore and a 44% rise in profit after tax to ₹46.1 crore, supported by momentum across BFSI, ERP, cybersecurity, and e-governance segments.
Financial Performance
The strong annual performance was bolstered by a 150% year-on-year surge in the order book to ₹111.6 crore, backed by an active bid pipeline of ₹1,000 crore. Recurring revenue for the year stood at ₹76.7 crore, representing 42% of total revenue, ensuring earnings stability. The company’s cash balance improved significantly to ₹31.2 crore from ₹2.6 crore in the previous year.
| Metric | FY 2025-26 | FY 2024-25 | YoY Change |
|---|---|---|---|
| Revenue from Operations (₹ crore) | 182.1 | 120.1 | 52% |
| EBITDA (₹ crore) | 84.2 | 55.3 | 52% |
| PAT (₹ crore) | 46.1 | 32.1 | 44% |
| EBITDA Margin (%) | 46.2% | 46.0% | 25 bps |
| PAT Margin (%) | 25.3% | 26.8% | -144 bps |
Strategic Developments
Management has outlined a target to scale revenue to ₹500 crore by FY29, implying a compound annual growth rate of 40-50%. This strategy focuses on strengthening leadership in core banking, expanding into the NBFC sector, and scaling international revenues. The company recently signed a Software Development Agreement with Botswana Development Corporation Limited to deliver end-to-end software development services, reinforcing its international footprint in Africa.
Operational Highlights
Virtual Galaxy Infotech operates across BFSI, government digitization, and cybersecurity verticals. Its flagship E-Banker platform is deployed across 200+ banks and 5,000+ branches. Export revenues for FY26 stood at ₹11.73 crore, or 6% of total revenues. The company continues to develop a 10-acre integrated technology campus at Mihan SEZ to support its expanding delivery infrastructure.
Historical Stock Returns for Virtual Galaxy Infotech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.35% | -0.81% | +6.98% | +4.24% | -10.34% | -16.03% |
What specific capital allocation strategies will Virtual Galaxy Infotech employ to utilize the improved cash balance of ₹31.2 crore?
How does the company plan to significantly increase export revenues, which currently represent only 6% of total sales, to meet its international expansion goals?
What are the expected margins for the upcoming NBFC sector expansion compared to the core banking business?
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