Virtual Galaxy Infotech Limited has signed a Memorandum of Understanding (MoU) with Konkan Railway Corporation Limited (KRCL) to collaborate on digital transformation projects for government and infrastructure sectors. The agreement, valid for two years from the date of execution, aims to establish a framework for joint opportunities in Enterprise Resource Planning (ERP), Artificial Intelligence (AI), and cyber security solutions. This strategic partnership allows Virtual Galaxy Infotech to expand its footprint in the railway and public sector undertakings (PSUs) without immediate financial liability.

The MoU encompasses a broad range of technologies, including Conversational AI, Digital Payment Systems, Data Analytics, Smart Surveillance, Mobile Applications, and Data Centre & Cloud Services. Both parties will explore and jointly pursue projects for government, semi-government, PSU, railway, and infrastructure organizations. The collaboration is designed to leverage KRCL's domain expertise and Virtual Galaxy Infotech's technical capabilities to deliver comprehensive digital solutions.

Key details of the agreement are outlined in the table below:

The MoU serves as a broad framework for cooperation and does not create legally binding financial or commercial obligations except where specifically provided. It clarifies that the transaction is not a related party transaction and that promoters or group companies have no interest in KRCL. Specific fees and charges for services will be mutually agreed upon in writing for individual projects.

Virtual Galaxy Infotech disclosed this information to the National Stock Exchange of India Limited on June 9, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has made the detailed information available on its website for stakeholders.

Virtual Galaxy Infotech Limited reported a 52% year-on-year increase in revenue for FY26, reaching INR182.1 crores, driven by strong performance in its BFSI technology solutions and government digitalization platforms. Profit after tax stood at INR46.1 crores, translating to a PAT margin of 25.3%. The company attributes the growth to deeper client engagement, an increase in recurring revenue, and continued traction in international markets.

Financial Performance

The company’s EBITDA margin for the year was 46.2%, amounting to INR84.2 crores, consistent with its historical performance. Recurring revenue for FY26 was INR76.7 crores, representing 42% of the total revenue. The unexecuted order book stood at INR111.6 crores at the end of the fiscal year, providing medium-term revenue visibility.

Business Segments and Growth Drivers

The BFSI segment contributed 90% of the total revenue, while the ERP business contributed 9.31% and e-governance contributed 0.59%. Domestic markets accounted for 93.6% of revenue, with export markets contributing 6.44%. The company added 97 branches to its core banking platform, e-Banker, during FY26, the highest annual addition in its history.

Management highlighted the Reserve Bank of India's Scale-Based Regulation framework for NBFCs as a significant opportunity, with approximately 350 NBFCs requiring core financial services solutions. The company is actively engaging with these institutions to expand its market presence.

Future Outlook

Virtual Galaxy Infotech has provided guidance targeting a 40% plus CAGR over the next three years, aiming to reach INR500 crores in revenue by FY29. The company expects to maintain a PAT margin of approximately 25% during this period. Growth is expected to be driven by cross-selling products, expanding into NBFC and cybersecurity segments, and increasing international revenue from 6% to 20%-25%.

The active bid pipeline currently stands at around INR1,000 crores. The company remains focused on product enhancement, AI integration, and export expansion to achieve its long-term goals.