VL E-Governance & IT Solutions Limited (VLEGOV) has announced its unaudited financial results for the first quarter, showcasing significant growth in revenue and profitability. The company, which operates in the E-Governance & IT/ITES Business segment, has also appointed a new Secretarial Auditor for a five-year term.

Financial Highlights

VLEGOV reported a substantial increase in its revenue from operations for Q1:

The company's revenue from operations surged to ₹823.70 lakhs, marking a remarkable 227.7% increase from ₹251.32 lakhs in the same quarter of the previous year. Total income, including other income, rose to ₹861.42 lakhs, up by 238.9% year-over-year.

VLEGOV's profitability also showed improvement, with net profit increasing by 13.2% to ₹69.42 lakhs compared to ₹61.30 lakhs in the previous year's Q1. The company maintained its profit margins despite a significant increase in expenses, particularly in purchase of stock in trade and other operating expenditure, which grew from ₹143.36 lakhs to ₹723.70 lakhs.

Operational Performance

The company's focus on the E-Governance & IT/ITES Business segment continues to drive its growth. As per Indian Accounting Standard (IndAS) 108 "Operating Segment", VLEGOV's business falls within a single business segment, indicating a concentrated approach to its core competencies.

Appointment of New Secretarial Auditor

In a significant corporate governance move, VLEGOV's Board of Directors has approved the appointment of Ms. Kalpana Srinivasan as the company's Secretarial Auditor. The appointment is for a term of five consecutive years, spanning from FY2025-26 to FY2029-30, subject to shareholder approval at the upcoming Annual General Meeting.

Ms. Srinivasan brings over three decades of experience in the legal and secretarial domain, including more than five years of independent practice. Her expertise is expected to strengthen VLEGOV's corporate governance and compliance framework.

Management Commentary

Sanjay Nandwana, Managing Director of VL E-Governance & IT Solutions Limited, stated, "Our first quarter results demonstrate the strong momentum in our business. The significant growth in revenue reflects the increasing demand for our E-Governance and IT solutions. We are also pleased to welcome Ms. Kalpana Srinivasan as our new Secretarial Auditor, whose extensive experience will be valuable in maintaining our high standards of corporate governance."

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 02, 2025. The company's statutory auditors, M/s. B K G & Associates, Chartered Accountants, have issued an unmodified Limited Review Report on the financial results for the quarter ended June 30, 2025.

Investors and stakeholders can access the detailed financial results on the company's website ( https://www.vlegovernance.in ) as well as on the websites of the National Stock Exchange of India ( www.nseindia.com ) and BSE Limited ( www.bseindia.com ).

As VLEGOV continues to expand its operations in the E-Governance and IT/ITES sector, the company's strong Q1 performance sets a positive tone for the fiscal year ahead.

VL E-Governance & IT Solutions has made a significant move in the smart city sector by signing a Memorandum of Understanding (MoU) with Ekansh Concepts Limited. The agreement positions VL E-Governance as the Engineering, Procurement, and Construction (EPC) partner for the ambitious Sankalp Industrial Smart City Project.

Project Details

The EPC contract, valued at approximately ₹800.00 crores, marks a substantial opportunity for VL E-Governance & IT Solutions. This partnership is set to play a crucial role in the development of the Sankalp Industrial Smart City, showcasing the company's capabilities in large-scale urban development projects.

Strategic Partnership

The collaboration between VL E-Governance & IT Solutions and Ekansh Concepts Limited brings together expertise in e-governance, IT solutions, and urban planning. This strategic alliance is poised to contribute significantly to the smart city initiative, which aims to integrate advanced technologies and sustainable practices in urban development.

Implications for VL E-Governance

This MoU represents a major milestone for VL E-Governance & IT Solutions:

• Contract Value: The ₹800.00 crore contract value indicates the substantial scale of the project and its potential impact on the company's financial performance.
• Expertise Showcase: The project provides an opportunity for the company to demonstrate its capabilities in managing complex, large-scale urban development initiatives.
• Market Position: Securing this contract could strengthen VL E-Governance's position in the smart city and urban development sector.

Looking Ahead

As the Sankalp Industrial Smart City Project moves forward, stakeholders will be keen to observe the execution and progress of this significant undertaking. The success of this project could pave the way for future opportunities in the rapidly growing smart city market in India.

VL E-Governance & IT Solutions' involvement in this project underscores the increasing importance of technology-driven solutions in urban development and the growing trend of smart city initiatives across the country.