Vedavaag Systems Limited has announced securing a substantial order worth approximately ₹5 crores from ITI Limited, marking a significant business development for the company. The order pertains to the supply and installation of CCTV surveillance systems at a premium government organization.

Order Details and Specifications

The contract encompasses comprehensive CCTV surveillance system implementation, representing a domestic engagement with ITI Limited as the awarding entity. The project timeline is set for completion within 6 months from the order date.

Payment Terms and Financial Structure

The order features structured payment terms designed to ensure smooth project execution and financial security for both parties. The payment mechanism includes multiple stages with specific conditions.

Regulatory Compliance

Vedavaag Systems has disclosed this order in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the order does not involve any related party transactions and that promoters or group companies have no interest in the awarding entity.

Company Background

Vedavaag Systems Limited operates in the IT software sector and is headquartered in Hyderabad, Telangana. The company focuses on digital transformation solutions and has been actively pursuing opportunities in government and enterprise segments.

This order win demonstrates the company's capability in executing large-scale surveillance projects and strengthens its position in the government technology solutions market. The structured payment terms and ESCROW mechanism provide financial security while ensuring project delivery standards.

Vedavaag Systems Limited , an IT services company, has released its financial results for the second quarter of fiscal year 2026, showing a mixed performance with revenue decline but stable profitability.

Standalone Performance

Vedavaag Systems reported standalone revenue of Rs. 1,896.93 lakhs for Q2 FY2026, marking a significant decrease from Rs. 2,563.75 lakhs in Q1 FY2026. Despite the revenue drop, the company managed to maintain profitability, with profit after tax (PAT) reaching Rs. 110.72 lakhs, compared to Rs. 161.21 lakhs in the previous quarter.

Consolidated Results

On a consolidated basis, the company's performance reflected a similar trend:

All figures in Rs. lakhs

The consolidated revenue decreased by 30.5% quarter-on-quarter, while consolidated profit after tax saw a 43.4% decline.

Half-Year Performance

For the first half of FY2026, Vedavaag Systems reported:

All figures in Rs. lakhs

Despite the quarter-on-quarter decline, the company has shown year-on-year growth in revenue for the first half, although profitability has decreased compared to the same period last year.

Segment Performance

Vedavaag Systems operates primarily in two segments:

1. IT and ITES (including Financial Inclusion)
2. System Integration (Smart Solar Lighting System)

The IT and ITES segment contributed Rs. 2,162.23 lakhs to the revenue in Q2 FY2026, while the System Integration segment did not report any revenue for the quarter.

Balance Sheet Highlights

As of September 30, 2025, the company reported:

Cash Flow and Liquidity

The consolidated cash flow statement shows:

• Net cash flow from operating activities: Rs. 67.60 lakhs
• Net cash used in investing activities: Rs. (0.88) lakhs
• Net cash used in financing activities: Rs. (103.20) lakhs

The company's cash and cash equivalents stood at Rs. 457.58 lakhs at the end of the period.

Conclusion

While the financial results show a decline in revenue and profitability compared to the previous quarter, Vedavaag Systems has maintained profitability despite the revenue drop, suggesting effective cost management. However, sustained growth in both top and bottom lines will be crucial for long-term value creation.

Investors and analysts may look for further clarification from the management regarding the reasons for the revenue decline and strategies to improve performance in the upcoming quarters.