Vishnu Prakash R Punglia Limited has announced the successful completion and handover of the Silchar 24x7 Water Supply Project under the AMRUT Mission in Assam. The comprehensive water infrastructure project, executed for the Assam Urban Water Supply & Sewerage Board (AUWSSB), represents a significant milestone for the engineering and construction company.

Project Details and Financial Overview

The Silchar water supply project was completed at an approximate cost of ₹177.47 crore, demonstrating the company's capability to execute large-scale urban infrastructure projects. The executing authority has certified VPRPL's performance as satisfactory, validating the quality of project delivery.

Comprehensive Infrastructure Components

The project encompasses a complete water supply ecosystem designed to provide 24x7 water access to Silchar residents. The infrastructure includes multiple critical components working in integration to ensure reliable water delivery.

Key project components include:

• Intake systems for water sourcing
• Water treatment plant for quality assurance
• Transmission mains for water transport
• Pumping stations for distribution
• Service reservoirs for storage
• Distribution network for household reach
• Household connections for direct access
• PLC-SCADA automation for operational efficiency

Project Milestones and Recognition

Water supply operations commenced on March 1, 2024, marking a significant achievement in project timeline adherence. The project received high-level recognition when it was partially inaugurated by the Hon'ble Chief Minister of Assam, highlighting its importance to the state's urban development agenda.

Strategic Impact and Management Commentary

The successful completion of the Silchar project reinforces VPRPL's position in urban water infrastructure and large EPC execution capabilities. Managing Director Manohar Lal Punglia emphasized the project's significance, stating: "The completion of the Silchar project highlights our strength in consistent execution and delivery at scale. It reinforces our ability to manage complex urban infrastructure with discipline on timelines and outcomes, while staying aligned with long-term public infrastructure priorities."

The company remains focused on timely delivery, operational efficiency, and selective bidding across water and municipal infrastructure projects aligned with national development programs. This project strengthens VPRPL's track record in executing complex urban infrastructure projects under government missions.

About VPRPL

Established in 1986, Vishnu Prakash R Punglia Limited is an ISO 9001:2015 certified integrated Engineering, Procurement and Construction company. The company operates across 11 states and maintains a fleet of over 500 construction equipment, enabling efficient project delivery with limited reliance on third-party contractors. VPRPL focuses on infrastructure projects across water supply, railways, roads, and irrigation networks, primarily serving Central and State Governments and autonomous bodies.

Source:

Vishnu Prakash R Punglia Limited has received a credit rating downgrade from CARE Ratings Limited, with the rating agency revising its assessment of the company's financial position due to persistent working capital challenges. The downgrade reflects ongoing operational difficulties in the company's water supply project segment, which constitutes a significant portion of its business portfolio.

Rating Revision Details

CARE Ratings has implemented comprehensive changes to VPRPL's credit ratings across its banking facilities. The revision encompasses both long-term and short-term facilities, with the total exposure amounting to ₹960.00 crores.

Key Rating Drivers

The rating revision primarily stems from continued high working capital intensity in the company's operations during H1FY26. CARE Ratings highlighted that the company faces challenges with elongated collection periods and inventory holding, resulting from delays in work certification and payment releases from water supply projects where VPRPL maintains sizeable exposure.

The rating agency also noted promoters' significant stake dilution and pledge of shareholding during the current year. However, these funds have been invested as interest-free unsecured loans to support company operations, external debt reduction, and liquidity management.

Financial Performance Overview

VPRPL's operational scale shows mixed trends, with total operating income declining to ₹1,237.42 crores in FY25 from ₹1,473.87 crores in the previous year. The company's H1FY26 performance shows revenue of ₹572.09 crores, with expectations of achieving approximately ₹1,200.00 crores for the full year FY26.

Order Book and Business Diversification

Despite the rating challenges, VPRPL maintains a robust order book of ₹5,000.00 crores as of September 30, 2025, providing revenue visibility of approximately 4x FY25 total operating income. The order book demonstrates geographical diversification across 11 states, with major concentrations in Rajasthan (48%), Uttarakhand (16%), and Uttar Pradesh (9%).

Water supply projects continue to dominate the portfolio at 57% of the outstanding order book, while the company focuses on sectoral diversification into railway (33%) and road & civil segments (10%). The majority of orders originate from government entities, maintaining low counterparty credit risk.

Working Capital Challenges

The construction segment's inherent working capital intensity has been exacerbated by specific operational challenges. Gross current assets days and working capital cycle have extended to 510 days and 323 days respectively in FY25, compared to 204 days and 104 days in FY23. This elongation primarily results from delays in work certification and payment releases, particularly from Jal Jeevan Mission projects.

Outlook and Rating Sensitivities

CARE Ratings has revised the outlook from Negative to Stable, reflecting expectations of sustained operations backed by the healthy order book and continued promoter support. The stable outlook factors in the rating agency's expectation that promoters will continue supporting business operations until working capital intensity eases.

Positive rating factors include potential reduction in working capital intensity through completion of work certifications and realization of long-pending receivables, improvement in debt coverage ratios, and substantial growth in operating income with sustained profit margins above 12%.