In a year marked by macro uncertainty and tepid growth in the broader IT services sector, Virtual Galaxy Infotech (VG Infotech) has emerged as a dark horse—staging a remarkable 100% growth in revenue and profits, while sharply improving operating efficiency, capital productivity, and cash flow metrics.
This isn’t just a headline result—it signals a maturing digital solutions company that’s building for the long haul with a scalable product portfolio, high-quality clientele, and a clear roadmap for international expansion.
Before diving deep into numbers, it’s worth understanding what’s driving this engine of growth. Virtual Galaxy Infotech isn’t a generic IT services vendor — it’s a SaaS product-focused company, serving critical domains like Core Banking, ERP, BFSI, and E-Governance. Here is the snapshot:
- 👥 150+ Happy Clients
- 👨💻 300+ Employees
- 🧠 7+ Proprietary Software Solutions
🔍 Virtual Galaxy FY25 Financial Highlights
| Metric | FY24 | FY25 | Growth (%) |
|---|---|---|---|
| Revenue | 60 | 121 | +98% |
| EBITDA | 32 | 56 | +75% |
| Profit Before Tax | 22 | 45 | +105% |
| Profit After Tax | 16 | 32 | +100% |
| Operating Margin | ~53% | 45–46% | Sustainably High |
| Operating Cash Flow | 30 | 43 | +43% |
| Return on Capital Employed (RoCE) | 31.68% | 45% | Excellent |
The company has not only doubled topline and bottom line, but done so while sustaining high OPM and healthy cash conversion—key signs of operational quality. EBITDA margins above 45% and RoCE of 40% are extremely rare in small-cap tech names, especially with such growth.
Virtual Galaxy Infotech: Valuation Snapshot
| Valuation Metric | Value (FY25) |
|---|---|
| Market Cap | INR 431 Cr |
| Price-to-Earnings (P/E) | 13.4x |
| EV/EBITDA | 9.0x |
For a company delivering triple-digit profit growth and strong return ratios, these valuations look compelling. Compared to peers in SaaS and IT services with similar margin profiles, VG Infotech trades at a discount, potentially offering valuation re-rating opportunity.
Business Model Edge: Sticky Clients, Scalable Products, Low Debt
VG Infotech has carved out a niche with a product-led digital transformation model. The company has developed and deployed 7 scalable digital platforms, including its flagship E-Autopsy, focused on healthcare diagnostics, public services, and enterprise efficiency.
- ~90% of revenue comes from non-government clients, indicating diversified exposure.
- 30% of FY25 revenue came from newly acquired clients, proving the scalability of the sales pipeline.
- The company carries minimal debt, having repaid INR 3 Cr from IPO proceeds—keeping its balance sheet light and flexible.
Looking Beyond Borders: Export-Led Growth Strategy
Virtual Galaxy is now shifting into a second growth orbit: exports.
- Target geographies include Africa and ASEAN regions, where digital health and governance platforms have strong tailwinds.
- Export revenue, already showing superior margins, is targeted to hit 50% of total revenue over the long term.
This shift not only de-risks domestic concentration but is also margin accretive. The company’s 50+ Cr order book is expected to support FY26 revenue and build global credibility.
🧬 Platform Spotlight: E-Autopsy and Healthcare Bets
One of the standout product investments is E-Autopsy, a tech-driven healthcare diagnostics and post-mortem automation suite. With increasing government and institutional interest in medical infrastructure modernization, this vertical has multi-country scale potential.
VG Infotech IPO funds (INR 34 Cr) have been strategically deployed toward:
- Business development
- Product expansion
- Talent acquisition
This positions VG Infotech to unlock non-linear revenue as these platforms move from pilot to mainstream deployment.
🔮 Outlook for FY26
The management has guided for a PAT of INR 45–50 Cr in FY26, representing another 40–55% YoY growth, driven by:
- Expansion of export clientele
- Full-year impact of newly acquired clients
- Increased monetization of healthcare and governance platforms
- Tight control on working capital and operating efficiencies
Receivables days have halved YoY, and the working capital cycle has improved significantly—enhancing free cash flows.
What Sets VG Infotech Apart?
✔️ Product-first, scalable model with global applicability
✔️ Robust profitability with >45% OPM sustained
✔️ Cash-efficient operations and low leverage
✔️ IPO funds wisely deployed for growth, not balance sheet patch-up
✔️ High-quality earnings, not dependent on one-off contracts
✔️ Visionary management, experienced across product and enterprise delivery
🧾 Final Word
Virtual Galaxy Infotech may still be under the radar for many institutional investors. VG Infotech FY25 results paint a picture of a company at an inflection point. With revenue doubling, profits surging, and global ambitions taking shape, this tech company could very well be the next breakout story in India’s digital product ecosystem.
At 13.4x P/E and 9x EV/EBITDA, the market seems to be pricing in past performance—but the forward runway could be far more exciting. As global exposure builds and platforms scale, Virtual Galaxy is moving from potential to performance.
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