Vishal Nirmit
Vishal Nirmit, promoted by Brij B Tapadiya, is a civil engineering, manufacturing and construction company, primarily engaged in the business of manufacturing and dealing of pre-stressed concrete (PSC) sleepers for railways, precast and pre-stressed concrete products for various applications and are also into fabrication and erection of MS Pipes, MS Liner, and Penstock Pipes for pumped storage project (PSP). It provides engineering, procurement, infrastructure and construction services for railway infrastructure and various civil engineering, irrigation and infrastructure development projects across sectors such as railways, renewable power and industrial sectors.
The business is divided into two segments: (a) manufacturing segment and (b) services segment. The manufacturing segment comprises the (i) PSC sleeper division manufacturing PSC sleepers for rail projects, primarily awarded by public sector clients such as Indian Railways and their subsidiaries such as DFCCIL, as well as for private sector clients such as ISC Projects Private Limited; (ii) MS pipes division manufacturing large diameter MS pipes, MS liner and penstock pipes for pump storage project (PSP) on behalf of private clients in multiple industries such as general infrastructure and engineering, hydro power projects, lift irrigation and water supply projects of various different sizes, as per client requirement; and (iii) manufacturing of precast concrete elements such as noise barrier and cable ducts.
The services business segment includes job work contract for the manufacture of MS pipes, MS liner and penstock pipes for PSP and precast and pre-stressed concrete elements such as noise barrier and cable ducts, as well as various structures for hydro mechanical works for private clients. This segment also includes construction work, power generation services through windmills, sale of scraps generated in the process of manufacturing, transportation and leasing business.
The company has capability to manufacture multiple sleeper types (monoblock, twin-block, and turnout sleepers) in the same facility. It manufactures PSC sleepers for broad-gauge and standard-gauge rail tracks designed for heavy-load, high-speed, and mixed-use rail networks.
The MS pipes division has expertise in onsite MS pipes fabrication for especially large diameter pipes done on location for minimizing logistics and transportation costs through an automatic longitudinal submerged arc welding process. Along with fabrication, the company executes anti corrosive/protective coatings for MS pipes such as sand blasting, painting, cement mortar lining andguniting. Its primary product is hot-rolled MS pipes of circular shape upto a maximum size of 7,500 diameter for circular section. MS pipes products have multiple applications in various industries such as general infrastructure and engineering, hydro power projects, lift irrigation and water supply projects.It manufactures, supplies and installspenstock pipes on a sub-contracting basis for hydro power and PSP at Gandhisagar, Madhya Pradesh. The company also manufactures pre-cast concrete elements such as noise barriers and cable ducts for the ongoing Mumbai-Ahmedabad high-speed rail corridor for Larsen & Toubro at its Nadiad, Gujarat facility.
Of the FY2026 revenue from operation (RFO), about 75.01% was accounted by the manufacturing business segment and balance 24.99% by the services business segment. Of the 75.01% contribution of the manufacturing business to RFO, the sleeper division accounted for 63.53% [42.61% government and 20.92% private]; MS pipes division 11.11%[0% government and 11.11% private]; precast element 0.37%[0% government and 11.11% private]. Similarly of the 24.99% contribution of the services business to RFO, about 23.9% was from subcontract & job-work done for the private sector.
Indian railways (IR) is the largest customer, accounting for 40.56% of RFO in FY2026. While the Top 5 clients accounted for whopping 85.33% of RFO in FY2026, the top 10 customers accounted for 92.914% of RFO. Government authorities and entities related to the government accounted for about 42.61% of RFO in FY 2026, 47.30% in FY2025 and 58.09% in FY2024.
Some of the prominent and long-standing clients include Central Railways, West Central Railways, Northern Railways, Larsen & Toubro, ISC Projects Private Limited, KEC International, Kalpataru Projects International and Raj Infrastructure Development (India) Private Limited.
Of the FY26 RFO, about 35.52% came from Maharashtra, 33.96% from Madhya Pradesh, 17.90% from Gujarat, 10.53% from Himachal Pradesh, 1.42% from Odisha, and balance 0.67% from other states.
The company?s experience in setting up project-specific infrastructure enables it to scale quickly into new regions. It has minimal reliance on logistics as most of its manufacturing facilities are at the identified locations of its clients to minimize logistics costs.
The company had an aggregate installed manufacturing capacity of 1100124 tons of PSC sleepers, 154000 tons of MS pipes, 54000 tons of noise barriers, 72000 tons of cable ducts across various sites end March 2026.
Consolidated unexecuted order book as on June 30, 2026, stood strong at Rs 581.7682 crore [PSC sleepers Rs 306.87 crore; precast concrete elements (noise barriers and cable ducts/lids) Rs 9.7211 crore; infrastructure manufacturing work Rs 35.7127 crore; pre-casting services work Rs 82.6602 crore; infrastructure services work(MS pipes and MS liners) Rs 146.8034 crore].
Beyond railways, the precast concrete industry in India is expanding rapidly due to urbanization, smart city projects, and large-scale infrastructure programs such as metro networks, high speed railways, dedicated freight corridors, and industrial corridors. The sector benefits from reduced construction time, improved quality control, and suitability for mass infrastructure deployment. With sustainability considerations gaining importance, precast solutions are increasingly preferred for minimizing on-site waste and supporting circular economy practices in construction.
The issue, Objects of the issue
The offer comprises fresh issue of equity shares of Rs 10 face value, aggregating to Rs 145 crore and offer for sale (OFS) of 1500000 equity shares by the promoters/promoter group.
Of the net proceeds from fresh issue, the company intends to use Rs 75 crore forfunding incremental working capital requirements; Rs 19 crore for repayment and/ or pre-payment, in part or full of term loans; and balance towards general corporate purposes.
Aggregated outstanding borrowings as of end of March 31, 2026, stood at Rs 87.4170 crore.
Strengths
The consolidated order book as on June 30, 2026, stood at Rs 581.7682 crore, translating to 1.72 times FY2026 revenue.
Experience of over 20 years in manufacturing PSC sleepers and MS pipes, along with providing infrastructure job-work services, with experience in executing high-volume production plans.
Experience in executing large-diameter MS pipeline projects with capability of offering end-to-end solutions [from design coordination and pipe fabrication to installation and commissioning] ensuring long-term performance and compliance with all regulatory standards.
Railway sleeper market is expected to grow steadily from 271.4 million units in FY 2025 to 323.8 million units in FY 2030E, reflecting a CAGR of 3.8%.
Weaknesses
The PSC sleepers manufacturing business is substantially dependent on railroad infrastructure projects undertaken or awarded by government authorities such as IR (or its divisions) and other government-owned public sector undertakings such as DFCCIL (Dedicated Freight Corridor Corporation of India) and are thereby dependent on governmental policies and budgetary allocation. The orders from government entities are largely secured through competitive bidding process.
Relied significantly on certain customers, with IR accounting for 40.56% of RFO in FY2026.
Operations and revenue are concentrated in certain specific states such as Maharashtra, Madhya Pradesh and Gujarat.
The sleeper manufacturing facility at Mohol (in Maharashtra) is located on parcels of land owned by Brij B Tapadiya, one of the promoters of the company. The company has entered an agreement for sale of the property and is in the process of entering into a definitive sale deed.
The company and one of its promoters, a director and an employee were cited in a First Investigation Report for a suspected offence under the Prevention of Corruption Act, 1988.
Business is dependent on its empanelment and continued approval as a vendor with the Research Designs and Standards Organization (RDSO) and IR. Any failure to obtain, maintain or renew such approvalsmay adversely affect its ability to participate in railway/metro tenders.
Valuation
Consolidated re-stated revenue in FY2026 stood higher by 6% to Rs 338.68 crore. With OPM expanding by 50 bps to 15.1%, the growth of OP was 10% to Rs 51.13 crore. Finally, net profit after MI was lower by 6% to Rs 24.98 crore.
On the expanded equity, the EPS for FY2026 was Rs 9.5. On the upper price band, the PE works out to 23.2 times its FY2026 EPS. P/BV stood at 2.5 times and EV/sales stood at 1.9 times. ROE stood at 6.7%.
In comparison, GPT Infraprojects, which manufactures PSC sleepers, quotes at a PE of 15.1 times, price/BV of 2.4 times, EV/sales of 1.4 times, ROE of 16.2% and FY2026 OPM of 13.5%.
Indian Hume Pipes, manufacturer of PSC sleepers, quotes at a PE 30.7 times, price/BV of 1.2 times, EV/sales of 1.7 times, ROE of 4.1% and FY2026 OPM of 11.2%.
Alpine Housing Development Corporation, also manufacturing PSC sleepers apart from realty, quotes at a PE 28.1 times, price/BV of 1.9 times, EV/sales of 2.4 times, ROE of 6.8% and FY2026 OPM of 14.1%.
| Vishal Nirmit : Re-stated Consolidated Financials |
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| 2403 (12) | 2503 (12) | 2603 (12) | |||
| Sales | 242.88 | 318.52 | 338.68 | |||
| OPM (%) | 9.5 | 14.6 | 15.1 | |||
| OP | 23.14 | 46.48 | 51.13 | |||
| Other income | 5.05 | 6.35 | 5.46 | |||
| PBIDT | 28.19 | 52.83 | 56.58 | |||
| Interest | 14.44 | 14.22 | 15.04 | |||
| PBDT | 13.75 | 38.61 | 41.54 | |||
| Depreciation | 9.17 | 7.47 | 7.77 | |||
| PBT | 4.58 | 31.14 | 33.78 | |||
| EO Exp | 0.00 | -0.33 | 0.00 | |||
| PBT after EO | 4.58 | 31.48 | 33.78 | |||
| Tax | 1.14 | 7.84 | 8.80 | |||
| PAT | 3.45 | 23.64 | 24.98 | |||
| Share of Profit from Associates | 0.00 | 0.00 | 0.00 | |||
| Minority Interest | 0.00 | 0.00 | 0.00 | |||
| Net profit after MI | 3.45 | 23.64 | 24.98 | |||
| EPS (Rs)* | 1.3 | 8.9 | 9.5 | |||
| * on post IPO fully dilluted equity (on upper price band) of Rs 26.39 crore. Face Value: Rs 10 | ||||||
| EPS is calculated after excluding EO and relevant tax | ||||||
| Figures in Rs crore | ||||||
| Source: Capitaline Corporate database | ||||||
| Vishal Nirmit : Issue Highlights |
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| Fresh Issue (Rs crore) | 145 |
| Offer for sale (in nos.) | 1500000 |
| Price band (Rs.) ** |
|
| Upper | 220 |
| Lower | 208 |
| Post-issue equity (Rs crore) | |
| in Upper price band | 26.39 |
| in Lower Price Band | 26.77 |
| Post-issue promoter (including promoter group) stake (%) | 49.40 |
| Minimum Bid (in nos.) | 68 |
| Issue Open Date | 30-09-2026 |
| Issue Close Date | 05-10-2026 |
| Listing | BSE, NSE |
| Rating | 42 /100 |
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