Vindhya Telelinks Limited FY26 Annual Report & Financial Performance

Company Overview: Vindhya Telelinks Limited (VTL) is a public listed company engaged in manufacturing telecommunications cables and Engineering, Procurement & Construction (EPC) services. The company published its Annual Report for FY 2025-26 along with notice of the 43rd AGM scheduled for August 3, 2026.

Financial Performance

Standalone Results (FY26):

  • Revenue from Operations: ₹35,662.86 lakhs (₹3,566.29 crore), down from ₹40,538.34 lakhs in FY25
  • Profit Before Tax: ₹682.24 lakhs (₹68.22 crore)
  • Net Profit: ₹527.87 lakhs (₹52.79 crore), representing a 54% decline from ₹1,154.76 lakhs in FY25
  • Earnings Per Share: ₹44.54 (Basic and Diluted), down from ₹97.44 in FY25
  • Total Borrowings: ₹1,425.21 crore with secured loans comprising rupee term loans and foreign currency credits

Consolidated Results (FY26):

  • Revenue: ₹3,593.21 crore
  • Profit After Tax: ₹220.18 crore, up 8.5% from ₹202.84 crore in FY25
  • EPS: ₹185.79

Dividend Declaration

  • Board recommended dividend of ₹6 per equity share (60%) for FY26
  • Record Date: July 27, 2026
  • Payment Date: On or before August 31, 2026
  • Total Dividend Payout: ₹711.05 lakhs (13.47% of standalone net profit)
  • Detailed TDS provisions provided for resident and non-resident shareholders

Corporate Actions & Developments

Amalgamation with Birla Cable:

  • Board approved Scheme of Amalgamation between Birla Cable Limited (Transferor) and Vindhya Telelinks (Transferee)
  • Appointed Date: April 1, 2026
  • Share Exchange Ratio: 10 equity shares of VTL for every 115 equity shares of Birla Cable
  • Subject to approvals from BSE, NSE, and NCLT

Credit Rating Downgrade:

  • CARE Ratings downgraded long-term bank facilities (₹1,420 crore) to 'CARE A'
  • Short-term facilities (₹3,746.75 crore) downgraded to 'CARE A1'
  • Ratings placed on 'Rating Watch with Developing Implications'

Business Segment Performance

Cable Business: Revenue of ₹857.74 crore (11.60% growth), driven by demand for Solar and Specialty Optical Fibre Cables

EPC Business: Revenue of ₹2,708.51 crore (18.04% decline), impacted by reduced revenue from Uttar Pradesh-Jal Jeevan Mission project due to government capital expenditure slowdown

Corporate Governance & Board Composition

Board Structure (as of March 31, 2026):

  • 7 Directors including 4 Independent Directors
  • Key appointments: Smt. Srishti Lodha as Non-Executive Director (May 22, 2025)
  • Re-appointment of Shri Y.S. Lodha as Managing Director & CEO for five years (until November 3, 2030)
  • Retirement of Shri Dhan Raj Bansal (September 12, 2025)

Director Remuneration:

  • Non-Executive Directors received sitting fees and commission totaling ₹14.10-14.60 lakhs each
  • Managing Director & CEO received ₹345.79 lakhs total remuneration

AGM Agenda Items:

  • Adoption of financial statements and dividend declaration
  • Re-appointment of Harsh V. Lodha who retires by rotation
  • Re-appointment of Priya Shankar Dasgupta as Independent Director
  • Appointment of Pandanda Kariappa Madappa as Independent Director
  • Ratification of cost auditor remuneration

Shareholding Pattern & Capital Structure

  • Promoter & Promoter Group: 43.54% (51.60 lakh shares)
  • Universal Cables Limited: 29.15% (34.55 lakh shares)
  • Punjab Produce & Trading Company: 10.90% (12.91 lakh shares)
  • Public Shareholding: 56.46%
  • Equity Share Capital: ₹118.51 crore
  • 99.08% shares held in dematerialized form

Regulatory Compliance & Auditors

  • Compliance with SEBI Listing Regulations and Companies Act, 2013
  • Statutory Auditors: V. Sankar Aiyar & Co. (until 47th AGM)
  • Cost Auditors: D. Sabyasachi & Co. (remuneration ₹1 lakh plus GST)
  • No qualifications or adverse remarks in audit reports

Subsidiaries & Associates

  • Wholly-owned subsidiaries: August Agents Ltd., Insilco Agents Ltd., Laneseda Agents Ltd., VTL Digital Infrastructure Pvt. Ltd.
  • Associates: Universal Cables Ltd. (30.34%), Birla Corporation Ltd. (31.68%), Punjab Produce Holdings Ltd. (48.04%)
  • Three subsidiaries excluded from consolidation due to unauthorized possession of records by ex-directors

Forward Outlook

The company continues to focus on both cable manufacturing and EPC businesses, with the proposed amalgamation with Birla Cable expected to create synergies in telecommunications infrastructure. However, the company faces challenges from reduced government capital expenditure and credit rating downgrade.