New Delhi [India], October 14: India’s infrastructure ecosystem continues to see substantial public investment across water supply, sewerage, irrigation, roads, and urban civil works. This sustained capital deployment creates a recurring tender pipeline for engineering, procurement, and construction (EPC) contractors equipped with the necessary technical credentials.

Within this framework, water and wastewater treatment remain high-priority sectors. Market research from Mordor Intelligence estimates India’s water treatment technology market will expand from US$3.27 billion in 2026 to US$5.17 billion by 2031, representing a 9.62% CAGR. Flagship government initiatives provide long-term budget visibility, including Jal Jeevan Mission 2.0 (outlay of ₹8.69 lakh crore extended through December 2028) and AMRUT 2.0 (indicative outlay of ₹2.99 lakh crore).

For companies operating in government and institutional infrastructure, project opportunities are largely determined by the tenders floated by government departments and other institutions, along with the eligibility requirements attached to each project.

VL Infraprojects’ management has explained that the company participates in tenders across different locations and departments and undertakes projects for which it is selected. The company’s project portfolio therefore comprises the infrastructure projects secured through this tendering process.

Management has described this tender-led approach as central to the company’s operating model, with projects taken up across locations and departments based on the tenders for which the company qualifies and is selected.

The company’s ability to participate in these tenders depends on the eligibility requirements of individual projects, including relevant experience, technical qualifications and other tender conditions. Where required, the company can also participate through joint-venture or consortium arrangements. This tender-based approach means that the projects undertaken by VL are determined by the opportunities available across different locations and infrastructure categories and the tenders for which the company qualifies and is selected.

Understanding the Tender-Driven Operating Model

VL Infraprojects operates through a pure-play, tender-driven business model. Rather than relying on a single specialized niche, project allocation is determined entirely by bidding eligibility, technical qualification thresholds, and government departmental tender floated across target states.

As the company’s execution track record has matured, its bidding threshold has expanded significantly. Management indicates that VL can now independently bid for standalone municipal and state projects of up to ~₹100 crore. For larger mandates – such as a recent ₹74.44 crore Gujarat Water Infrastructure project – the company utilizes Joint Ventures (holding a 31% stake worth ₹23.08 crore) to bid for contracts valued up to ~₹200 crore.

VL Infraprojects: A Multi-Segment Infrastructure Contractor

Incorporated in Ahmedabad in 2014, VL Infraprojects undertakes infrastructure projects across water supply, irrigation, building construction and roads. Management has explained that the business initially developed through water-supply projects, supported by promoter experience in pipeline manufacturing, valves and pumping machinery, and subsequently expanded its project activities across other infrastructure segments. Management has also said that the business is looking to expand its building-construction activities and pursue opportunities in power and road projects in the coming years.

The company’s FY26 investor presentation reports four principal revenue segments: water infrastructure, building construction, irrigation projects and road construction. Water infrastructure contributed 76.79% of FY26 revenue, followed by building construction at 19.21%, irrigation projects at 2.95% and road construction at 1.05%.

The company participates in tenders across different locations and infrastructure departments, with projects undertaken based on the tenders it qualifies for and wins. Its project activities include water supply, sewerage, pipelines, RCC structures, foundations, earthwork, RCC works and O&M services, alongside building, irrigation and road construction.

This tender-driven model makes project eligibility, execution experience and participation across different infrastructure categories important elements of the company’s operating profile. Management has indicated that its tender credentials have strengthened over time, allowing the company to quote for projects of around ₹100 crore on its own and up to around ₹200 crore through joint ventures.

Growth in Scale Has Been Accompanied by a Broader Project Footprint

VL’s operating scale has increased materially over the last few years. Revenue from operations rose from

₹45.56 crore in FY23 to ₹113.93 crore in FY24, ₹121.04 crore in FY25 and ₹149.74 crore in FY26.

EBITDA increased from ₹4.80 crore in FY23 to ₹16.53 crore in FY26, while PAT increased from ₹2.21 crore to

₹8.42 crore over the same period. In FY26, revenue grew 23.76% year-on-year, EBITDA increased 25.67% and PAT increased 19.94%.

The company’s project footprint has also broadened geographically. In FY26, Gujarat accounted for 67.16% of revenue, Telangana 18.16% and Madhya Pradesh 13.38%, with the balance coming from other markets. This represents a broader geographic mix than in FY24, when Gujarat contributed approximately 90% of revenue.

Management has also indicated that the company evaluates tenders across Gujarat, Madhya Pradesh and Telangana depending on project requirements and eligibility, including opportunities in water-supply and irrigation departments.

Order Book and Joint Ventures Add Project Visibility

VL Infraprojects closed FY26 with an order book of ₹217.64 crore, providing a strong base of executable projects and visibility for future revenue growth. The company indicated an execution period of approximately 12–18 months for the order book. In the investor interaction, management said it had quoted around ₹100 crore of tenders during the month discussed, with a further ₹62 crore tender to be quoted, and was targeting around ₹200 crore of government tender opportunities during August and September. It also mentioned discussions for around ₹50 crore of private work.

The company has also used joint-venture structures to participate in larger projects. A Gujarat Water Infrastructure-related project had a total contract value of ₹74.44 crore, with VL holding a 31% share and its partner holding 69%. VL’s corresponding share of the contract value was approximately ₹23.08 crore.

Diversification Is Visible in Customer and Geographic Mix

The company’s customer base has become more diversified over the past three years. According to the management investor interaction, the contribution of the top five customers declined from 80.50% in FY24 to 70.00% in FY25 and 43.12% in FY26.

The company’s revenue is also spread across multiple states. In FY26, Gujarat contributed 67.16% of revenue, followed by Telangana at 18.16% and Madhya Pradesh at 13.38%, while the remaining 1.18% came from other markets.

Management has explained that the company evaluates and participates in tenders across different states and departments, including projects related to water supply, irrigation and other infrastructure activities. Projects are undertaken based on the tenders for which the company qualifies and is selected.

The reduction in customer concentration and the presence of revenue across multiple states reflect the broader project base developed by the company in recent years. Management explained that tender participation is not restricted to a particular state or department; the company evaluates opportunities across locations such as Gujarat, Madhya Pradesh and Telangana according to project requirements and its credentials.

The Bigger Picture for VL Infraprojects

India’s infrastructure spending is creating opportunities across a broad range of EPC categories. Water supply and wastewater infrastructure are among the largest areas of public investment, while buildings, roads and irrigation add further tender opportunities.

VL Infraprojects sits within this wider ecosystem as a multi-segment EPC contractor. Water infrastructure currently represents the largest portion of its revenue, but the company’s own operating model is based on participating in tenders across locations and project categories and executing the projects it wins.

Its recent financial performance, expansion beyond its earlier geographic concentration, lower top-five customer contribution and participation in standalone and JV projects provide a picture of an infrastructure contractor whose business mix is shaped by the tender opportunities it successfully converts into execution.

For investors evaluating the company, the key point is therefore not simply that VL is a water company. Rather, it is a tender-driven EPC player with significant current exposure to water infrastructure, alongside building, irrigation and road projects. Management has also indicated that the company is exploring opportunities in power and railway projects, alongside its existing activities in water supply, irrigation, building construction and road-related works.