1. At a Glance – Blink and You’ll Miss the Rally
Valiant Communications Ltd is that stock which quietly sat in the BSE corner for years, doing nerdy things with routers, clocks, and cyber security boxes for power utilities… and then suddenly woke up one day and chose violence.
Current price hovering around ₹878, market cap ~₹1,005 Cr, trailing P/E flirting near 50x, ROCE above 21%, and debt so low it practically qualifies as spiritual. Q3 FY26 came in with ₹22.1 Cr revenue and ₹6.05 Cr PAT, which for a company doing ₹32 Cr revenue in FY23 feels like discovering NOS inside an old Ambassador.
Margins are fat, growth is real, exports are global, and promoters are… slowly exiting stage left. The stock has already given triple-digit returns, but the business momentum is peaking right now. Question is simple: is this the start of a long compounding journey or the middle of a valuation hangover?
2. Introduction – From Utility Boring to Market Darling
Valiant Communications has been around since 1993. For most of its life, it behaved exactly like its name suggests: valiantly ignored.
The company designs and manufactures mission-critical communication equipment for power grids, oil & gas, railways, metro systems, airports, and defense. This is not consumer telecom. This is “if this box fails, the grid collapses and someone loses their job” telecom.
For years, revenues crawled, margins were okay-ish, and investor interest was near zero. Then came grid digitisation, cyber security mandates, time synchronization requirements, MPLS/IP upgrades, and suddenly Valiant found itself in the right place at the right time with the right products.
Q3 FY26 marks the point where Valiant stops being a turnaround story and starts behaving like
a scale-up. But markets don’t forgive valuation mistakes. So let’s dissect this properly.
3. Business Model – WTF Do They Even Do?
Valiant builds high-reliability communication and synchronization equipment used in infrastructure networks.
Think less Jio SIM, more “how does Power Grid of India talk to substations in Ladakh without latency or cyber attacks?”
Their products include:
- IP/MPLS routers for utility networks
- Tele-protection equipment (E1, C37.94, MPLS-TP)
- Time & frequency synchronization systems (PTP, NTP, PRC clocks)
- Cyber security solutions including firewalls
- Optical multiplexers, SDH/SONET gear, converters, groomers
They sell products (~96%), services are minimal (~4%). This is important because margins come from hardware IP, not manpower arbitrage.
Clients include ABB, Siemens, Schneider, Power Grid, L&T, Turkish Electricity Company, Vietnam Electricity, Honeywell, and defense agencies. These are not customers you accidentally acquire.
Ask yourself: how many Indian companies can sell niche grid communication equipment in 110+ countries?
4. Financials Overview – The Table That Explains the Hype
Quarterly Comparison Table (₹ Crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 22.14 | 8.36 | 20.17 | 165% | 9.8% |
| EBITDA | 7.70 | 0.11 | 6.93 | Explosive | 11.1% |
| PAT | 6.05 | -0.53 | 5.27 | 1,242% | 14.8% |
| EPS (₹) | 5.29 | -0.46 | 4.62 | NA | 14.5% |
Commentary: This is not a base-effect-only
