Virtual Galaxy Infotech Ltd Q2FY26 – When a 26-Year-Old IT Veteran Decides to Go Full SaaS Samurai Mode

1. At a Glance

Nagpur’s own tech ninja,Virtual Galaxy Infotech Ltd (VGIL), has decided to prove that India’s IT boom isn’t just limited to Bengaluru and Gurugram. With amarket cap of ₹431 croreand aP/E ratio of 12.3, the company looks like that silent topper who sits at the back of the class but crushes every exam. The stock currently trades around₹174, down a bit from its high of ₹208 — the market’s way of reminding you it’s watching.

InQ2FY26 (September 2025), VGIL clockedsales of ₹86.13 crore, a neat20.3% YoY jump, whilePAT grew 15.1% YoYto ₹22 crore. TheROE stands at a spicy 47.7%andROCE at 45%, both numbers that would make even IT giants like Nucleus and Ramco blush. Adebt-to-equity ratio of 0.24keeps things sane, while anoperating margin of 46.7%screams “high-margin SaaS” louder than a fintech founder at a VC pitch.

And yes —they paid an interim dividend of ₹1/sharein November 2025. Because nothing says “we’re doing well” like actually sharing profits.

The cherry on top? Their flagshipE-Bankersolution runs the core banking systems of hundreds of cooperative and commercial banks across India and Africa. From Nagpur to Malawi — Virtual Galaxy is quietly colonizing the world’s cooperative banking software space.

2. Introduction

What happens when a mid-sized Nagpur IT firm stays consistent for26 yearswhile quietly building banking software for institutions others ignore? You get Virtual Galaxy Infotech — the desi underdog that decided to play theSaaS long gamebefore “SaaS” was even a buzzword.

This isn’t your typical software exporter chasing Silicon Valley contracts. VGIL’s clientele is local, loyal, and loaded — the cooperative banks, NBFCs, and state departments that run India’s financial backbone. Think of it as the “TCS of Tier-2 banking.”

Their flagshipE-Banker platformpractically runs the cooperative banking world, from small credit societies in Maharashtra to financial institutions in Tanzania. Add to that theirERP suite for industries,E-Governance platforms, anddigital payment systems (V-Pay)— and you’ve got a product mix more diversified than an SBI branch’s waiting room.

Now add the recent₹93.3 crore IPO (May 2025), where they raised funds for a new data center, servers, GPUs, and the much-hyped MIHAN SEZ facility. The company’s message is clear: “We’ve been profitable, now let’s go scale like maniacs.”

But the best part? Unlike many flashy tech IPOs, VGIL actuallymakes money. APAT of ₹35 croreonsales of ₹135 crorein FY25,OPM of 46.7%, andconsistent EPS of ₹16make it the kind of company your CA uncle would secretly admire while sipping his evening chai.

3. Business Model – WTF Do They Even Do?

Let’s decode the VGIL galaxy.

The company operates on ahybrid model— part product company, part IT services provider. But unlike IT body shops that bill by the hour, VGIL earns recurring revenue throughSaaS-based software licenses, AMC (Annual Maintenance Contracts), and customization projects.

Their portfolio looks like a buffet of government-grade tech:

• E-Banker (78.6% of revenue)– The core banking soul of VGIL. It automates deposits, loans, KYC, UPI, RuPay, and more for cooperative and commercial banks. Basically, it’s what keeps rural banking running while the rest of us sleep.
• ERP Systems (6.3%)– The IBS-ERP suite serves industries from sugar to fertilizer, textiles, and education. Yes, your neighborhood sugar mill’s inventory might be running on VGIL code.
• E-Governance Platforms (0.4%)– Digitizing APMCs and gram sevak institutes because someone has to bring governance into the 21st century.
• V-Pay & V-Soc– Digital payment and society management tools, small revenue now, but growing.
• Hardware & Services (11.6%)– Servers, call-center solutions, and IT infra setups to support software deployments.

In short,VGIL builds tech infrastructure for the institutions that actually run Bharat. They aren’t chasing consumer apps or viral fintech ideas — they’re wiring up