1. At a Glance
VL E-Governance & IT Solutions Ltd is that stock which reminds retail investors why screenshots of “upper circuit dreams” should always come with a warning label. Trading at ₹14.1, down 87% over one year and ~67% in six months, this ₹153 Cr market-cap company is the demerged e-governance arm of Vakrangee Ltd.
Latest Q3 FY26 (Quarterly Results) numbers look like a diet plan gone wrong: Revenue ₹4.48 Cr, PAT ₹-0.71 Cr, OPM -15.6%, ROE ~0%, ROCE ~0%. Book value stands at ₹4.23, while the stock trades at ~3.4× P/B—because apparently hope is expensive, even when cash flows are not.
Debt? Zero. Profits? Also zero. Volatility? Maximum. The business has completed most legacy e-governance projects, paused IT equipment trading, and is now “exploring” everything from semiconductors to defence to EPC smart cities.
Is this a phoenix warming up… or a corporate PowerPoint marathon? Let’s open the files.
2. Introduction
VL E-Governance & IT Solutions Ltd (VLEGOV) was carved out of Vakrangee with the promise of becoming a focused, asset-light, e-governance and IT services specialist. On paper, it sounds glorious: mission-mode projects, government digitisation, Aadhaar, land records, passport services—the holy trinity of Indian bureaucracy meets software.
In reality, post-demerger performance has been closer to a government website at 2 a.m.—technically online, functionally stuck. Revenues collapsed after FY23, margins flipped negative, and FY25 ended with a massive ECL provision-driven loss that wiped out reserves faster than a bad F&O trade.
Yet, despite operational silence, the company keeps appearing in headlines: ₹800 Cr MoUs, preferential warrants, EPC dreams, smart cities, defence electronics, semiconductor ecosystems—buzzwords are doing more work than operating cash flows.
So the big question: is VL E-Governance a dormant asset waiting for execution, or a story stock running on announcements and nostalgia?
3. Business Model
– WTF Do They Even Do?
Originally, VLEGOV functioned as an end-to-end system integrator for large-scale government projects. Think digitising land records, running Aadhaar enrolment centres, managing MCA-21, PDS smart cards, and passport seva infrastructure.
The model was classic government IT:
- Win tenders
- Deploy hardware + software
- Operate on long payment cycles
- Pray the state government releases funds before GST deadlines
Internationally, they even executed land record digitisation for the Philippines government—which sounds impressive until you ask how much revenue it actually brought in.
Currently:
- Legacy e-governance projects: completed
- IT/ITES equipment trading: on hold
- New business: under “evaluation”
Translation: the old engine is switched off, and the new one is still in Excel.
4. Financials Overview
Q3 FY26 Performance Table (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 4.48 | 15.21 | 3.25 | -70.6% | +37.8% |
| EBITDA | -0.70 | 0.10 | -0.53 | NA | NA |
| PAT | -0.71 | 0.94 | -0.52 | -175% | -36% |
| EPS (₹) | -0.07 | 0.09 | -0.05 | NA | NA |
Annualised EPS (Q3 rule)
Average of Q1, Q2, Q3 FY26 EPS × 4 ≈ still negative, so P/E politely refuses to exist.
Commentary:
QoQ revenue bounced, but YoY collapse tells you the core problem—there is no stable operating base. Margins remain negative, and profitability depends more on “Other Income Adventures” than actual business.
5. Valuation Discussion – Fair Value
