Vishal Nirmiti Ltd IPO

Cons

• • The company’s PSC sleeper manufacturing segment depends substantially on projects awarded by government authorities, Indian Railways, DFCCIL, and other government-controlled entities. Revenue from these entities was Rs 144.21 crore, Rs 152.95 crore and Rs 146.95 crore, representing 42.61%, 47.30% and 58.09% of Revenue from Operations in FY26, FY25 and FY24, respectively. Any adverse change in government policies, budget allocations, tender awards or railway infrastructure spending could materially affect its business, financial condition, results of operations and cash flows.
• • The company derives a substantial portion of its revenue from a limited number of customers, with its largest customer, Indian Railways, contributing Rs 137.27 crore, Rs 149.21 crore and Rs 144.04 crore, representing 40.56%, 46.14% and 56.78% of revenue from operations in FY26, FY25 and FY24, respectively. Any loss, order reduction, payment delay or commercially unfavourable contract terms involving major customers could adversely affect its business, profitability and liquidity.
• • The company relies on suppliers for key raw materials, including high-grade concrete, prestressing steel wires, inserts, aggregates and fixtures, with its top 10 suppliers accounting for Rs 147.72 crore (65.52%), Rs 157.44 crore (64.82%) and Rs 126.77 crore (67.39%) of total purchases in FY26, FY25 and FY24, respectively. Loss of a significant number of suppliers, supply-chain disruption or inability to source materials on similar commercial terms, quality or within a reasonable timeframe could raise operating costs, delay production and deliveries, and adversely affect its business, financial condition and cash flows.