📉 The Financial Deep Dive
The Numbers:
VMS TMT LIMITED reported a sequential revenue growth of 10.42% for the third quarter of FY26, with revenue from operations reaching ₹202.13 crore, up from ₹183.06 crore in Q2 FY26. Profit After Tax (PAT) for Q3 FY26 stood at ₹8.04 crore, translating to a Basic Earnings Per Share (EPS) of ₹1.62. For the nine months ended December 31, 2025, the company posted revenues of ₹597.45 crore and a PAT of ₹18.74 crore, with an EPS of ₹4.67. Year-on-year (YoY) comparisons are not available due to the company's recent listing on September 24, 2025.
The Quality:
While sequential revenue growth is positive, the primary concern for investors revolves around the utilization of IPO proceeds. The monitoring agency, CARE Ratings, flagged a ₹2.81 crore deviation where funds transferred from the IPO monitoring account to a cash credit account were utilized for working capital instead of direct loan closure, pending bank approval. The company, however, has clarified that all outstanding facilities were subsequently repaid and closed on February 4, 2026, with SVC Bank issuing a no-dues certificate. This explanation was noted by the Audit Committee.
The Grill:
The significant discount at which VMS TMT's stock is trading compared to its IPO price presents a major challenge. With the share price at ₹51.01 on February 10, 2026, down from the IPO issue price of ₹99, investor confidence appears to be shaken. The deviation in IPO fund utilization, though seemingly resolved according to the company, adds to the negative sentiment and raises questions about financial discipline and transparency in the early days of its public listing.
🚩 Risks & Outlook
The immediate risk for VMS TMT is regaining investor trust. The substantial drop in stock price post-IPO and the incident involving IPO proceeds highlight the need for stringent financial management and clear communication. Investors will be watching closely for consistent financial performance, adherence to IPO fund utilization plans, and any strategic initiatives that can drive a sustained recovery in the stock price. Any further missteps or delays in demonstrating strong financial health could prolong the stock's underperformance.