Synopsis:
Virtual Galaxy Infotech signed an MoU with Xangars Infratech to deploy 100,000 UPI and QR sound boxes in three years, boosting digital payments and generating Rs. 69 crore.
This Micro-cap IT Stock, engaged in providing SaaS-based core banking software solutions, ERP implementation, e-governance platforms, and customized IT services for banking, finance, government, and enterprise clients, jumped 8 percent after signing a Memorandum of Understanding (MoU) with Xangars Infratech Solutions to deploy 1 lakh UPI and QR-based sound boxes.
With a market capitalization of Rs. 483.32 crores, the share of Virtual Galaxy Infotech Limited has reached an intraday high of Rs. 201.80 per equity share, rising nearly 8.17 percent from its previous day’s close price of Rs. 186.55. Since then, the stock has retreated and is currently trading at Rs. 194.35 per equity share.
What is the news?
Virtual Galaxy Infotech Limited has signed a Memorandum of Understanding (MoU) with Xangars Infratech Solutions Limited on September 8, 2025. Under this MoU, both companies will work together to deploy and roll out 100,000 UPI and QR-based sound boxes along with digital payment solutions across India.
The project will be implemented over a period of three years and is aimed at helping small retail merchants adopt digital payment technology. The initiative is expected to generate revenue of about Rs. 69 crore for Virtual Galaxy Infotech Limited. This collaboration highlights the company’s focus on supporting India’s digital transformation journey.
Company Overview:
Virtual Galaxy Infotech Limited (VGIL) was founded in 1997 and is a Nagpur-based IT services company specializing in SaaS banking solutions, ERP systems, e-governance, and custom IT platforms for clients across BFSI, manufacturing, and government sectors. VGIL employs over 300 professionals and operates from several locations in India.
Virtual Galaxy Infotech Limited’s flagship product, “e-banker”, is a modern core banking suite built with web and open-source technologies, helping banks manage their operations more efficiently. The company already serves more than 1,000 bank branches, along with manufacturing firms and public sector organizations.
Recently, the company has expanded its reach beyond India into international markets like Tanzania and Malawi. It has successfully delivered digital banking and ERP projects there, showcasing its ability to provide reliable and scalable technology solutions worldwide.
Recent quarter results:
Coming into financial highlights, Virtual Galaxy Infotech Limited’s revenue has decreased from Rs. 72 crore in H1 FY24 to Rs. 49 crore in H2 FY25, which is a drop of 31.94 percent. The net profit has also decreased by 31.58 percent from Rs. 19 crore in H1 FY24 to Rs. 13 crore in H2 FY25. Virtual Galaxy Infotech Limited’s revenue and net profit have grown at a CAGR of 15.07 percent and 151.98 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 34.3 percent and 48 percent, respectively. Virtual Galaxy Infotech Limited has an earnings per share (EPS) of Rs. 14.90, and its debt-to-equity ratio is 0.87x.
Written by – Nikhil Naik
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