Highlights

• VL E-Governance & IT Solutions fell 5.69% to ₹13.10, impacted by delayed projects and weak order inflows.
• Revenue dropped sharply to ₹448 Lakh vs ₹1,521 Lakh YoY; company reported a loss before tax of ₹57 Lakh.
• Technical support at ₹12, resistance ₹14; short-term bias negative, reflecting continued downward pressure on the small-cap IT stock.

VL E-Governance & IT Solutions fell 5.69% to ₹13.10, declining ₹0.79 on 26 February 2026.

Reason for Decline

The drop may reflect:

• Delays in government project execution
  • Payment cycle concerns
  • Weak near-term order inflow visibility
  • Broader correction in small-cap IT stocks

Government contract-dependent firms are highly sensitive to policy and administrative delays.

Financial Overview

The company operates primarily in e-governance contracts, with margins dependent on project execution and timely payments. Working capital needs can rise during delayed billing cycles, while earnings stability relies on consistent order inflows and contract diversification. For the quarter ended 31 December 2025, revenue from operations declined sharply to ₹448.00 Lakh vs ₹1,521.31 Lakh YoY. The company reported a loss before tax of ₹70.57 Lakh, compared with a profit of ₹94.59 Lakh in Q3 FY25.

Technical Outlook
The stock has a support level at ₹12 and faces resistance around ₹14. The short-term bias remains negative, indicating that downward pressure may continue unless the price breaks above the resistance zone.

Risks

The stock is exposed to several operational risks. Project concentration increases vulnerability to the performance of a few key initiatives. Payment delays can strain cash flows and affect financial stability. Additionally, policy uncertainty may create an unpredictable business environment, impacting overall growth and profitability.

VL E-Governance & IT Solutions declined 5.69% to ₹13.10 amid delays in government project execution, weak order visibility, and payment cycle concerns. Q3 FY26 revenue fell to ₹448 Lakh, with a loss before tax of ₹70.57 Lakh versus a prior profit of ₹94.59 Lakh. Support is at ₹12, resistance ₹14, indicating persistent short-term selling pressure.

FAQs

1. Why did VL E-Governance & IT Solutions decline 5.69%?
   Delays in government project execution, weak near-term order inflows, payment cycle concerns, and small-cap IT corrections drove the fall.
2. What are the key support and resistance levels?
   Support is at ₹12, while resistance is around ₹14; downward pressure may persist until resistance is breached.
3. What risks should investors consider?
   Operational risks include project concentration, payment delays, policy uncertainty, and reliance on timely government contract execution.