VA Tech Wabag Limited (NSE: WABAG) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Shailesh Kumar — Chief Executive Officer – India Cluster
Skandaprasad Seetharaman — Chief Financial Officer
Analysts:
Kishore Kumar — Analyst
Nidhi Shah — Analyst
Adarsh Singh — Analyst
Shaizad Shroff — Analyst
Aniket Jain — Analyst
Tanmay Chowdhary — Analyst
Vilay Rai — Analyst
Praveen — Analyst
Dhimant Shah — Analyst
Suyash Bhave — Analyst
Kishore Kumar — Analyst
Santosh Keshri — Analyst
Vicky — Analyst
Hitesh — Analyst
Shubhankar Mukherjee — Analyst
Presentation:
operator
Good evening and welcome everyone to this earnings call. Post announcement of Q3 and 9 months FY26 results of VA Tech Wagbag Limited on the call today from the management team we have Mr. Shailesh Kumar, CEO India cluster and Mr. Skanda Prasad Sita, Raman Group Chief Financial Officer. Kindly note that during this call the company may make certain forward looking statements concerning the business prospectus and profitability which may be subject to risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The conference call will be archived and transcripts will be made available on company’s website.
The company result update presentation has been uploaded on the website and stock exchanges which provide an overview about the company core offering analysis of the result for this period. We trust that you had an opportunity to look through the same. I will now request Mr. Shailesh Kumar to take you through the key business highlights. Over to you sir.
Shailesh Kumar — Chief Executive Officer – India Cluster
Thank you. Good evening ladies and gentlemen. A warm welcome to you all to the earnings call following the announcement of Q3 and 9 months FY26 results of V8 VAWA Limited we sincerely appreciate your continued trust and support which remains invaluable to our growth journey. Joining me today is Mr. Skanda Prasad Sitaraman, our Group CFO. We are pleased to report another period of profitable growth during the fiscal year driven by disciplined project execution, strong operational delivery, continued progress on our strategic priorities. Despite a onetime statutory impact due to the implementation of new labor codes, our bottom line grew by 24% year on year.
EBITDA increased by 20% year on year. While we maintained our ebitda margin at 13.7%, well within the guided range. Revenue growth remained healthy at over 18%, fully in line with our medium term guidance and supported by robust execution across our project portfolio. We remain firmly focused on profitable growth while preserving balance sheet strength during the period. We further strengthened our balance sheet through debt reduction and continued to remain net cash positive for the 12th consecutive quarter, closing with over rupees thousand crores of cash balance, a milestone moment in our group’s history. Our focused efforts to expand on the international front are yielding tangible results with international projects contributing 50% of revenues for the fiscal year to date.
Underscoring Vawad’s growing global presence and in line with our strategy to continually increase our global footprint, we will continue to strengthen our leadership in the Middle east region which is emerging as our next key growth engine while expanding our footprint in CIS and Southeast Asia, regions that offer strong opportunities in water treatment. At the same time, VAWAG remains firmly focused on further consolidating its market leadership in India. Our order book continue to expand with strategic wins and currently stands at over rupees 163 billion. It remains well balanced with 64% EPC and 36% O&M projects providing strong revenue visibility and deeper client relationships.
International projects account for nearly 50% of order book, supporting margin improvement, cash flow and reinforcing our global footprint. Let me now briefly update you on some of our key ongoing projects. The JICA funded 400 MLD Peru desalination plant in Chennai is progressing as planned with remaining marine works nearing completion by the next quarter, steady involvement in civil construction, key equipment deliveries in progress and plant piping and prefabrication underway. Keeping the project on schedule, the World bank and AIIB funded 200 MLD PAGLA project in Bangladesh has picked up pace with pile casting and drilling activities progressing satisfactorily.
The World bank funded wastewater treatment plant project for the Bangalore Water Supply and Sewage Board is gaining traction with site activities initiated and subcontractors mobilized. The Breakthrough renews solar cell manufacturing facility order covering ultra pure water effluent treatment and ZLD system is on schedule with engineering completed, key equipment ordering nearing completion, supplies commenced and installation set to begin. Upon trying to handover of the civil front in the Middle east and Africa region, 200 MLD Al Hayd STP project in Saudi Arabia is moving swiftly on all fronts and project activities are in full swing in the 300ml Yanbu mega desalination plant in Saudi Arabia.
While the effective date of commencement is expected soon, early works like Basic Engine is largely ready, key personnel have been deployed and procurement activities of long lead items are underway. The EIB and KFW Germany funded Lusaka Sanitation project in Jambia is progressing on track with procurement activities for critical equipment advancing well and civil subcontractors mobilized at site. We are also pleased to share that Ghaziabad Nagar Nigam Ham project has achieved final COD on 1st January 2026 and the operations are in full flow. Tendering momentum in India continue to gain pace across municipal and industrial water segments supported by diversified EPC debut and selective PPP pipeline that leverages our execution and O and M expertise.
The Middle east presents sustained opportunities in desalination, wastewater treatment and reuse backed by strong infrastructure investments across the GCC and our disciplined bidding approach. In Africa, multilateral and government backed projects focused on water and sanitation are expected to drive steady medium term growth with Southeast Asia offers diversification through active tendering driven by urbanization and stricter environmental norms. Additionally, our Europe cluster is witnessing improved building activity recently, particularly in high technology and complex water treatment opportunities across Eastern and Western Europe, which we will pursue without losing sight of our strategic priorities. Looking ahead, we continue to be well positioned in orders over Indian Rupee 3000 crores and also witnessed a strong order inflow visibility across our key geographies supported by a healthy order pipeline and strong alignment with our core capabilities.
This gives us confidence in our ability to sustain profitable growth while remaining disciplined on risk, capital allocation and returns in line with our medium term strategy. Before I conclude, I would like to thank all our stakeholders for their continued confidence in WABAD and for supporting our mission to deliver sustainable water and environmental solutions globally. With that, I will now hand over to Iskandar to take you through the financial performance.
Skandaprasad Seetharaman — Chief Financial Officer
Thank you Shailesh and good evening to everyone on the call. I trust you have reviewed the financial results and investor presentation already shared on our website and filed with the stock exchanges. I’ll briefly walk you through the financial performance for the nine months ended December 2025. Over the first nine months of the fiscal year, the company has delivered a strong and consistent financial performance, continuing on its path of profitable growth while maintaining margin discipline and balance sheet strength. Importantly, our performance remains fully aligned with the medium term outlook that we have shared with all the stakeholders.
For the period, consolidated revenue stood at rupees 2,530 crores, reflecting year on year growth of over 18%. This growth was driven by steady execution across projects, with newer and larger projects progressively ramping up during the year, our business mix continues to evolve favorably and the O and M segment delivered a strong performance contributing 18% of total revenues while international operations accounted for 50% of the revenues, further reinforcing Wabag’s global leadership in water technology solutions. On profitability, consolidated EBITDA for the nine month period stood at rupees 347 crores, translating into an EBITDA margin of 13.7%, which is well within our medium term guided range of 13 to 15%.
Consolidated profit after tax stood at rupees 242 crores representing a margin of about 10% and year on year growth of 24%. In the first nine months, interest income exceeded interest cost reflecting strong operational cash flows, efficient working capital management and disciplined treasury practices while reinforcing our focus on maintaining a healthy balance sheet to support growth and execution. For the period, the revenue EBITDA and PAT on standalone basis stood at rupees 2,118 crore, rupees 306 crore and rupees 212 crores respectively. Our long term financial trajectory remains encouraging. Over the past five years, consolidated EBITDA has grown at a KEGR of 19% while PAT has grown at a CAGR of 30%.
This reflects sustained value creation driven by disciplined execution, a high quality order book, increasing contribution from O and M and international projects and a continued focus on efficient cash and capital management. Turning to the balance sheet, our net financial position. Sorry, our financial position continues to strengthen consistently. Net current working capital days improved significantly to 101101 days for the nine month period driven by tighter receivables management, continued improvement in billing discipline and a sustained client engagement. This structural improvement in cash conversion has enhanced liquidity, supported operational flexibility and enabled us to maintain a net cash positive position for the 12th consecutive quarter, reinforcing the resilience and quality of our balance sheet.
As of December 2025, our gross cash position stood at Rupees 1080 crore while net cash stood at Rupees 891 crore. Excluding the transient debt under our HAM entity, net cash stood at over 1000 crores, a historic high for the group, reinforcing the strength of our balance sheet and capital discipline. Alongside this, we have continued to reduce debt levels year after year through prudent financial management. With the continued expansion of our international business, we have onboarded two additional international banks across the Middle east and Africa region to support the increasing requirements for both funded and non funded facilities.
This diversification strengthens our banking relationships, enhances financial flexibility and improves our ability to support project execution across geographies. In parallel, we have actively initiated the use of insurance bonds as a substitute for traditional bank guarantees, enabling cost optimization while also enhancing our non funded limits. This approach supports more efficient capital utilization and strengthens our overall liquidity management framework as we scale our operations globally. We are pleased to share that our credit rating has been reaffirmed at AA stable reflecting the sustained strength and consistency of our financial and operational performance. Our robust credit profile is underpinned by Healthy Rose, a strategically diversified order mix across EPC and O and M segments and strong revenue visibility.
Our continued focus on high technology, engineering led projects and expansion into new geographies further enhances our growth prospects. Additionally, majority of our projects is supported by multilateral funding agencies, sovereign counterparties or letters of credit, ensuring strong payment security, mitigating receivable risk and reinforcing business resilience. Importantly, our credit rating has improved sequentially over the past five years, translating into progressively lower costs for both funded and non funded facilities and strengthening our overall financial efficiency. Staying true to our asset light business model, we continue to generate healthy returns for the period. Return on capital employed stood at approximately 19% and return on equity over 15%, reaffirming our commitment to sustainable and capital efficient growth.
Our financial discipline and balance sheet strength have also been recognized by the rating agency with India Rating and Research reaffirming our credit profile during the year. With a strong order pipeline, a resilient balance sheet and consistent execution capabilities, we believe the company is very well positioned to sustain its growth momentum while remaining firmly aligned with its medium term guidance. Anchored by our DRIBDI strategy, our focus remains on profitable growth, maintaining a net cash positive position and creating long term value for all stakeholders. In closing, I would like to thank our bankers, investors, customers, vendors, subcontractors, partners and most importantly our WABA guides for their continued trust and support.
With this we will open the floor for the interactive question and answer session over to the moderator.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, in order to ensure that management is able to address question from the participant in this conference call, please limit your question to two per participant and you should have a follow up question.
Please rejoin the queue. The first question is from the line of Kishore Kumar from Unifi Capital. Please go ahead.
Kishore Kumar
Thanks for the opportunity and congrats on the good set of ambassadors. So my first question is on the order book, the bid pipeline, particularly in the domestic market. Because if I look at the order book closing order book for the past four five quarters, the growth in the order book is largely driven by the international projects while the domestic order book remained more or less flat at similar levels also the Q3 domestic market execution is actually declined. Just wanted to get your sense on this and how do you look at the PIT pipeline aspect?
Shailesh Kumar
Thanks Kishore for the question. As far as India water backlog is concerned, we have healthy position as of now and going forward. As I told earlier, we have many of the prospects almost on the verge of Conclusion. And as I told you, 3000 crores of order is already in visibility as far as pipeline is concerned. We see a very strong pipeline. Some of them have only got deferred, which is going beyond this quarter. But early next year, we see many. Of those prospects converting. And while I say that it’s a mix of government, private investment, municipal bodies, so there is a diversified portfolio which is there in front of us, and those are looking at many of those conversions will be happening in near future.
Kishore Kumar
Got it, sir. Got it. And any update that you can give us on that investment platform that is in progress with the Norwegian fund. Any status update on that?
Shailesh Kumar
Kishore, the due diligence is largely over. And we are right now in the process of negotiating the definitive agreements. So in the next couple of months, we are hopeful, subject to, of course, the, you know, the multilateral funds or the large funds will have their own internal investment committees, board procedures. So we feel that it is only a couple of months away in terms of the agreements being finalized. And then, of course, they’ll have to put it to their boards and get the formal approval, after which we can. So right now it is. It’s only a few months away.
Kishore Kumar
Okay, so just one clarification on the other expenses. In Q3. Is there any one off thing that is accounted like provisioning?
Shailesh Kumar
There is. There is no one off, Kishore. You know, there is a ECL policy matrix that we follow here in Baba. And every two to three years we will obviously have to restate the policy in line with the recent mix. So there are. There are few cases where we. Or rather, it’s more a matrix provision that is driven by the formula in the policy. Other than that, there is no one off. It’s a standard. Other expenses otherwise.
Kishore Kumar
Got it, sir. Thank you so much. I’ll join the Q4 for your questions. Thank you. Thank you.
operator
Thank you. The next question is from the line of Nidhi Shah from ICIC Securities. Please go ahead. Yes, thank you so much for taking my question.
Nidhi Shah
So my first question is on how many orders are. How many bids are the preferred bidder in? And where are these exactly? Are they internationally? Good? Domestic? You tell us a little more about this.
operator
Sorry, Nidhi, we heard you. You asked how many bids are we preferred bidder in? And what was the second part of the question, please?
Nidhi Shah
Are these international bids domestic? And if they are international and what are the geographies?
Shailesh Kumar
Yeah, so these are. These are largely jobs in the Middle east geography. And in India, this would be about two to three major jobs. Of course there are smaller jobs but it spreads over two to three major jobs where we know that we are well positioned. Either announced as a preferred bidder or we know we are the L1. So it’s a mix of India and international jobs.
Nidhi Shah
My second question is on Indosol. What is the progress on Indosol? Have we started procurement over there?
Shailesh Kumar
Indosol project engineering has quite matured and we have started scouting for potential suppliers that we have gone in the market. The customer is finalizing the plot where it would be setting up the plant. That is what is somewhat taking some time. But now they are saying we recently what we have heard from them, they are almost on the verge of finalizing the layout and the plot. So we have restarted contacting our suppliers to that effect so that deliveries happen on time. So progress in all overall progressing well and in coming days it is going to gain further momentum on this.
Nidhi Shah
All right, my last question would be on the on the Hada ISTP plant that you mentioned that you were a preferred bidder in. Do we expect the awarding to happen in FY26.
Shailesh Kumar
For fingers crossed. We would also hope the awarding is closed. You know this is a job where we are a preferred EPC partner to the developer who is a preferred bidder here. Obviously in development jobs there are additional conditions, proceedings, financial closures which happen at the developers end. We are also following this up. We’ve already started. I mean we are working with them in terms of supporting them on the activities for the conversion of the job. So it is in progress. Yeah, fingers crossed. Possible that it could happen this year but it’s only a matter of time.
Nidhi Shah
Thank you so much. Those were my questions.
Shailesh Kumar
Thank you.
operator
Thank you. The next question is from the line of Adarsh Singh from Ask Wealth Advisors. Please go ahead.
Adarsh Singh
Hope I’m audible.
Shailesh Kumar
Yes.
operator
Yes sir. Please proceed.
Adarsh Singh
Yes. Yeah. Thank you for the opportunity. Given that our revenues, 50% of our revenues come from international and roughly similar in terms of order books, I just wanted to ask what is the execution time margin and the working capital for international orders? Visa vis Indian orders.
Shaizad Shroff
Generally international orders are little faster than the Indian orders. On a broad basis you could take about two and a half to three years as the general timeline for a large EPC project. Of course it depends project by project, what scope it is, what kind of project it is. Size of the project will determine the timeline in terms of working capital. Of course the international mix brings a lot of advantage to the working capital because the cycle times of collections are better especially in the Middle east and African geographies, Middle east of course sovereign counterparties and Africa multilaterals.
And that’s one of the cornerstones of our strategy where we said we will go more international, where there is a higher appreciation for water and projects are larger, better in terms of cash flows and at our threshold margins and references are good. So from both working capital perspective and cash flow perspective, the international projects are certainly better as compared to equivalent Indian projects.
Adarsh Singh
Thank you so much.
Shailesh Kumar
Thank you.
operator
Thank you. The next question is from the line of Shahzad Shroff from DMETER Advisors. Please go ahead.
Shaizad Shroff
Yeah, thank you for the opportunity. I had one question sir. How do you see the project pipeline shaping up in the international business especially in the Middle East GCC side? The reason I ask this is oil prices have been soft in the past one year and which could have capex implications for these GCC governments. So do you see any slowdown in projects getting added to the pipeline or any slowdown in conversion of projects already in the pipeline say one year back versus today?
Shailesh Kumar
Shahzad, the geographies that we work in, whether it is Middle east or Africa, for them water treatment is not an option. It cannot be dependent on whether the oil prices go up, come down. That may give them a fillip to do more but they will have to still do the basic water treatment that is required. And even for the oil and gas, obviously you know that water treatment forms an integral part. So we have generally not seen quote unquote any slowdown. As you mentioned, jobs are good. You have seen in the last, exactly the last 12 to 18 months we have secured all these large marquee jobs.
As we said. We also announced this preferred bidder, preferred EPC contractor status in the Hadda project. We are a preferred bidder in over 3000 crores worth of projects which also includes projects in the Middle East. And also the way to look at it is it’s not only Middle East. Our geographies are around Middle East, Southeast Asia, the rest of the India cluster like Nepal, Bangladesh as well as the African continent. So we have a diverse set of regions over which we acquire business. So there is one fundamentally water will not go out of work. And second, our geographical diversity in terms of business helps us keep getting business despite any of these challenges.
And third, of course the kind of projects we pick, multilaterally funded, sovereign backed, LC backed, allows us to get larger projects with good payment security and insulates us fairly from any of these risks.
Shaizad Shroff
Fair enough sir. I agree that from a long term point of view that there is no other option for Middle East. But my question was more from the short term point of view which also you say that there is no slowdown even in the near term.
Shailesh Kumar
That’s right. Shazam.
Shaizad Shroff
Okay, sir, thank you.
operator
Thank you. The next question is from the line of Aniket Jain from yes, securities. Please go ahead.
Aniket Jain
Good evening sir. Hope you can hear me. So actually I had one question. So you mentioned about the European clusters and you’re exploring some more opportunities there. So could you provide some more color on the opportunity that can come in the European cluster And are those more of UPW opportunities or would those be more of traditional water treatment opportunities and how is the margin profile there? So because I was under the impression that since these are quite mature region so the margins could be slightly lower than what we are seeing in Middle East. So that’s my question.
Shailesh Kumar
So Aniket, I mean if you heard Shailesh. Well, he mentioned that we are seeing these opportunities but we will not lose sight of our strategic priorities when we pursue these opportunities. The region is mature but yes, all mature regions also go through a cycle of, of infrastructure saturation and they will have to come back to order it. Yes, we are seeing high technology and complex jobs that are coming out. We are very selective in this cluster in terms of the jobs that we will pick. We will continue to maintain our financial prudence and put it through all the parameters that we are looking for in jobs in other geographies that we are in.
And we rest assured that our margins will not be lower than what we have been guiding the market and of course Europe. You know, we took a strategic call to exit from Europe in terms of entities. And at that time we said this is a market which is a technology hub for us. We will remain there, look at what, what is there for the offering. But again it will be in line with our strategic priorities. I repeat.
Aniket Jain
Understood sir. That was my question. Thank you so much for the answer. Thank you.
operator
Thank you. The next question is from the line of Tanmay Chowdhury from Venutura Securities. Please go ahead.
Tanmay Chowdhary
Yeah. Hi sir. Thank you for the opportunity and congrats for the good set of numbers. My first question is as I can see the order intake this quarter was around 1200 crore. So can you just give me like what is the breakup or on the geographical side and on the order type.
Shailesh Kumar
So this quarter we received an order from BPCL which is a large order for rodm, RWTP and zld. That is. That’s. That’s one of the major orders that we received and the other one was from our from Nepal which also is if I remember right a large order. Those are the two large orders but we can, we can tabulate and. And in Middle east we got a brackish water reverse osmosis order at Al Jup. Again that is also a large order. So these are the three big orders. Apart from that of course we do receive orders below the threshold which are also accounted in.
These are the three major orders out of the 20.
Tanmay Chowdhary
Got it sir. And so like what do you see? Where do you see the order inflow? The near term like it could can. I would appreciate like if you can give the any range like it would remain in the same range of 6000 odd crores and maybe more than that given the good traction from the MEA market.
Shailesh Kumar
We’ve taken a conscious call of of giving medium term outlooks because we are a multiannual project company. So I mean we don’t necessarily look at it from a quarter perspective. We look at it multi annually and that is why we said one of our medium term outlook guidances is keeping the order book level to revenue at over 3x so that’s comfortably there. Even today we have more than 4x. Even just taking the EPC we would be comfortably in the 3x range. So our aim will continue to retain the levels at these and keep improving on this.
And of course I leave the math to you but I don’t. We’ve stopped giving these short term guidances because it’s not an annual company that we are running. You have to look at it multi annually.
Tanmay Chowdhary
Fair enough. And so like going on the future energy energy solutions. So are we seeing any traction or tender participation in specifically data center and solar manufacturing Especially by the after the government push. So can you just throw some light on it?
Shailesh Kumar
Yeah. So as you know I was talking that Renuces Solar, that is a solar manufacturing plant where we are supply ultra pure water. And that project is already on. So that demonstrates our capability to address this new energy sector. Many of the hydrogen developers are also in touch with us and we are connected with them for their prospects. Even in Hyderabad which has been recently announced we are in bidding process with them. We are there in all those energy from new energy to be precise Even in terms of compressed biogas we had recently bagged one order and we are developing that project for one of the municipal bodies and that is also a sector in which we have started working.
That is a new energy sector and another part data centers. Yes, they have a huge water requirement we are connected with some of those prospective developers or who are developing them. The water requirement is high and we are ensuring that those solutions are cost effective for them. The water reuse potential is very high which is our huge strength area and we are unparalleled there in water reuse. So those are helping us in reaching to them and finding a cost effective solution for our customers. And that is expertise there. We are leveraging to connect with them.
Tanmay Chowdhary
Got it sir. And sir, just one last question. When we can expect the, you know, GNN HEM project Tiljit borrowing to be get excluded from our books of account?
Shailesh Kumar
Our aim is to do it by the year end. Of course, as I said, we are in a very mature stage. We should be done with most of the activities subject to the timelines of the investors investment committee and board approving. I think it’s fair to target this year end. But of course as I said it is subject to their investment committee timelines. But again I will, just for the sake of clarity I will repeat the diligence is done. The agreements are under advanced stage of closure. So what is left is only the administrative part largely and we should be able to close it very quickly.
Tanmay Chowdhary
Got it. Thank. Thank you so much. That’s all from my time. Wish you luck.
Shailesh Kumar
Thank you.
operator
Thank you. The next question is from the line of Vilay Rai from Kamkia Wealth Management. Please go ahead.
Vilay Rai
Thank you for the opportunity and congratulations on the great set of numbers. So can you elaborate on what is the scope of new business of ultra pure water for the likes of data center and semiconductor? Have you seen some order booking in this segment and how big this can be in the years to come?
Shailesh Kumar
I was just, I was saying about it. Ultra pure water for solar manufacturing for hydrogen is a requirement and as I said we have, we are already delivering a project on ultra pure water and project is on advanced stage that makes us eligible or ready for bagging or working on all these new prospects. Ultra pure water is coming for semiconductor manufacturing then for solar manufacturing, solar panel manufacturing. So there we are already there. We are talking to many of those semiconductor manufacturers. As far as hydrogen is concerned, there also we have all the wherewithal and capability.
Only those projects have to be made commercially viable in terms of hydrogen as such as a sector. You must have known that it is coming very close to that viability. And from that point of view some of the people have already signed the offtake agreement and are talking to us and we are in advanced stage and that gives us not only ultrafare, that also gives the opportunity for desalination corresponding to those requirements because they have a huge requirement sometimes we are also giving solution in terms of reuse for making it up. So in combination we are using various technologies to address this requirement.
And many of those developers are very much in touch with us because they see the strength what we have.
Vilay Rai
Going forward. What do you think how much would the international project be as a percentage of revenue? Would an order book, would it shift to a higher level of 60, 40? And are you comfortable with this? 50. 50 levels as of now?
Shailesh Kumar
See, we are, we are at about 50% right now and we have already stated that we want to keep expanding globally and look at improving our international business while continuing to remain market leader in India. So as we move forward, we expect that the trend would be more on international. We’d increase the international business. We are happy increasing that because one, they are good on margins, they are good on cash flow, they are good on working capital. So it only helps us improve our numbers. And we hope in the next few years India will also grow along with that and both engines firing will help us deliver very good results.
Vilay Rai
And sir, the international growth will be predominantly from the Middle east geography, right?
Skandaprasad Seetharaman
No, no, Middle east is one of the geographies. We have Africa. We are also looking at cis, we are looking at South Asia and Southeast Asia. All of these, while Middle east and Africa will remain will lead the packaging. But it is not necessarily dependent only on Middle east and Africa from an international perspective. We are spread across all the emerging markets whether it is Middle East, Africa, cis, Southeast Asia and South Asia.
Vilay Rai
Thanks a lot.
Shailesh Kumar
Thank you.
operator
Thank you. The next question is from the line of Praveen from Trade Genie Financials. Please go ahead.
Praveen
Good afternoon. Thank you for the opportunity and congratulations on the strong quarter. Since most of the participants have asked the questions that I had, I just have a couple of questions. Your networking capital days is pretty good. There’s a lot of significant improvement. What do you think is a sustainable level that you’re targeting?
Shailesh Kumar
We focus more on net cash positive Praveen working capital is a derivative. As long as we are improving our net cash position, you know our working capital levels will be better. We are comfortable at the range we are in. 100 to 120 is the range that we have been in and we will continually try to keep improving on this. Especially with the higher international mix. The higher ONM that mix strategically that we are targeting more industrial jobs will all help us continually improve the working capital position. But we are happy with the continuous improvement. You have seen us move from a net cash position of 100 crores about 5 years back to 1000 crores today.
So. And that also reflects on the quality of the projects and quality of our customers.
Praveen
Okay, one more last question, sir. Now, most of the government tenders are L1 driven, right? How to balance within the orders and also maintain EBITDA of 13 to 15%.
Shailesh Kumar
See, it’s never been different. And what we should understand is as we as the sector has matured, it is not limited to L1, it is a T1 plus L1. So parties who are technically qualified and technically best move to the round of price. So slowly customers are looking at value over merely price. Though a large amount of government contracts understandably run on L1 because of the procurement policies. At the end of the day, it is about the competition that you have and what are the kind of projects we pursue. We are focused on high technology, desalination, reuse, industrial water projects and complex wastewater treatment plants.
The competition is very limited. Competition is international. And BABA will stand out on all counts when it comes to that. Whether it comes to technology, we are second to none. We have our delivery centers at the most competitive geographies and we have 100 years of experience. So we are confident and we have also proved in the past that we are able to deliver this value. The 13 to 15% again is not a number that we merely stated. We have delivered it for more than two years now. We have consistently maintained it. And despite all the commodity price changes that you are seeing, even amidst these vagaries, we are delivering these kind of margins that we promised.
So this is also something that reflects from the contracting that we do the kind of projects that we pick. So this gives us confidence that we will maintain it at the 13 to 15%.
Praveen
Thank you, sir. That makes sense. Thank you. Thank you.
operator
Thank you. The next question is from the line of Demant Shah from it AMC limited. Please go ahead.
Dhimant Shah
Yeah. Hi. Hello.
Shailesh Kumar
Hi.
Skandaprasad Seetharaman
Hi Leman. Good afternoon.
Dhimant Shah
Good afternoon. Just a quick one. I mean apart from the good order book that we carry, can you also enumerate what are the new sectors emerging and where would the, where would the. Can we see fruition very shortly in any of these new areas that we more targeting.
Skandaprasad Seetharaman
One of the area where we are seeing definitely desalination is the one which is feeding to all the new energy sectors which are or you of the new sectors where it will be feeding to. Further, as I have been saying, solar manufacturing is picking up the country in terms of new sector and many people Are contacting us and we are in touch with them. And we are almost on the verge of concluding in terms of pipeline that I was talking about on those solar manufacturing panels. In terms of hydrogen, we see there are clusters where hydrogen prospect developers have started going into advanced stage.
And that is what is also demanding water. And we see that some of those we are to be precise, one of the prospects is in advanced stage in terms of hydrogen biocng. We have been talking about it and we have had success. We see many other prospects there in different states in the bio CNG sector also you would have seen that we are also promoting these some of the technological solution to these new energy sector through our blue seed investment. There are many technological partners across the nation and across the globe with whom we are connected.
And they are connecting. We are reinforcing their technology, their offering through us. And that is helping us to be competitive with those new sectors. And last, which has been our strength is reuse for all these sectors. Reuse is one of the area where government is focusing. Many of the private developers are focusing be it their stereotype requirement in terms of traditional business requirement or for new energy. So that is also a component which is helping us in connecting with them overall in all these sectors we are there. And some of those prospects are almost on the verge of conversion.
Dhimant Shah
Nothing from the semiconductor side, I thought even that would be sort of at an advanced stage with almost four or five factories likely to see fruition very shortly.
Shailesh Kumar
Semiconductor probably you would have seen the sector as it is moving. There are two components of it. One is assembly and second is fabrication. So fabrication is some of the those possibilities which were there. Those had earlier initial startup which happened or to be initial setup which was there. That is somewhat maturing. And newer ones are looking at in other geographies based beyond India. So we would be connected with them in India now mostly it is assembly part which has a lesser of water requirement. Nonetheless, for them also we are connected, but we are seeing that semiconductor manufacturing in other geographies other than India also.
While some of those plants which are there, that is taking some time, but we are tracking that sector very well. And in Singapore and other locations also we are connected with these semiconductors where there can be a possibility.
Dhimant Shah
Great. Second question would be for you know, between the desalination and the ETP stp. Do we have some mix in the current order book that you can, you know, disclose?
Shailesh Kumar
We have given in our investor presentation. The mix of various segment desalination is definitely one of them. But to be A specific number we can probably later send to you. What we see we have a good.
Dhimant Shah
Component of desalination with respect to to.
Shailesh Kumar
Other sectors, water treatment and effluent treatment. But going further we see that the desalination component is going to further grow beyond what we have and there is a lot of prospects we are working on.
Skandaprasad Seetharaman
So would it be very broad brush, would it be 40, 30, 30 kind of between O&M ETP, STP and the larger component of desalination which would be residing close to 40% in the existing order book.
Shailesh Kumar
So Diban, we can look at these numbers specifically. Of course it moves just a broad brush.
Shailesh Kumar
It need not be supremely to the last decimal.
Shailesh Kumar
I think about one third would certainly be desalination because if you see our top 10 order book, three of them is desalination. In fact in the top five, three is desalination. About 1/3 is our ONM, as you rightly said in the 16,000 crores, about 4,5000 crores is on. And then again you will see that we have industrial jobs which will be tp, upw, rodm, zld, all of those. And what is, what is balance would be about 20, 25% would be STP. That’s the broad guesstimate I can give.
Dhimant Shah
Excellent.
Dhimant Shah
So which means that you know we should be seeing the higher range of your margin very shortly. Directionally you can say yes or no because given that you know the larger O and M contracts are yet to fructify, very soon or possibly will be a larger portion of our executable order book. That should be a very strong tailwind for our margins and going forward. Is that observation correct?
Shailesh Kumar
Certainly. As part of our strategy we want to keep improving our O and M base. You are right on that aspect. At the same time we also want to keep increasing our international presence. So directionally you are right. That is the guidance we have given of 13 to 15% in terms of EBITDA and of course God willing Insha Allah, we should move in that direction. We don’t see a reason why the margins will not move up with the volumes and with the better prospects that we see.
Dhimant Shah
And lastly, if I may, are we formalizing some dividend policy given now, you know we can be amenable to reasonable distribution.
Shailesh Kumar
We have an internal guideline. But of course, yes, in terms of a policy we will certainly consult with the board if they want to make changes to the to the current level of dividend that we have restarted last year. We will certainly consult with the board if they Want to make changes to that going forward.
Shailesh Kumar
And in summation, next medium to small term we can grow at 15% plus. That would be a fair assumption. We have given a medium term guidance of 15 to 20% and we are confident that that is something we will be at. Super many thanks for answering all these questions. I really appreciate.
Dhimant Shah
Thank you.
operator
Thank you. A request to all participants to please remit your question to two per participant. If you have a follow up question, please rejoin the queue again. Thank you. The next question is from the line of Shuyash Bhavi from Wealth Guardian. Please go ahead.
Suyash Bhave
Yeah, thank you for the opportunity. Sir, regarding the thousand crore net cash balance. Now that constitutes a pretty big chunk of our network as well. What are the plans for the utilization of the same?
Shailesh Kumar
We also stated in the past we are an asset light organization. We’d like to put the cash to the best use. One is of course, of course we will need cash for the projects to keep churning and that will give us this kind of cash balance gives us advantage to be negotiating stronger in terms of our procurements. Number two, the municipal platform will require some amount of cash. We will take a minority interest in order to pursue PPP opportunities. The third is of course distribution to the shareholders. You have seen if we started dividend, that is one aspect so broadly this would be the use.
We are hardly taking any debt today. The cash generated by the business is sufficient to run the business as well as provide us surplus cash which we require. And I think contextually we are an EPC organization. So cash on the balance sheet is also an important factor when it comes to kind of having strength in terms of bidding and negotiating. We also need this for bidding for larger jobs. So broadly this will be the use and we will remain asset light even as we move forward.
Suyash Bhave
Understood. So my next question is in our O and M business we have almost around five and a half thousand crore of order book in O and M predominantly which is municipality. Can you throw some light on what is a margin differential between municipal OIM and industrial OIM and what are the factors which drive those margins? If you can.
Skandaprasad Seetharaman
See Suyash, we generally don’t discuss margins at a segment or sector level. But broadly most of our O and M is generally municipal because the, the industrial customers usually run their own plants. And obviously between an EPC and O and M, you know, generally the O and M is far better than epc and that’s one of the reasons why we want to improve the O and M share. We generally don’t look at margin. At a segment level. From a discussion.
Suyash Bhave
All right. All right. So no problem. I have just one more question in. Hello.
operator
Sorry to interrupt. Sir, we may request you to please rejoin the queue as.
Suyash Bhave
All right.
Suyash Bhave
I’ll rejoin the queue.
operator
Thank you so much. Sir, the next question is from the line of Kishore Kumar from Unifi Capital. Please go ahead.
Kishore Kumar
Thanks again. Sir, on the closing order book question of around 7,800 crores in the India question can you give us how much. How much proportion is municipal and how much is industrial within the domestic market?
Shailesh Kumar
So it is there in the investor presentation. Fisher. I think India would.
Shaizad Shroff
Sir, India total is given. But within India how much proportion would be attributable to municipal. One moment.
Shailesh Kumar
If we go to the order book analysis we can. We can check this and come back to you.
Kishore Kumar
Okay.
Kishore Kumar
Sure. Yeah. Okay. Got it, sir. Got it. That is fine. Sir, can you actually give us the cash flow From Operations for Q3?
Shailesh Kumar
Sorry, I didn’t get your question. Sorry. Kishore, can you give us the cash flow from operations for the current Q3 quarters.
Kishore Kumar
For the nine months? Because there is no cash flow reporting for the nine months. Roughly the free cash generation is about.
Shailesh Kumar
300 crores free cash at the capex. Hello.
Shailesh Kumar
I mean you just do it on the balance sheet. It’s about 300 crores of free cash. Yeah. Of course we hardly have any Capex. Kishore asset light. I mean 5, 10 crores of depreciation is what we do. So hardly any capex.
Kishore Kumar
Got it. Thank you. Thank you so much.
Shailesh Kumar
Thank you.
operator
Thank you. The next question is from the line of Mihir from Prithvi Finmart. Please go ahead.
Aniket Jain
Good evening and thank you for the opportunity. As the company is targeting CIS and Southeast Asian countries for gold. Are there any ongoing tenders where the company is A preferred or L1 bidder or any meaningful orders under evaluation from these regions?
Shailesh Kumar
We are.
Shailesh Kumar
As far as CIS is concerned, we are in the business development phase. As soon as. We have any strong L1s, we will. We will surely come back to you. And of course on Southeast Asia, you know, we have a running business. We are present in most of the countries in Southeast Asia. We are well. We are let’s say well placed in this geography to access projects. And of course I recollect cis, we have about two to three prospects where we are working on at this point. And as soon as the tenders are out and things we will go ahead with the bidding.
So this is the status of both the regions.
Aniket Jain
Okay. Thank you. That’s it from my time.
operator
Thank you. The next question is from the line of Shuyash Bhave from Wealth Guardian. Please go ahead.
Suyash Bhave
Yeah sir, on the EPC side we have around 9,700 odd crores EPC book. Just to understand from a revenue recognition perspective how does this flow into our P and L on a rough basis say in year one, how much percentage will flow in year two, how much would flow on a rough broad basis? If you can help us understand, it.
Shailesh Kumar
Would be very difficult unless we go project by project. Suyesh. But if you are looking at from a modeling perspective I would say broadly linear. You can take it over a two and a half to three year period that these revenues will flow through to the pms. Okay sir.
Suyash Bhave
All right, Understood. Thank you sir.
operator
Thank you. The next question is from the line of Manish Maheshwari from Equity at work Family office. Please go ahead.
Santosh Keshri
Thanks for taking my question. Sir. Are we any green shoots from Yamuna Delhi? Yamuna opportunity?
Shailesh Kumar
Yes. That is throwing lot of opportunities. We are already working on those tenders. We have submitted few of the bids so there are many of them are yet to open. But that is definitely throwing opportunities. As you be knowing we are very much present in Delhi. We are already working on many of the EPC projects which one of it we have recently completed and we have two, three O&M sites which we are working which gives us some advantage to be knowing that geography. And we work with, we have worked with DJV previously and working with them.
So that is a definite prospect we are looking at and we are confident that that is those pipelines we are, we are going to convert them.
Santosh Keshri
Okay, so what is the quantum or maybe quantity of order that we are expected to get or obtain from from Yamuna.
Shailesh Kumar
Quantum I would refrain from giving you because the it’s a bidding process though as you know we are very selective and we are very judicious in our bidding that we are a technology company and we maintain our margin position and that’s how we evaluate the risk. So we number. I would not like to give you at this moment because those are in pipeline and conversion is somewhat in coming days, in coming weeks and months it will be evolving. But we are fairly confident that we will be able to back some of those prospects.
Skandaprasad Seetharaman
Okay, so another question is on the rest of the world segment there is a about 28% quarter on quarter growth in terms of the top line, gross top line from rest of the world and about 57% year on year. But the margins Margins, I mean the EBIT margins are only have actually sort of only. I mean the uptick is only about 40 basis points both quarter on quarter and year. On year 26 about 20, up 27% and the previous quarter was about 26 and a quarter percent and same quarter corresponding quarter last year was also about 26, 26 and a quarter percent.
So I mean the, the uptick is. Uptick is only 40 bits. 40, 45 bits. Right. So margin expansion is not. We are not seeing margin expansion here.
Shailesh Kumar
Manish. I think the numbers as is seen will not give you the story. You will have to understand the context of it. If you see the last year we had two projects in the rest of the world which are ep. One was Senegal, one was Cebu. Both these projects as you know the EP projects are usually better in margin than the EPC projects. Whereas EPC projects will give you volumes. Though we have always said that construction is only a pass through in this year the rest of the world again you have projects like Al Haier, your projects like Zambia which are contributing to the revenue.
So it’s also the mix of projects that you’ll have to see. But I would probably encourage you to see the margin profile over a period of time to understand how international mix brings better margins instead of merely comparing two periods which can be completely different in terms of mix of product. So this is the main difference. Other than that you see that the international projects usually add better to margins and also when it is EPC add better to the volumes as well.
Santosh Keshri
Right sir, also last question. What is the operating cash flow pre tax for the first nine months? FY26.
Shailesh Kumar
I’ll have to check this. I don’t have a pre tax. As I just told. If I. If I remember right Kishore, we have generated a free free cash of over 300 crores.
Shailesh Kumar
Free cash flow. You stated about 300 crores, right? Yes, I was looking at a pre tax. Just the previous participant you stated as in a 300 crores of free cash flow for the first time. I mean for the first three quarters put together that is about. I mean a nine month FY26 so far. Right. Iterative pre tax. I was looking at this number. Yeah.
Santosh Keshri
So I think largely.
Shailesh Kumar
Yeah, yeah.
Shailesh Kumar
Broadly you will, you will have to. Let’s say I. I would say about add 30, 40 crores to that. I can check this specifically. The current tax is about 73 crores. So you just have to take that up because largely it is driven by India. And in, in India, you know you, you More or less pay the taxes that is accrued.
Santosh Keshri
Thank you. Wish you luck for the future.
Shailesh Kumar
Thank you.
Santosh Keshri
Thank you, sir. Thank you. Thank you.
operator
Thank you. The next question is from the line of Santosh from SKK Huf please.
Santosh Keshri
It is a chance.
Skandaprasad Seetharaman
Yes, Santosh, but we are hearing some background. If you could come closer to the device and speak, you’ll be more audible.
Shailesh Kumar
Sure. Better?
operator
Yes, better.
Santosh Keshri
Hello.
operator
Yes, Santosh, please go ahead.
Santosh Keshri
Okay, so I had two questions. One Finance Commission recently announced by the government Finance Minister said that there would be a huge allocation to the corporation. So it’s something.
operator
Mr. Santosh, As there is a lot of background noise. Hello?
Santosh Keshri
Yeah, hello. Am I audible, madam?
operator
Yes, you’re audible. Okay, so there is a lot of background noise. We are not able to hear you properly.
Santosh Keshri
Let me try again. So I’m saying that under Finance announced the section Finance Commission award to the municipal bodies. And it turned out to be something like next five years $39 billion would be given. So are you looking at this in terms of more opportunities from the market?
Shailesh Kumar
Yes, we are definitely tracking those investments which are going into these municipal bodies. And we are looking at the prospects which are getting there. You would be knowing that parallel we are also ensuring that those prospects are multilaterally funded. Even with the many, many of those municipal bodies along with these finance commissions allocation. Our main focus remains on multilaterally funded process prospects or projects. And that gives us better security. We have known that some of the government recent challenges which were there, but those are definitely a prospect and many of those cities going those investments.
And we have, we are getting into those details and final print sockets where those investments are heading. And we would be tracking them very closely to ensure that opportunities are created for us.
Skandaprasad Seetharaman
And of course Santosh, whatever be those opportunities, we will continue to put it through our filter that the projects are either multilaterally funded, sovereign backed federal government scheme like Amrud, like Namami Ganges on the back of it, or a letter of credit. We will not take any exposure on the States. And this is a stated position from our side.
Santosh Keshri
Great. Secondly, my question was about competition in the international market. So are you facing some kind of competition from Chinese players in the projects that we are taking? Or it’s been like as it was two years or three years back.
Shailesh Kumar
See generally no would be the answer. I would say at least on the technology side we see more European competition, the Spanish, the Israeli, the French. That’s the competition in the international market that we do. And our core is technology. So we will worry only about that competition when it comes to construction, where we generally find the Chinese better. We cooperate in some of the jobs where they could become construction partners or construction subcontractors. But generally we don’t see them in competition when it comes to the technology side in the kind of jobs that we are bidding.
Desalination, recycled reuse, effluent treatment, industrial water. We generally don’t. We generally see only the European competition.
Santosh Keshri
Thank you so much, sir. Wish you all good luck.
Shailesh Kumar
Thank you, Santosh.
operator
Thank you. The next question is from the line of Vicky, an individual investor. Please go ahead. Mr. Vicky, please proceed with the question. As there is no response from this participant, can we move forward with the next question? The next question is from the line of Suyesh Bhave from Wealth Guardian. Please go ahead.
Vicky
Sir. Building on the question asked earlier by an earlier participant. From what I understand is that our entire municipal order book or a large chunk of it is what is backed by the mli, the multilateral institutions and sovereign guarantee. So how do we ensure payment security on the industrial side of the business?
Shailesh Kumar
I, as, I, as we have been talking, we are very focused on the risk profile of any project. We do evaluate, we do evaluate the potential, evaluate those customers with whom we are working beyond municipal and many of them are covered with LCs wherever private customers we are working. So looking at the health of the organizations for whom we are working and coupled with lc, we are ensuring that payment securities are intact and we don’t see any risk on that count. Wherever we are working, we have not generally encountering any of those payment risk with the private or industrial customer.
Vicky
Okay sir, thank you.
Shailesh Kumar
Thank you.
operator
Thank you. The next question is from the line of Mr. Hitesh, an individual investor. Please go ahead.
Hitesh
Yeah. Hi, good evening. Yeah, I have two questions as seen in the discussion and maybe a couple of questions I have already gone through. As I can see that you have a split order book like India as well as abroad which is approximately 50%. So seeing the political challenges in the past one one and a half years, do you feel that these kind of like abroad orders may take some kind of backlog or a tough market may arise in future for the company?
Shailesh Kumar
See, this is geopolitical challenges are part of the game. I don’t think that is going to pose challenges. It’s not been new. Whether it is the African continent or earlier in the Middle East. We have always seen that we have an opportunity to work there. So we don’t generally see. In fact, if you see some of the times when we worked on these, let’s say difficult projects. It was right in the middle of these geopolitical challenges. So we don’t really see that affecting the business in any way. Plus we are anyway very diversified. We are not concentrated when it comes to the international geographies.
We are spread across cis, Middle East, Africa, South Asia, Southeast Asia. So this spread allows us to also mitigate some of these concentration risks that may come on account of very localized political or geopolitical issues. So we don’t generally see one by virtue of our diversification and two, by virtue of the fact that the kind of projects that we do and number three, most of these projects that we do internationally are multilaterally backed. So despite having any of these, we have very, very good payment securities. And when it is multilaterally backed, you can be sure that the payments are secure and the project will progress forward.
The multilaterals we don’t see are going to reduce their investment especially on a priority sector like water. So for us as a sector, we remain positive and we feel there’s a lot of tailwinds that are there in terms of the sector.
Hitesh
Right, Very well. And the second question would be that as I can see that over the past one year or so, in 25 to 26 financial year, maybe I’m talking about the results are pretty good, maybe quarter on quarter as well as year on year basis. Despite that the stock has seen a significant correction. Plus the company’s shareholding is pretty less. I mean company is doing pretty well across different parameters as you have told. But over the past six to seven years I cannot see, you know, company increasing their shareholding or things like that. You have decent amount of cash capital also in your balance sheet.
Despite that the share has seen a significant amount of correction. So maybe if you could put some light on that.
Shailesh Kumar
See what we cannot control we will not worry about. And you have seen this correction is broad based. We’ll work on what we can improve. And I think you mentioned that our results in the last one year has been growing. I just want to jog back and if you see from 2020 onwards we have been on the growth path, especially profitable growth. Our PAT has grown at a CAGR of over 30 35%. So it’s not isolated to this last one year. And second, you also seen the stock move from 80100 rupees at a Covid level to all time highs.
So we don’t fundamentally we have been performing, we have been improving and that is what we will control what happens in the market that’s something which there’s no point of worrying about. Right. And we will continue to perform assets. And I am sure what we have seen in the past, the market ultimately rewards people who are consistent. And that is what we will focus on. Continuing to remain net cash positive, continuing to deliver profitable growth and maintaining a very good balance sheet. And I am sure as we move forward in the longer term, a company like us should get the appreciation that it will get.
But we will not run behind that. That’s. That’s something not in our control. We’ll run behind performance which we have delivered and we will continue to deliver.
Hitesh
Thank you so much. But just one question remains unanswered. In case a promoter increases his or her shareholding that gives some amount of, you know, positive sentiment to the investors, also to the shareholders also. So from that point of view, I mean your investment in the past six to seven years has not increased in any form.
Shailesh Kumar
Hitesh. The promoters have not sold even a share, if at all in the early years. They have done some increase in shareholding. These are professional promoters who are there in the company. They have held on to their shares in the best times or in the worst times as you may call it. And that should give enough confidence in the market is our, our feeling. See promoters adding shares, if that is going to change the sentiment, I think.
Skandaprasad Seetharaman
Then. We are too myopic in the view. What you should also look at is that the promoter holding has not gone down at all. They have remained steadfast with this company and I am sure even going forward they will be here. These are our professional promoters. Everything is invested into this organization. So that should give you a lot of confidence that the promoters are completely committed to this, to this sector.
Hitesh
Thank you so much.
Shailesh Kumar
Thank you.
operator
Thank you. The next question is from the line of Santosh Keshwari from Skkhuf. Please proceed.
Shubhankar Mukherjee
Sir, I have one more question regarding AP Genco write off that we did in 2023, 23, 24. So recently there was something. I don’t know if this was reported by but somewhere I read that Supreme Court rejected the arbitration request of Tech Pro and we. I also understand that has been able to complete the project. So where do we stand in terms of the recovery from AP genco? Can we expect some recovery in the next six months or one year? And that amount is large. I understand something like 300 crore plus interest compensation. It could be a big amount.
Shailesh Kumar
See what we are talking about is the 140crores or TS Genco which is the retention money that’s where the Supreme Court ruled in in favor. Of course the legal process, administrative process takes elongated time which is not in our control. Which is the reason why we said we will take out from our books what is not receivable or I would not say what is not immediately receivable. And let us focus on our.
Shailesh Kumar
On our core business. And that’s what we did a couple of years back. We are continually following this, Santosh and we are pursuing all legal routes to see how. How fast we can recover. Obviously this is also one of the focus of the management. While we have taken it off the books, we have not taken it off our sites. But I think we can’t, we can’t put a date or timeline to this because it is completely, completely on actions beyond our country. So. So we will be leave it at that at this point in time. But I’ll give you the assurance that at a management level we are.
We have not lost sight of any of these.
Shubhankar Mukherjee
So the amount is legally still recoverable. Right? Because we completed the project and AP Genco has been able to extract power out of this generation unit and they have been able to build the customers also. Right sir?
Shailesh Kumar
Yeah. The project was completed, started commercial operation date more than five years back. Santosh. And of course in AP Genco there are balance of plants, small balance of plant which is there. But on TS Genco we have completed our project and that is why even the Supreme Court rejected the arbitration request of TechPro. But as it stands it will take few more steps. Obviously everybody will try to see what they can do. But we have not lost sight. We continue to pursue all legal routes to recover this money. But what is most important to understand is none of these is affecting or importance from the current scope of business that we are running.
If and when we get this, I’m sure it is it will be a bonus. But as investors I think you should not worry about this because the business is anyway performing well despite this.
Shubhankar Mukherjee
Yeah, that we understand sir. Only thing was that since the amount is big and this recovery of business be really giving a boost to the company’s finances.
Shailesh Kumar
We also share your sentiment and I’m sure if things go well we should be on the better side of things. But that is not in our control as I said. But as and when it comes fully agree with you, it’s going to be a good filip for us also.
Shubhankar Mukherjee
Thank you so much.
Shailesh Kumar
Thank you Santosh.
operator
Thank you. The next question is from the line of Subhankar from Sanghai family office. Please proceed.
Shubhankar Mukherjee
Hi. Thank you for this opportunity. Can you hear me?
operator
Yes, we can.
Shubhankar Mukherjee
Yeah. Yeah. So my first question is, could you share the correct mix of your domestic order book between government and private sector plan?
operator
Sorry, what was your question?
Shailesh Kumar
Yeah, the mix of order book, domestic order book between government and private clients. 82% of our order book is from municipal clients and 18% from industrial clients.
Shubhankar Mukherjee
Okay. My second question is around after the budget. Right. So are you seeing any traction or demand in government orders?
Shailesh Kumar
As we were looking at earlier, there are investments planned in various cities. There are multiple cities with a defined operation. Growth is planned on that. They are to be provided with next level of infrastructure. And we see them as a prospect, as a potential opportunity. So that area government investment, in addition to that ganga cleaning, other river cleaning prospects are also there. So overall as a part of budget we see continue government continues fasterness in this sector and investment in social sector that is getting maintained. So that is definitely opening up opportunities for us.
Shubhankar Mukherjee
Okay. Okay. Thank you.
operator
Thank you. As there are no further questions from the participants, I would now hand over the conference to Vistal Shailesh Kumar for closing comments. Over to you, sir.
Shailesh Kumar
Thank you once again for your active.
Shailesh Kumar
Participation in our Q3 and 9 month FY26 earnings call. The analyst presentation is available on our website. Should you have any further questions, please feel free to reach out to our factors IR team or contact us directly. We appreciate your continued interest and support and wish you a pleasant evening. Thank you very much.
operator
Thank you. On behalf of VA Tech Wowbag limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.