Va Tech Wabag Ltd is engaged in the business of water treatment field. Its principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants. It undertakes water projects through various business/delivery models such as EPC, O&M, Design Build Operate (DBO), Build-own-operate-transfer (BOOT), and Hybrid Annuity Model (HAM). The company is ranked the third largest private water operator in the world and among the Top 5 Global Desalination players by Global Water Intelligence, UK. Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Revenue: ₹734 crore, up 17.2% year-over-year (YoY) but down 36.5% quarter-on-quarter (QoQ).
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EBITDA: ₹106.9 crore, up 18% YoY; EBITDA margin improved to 14.4% (up from 14.1% YoY).
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Profit After Tax (PAT): ₹65.8 crore, up 20.1% YoY but down 15.7% QoQ.
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Earnings Per Share (EPS): ₹10.5, up 19.6% YoY and down 32% QoQ; reflects strong operational leverage.
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Expenses: ₹658.6 crore, up 16.5% YoY and down 37.1% QoQ.
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Gross Margin: Improved to 28.7% from 26.6% a year ago; aided by better execution and favorable project mix.
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Order Inflow: ₹2,600 crore in Q1, taking total order book to ₹15,800 crore (over 4x annual revenue).
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Net Cash Position: ₹627 crore.
Management Commentary & Strategic Highlights
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Profits and margins exceeded expectations, driven by favorable project execution and strong overseas contributions.
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Key order wins included: ₹2,038 crore Yanbu desalination project (Saudi Arabia) and ₹380 crore Bengaluru sewage treatment; preferred bidder for pending ₹3,500 crore projects.
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VA Tech Wabag continues to benefit from secular demand growth in water infrastructure, domestically and globally.
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Management aims for 15–20% CAGR revenue growth over 3–5 years, targeting margins in the 13–15% range.
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Balance sheet remains strong and order pipeline robust, providing multi-year visibility.
Q4 FY25 Earnings Results
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Revenue: ₹1,156 crore, up by 23.7 percent on the YoY basis
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PAT: ₹100 crore, depicting a growth of 22 percent during the same quarter last year.
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Sequential revenue and profit stronger than Q1 FY26 due to seasonal/project factors.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.