VA TECH WABAG reported strong results for Q3 and 9M FY26, achieving 24% year-on-year growth in Consolidated Profit After Tax (PAT). Consolidated revenues grew over 18%, reaching Rs. 2,530 crores for the nine months. The company maintained its EBITDA margin at 13.7% and reinforced its balance sheet, closing the period with a historic net cash positive position of over Rs. 1,000 crores. International projects now constitute 50% of year-to-date revenues.
Financial Highlights for Q3 & 9M FY26
VA TECH WABAG announced a period of profitable growth, with Consolidated Revenue reaching Rs. 2,530 crores, marking an increase of over 18% year-on-year. This performance was driven by robust execution across the project portfolio.
Profitability metrics showed significant improvement:
- Consolidated EBITDA for the 9-month period stood at Rs. 347 crores, resulting in a margin of 13.7%, firmly within the guided range of 13% to 15%.
- Consolidated Profit After Tax (PAT) grew by 24% year-on-year, reaching Rs. 242 crores, translating to a margin of about 10%.
- Standalone performance: Revenue, EBITDA, and PAT were Rs. 2,118 crores, Rs. 306 crores, and Rs. 212 crore, respectively.
Strategic Focus and Order Book Strength
The company continues to prioritize profitable growth while strengthening its balance sheet. The order book expanded to over Rs. 163 billion, with international projects accounting for nearly 50% of this book, supporting margin improvement and global footprint reinforcement.
Management highlighted the favorable business mix evolution:
- International revenues contributed 50% of revenues year-to-date.
- The O&M segment contributed 18% of total revenues.
- The order book remains well-balanced at 64% EPC and 36% O&M.
Balance Sheet Resilience
Financial discipline resulted in a consistent strengthening of the balance sheet. The company has remained net cash positive for the 12th consecutive quarter.
Key balance sheet metrics:
- Gross cash position as of December 2025: Rs. 1,080 crores.
- Net cash position: Rs. 891 crores.
- Excluding transient debt, net cash stood at over Rs. 1,000 crores, a historic high.
- Net current working capital days improved significantly to 101 days.
- Return on Capital Employed (RoCE) stood at approximately 19%, with Return on Equity (ROE) over 15%.
Key Project Updates and Market Outlook
Several key projects are progressing on schedule, including the JICA-funded 400 MLD Peru Desalination Plant in Chennai, which is nearing completion of marine works. The World Bank and AIIB-funded 200 MLD Pagla Project in Bangladesh has also picked up pace. Furthermore, the Ghaziabad Nagar Nigam HAM Project achieved final COD on January 1, 2026.
New Energy Sector Penetration
Management confirmed active involvement in the new energy sector, noting:
- Supplying Ultra-Pure Water (UPW) for the RenewSys Solar manufacturing plant.
- Engaging with hydrogen developers, including bidding for a project in Hyderabad.
- Securing an order for compressed biogas development for a municipal body.
Geographical Focus
While maintaining leadership in India, future growth is anticipated to be led by the Middle East and Africa regions, which offer sustained opportunities in desalination and water treatment. The European cluster is seeing improved bidding activity for high-technology water treatment opportunities, where the company will remain selective to ensure margins are maintained, aligning with its 13% to 15% EBITDA guidance.
Source: BSE
