VA Tech Wabag (WABAG) Q1 26/27 earnings summary

Executive summary

• Achieved record order book of INR 194 billion in Q1 FY27, with robust order intake of INR 34 billion, providing strong revenue visibility and reflecting a selective bidding approach.

• Entered new markets in Kuwait and UAE with major desalination and wastewater projects, and secured significant wins in India and Austria.

• Maintained net cash positive position for the 14th consecutive quarter, reinforcing balance sheet strength and disciplined execution.

• Strategy focuses on asset-light, technology-led growth, expanding into desalination, reuse, resource recovery, and digitalization.

• Expanded presence in key markets with major order wins in GCC, India, and Europe.

Financial highlights

• Consolidated revenue from operations at INR 8,868 million, up 21% year-over-year; EBITDA at INR 1,163 million, up 21.7% YoY, with EBITDA margin at 13.1%.

• PAT at INR 901 million, up 37% year-over-year, with PAT margin at 10.2%.

• Standalone revenue at INR 7,393 million, up 15% year-over-year; standalone PAT up 30%.

• Net cash balance (excluding HAM) at INR 9,649 million; net working capital days at 108.

• Order book at historic high of INR 194 billion, over 4x revenue base.

Outlook and guidance

• Healthy opportunity pipeline across target markets, driven by water security needs from urbanization, climate change, and industrialization.

• Revenue growth guidance of 15%-20% for the year, with execution aligned to this target.

• Medium-term EBITDA margin outlook maintained at 13%-15%; ROCE above 20%, ROE above 15%.

• Confident of sustaining profitable growth, capital efficiency, and net cash positive balance sheet.

• Asset-light business model and focus on O&M to comprise 20% of total revenues.