VA Tech Wabag (WABAG) Q2 25/26 earnings summary

Executive summary

• Achieved 20% year-over-year PAT growth for H1 FY26, with consolidated PAT at Rs. 1,506 million and robust EBITDA growth, maintaining a net cash positive position for the 11th consecutive quarter.

• Order book exceeded INR 160 billion, with order intake of INR 35 billion in H1 FY26 and a balanced mix of EPC and O&M projects.

• International projects contributed nearly 50% of revenues and order book, reinforcing global leadership and diversified operations.

• Secured strategic wins in future energy solutions, including Ultra-Pure Water, Compressed Bio-Gas, and biogas upgradation projects.

• Maintained strong financial discipline and cash flows, supporting ongoing investments and dividend payments.

Financial highlights

• Consolidated H1 FY26 revenue reached INR 15,685 million, up 18.2% year-over-year; standalone revenue at INR 13,302 million.

• Consolidated EBITDA for H1 was INR 2,161 million (13.8% margin); PAT at INR 1,506 million (9.6% margin), up 20% year-over-year.

• O&M business contributed 19% to revenue; international business accounted for 47%.

• Net cash position at INR 6,753 million as of September 2025; gross cash balance at INR 7,979 million.

• EPS for H1 FY26 at 24.21, up from 20.20 in H1 FY25; PAT CAGR of 38% over five years.

Outlook and guidance

• H2 revenues expected to be stronger than H1, with a robust order pipeline and strategic wins in new sectors.

• Medium-term outlook targets 15-20% revenue CAGR, EBITDA margin of 13-15%, ROCE >20%, and ROE >15%.

• Order pipeline includes INR 30 billion in preferred bidder status and additional INR 20 billion under evaluation.

• Continued focus on asset-light business model, technology expansion, and maintaining net cash positive status.