VA Tech Wabag (WABAG) Q2 26/27 earnings summary

Executive summary

• H1 FY27 consolidated revenue rose 20.3% YoY to ₹18,870m; EBITDA rose 20.7% to ₹2,608m and PAT rose 29.3% to ₹1,947m.

• Record order book reached ₹202.071bn, more than 4x annual revenue, on H1 order intake of ₹51.908bn.

• Net cash excluding HAM stood at ₹11,442m, extending positive net cash to a 15th consecutive quarter.

Financial highlights

• Q2 FY27 revenue was ₹10,002m, up 19.9% YoY; EBITDA was ₹1,446m, up 20.0%, and PAT was ₹1,046m, up 23.3%.

• H1 EBITDA margin was 13.8%; PAT margin improved to 10.3% from 9.6% YoY.

• Standalone H1 revenue rose 19.3% to ₹15,871m; EBITDA increased 20.0% to ₹2,269m and PAT grew 28.6% to ₹1,687m.

• Consolidated H1 operating cash flow was ₹2,246m, versus cash used of ₹486m in the prior-year period.

• H1 consolidated results included a ₹47m exceptional expense; Q2 reported no exceptional item.

Outlook and guidance

• Medium-term targets include revenue CAGR of 15%-20%, EBITDA margin of 13%-15%, ROCE above 20%, ROE above 15%, and O&M at 20% of revenue.

• Medium-term order book target is 3x revenue; the H1 order book was already above 4x, with growth on track.

• Management expects strong order intake over the next 12-18 months, citing peak bidding activity and large opportunities under bid or evaluation.

• Strategy remains selective, prioritizing large and mega technology-led projects; Wriddhi 2.0 is planned for unveiling at the May 2027 investor meet.