VA Tech Wabag (WABAG) Q4 25/26 earnings summary

Executive summary

• Achieved 21% year-over-year revenue growth, with PAT up 26% to ₹3,705 million and a record order book exceeding ₹172 billion, reflecting robust order intake and execution.

• Maintained a net cash positive position for the sixth consecutive year, with net cash at ₹9,500 million and gross cash at ₹10,592 million.

• Board recommended a final dividend of ₹5 per share (250% of face value), underscoring strong cash generation and shareholder value.

• Strategic focus on technology-led water solutions, expansion into Ultra-Pure Water and Bio-CNG, and investment in talent and innovation.

• Credit rating reaffirmed at IND AA- / Stable, supported by a diversified EPC and O&M portfolio and advanced technology projects.

Financial highlights

• Consolidated revenue from operations grew to ₹39,442 million, up 19.7% year-over-year; EBITDA rose 21.8% to ₹5,241 million; PAT increased 25.5% to ₹3,705 million.

• EBITDA margin improved to 13.3%, PAT margin at 9.4%, and ROCE at 19.4%.

• Net cash position at ₹9,500 million, with ROE at 15.7%.

• Order intake exceeded ₹75 billion, with a closing order book above ₹172 billion, providing robust revenue visibility.

• Earnings per share (consolidated, basic) increased to ₹70.24 from ₹50.09 year-over-year.

Outlook and guidance

• Medium-term outlook targets 15%-20% CAGR revenue growth, EBITDA margin of 13%-15%, and O&M share rising to 20%.

• Order book expected at 3x revenue, with continued net cash-positive status and focus on asset-light business model.

• Management reaffirmed focus on technology-led lifecycle water solutions and expansion into new energy adjacencies, including Ultra-Pure Water and Bio-CNG.

• Ongoing strategy refresh and five-year blueprint in progress.