Transcript of the Q1 FY26 Earnings Conference Call
WABAG · price
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VA Tech Wabag reported a strong start to FY26 with consolidated revenue of INR 734 crores, up 17% year-on-year, and consolidated EBITDA of INR 96 crores, up around 18%. Consolidated PAT grew over 20% to INR 66 crores, giving a PAT margin of 9%. The company maintained its 10th consecutive quarter of being net cash positive, with net cash of INR 510 crores and gross cash of INR 815 crores. Two major orders were secured this quarter: INR 380 crore water reuse facility for BWSSB Bengaluru and a INR 2,332 crore 300 MLD seawater desalination plant at Yanbu, Saudi Arabia—the largest international order in company history. Order book stands at over INR 15,750 crores (~5x annual revenue), with additional preferred bidder status on projects worth INR 3,500 crores. Management reaffirmed its 3-5 year medium-term guidance of 15-20% revenue growth and 13-15% EBITDA margins, delivering Q1 numbers within both bands. RoCE exceeded 18% and RoE stood at 15%.
Strong execution across multiple geographies and robust order inflows (including the record Yanbu win) reinforce growth visibility for the next 3-5 years. Improving profitability, net cash positive balance sheet, and 200% dividend approval are positive signals for shareholders, though margins depend on project mix and should be assessed on a multi-year basis.