VA Tech Wabag Q4 FY26 results: net profit up 28.6% to ₹128 crore, revenue up 22.3%

How did VA Tech Wabag perform in Q4 FY26?

VA Tech Wabag’s consolidated Q4 FY26 revenue was ₹1,414 crore, up 22.3% from ₹1,156 crore in Q4 FY25 and 47.1% from ₹961.30 crore in Q3 FY26. EBITDA was ₹157.40 crore, with a margin of 11.1%, compared with 12.2% a year earlier and 12.6% in the previous quarter. Net profit was ₹128 crore, against ₹99.50 crore in Q4 FY25 and ₹91.30 crore in Q3 FY26.

Q4 FY26 basic EPS was ₹22.68, up 20.4% from ₹18.83 in Q4 FY25 and 45.1% from ₹15.63 in Q3 FY26. Profit before tax was ₹171.20 crore, compared with ₹131.10 crore a year earlier and ₹120.50 crore in the previous quarter. On a standalone basis, revenue was ₹1,166.9 crore and PAT was ₹122.6 crore.

What changed in VA Tech Wabag's costs and profit?

The consolidated Q4 FY26 result reflected higher revenue and other income, alongside increased expenses. Total expenses were ₹1,275 crore, up ₹236.80 crore from ₹1,038 crore in Q4 FY25; cost of materials was ₹1,100 crore, up ₹158.20 crore, and employee cost was ₹80.20 crore, up ₹3.60 crore. Other expenses were ₹63.20 crore versus ₹13.50 crore, while finance costs fell ₹4.90 crore to ₹16.60 crore.

Other income was ₹31.90 crore, up ₹20.50 crore from ₹11.40 crore in Q4 FY25, and there was no exceptional item. Tax expense was ₹41.90 crore, up ₹10.30 crore from ₹31.60 crore. The filing did not state a reason for the year-on-year movement in other expenses or the change in profit attributable to owners of the parent.

Against Q3 FY26, total expenses rose ₹415.80 crore, including a ₹375.60 crore increase in cost of materials and a ₹22.20 crore increase in other expenses. Other income rose ₹8.70 crore and tax expense rose ₹11.90 crore; the previous quarter included an exceptional charge of ₹4.70 crore.

How did VA Tech Wabag do in FY26 as a whole?

For FY26, consolidated revenue was ₹3,944.2 crore, up ₹650.2 crore or 19.7% from ₹3,294.0 crore in FY25. Total income was ₹4,038.5 crore, up 21.0% from ₹3,338.6 crore. The company reported a full-year PAT of ₹369.8 crore, compared with ₹294.8 crore in FY25, while basic EPS rose to ₹70.24 from ₹50.09.

FY26 profit before tax was ₹487.9 crore, up 26.9% from ₹384.4 crore in FY25. The company’s investor presentation reported FY26 EBITDA of ₹5,241 million, up approximately 22% year on year, and an EBITDA margin of 13.3%.

What do the balance sheet and cash flow show?

At 31 March 2026, total assets were ₹6,122.4 crore, compared with ₹5,462.1 crore at 30 September 2025. Total equity was ₹2,573.7 crore against ₹2,329.0 crore, borrowings were ₹228.4 crore against ₹236.5 crore, and cash was ₹785.1 crore against ₹582.2 crore. Inventories were ₹35.8 crore, trade receivables ₹2,523.6 crore and trade payables ₹1,262.2 crore.

FY26 operating cash flow was ₹206.7 crore, compared with ₹355.2 crore in FY25. Investing cash flow was ₹-20.4 crore against ₹-121.0 crore, financing cash flow was ₹-184.9 crore against ₹34.0 crore, and capital expenditure was ₹5.2 crore compared with ₹4.5 crore. The company reported a gross cash position of ₹10,592 million and a net cash position of ₹8,337 million, marking its sixth consecutive year of net cash-positive operations.

How has VA Tech Wabag done over the last 8 quarters?

Revenue peaked at ₹1,568.5 crore in Q2 FY26 and was ₹1,414.4 crore in Q4 FY26, after ₹961.3 crore in Q3 FY26. PAT peaked at ₹150.6 crore in Q2 FY26 and was ₹128.0 crore in Q4 FY26, after ₹91.3 crore in Q3 FY26. The Q4 EBITDA margin was 11.1%, below the 12.7% recorded in Q2 FY26.

Revenue and profit rose year on year in each of the last eight quarters. The latest quarter nevertheless showed lower revenue, profit and EBITDA margin than Q2 FY26, while remaining above the corresponding Q4 FY25 figures.

Which businesses drove the quarter?

India reported Q4 FY26 revenue of ₹621.8 crore, down 6.1% from ₹662.0 crore in the year-ago quarter, while EBIT was ₹60.1 crore against ₹127.2 crore. The reported EBIT margin was 9.7%.

Rest of the World reported revenue of ₹792.4 crore, up 54.8% from ₹511.8 crore, and EBIT of ₹232.7 crore against ₹73.0 crore. Its reported EBIT margin was 29.4%. Un-allocable revenue was ₹16.7 crore, up 187.9% from ₹5.8 crore, with EBIT of ₹26.4 crore; there was no exceptional item.

What else did the company announce?

The Board approved the audited consolidated and standalone financial results for the quarter and year ended 31 March 2026, and the statutory auditors issued unmodified opinions. It recommended a final dividend of ₹5 per equity share of face value ₹2 each, or 250%, subject to approval at the 31st AGM. The Board also approved the appointment of Bhupesh Chowdary Nagineni as Deputy Managing Director and Rohan Mittal as Head – Strategy & Business Growth – GCC, both effective 21 May 2026.

VA Tech Wabag filed an investor presentation on the audited Q4 and FY26 results and a presentation covering standalone and consolidated results for the quarter and year ended 31 March 2026. A same-day business update said the company secured a design, build and operation order for a wastewater treatment plant in Delhi.

What did VA Tech Wabag's management say?

Management maintained medium-term guidance of 15–20% revenue CAGR and a 13–15% EBITDA margin, with FY26 revenue growth at approximately 20% and an EBITDA margin of 13.3%. Management expected ROCE to cross 20% in 1–2 years from 19.4%, and said the order book was approximately 4x revenue against guidance of at least 3x. It also maintained ROE guidance of 15%+, with FY26 at approximately 16%.

Management said the order book was ₹17,200 crore, order intake was ₹7,500 crore against ₹5,700 crore in the previous year, and the final dividend was raised to ₹5 per share from ₹4. It said a Kuwait order was expected in the next month, the Saudi Hadda order was expected in the next quarter, and Yanbu’s mega-desal project would open a new desalination franchise. Management also said it planned to unveil a new five-year strategy with upgraded guardrails by year-end.

Management identified geopolitical instability in the Gulf, government spending reprioritisation, currency and raw-material volatility, competition, project-phase-related volatility in India and lumpiness in EPC revenue recognition as risks. It said O&M revenue was 17% of revenue and aimed to reach 20%, while the O&M share of the order backlog was approximately 40%.

How did VA Tech Wabag shares react?

The results were filed after market hours. From the price when the filing appeared, the stock was down 0.4% after five minutes, up 0.2% after 15 minutes and up 0.1% after 30 minutes. On the reaction day, it closed 1.5% above the previous close, while the Other Utilities industry median rose 0.2%, giving an excess move of 1.3 percentage points.

By the next day’s close, the stock was up 2.6% from its pre-results close, compared with a 1.8% industry median move and a 1.7% Nifty Microcap 250 move. By the fifth day’s close, it was up 9.8% from the pre-results close, while the industry median fell 0.9% and the market index rose 0.6%; the excess sector move was 10.7 percentage points. Earlier reaction-day moves were mixed, including 1.8% on 5 February 2026 and 7.8% on 21 May 2025.