WABAG Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹961 Cr
verified against source
Revenue YoY
18%
reported change
EBITDA
₹347 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
VA Tech Wabag delivered another quarter of profitable growth with consolidated revenue of Rs 2,530 crore for 9M FY26, up 18% YoY, driven by robust execution across projects and favorable business mix. EBITDA stood at Rs 347 crore with margin of 13.7% within guided range of 13-15%, while PAT grew 24% YoY to Rs 242 crore. The company maintained its net cash positive position for the 12th consecutive quarter with gross cash at Rs 1,080 crore. International revenues contributed 50% of total, underscoring global expansion. Order book stands at Rs 16,300 crore (64% EPC, 36% O&M) providing strong revenue visibility. Key projects including the 400 MLD desalination plant in Chennai and Middle East projects are on track. Management remains confident in medium-term guidance of 15-20% growth with improving margins. Risks include slow domestic order conversion, potential geopolitical headwinds in GCC markets, and pending APGenco arbitration recovery.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated medium-term outlook of 15-20% revenue growth supported by order book strength of over 3x and healthy pipeline of Rs 3,000 crore+ in visibility.
- Company maintained guided range of 13-15% EBITDA margin and indicated directional movement toward higher end of range as O&M mix increases and desalination projects ramp up.
- Current order book of Rs 16,300 crore provides over 4x revenue coverage on total basis and comfortably above 3x even on EPC-only basis, ensuring multi-year execution visibility.
- Due diligence largely complete with definitive agreements under negotiation. Expected to close by fiscal year-end subject to investor investment committee and board approvals.
Risks flagged
- Analyst raised concern that domestic order book has remained flat for 4-5 quarters while international growth drove overall expansion. Management attributed pipeline delays to prospects nearing conclusion but acknowledged near-term domestic market execution decline in Q3.
- Rs 140 crore retention money from completed APGenco project remains pending despite Supreme Court ruling in Wabag's favor. Management acknowledged elongated legal timeline is beyond their control and cannot provide recovery timeline.
- Analyst questioned whether soft oil prices over past year could impact government capex in Middle East. Management dismissed concerns citing water treatment as non-discretionary priority and multilateral funding insulation, though admitted can't control commodity cycles.
- Analyst questioned whether entry into European cluster with high-technology projects could pressure margins given mature market dynamics. Management stated they remain selective and will maintain financial prudence but didn't provide specific margin guidance for European operations.
Key quotes
- International projects account for nearly 50% of order book supporting margin improvement, cash flow and reinforcing our global footprint.
- Our working capital days improved significantly to 101 days for the 9-month period driven by tighter receivables management, continued improvement in billing discipline and a sustained client engagement.
- The international mix brings a lot of advantage to the working capital because the cycle times of collections are better especially in the Middle East and African geographies. Middle East of course sovereign counterparties and Africa multilaterals.
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