VA Tech Wabag (WABAG) Q3 25/26 earnings summary

Executive summary

• Achieved over 18% year-on-year revenue growth for the nine months ended December 2025, with EBITDA up 20% and PAT up 24%, maintaining an EBITDA margin of 13.7% and net cash positive for the twelfth consecutive quarter.

• Order book exceeded INR 163 billion, up 15% YoY, well-balanced between EPC and O&M, providing strong revenue visibility.

• Net cash position surpassed INR 1,000 crore (INR 8,913 million), with gross cash at INR 10,795 million, reflecting strong balance sheet management.

• Strategic focus on expanding in the Middle East, CIS, Southeast Asia, and consolidating leadership in India, with breakthrough orders in future energy solutions.

• Credit rating reaffirmed at AA-/Stable and A1+, reflecting a robust credit profile.

Financial highlights

• Consolidated revenue for nine months at INR 25,298 million, up 18% YoY; Q3 revenue at INR 9,613 million, up 18.5% YoY.

• Consolidated EBITDA at INR 3,470 million (13.7% margin), and PAT at INR 2,422 million (9.6% margin), with PAT up 24% YoY.

• Standalone revenue, EBITDA, and PAT at INR 21,175 million, INR 3,056 million, and INR 2,118 million, respectively.

• Free cash generation of about INR 300 crore for the nine months, with minimal CapEx due to asset-light model.

• Net current working capital days improved to 101 days, reflecting tighter receivables and billing discipline.

Outlook and guidance

• Confident in sustaining profitable growth, supported by a strong order pipeline and alignment with medium-term strategy.

• Medium-term guidance of 15%-20% revenue growth, EBITDA margin in the 13%-15% range, ROCE above 20%, and ROE above 15%.

• Order book expected to remain at 3x revenue, with O&M contributing 20% of total revenues.

• Focus on increasing international business share, especially in Middle East, Africa, CIS, and Southeast Asia.

• Continued emphasis on asset-light operations, net cash positive position, and value creation for stakeholders.