VA Tech Wabag (WABAG) Q4 24/25 earnings summary

Executive summary

• Celebrated centenary year with global stakeholder events and record financial performance, achieving consolidated revenue of INR 32,940 million for FY25, up 15% year-over-year, and PAT of INR 2,953 million, a 20% increase year-over-year.

• Maintains a pure-play water focus, leveraging proprietary technology, strong R&D, and recognized as a top global desalination player.

• Robust order book of INR 136,667 million provides revenue visibility for 3–4 years, with significant international expansion and order intake of INR 57 billion.

• Strategic focus on sustainability, circular economy, and resource recovery aligns with global ESG trends and innovation in water technology.

• Asset-light model and disciplined project selection drive profitability, resilience, and operational efficiency.

Financial highlights

• Achieved historic highs in order book, sales, EBITDA (INR 4,302 million), PAT (INR 2,953 million), net cash, and free cash flow for FY25.

• Free cash flow for the year reached INR 353 crore; gross cash position at INR 9,462 million, net cash at INR 7,056 million (excluding HAM), and net cash at INR 5,890 million (consolidated).

• ROE delivered at 14.9%, PAT margin at 9%, EBITDA margin at 13.1%, with working capital days at 110.

• Credit rating upgraded to AA-/Stable, a rare achievement for an EPC company.

• Board approved/recommended a 200% dividend (INR 4 per share) for FY25, rewarding shareholders after four years.

Outlook and guidance

• Multi-year guidance targets have been met or surpassed in the first year, with medium-term outlook targeting 15–20% CAGR in revenues, EBITDA margin of 13–15%, and ROCE above 20%.

• Order backlog maintained at 3–4x annual revenues, supporting medium-term growth, with O&M contributing 20% of total revenues.

• Focus remains on profitable, asset-light growth, with bottom line prioritized over top line expansion.

• International business, especially Middle East and Africa, identified as key growth engines.

• Strategic partnership with Norfund-led consortium to enhance municipal infrastructure investments.