In , Va Tech Wabag Ltd (Water Treatment) is outperforming Nifty 500 with +23.0% relative strength. Fundamentals: Strong. On a 5-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Order Book: ₹16,300 crore
Impact: 4x revenue visibility
“Our order book continued to expand with strategic wins and currently stands at over Rs. 163 billion. It remains well balanced, with 64% EPC and 36% O&M projects”
What: International Revenue %: 50%
Impact: Better working capital and margins
“international projects are certainly better as compared to equivalent Indian projects... cycle times of collections are better, especially in the Middle East and African geographies.”
What: Net Cash: ₹891 crore
Impact: Net interest income scenario
“interest income exceeded interest cost, reflecting strong operational cash flows, efficient working capital management and disciplined treasury practices”
What: O&M Revenue %: 18%
Impact: Margin expansion
“between an EPC and O&M, generally, the O&M is far better than EPC, and that's one of the reasons why we want to improve the O&M share.”
What: Future Energy Pipeline: ₹3,500 crore
Impact: New revenue stream
“roughly, you can say that this will be a market of around, say, INR3,500 crore.”
What: PAT growth of 24% YoY
“our bottom line grew by 24% year-on-year... interest income exceeded interest cost, reflecting strong operational cash flows, efficient working capital management”
Earnings deceleration risks from management commentary
Trigger: Implementation of new labour codes in India.
Impact: PAT impact: Not Given
Management view: Managed within the guided EBITDA range of 13-15%.
Monitor: labor
Trigger: Contractual disputes and tax authority demands.
Impact: PAT impact: ₹87 crore potential hit
Management view: Pursuing legal recourse; confident that the demand will not stand.
Monitor: litigation
Trigger: 50% of revenue comes from international projects in foreign currency.
Impact: PAT impact: ₹30 crore gain in Q2
Management view: Natural hedging through packing credits and foreign currency liabilities; hedging only the residual delta.
Monitor: fx
Trigger: Operations in 27 countries including Africa and Middle East.
Management view: Geographical diversification and focus on multilaterally funded projects with sovereign guarantees.
Monitor: geopolitical
Key quotes from recent conference calls
“On the profitability front, consolidated EBITDA for H1 stood at INR216 crore with a margin of 13.8%, in line with our target band of 13% to 15% EBITDA [Previous EBITDA Margin guidance]”
“roughly, you can say that this will be a market of around, say, INR3,500 crore. [Initiative: Future Energy Solutions (Solar, Hydrogen, Biogas)]”
“Despite a onetime statutory impact due to the implementation of new labour codes, our bottom line grew by 24% year-on-year. [Risk (labor): MEDIUM]”
“the company had received a demand from the Customs department to the tune of INR87 crore... we are very, very confident that this demand is not something that would stand [Risk (litigation): MEDIUM]”
Headline numbers from the latest earnings call
Revenue
₹2,530 crore
Why: Growth was driven by steady execution across projects, with newer and larger projects progressively ramping up during the year.
Revenue growth remained healthy at over 18%, fully in line with medium-term guidance.
EBITDA
₹347 crore
Why: EBITDA increased by 20% year-on-year while maintaining margins within the guided range despite a onetime statutory impact from new labour codes.
Margins remained firmly in line with the mid-term outlook of 13% to 15%.
PAT
₹242 crore
Why: Bottom line growth was driven by disciplined project execution, strong operational delivery, and interest income exceeding interest cost.
PAT grew faster than the top line, reflecting enhanced execution efficiency and quality industrial projects.
Other Highlights
• Net cash positive for 12th consecutive quarter with over ₹1,000 crore cash balance.
• International projects contributed 50% of revenues for the fiscal year-to-date.
• Order book stands at over ₹163 billion with 64% EPC and 36% O&M mix.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total Order Book
₹16,300 crore
Why: Driven by strategic wins in international markets and domestic industrial projects.
EPC Share of Order Book
64%
O&M Share of Order Book
36%
Why: Strategic focus on increasing stable, high-margin recurring revenue.
International Revenue Contribution
50%
Why: Reflects the company's growing global presence and focus on better-paying international geographies.
Net Working Capital Days
101 days
Why: Driven by tighter receivables management and continued improvement in billing discipline.
Net Cash Position
₹891 crore
Why: Strong operational cash flows and efficient capital management.
Book-to-Bill Ratio
4x
Return on Capital Employed
19%
Why: Reflects the efficiency of the asset-light business model.
Desalination Share of Order Book
33%
Why: Major projects like Perur and Yanbu contributing significantly to the mix.
Domestic Municipal Client Mix
82%
Forward-looking targets from management for Medium-term
Revenue Growth Target
18%
OPM Guidance
13–15%
Capex Plan
₹5 Cr
18%+
EBITDA margin target band reaffirmed.
₹5 crore to ₹10 crore
Maintenance depreciation
Guidance Changes
EBITDA Margin: 13% to 15% → 13% to 15%
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +19% | +3% | Stable |
| PAT (Net Profit) | +30% | +31% | Stable |
| OPM | 13.0% | +100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Va Tech Wabag Ltd's latest quarterly results (Dec 2025) show
Va Tech Wabag Ltd's profit is growing with an stable trend.
Va Tech Wabag Ltd's revenue growth trend is stable.
Va Tech Wabag Ltd's operating margin is stable.
Va Tech Wabag Ltd's long-term compounding rates
Va Tech Wabag Ltd's earnings growth is stable with mixed signals on a sequential basis.
Va Tech Wabag Ltd's trailing twelve month (TTM) performance
Va Tech Wabag Ltd appears significantly undervalued based on our fair value analysis.
Va Tech Wabag Ltd's current PE ratio is 27.2x.
Va Tech Wabag Ltd's current PE is 27.2x.
Va Tech Wabag Ltd's price-to-book ratio is 4.0x.
Va Tech Wabag Ltd is rated Strong with a fundamental score of 66.64/100. This score is calculated from objective financial metrics
Va Tech Wabag Ltd has a debt-to-equity ratio of N/A.
Va Tech Wabag Ltd's return ratios over recent years
Va Tech Wabag Ltd's operating cash flow is positive (FY2025).
Va Tech Wabag Ltd's current dividend yield is 0.26%.
Va Tech Wabag Ltd's shareholding pattern (Mar 2026)
Va Tech Wabag Ltd's promoter holding has decreased recently.
Va Tech Wabag Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Va Tech Wabag Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
Va Tech Wabag Ltd has 6 key growth catalysts identified from recent earnings analysis
Va Tech Wabag Ltd has 4 key risks worth monitoring
In Q3 FY26, Va Tech Wabag Ltd's management highlighted
Va Tech Wabag Ltd's management has provided the following forward guidance for Medium-term
Va Tech Wabag Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Va Tech Wabag Ltd may be worth studying
Va Tech Wabag Ltd investment thesis summary:
Va Tech Wabag Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
