VA Tech Wabag announced record financial results at its 31st AGM, posting INR 3,944 crore in revenue and INR 371 crore in profit. The company maintains a strong order book exceeding INR 17,200 crore. Management outlined a strategic pivot toward high-growth industrial sectors, including semiconductor manufacturing, green hydrogen, and Compressed Biogas, targeting 15-20% revenue growth in the medium term.
VA Tech Wabag Reports Record Financial Performance and Strategic Expansion
Revenue: INR 3,944 Crore | PAT: INR 371 Crore
Reader Takeaway: Strong order visibility and high-margin O&M contracts drive growth, though execution in new industrial segments remains key.
What just happened
VA Tech Wabag held its 31st Annual General Meeting, reporting its highest-ever financial results for FY 2025-26. The company achieved a revenue of INR 3,944 crore and a profit after tax (PAT) of INR 371 crore. An order book exceeding INR 17,200 crore provides robust revenue visibility for the coming years.
Why this matters
The company is strategically shifting its focus toward 'industries of tomorrow,' which require high volumes of ultra-pure water. This includes the semiconductor, solar, green hydrogen, and data center segments. Additionally, the firm is aggressively pursuing the Compressed Biogas (CBG) market, aiming to leverage its sewage treatment infrastructure to roll out over 100 plants under the government's GOBARdhan scheme.
The backstory
Over the last three years (FY23-FY26), VA Tech Wabag has maintained a revenue CAGR of 18% and a PAT growth of 23%. During this period, the company has transformed its balance sheet, moving from a net cash position of INR 100 crore in March 2023 to a total cash position exceeding INR 1,000 crore by March 2026.
What changes now
Management has reiterated a medium-term target of 15% to 20% annual revenue growth with EBITDA margins in the range of 13% to 15%. Long-term Operation and Maintenance (O&M) contracts now account for over 35% of the total order backlog, offering a stable and cash-accretive revenue stream.
Risks to watch
While the Middle East remains a core market, management noted minor supply-chain bottlenecks and increased transit times. Investors should continue to monitor the execution pace of new industrial projects and the scaling efficiency of the new biogas initiatives.
Context metrics
- EBITDA: INR 524 Crore
- Final Dividend: INR 5 per share
- Targeted ROCE: 20%
- Targeted ROE: Above 15%