VA TECH WABAG LIMITED – Investor Presentation Summary

Key Operational Highlights

  • Strong Order Book of ~INR 202 Bn providing robust revenue visibility
  • Order Intake of ~INR 52 Bn in H1 FY27
  • Secured multiple orders from RIL including mega desalination project
  • Debuted in Kuwait with 272 MLD SWRO order from MEWRE
  • Announced large order for expansion of Donauinsel Water Works in Vienna, Austria
  • Net Cash positive for 7th year running (15th consecutive quarter)

Key drivers of operational performance: Technology-intensive projects, international expansion, and focus on large/mega orders in desalination and wastewater treatment.

Segment-wise Performance

Revenue breakdown by business offering (H1 FY27):

  • EPC Business: INR 47,182 Mn
  • O&M Business: INR 4,726 Mn

Revenue breakdown by customer segment (H1 FY27):

  • Municipal: INR 34,599 Mn (67% of total)
  • Industrial: INR 17,309 Mn (33% of total)

Revenue breakdown by geography (H1 FY27):

  • India: INR 25,195 Mn (49% of total)
  • International: INR 26,713 Mn (51% of total)

Explanation of significant changes in segment performance: Growth driven by international expansion with debut in Kuwait and UAE, along with major industrial projects from RIL and continued municipal projects in India.

Financial Highlights

Consolidated H1 FY27 Performance:

  • Revenue: Rs. 18,870 Mn
  • EBITDA: Rs. 2,608 Mn
  • PAT: Rs. 1,947 Mn
  • EPS: Not specified
  • EBITDA Margin: 13.8%
  • PAT Margin: 10.3%

YoY comparison (H1 FY27 vs H1 FY26):

  • Revenue growth: 20.3% (from Rs. 15,685 Mn)
  • EBITDA growth: 20.7% (from Rs. 2,161 Mn)
  • PAT growth: 29.3% (from Rs. 1,506 Mn)

Q2 FY27 Performance:

  • Revenue: Rs. 10,002 Mn (19.9% YoY growth)
  • EBITDA: Rs. 1,446 Mn (20.0% YoY growth)
  • PAT: Rs. 1,046 Mn (23.3% YoY growth)
  • EBITDA Margin: 14.5%
  • PAT Margin: 10.5%

Standalone H1 FY27 Performance:

  • Revenue: Rs. 15,871 Mn (19.3% YoY growth)
  • EBITDA: Rs. 2,269 Mn (20.0% YoY growth)
  • PAT: Rs. 1,687 Mn (28.6% YoY growth)
  • EBITDA Margin: 14.3%
  • PAT Margin: 10.6%

Drivers of financial performance: Higher revenue growth, maintained EBITDA margins, improved operational efficiency, and better working capital management.

Key Risks: Not specifically disclosed in the presentation.

Geographical Revenue Split

  • Domestic: Rs. 25,195 Mn, 49% of Total
  • Export/International: Rs. 26,713 Mn, 51% of Total

Regional Breakdown: Projects across Middle East (Kuwait, UAE, Saudi Arabia, Oman, Bahrain), Europe (Austria, Switzerland, Turkey), Africa (Egypt, Zambia), and Asia (India, Malaysia, Sri Lanka)

Balance Sheet Snapshot

Consolidated (H1 FY27):

  • Total Equity (Net Worth): Rs. 27,553 Mn
  • Borrowings: Rs. 1,821 Mn
  • Cash & Bank Balances: Rs. 12,172 Mn
  • Trade Receivables: Rs. 25,807 Mn
  • Trade Payables: Rs. 11,863 Mn
  • Total Assets: Rs. 62,197 Mn

Standalone (H1 FY27):

  • Total Equity (Net Worth): Rs. 22,582 Mn
  • Borrowings: Rs. 491 Mn
  • Cash & Bank Balances: Rs. 10,321 Mn
  • Trade Receivables: Rs. 22,743 Mn
  • Trade Payables: Rs. 10,849 Mn
  • Total Assets: Rs. 50,701 Mn

Financial Health Insights: Strong cash position with net cash positive status for 15 consecutive quarters, improved working capital management, asset-light business model.

Capex & Cash Flow Health

Consolidated Cash Flow (H1 FY27):

  • Net cash from operations: Rs. 2,246 Mn
  • Net cash used in investing activities: Rs. (640) Mn
  • Net cash used in financing activities: Rs. (750) Mn
  • Cash and cash equivalents at end: Rs. 8,755 Mn

Standalone Cash Flow (H1 FY27):

  • Net cash from operations: Rs. 1,912 Mn
  • Net cash used in investing activities: Rs. (596) Mn
  • Net cash used in financing activities: Rs. (670) Mn
  • Cash and cash equivalents at end: Rs. 7,122 Mn

Investment Rationale: Focus on technology-intensive water solutions, capacity expansion in desalination and wastewater treatment, and international market penetration.

Strategic & R&D Initiatives

Investments in Innovation: Technology-first approach to water solutions including desalination, waste water treatment, recycle & reuse, effluent treatment, drinking water, ZLD, UPW, sludge treatment & energy recovery.

Delivery Models: EP – EPC – DBO – O&M – BOOT – HAM

Expected impact on growth: Order book at more than four times annual revenue provides strong visibility for future growth.

Strategic Rationale: Focusing on securing more large and mega, technology-led projects in both municipal and industrial sectors, with emphasis on water security needs and treated water reuse.

Industry Trends & Business Environment

Macro/Industry Trends: Rising water security needs, push on treated water reuse & desalination for both municipal and industrial sectors.

Impact on Company: Strong tailwinds for the sector, enabling WABAG to secure high-value projects with technology focus.

Management Commentary & Growth Outlook

Strategic Outlook: "We will stay selective, focusing on securing more 'Large' and 'Mega', technology-led projects, and deliver growth and margins in line with our strategic targets" - Rajiv Mittal, Chairman & Managing Director

FY Guidance: Not specifically quantified, but management expressed confidence in growth and margin delivery aligned with strategic targets.

Market Share Targets: Not specified

Risks and Opportunities: Rising water security needs and push on treated water reuse & desalination present strong opportunities for growth.

Awards & Recognition

  • IGBC Net Zero Energy – Platinum Certification for corporate building
  • IWA Project Innovation Awards 2026 Silver for 150 MLD Digha & Kankarbagh Wastewater Project
  • Global Water Awards 2026 "Wastewater Project of the Year" for Digha & Kankarbagh project
  • Bharat ESG & Sustainability Awards 2026 and CSR TIMES Awards 2026 (Silver)
  • Mahatma Lifetime Achievement Award for Mr. Rajiv Mittal
  • Most Preferred Workplace 2026-27 for fourth consecutive year