Va Tech Wabag Limited reported record financial results for FY26, driven by strong execution in water treatment and desalination projects. The company delivered profitable growth while maintaining a net cash position for the sixth consecutive year.

va tech wabag posted revenue of ₹3,944 crore for the fiscal year ended March 31, 2026, representing nearly 20% growth over the prior year. Profit after tax reached ₹371 crore, marking the highest level in the company’s history. EBITDA stood at ₹524 crore, keeping margins within the guided range of 13% to 15%.

Financial Performance and Cash Position

The CFO highlighted that the company grew its net positive cash balance from ₹100 crore in March 2023 to over ₹950 crore by March 2026. This tenfold increase in cash reserves was achieved through operating cash generation and efficient debt management. The Board recommended a final dividend of ₹5 per equity share for FY26, an increase from ₹4 per share in the previous year.

Order Book and Growth Drivers

The company closed FY26 with an order book exceeding ₹17,200 crore, providing multi-year revenue visibility. The backlog is diversified across geographies and includes a mix of EPC contracts and long-term operation and maintenance (O&M) agreements. Approximately 35% of the order backlog consists of long-term O&M contracts, which typically run for 15 to 20 years and are characterized by high margins and asset-light structures.

Major order wins during the year included large-scale projects in India, such as a ring main system in Chennai and sewage treatment plants funded by the World Bank. Internationally, the company secured significant orders in Saudi Arabia and Bahrain. The management noted that the Middle East remains central to the international growth strategy, supported by ambitious infrastructure programs and the growing adoption of PPP models.

What the Numbers Show

The divergence between top-line and bottom-line growth underscores improving operational efficiency. While revenue grew approximately 20%, profit after tax expanded at a faster clip, reflecting disciplined cost management and a shift toward higher-margin O&M contracts. The sustained net cash position despite aggressive order intake indicates strong working capital discipline and robust payment security mechanisms in place.

Strategic Outlook

Management emphasized emerging opportunities in ultra-pure water systems required for semiconductor manufacturing, data centers, and green hydrogen production. The company has established a dedicated team to address these high-tech industrial water needs. Additionally, Va Tech Wabag is expanding its presence in compressed biogas (CBG), leveraging its expertise in wastewater treatment to convert biogas into renewable energy. The company plans to install over 100 CBG plants in the coming years, aligning with government initiatives like the GOBARdhan scheme.

Va Tech Wabag has signed the Doha SWRO II contract, marking its entry into Kuwait with an order worth over ₹10 billion.

Contract highlights

The following table summarises the key details of the announced contract:

The Doha SWRO II contract represents a significant international order win for Va Tech Wabag, extending the company's footprint into Kuwait. The deal underscores the company's growing presence in the Middle East water treatment sector.