Denta Water Reports 70% Jump in Q2 Net Profit, Driven by Strong Revenue Growth

Denta Water and Infra Solutions Limited , a leading civil engineering contractor in the water infrastructure sector, has reported robust financial results for the second quarter of fiscal year 2025-26. The company's performance showcases significant growth across key financial metrics, underlining its strong position in the water management and infrastructure domain.

Financial Highlights

Particulars	Q2 FY26	Q2 FY25	YoY Growth
Revenue (₹ in crore)	742.69	482.89	53.80%
EBITDA (₹ in crore)	263.07	152.98	71.96%
EBITDA Margin (%)	35.42%	31.68%	3.74%
Net Profit (₹ in crore)	189.29	110.63	71.12%
Net Profit Margin (%)	24.61%	22.83%	1.78%

Key Takeaways

Revenue Surge: Denta Water and Infra Solutions' revenue witnessed a substantial increase of 53.80% year-over-year, reaching ₹742.69 crore in Q2 FY26. This growth is attributed to accelerated project execution and milestone completions in key water management contracts.
Profit Boost: The company's net profit jumped by 71.12% to ₹189.29 crore, compared to ₹110.63 crore in the same quarter last year. This significant increase reflects the company's ability to maintain profitability despite inflationary pressures in material costs.
Margin Improvement: EBITDA margin expanded to 35.42% from 31.68% in the previous year, indicating improved operational efficiency and cost management.
Operational Excellence: The strong financial performance is underpinned by disciplined execution and a robust project pipeline in the company's core water infrastructure business.
Geographic Expansion: Denta Water and Infra Solutions has made progress in expanding its footprint across new geographies, including Maharashtra and Uttar Pradesh, aligning with its diversification strategy into allied infrastructure domains such as railways and highways.
New Projects: The company has secured new projects, including a water management subcontract worth ₹342.15 crore and additional projects amounting to ₹1,355.40 crore, indicating a strong order book and potential for future revenue growth.

Management Commentary

Mr. C. Mruthyunjaya Swamy, Chairman of Denta Water and Infra Solutions, commented on the results, stating, "Our Q2 performance reinforces the consistency of our execution capabilities and our ability to sustain profitability even in a competitive operating environment. With a growing order book and expanding geographic presence, we remain focused on delivering sustainable infrastructure that supports India's water resilience."

Future Outlook

Denta Water and Infra Solutions maintains a positive outlook for the second half of FY2025-26. The company's strong execution pipeline, coupled with prudent financial management, positions it well for continued growth. The focus remains on delivering high-impact water infrastructure projects and expanding into allied sectors, which aligns with India's growing infrastructure needs.

The company's debt-light position, healthy equity base, and robust liquidity reserves provide a solid foundation for future expansion and project undertakings. As Denta Water and Infra Solutions continues to secure new orders and diversify its project portfolio, it is well-positioned to capitalize on the opportunities in the water infrastructure and allied sectors.

Investors and market observers will likely keep a close watch on Denta Water and Infra Solutions' performance in the coming quarters, as the company continues to play a crucial role in India's water management and infrastructure development landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.42%	-4.42%	-8.43%	+26.49%	+12.85%	+12.85%

Denta Water and Infra Solutions has clinched a significant sewage project contract, further solidifying its position in the water and infrastructure sector. The company announced that it has won a contract valued at ₹331.89 million, marking a substantial addition to its growing portfolio of projects.

Contract Details

The newly secured contract, focusing on sewage infrastructure, demonstrates Denta Water and Infra Solutions' continued expertise and competitiveness in the water management and infrastructure development space. While specific details of the project remain undisclosed, the contract's substantial value suggests it is likely to involve comprehensive sewage system development or upgradation.

Expanding Order Book

Following this latest acquisition, Denta Water and Infra Solutions reported that its total order book has now reached ₹7,481.02 million. This figure represents the cumulative value of ongoing and upcoming projects, providing a strong indication of the company's future revenue potential and operational pipeline.

Implications for Growth

The addition of this ₹331.89 million contract to Denta Water and Infra Solutions' order book is significant, accounting for approximately 4.4% of the total order book value. This new project not only contributes to the company's robust project pipeline but also underscores its ability to secure high-value contracts in the competitive infrastructure sector.

Market Position

With a total order book of ₹7,481.02 million, Denta Water and Infra Solutions appears well-positioned in the water and infrastructure solutions market. The consistent securing of new contracts suggests a strong market demand for the company's services and expertise in sewage and water infrastructure projects.

This latest contract win reflects Denta Water and Infra Solutions' ongoing commitment to expanding its presence in the water and infrastructure sector, potentially leading to enhanced revenue streams and operational growth in the coming periods.