WPIL Limited , a leading player in the pumps and pumping systems segment, has reported a mixed set of financial results for the second quarter of fiscal year 2026. While the company experienced a decline in overall revenue, its international business showed significant growth, helping to offset challenges in the domestic market.

Key Financial Highlights

International Business Drives Growth

The standout performer for WPIL in Q2 FY26 was its international business, which saw revenues surge by 60% year-over-year to ₹2,590.00 crore. This robust growth in international operations helped to partially offset the challenges faced in the domestic market.

Domestic Business Performance

WPIL's domestic business presented a mixed picture:

• The product division showed strength with revenues of ₹151.00 crore for the first half of FY26, compared to ₹138.00 crore in the same period last year.
• The project business continued to face challenges, with revenues declining to ₹89.00 crore from ₹247.00 crore in the previous year.

Order Book and Future Outlook

Despite the revenue decline, WPIL's order book remains robust:

• The domestic product division reported its highest-ever backlog of ₹422.00 crore.
• The international orderbook remains strong, with PCI Africa expecting some large contracts in Q3, which could boost growth.

Segment-wise Performance

Product Division

• Domestic product revenues grew in the first half of FY26, with a strong enquiry pipeline suggesting continued growth across sectors.
• Gruppo Aturia, part of WPIL's international operations, secured good orders in the Oil & Gas sector during Q2.
• The Australian business showed improved performance with strong execution and promising prospects in both water and Oil & Gas sectors.

Project Division

• The domestic project business remains focused on project completion and commissioning.
• International projects, particularly through PCI Africa and Eigenbau in South Africa, have good orderbooks and a strong project pipeline.

Management Commentary

While specific management quotes were not provided, the company's focus appears to be on leveraging its strong international growth to balance domestic challenges. WPIL is also working on improving margins in its international business, which are expected to normalize through the year.

Conclusion

WPIL's Q2 FY26 results reflect the company's resilience in the face of domestic market challenges, with its international operations providing a strong counterbalance. The robust order book and potential for large contracts in the near future suggest that WPIL is well-positioned for growth, particularly in its international markets. Investors and stakeholders will likely be watching closely to see how the company capitalizes on these opportunities in the coming quarters.

WPIL Limited , a leading pump manufacturer, has reported a mixed set of financial results for the first quarter. The company's consolidated revenue from operations stood at INR379.00 crores, marking a 4% year-on-year increase. However, EBITDA declined by 18% to INR49.00 crores, with margins contracting to 13%. Profit after tax for the quarter amounted to INR26.00 crores.

Strong Performance in Product Division

The company's product division maintained its growth momentum, delivering revenues of INR65.00 crores compared to INR55.00 crores in the same quarter of the previous year. Notably, WPIL achieved its highest-ever product order booking of INR139.00 crores in the quarter, expanding the order backlog to INR411.00 crores. The company is witnessing a strong inquiry pipeline, especially in the power and irrigation sectors.

International Business Drives Growth

WPIL's international business showed significant growth, with revenues increasing to INR197.00 crores from INR126.00 crores in the corresponding quarter of the previous fiscal year. This growth was primarily driven by the company's recent acquisitions, including PCI Africa, MISA Italy, and Eigenbau. However, margins were affected by transaction and legacy costs in the first quarter.

Domestic Project Business Faces Challenges

The domestic project business remained constrained due to sectoral challenges, with revenues at INR116.00 crores compared to INR184.00 crores in the same quarter of the previous year. The company's main focus remains on project completion, which is progressing well. Four projects have started operations and maintenance (O&M) this year, with another four expected to be commissioned by the end of the year.

Jal Jeevan Mission Impact and Future Outlook

WPIL's management highlighted that the Jal Jeevan Mission (JJM) projects are being reviewed, following a committee set up by the government to assess the schemes and future financing. The company expects a clear direction going forward, with some payments already released and major chunks expected to be released shortly. The tender pipeline, which has been slow, is anticipated to pick up in the second half of the year.

International Acquisitions and Future Strategy

The company has made significant strides in its international expansion, spending approximately INR100.00 crores on recent acquisitions. These acquisitions are expected to contribute substantially to WPIL's revenue and profitability in the coming quarters. Management expressed confidence in the consolidation process and hinted at exploring further acquisition opportunities, focusing on businesses with long-term profitability potential and good valuations.

Financial Position and Outlook

As of the end of the quarter, WPIL had a net cash position of approximately INR200.00 crores, which is expected to improve further as outstanding payments from the Jal Jeevan Mission are received. The company anticipates margin normalization and improved cash flows in the coming quarters as acquisition integration completes and government policy clarity emerges.

Looking ahead, WPIL remains optimistic about its product business, both domestically and internationally. The company expects its international operations to contribute about 50% of its total business, providing a balanced growth trajectory and helping to de-risk its business model.

In conclusion, while WPIL Limited faces some short-term challenges, particularly in its domestic project business, the company's strong product division performance and growing international presence position it well for future growth. Investors and stakeholders will be keenly watching how the company navigates the evolving market conditions and capitalizes on its recent acquisitions in the coming quarters.