VA Tech Wabag Limited has incorporated a new subsidiary company to execute a compressed bio-gas project in Uttar Pradesh. The water treatment solutions provider announced the formation of Ghaziabad Bioenergy Private Limited on February 16, 2026, as a joint venture with PEAK Sustainability Partners LLP.

Subsidiary Structure and Capital Details

The newly incorporated subsidiary has been established with specific shareholding arrangements and capital structure designed for the bioenergy project.

Project Scope and Industry Focus

The subsidiary operates as a special purpose vehicle established specifically for compressed bio-gas operations. The company will execute the Compressed Bio-Gas (CBG) project on a Build-Operate-Transfer (BOT) basis at Dundaheda, Ghaziabad, Uttar Pradesh. This venture represents Wabag's expansion into the bio-CNG, biogas, and compressed bio-gas industry segments.

Regulatory Compliance and Documentation

The incorporation follows proper regulatory procedures with registration completed through the Registrar of Companies, Chennai, India. VA Tech Wabag has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, providing comprehensive details about the subsidiary formation.

Business Operations Status

The subsidiary company has yet to commence business operations, with current turnover standing at nil. As a newly incorporated entity, Ghaziabad Bioenergy Private Limited does not have historical financial performance data for the past three years. The company will provide updates on further developments and post-execution of definitive agreements as the project progresses.

This strategic move into the bioenergy sector aligns with the growing focus on sustainable energy solutions and waste-to-energy projects in India's renewable energy landscape.

VA Tech Wabag delivered exceptional financial performance in the third quarter, reporting significant growth across key metrics including profitability and operational efficiency. The water treatment solutions provider demonstrated robust business fundamentals with substantial improvements in revenue, net profit, and EBITDA performance.

Comprehensive Financial Performance

The company's consolidated financial results showed impressive year-on-year growth across all major parameters:

| Metric: | Q3 Current Year | Q3 Previous Year | Growth || | ---: | :--- | :--- | :--- | | Net Profit: | ₹913 million | ₹702 million | 30.06% | | Revenue: | ₹9.6 billion | ₹8.1 billion | 18.52% | | EBITDA: | ₹1.3 billion | ₹1 billion | 30.00% | | EBITDA Margin: | 13.63% | 12.38% | +125 bps |

Revenue and Profitability Growth

VA Tech Wabag achieved revenue of ₹9.6 billion in Q3, marking an 18.52% increase from ₹8.1 billion recorded in the same quarter of the previous year. The company's consolidated net profit reached ₹913 million, representing a substantial 30.06% growth compared to ₹702 million in the corresponding quarter of the previous year.

EBITDA Performance Enhancement

The company reported strong EBITDA performance with earnings reaching ₹1.3 billion compared to ₹1 billion in the previous year, reflecting a 30% year-on-year growth. More significantly, the EBITDA margin improved to 13.63% from 12.38% in the previous year, indicating enhanced operational efficiency and better cost management.

Operational Efficiency Indicators

The quarterly results demonstrate VA Tech Wabag's strong operational fundamentals with profit growth outpacing revenue growth, indicating improved margin management. The EBITDA margin expansion of 125 basis points reflects the company's effective cost optimization strategies and operational leverage during the quarter.