VA Tech Wabag is a technology-led, asset-light pure-play water company executing desalination, recycle-reuse and industrial water projects across 25+ countries, with the Middle East and Africa emerging as its growth engine. This quarter's print will speak to whether the 13-15% EBITDA margin band holds against steel and MEP cost inflation, and how much of the margin is carried by transactional forex gains after Q1's Rs. 368 Mn consolidated forex gain sat inside EBITDA.
| Results date | November 05, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 8,868 Mn (Rs. 886.8 Cr), up 20.8% YoY |
| Previous quarter PAT | Rs. 901 Mn (Rs. 90.1 Cr), up 36.9% YoY |
| Previous quarter EBITDA margin | 13.1% |
| Net debt (latest quarter) | Net cash (excl. HAM) of Rs. 9,649 Mn (Rs. 964.9 Cr) — net cash positive for the 14th consecutive quarter |
| Market cap | Rs. 11,218.91 Cr |
| CMP | Rs. 1,794.6 |
The Board meets on November 5, 2026 to approve unaudited standalone and consolidated results for the quarter and half-year ended September 30, 2026. The trading window for designated persons remains closed until 48 hours after the declaration.
The Q2 & H1 FY27 Results Conference Call is scheduled for Friday, November 6, 2026, at 4:00 PM IST, hosted by Chairman & MD Rajiv Mittal and CFO Skandaprasad Seetharaman.
The quarter is a test of margin quality as much as growth: Q1 FY27's 13.1% EBITDA margin sat at the low end of the 13-15% guided band and included a Rs. 368 Mn consolidated forex gain, while the Q2 FY26 comp is a high-water mark at 14.4% margin on revenue of Rs. 8,345 Mn.
The rupee's July-September depreciation (averaging Rs. 95.47/$ in August and touching 95.92 on September 15) points the transactional-forex line the same way as Q1, but steel at four-year highs (HRC at Rs. 64,000/t by September 22) and MEP costs up 9-13% on West Asia tensions pull on the band, with contractual escalation clauses the stated mitigant.
On the demand side, the Kuwait Doha SWRO Stage II contract signed August 25 with the HEISCO JV converted a mega award into an executable one, domestic highway awards jumped 62.9% YoY to 2,236.3 km in April-September FY27, and the order book stands at an all-time high of about Rs. 19,400 Cr — more than 4x revenue.
The guidance stack restated at the Q1 call remains formally intact — 15-20% revenue CAGR (Q1 actual +20.8%), RoCE above 20% (19.6% at Q1), O&M at 20% of revenues (18%), and net working capital at 100-110 days (108) — with the JJM 2.0 payment transition flagged as a domestic receivables overhang.
The November 6 call is likely to cover the forex split inside EBITDA, Q2 order intake against Q1's Rs. 34,313 Mn, and status of open-ended items such as the Norfund definitive agreements and Mamelles Senegal commissioning within the current fiscal year.
Performance vs guidance tracking: The medium-term guidance stack restated at the Q1 call, with Q1 FY27 actuals against each target:
Strategic and execution updates
Risks and headwinds to monitor
Metrics showing prior softness
Management says the forex gains are transactional, realized (not accounting entries) and operational, and will recur as the company goes increasingly international with over 52% of revenues from overseas. The CMD stated margins are 'well within guided margin of 13% to 15%' even considering forex as an integral component.
Management has stated there has been no material impact on projects, operations or underlying demand, with projects far from strike zones and contractual letters sent to customers on price and time impacts. It reported no material concerns on international revenues.
Q1 FY27 EBITDA margin was 13.1%, within the 13-15% medium-term guided band but at the low end. Management says it has consistently delivered the 13-15% margin for over two years and sees no reason why margins will not move up with volumes.
The order book stood at an all-time high of about Rs. 19,400 Cr at June 30, 2026 — more than 4x revenue and up 33% YoY — after Q1 intake of Rs. 3,431.3 Cr, of which 77% was overseas. Post-quarter, a 'Mega' RIL desalination order (>Rs. 1,000 Cr) and the Kuwait Doha SWRO Stage II contract signed August 25 add further momentum.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.