VA Tech Wabag delivered impressive financial performance in the June 2026 quarter, with consolidated net profit rising 37% to ₹90.10 crore compared to ₹65.80 crore in the corresponding quarter of the previous year. According to reports from Informist Media and Business Standard, this significant profit growth demonstrates the company's strong operational performance during the quarter, with the results beating analyst estimates of ₹827.25 crore. The stock responded positively to these results, jumping over 5% in intraday trading on Friday, 14 August, with shares opening at ₹1,900 against the previous close of ₹1,885.75 and reaching an intraday high of ₹1,984. However, on a sequential basis, the profit declined 29% from ₹128 crore reported in the preceding March quarter. The profit surge was primarily driven by large gains from currency depreciation and share of profits from associates and a joint venture, contributing significantly to the overall performance.
The company's sales revenue increased 21% to ₹886.80 crore in the quarter ended June 2026, up from ₹734.00 crore in the same period last year. As reported by Informist Media and Business Standard, this revenue growth indicates robust demand for the company's products and services in the current market environment, with the results slightly exceeding analyst estimates of ₹8.72 billion. On a sequential basis, the topline witnessed a sharp 37% decline from ₹1,414.4 crore reported in the trailing quarter. The company's revenue from operations reached ₹8.87 billion, demonstrating strong operational performance across all business segments. International markets already contribute around 52 percent of revenue, while 35-40 percent of the order book is linked to the Middle East, highlighting the company's strong global presence and regional diversification strategy. Despite strong quarterly results, VA Tech Wabag shares ended at ₹1,903.60 apiece on the National Stock Exchange, down more than 2% from Tuesday's close, as reported by Informist Media and Business Standard.
VA Tech Wabag's order intake in April-June was ₹34 billion, with the total order book standing at ₹194 billion excluding framework contracts, as reported by Informist Media and Business Standard. According to Chairman and Managing Director Rajiv Mittal, "All clusters delivered on order intake which resulted in our order book surging to approximately ₹19,400 crores (₹194 billion), even as we persisted with our selective approach to bidding for projects." The company also announced significant international expansion, foraying into Kuwait with the award of a 'Mega' SWRO (seawater reverse osmosis) project and entering the UAE market with an order win in Ajman. With net cash of ₹9.65 billion, the company maintains its net cash positive position for the 14th straight quarter. Commenting on the results, Mittal noted that the company enhanced relationships with BWSSB and DJB in India and secured a key project win in Austria from Donauinsel Water Works, providing strong revenue visibility. As per Mint, the company's management targets 15-20% revenue CAGR, with FY27 growth expected at the upper end of this range.
ICICI Securities has issued a buy rating on VA Tech Wabag with a revised target price of ₹2,410, significantly higher than its previous target of ₹1,680, as reported by Moneycontrol. The brokerage highlighted that the company's robust order inflow of ₹34 billion with 77% from overseas and total order book of ₹194 billion versus ₹158 billion YoY demonstrate strong execution capabilities. ICICI Securities estimates revenue and profit CAGRs of 17% and 25% respectively over FY26-28E, citing improved execution, minimal Middle East execution impact, and promising order prospects. The research report dated August 17, 2026, notes that the burgeoning order book, sizable prospects and fading concerns on execution could facilitate smooth sailing over the next three years. The stock has delivered multibagger returns of 278% over the last three years and 443% over five years, as per Mint data, with VA Tech Wabag shares hitting a 52-week high of ₹2,252.40 on 13 July after touching a 52-week low of ₹1,033.95 on 27 January this year.
