loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

VA Tech Wabag reported a mixed quarter with strong order and revenue growth but weaker underlying operating profitability in Q1FY27

ICICIdirect Research 13 Aug 2026 DISCLAIMER

News: VA Tech Wabag reported a mixed quarter with strong order and revenue growth but weaker underlying operating profitability in Q1FY27. Revenue from operations grew 20.8% YoY to ₹886.8 crore from ₹734.0 crore, driven by higher execution, while gross margin contracted 490 bps YoY to 23.8% from 28.7% as material cost rose to 76.2% of revenue from 71.3% yoy. Reported EBITDA rose 21.7% YoY to ₹116.3 crore from ₹95.6 crore, with margin improving marginally to 13.1% from 13.0%; however, this included a ₹36.8 crore forex gain vs a ₹13.6 crore forex loss in Q1FY26. On a forex-neutral basis, operating EBITDA declined to ₹79.5 crore from ₹109.2 crore, with margin contracting to 9.0% from 14.9%. PAT increased 36.9% YoY to ₹90.1 crore, supported by the forex gain and higher share of profit from associates/JVs. Order inflow remained strong at ₹3,431 crore during the quarter. The order backlog stood at ₹19,394 crore, up 33% YoY, providing strong revenue visibility. EPC revenue grew 27% YoY to ₹725.6 crore, while O&M revenue increased 7% YoY to ₹159.3 crore.

View: WABAG’s reported mixed Q1FY27 performance with strong revenue growth and robust ₹3,431 crore order inflow strengthened growth visibility, with the order book rising 33% YoY to ₹19,394 crore (~4.4x FY26 revenue). However, core profitability weakened, with forex-neutral EBITDA margin declining to 9.0% from 14.9% and gross margin contracting 490 bps YoY. growth and order visibility remains strong , but margin recovery remains the key monitorable.

Impact: Neutral

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere