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Informist, Saturday, Aug. 8, 2026

MUMBAI – Wastewater treatment company VA Tech Wabag Ltd. is expected to post mixed numbers for the June quarter as sales are seen up on high value national and international orders but the net profit is seen declining due to a higher share of low margin business, according to brokerages tracking the company.

 

The company is expected to report a consolidated net profit of INR 827 million for the June quarter, down more than 2% on year from INR 848 million, according to the average of estimates from four brokerages. The bottom line is seen falling more than 35% sequentially. The highest estimate for net profit is INR 909 million from YES Securities (India) Ltd. and the lowest is INR 796 million from 360 ONE Capital Market Pvt. Ltd.

 

VA Tech's consolidated net revenue for the June quarter is seen rising to INR 8.72 billion, up nearly 19% on year from INR 7.34 billion, according to the average of estimates. This will be a near 40?cline sequentially. The highest estimate for revenue is INR 8.99 billion from YES Securities and the lowest is INR 8.51 billion from 360 ONE Capital.

 

The company's revenue for the June quarter is expected to grow on the back of contribution from newly won contracts and progress in the execution of older orders, JM Financial Institutional Securities Pvt. Ltd. said. VA Tech Wabag strengthened its order book during the June quarter despite a challenging macro-economic environment such as the disruptions arising from the war in the West Asia, 360 ONE Capital said.

 

VA Tech's order intake for the June quarter is likely to exceed INR 20 billion. The orders were from Kuwait, United Arab Emirates, and Delhi Jal Board, YES Securities said. The war in West Asia is not likely to have had any adverse effect on the company, according to the brokerage.

 

The company's management is focusing on profitable growth by selectively bidding for high-margin engineering, procurement, and construction projects, and high-margin operations and maintenance opportunities, Motilal Oswal said. VA Tech is not likely to see any financial advantage from the depreciation of the rupee during the financial year 2026-27 (Apr-Mar), YES Securities said.

 

The company's earnings before interest, tax, depreciation, and amortisation for the June quarter are seen at INR 1.21 billion and INR 1.07 billion by YES Securities and JM Financial Institutional Securities Pvt. Ltd. respectively. The company's EBITDA margin for the June quarter is likely to decline due to a higher base in the year-ago quarter, JM Financial said. In the year-ago quarter, the company had a higher share of high margin business. The EBITDA margin is expected at 11.4% for the June quarter, according to 360 ONE Capital.

 

Va Tech Wabag designs, builds, and operates waste water treatment plants, industrial water treatment plants and desalination plants across South East Asia, Europe, and West Asia, among others. The company will detail its June quarter earnings Monday. Shares of VA Tech Wabag ended Friday at INR 1,957.70 on the National Stock Exchange, down almost 2% from Thursday.

 

All the eight brokerage reports on the company available with Informist, have a "buy" recommendation on the stock at an average target price of INR 1,894 apiece. The target price is 3% lower from the closing price Friday.

 

Following are the Apr-Jun earnings estimates for VA Tech Wabag from four brokerages in descending order of the estimate of consolidated net profit, in INR million:

 

Brokerage	Net sales	Net profit	EBITDA
YES Securities (India) Ltd.	8,994	909	1,214
JM Financial Institutional Securities Pvt. Ltd.	8,750	803	1,075
Motilal Oswal Financial Services Ltd.	8,634	801	1,097
360 ONE Capital Market Pvt. Ltd.	8,514	796	--
Average	8,723	827	1,129

 

End

 

Reported by Pratyush Kumar

Edited by Pankaj Aher

 

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