WABAG
Micro CapVA Tech Wabag Limited
Industrials
VA TECH WABAG LIMITED is a technology-first global water solutions provider with 100 years of heritage. It offers sustainable solutions across desalination, wastewater treatment, recycle & reuse, effluent treatment, drinking water, ZLD, sludge treatment & energy recovery, operating in 25+ countries with an asset-light model.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 67/100Rev +22% YoY · PAT +28% YoY · +47% QoQ · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,414 Cr | +22.3% | +47.1% |
| EBITDA | ₹156 Cr | +10.6% | +27.9% |
| Operating margin | 11.0% | -100 bps | -200 bps |
| PAT | ₹128 Cr | +28.0% | +40.7% |
| PAT margin | 9.1% | +40 bps | -42 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
WABAG reported strong FY26 results with PAT up ~26% YoY to ₹371 Cr and revenue growth of 19.7% to ₹3,944 Cr. Order book grew 26% to ₹172 Bn+, providing over 4x revenue visibility, supported by ₹75 Bn order intake. EBITDA margin was 13.3%, and net cash reached ₹950 Cr.
WABAG delivered robust FY26 performance, driven by strong order intake and execution. The healthy order book provides significant revenue visibility, supported by a growing global water market and strategic focus on O&M and Future Energy Solutions. Management's asset-light model and cash generation are positives.
Core Market Growth
Desalination, Reuse, Municipal, Industrial. ~$75 Bn 5-7 Year addressable market. GCC Vision 2030 commits $80 Bn+ to water infra. India treats only 37% of sewage, JJM 2.0 commits ₹8.69 lakh Crores.
Future Energy Solutions
Solar, Semicon, Green H₂, Data Centres, AI. $4–6 Bn 5 Year emerging addressable opportunity. Single semiconductor fab uses 10M gallons UPW/day. Green H₂ needs 15–25 litres ultrapure water/kg.
Operations & Maintenance (O&M)
The annuity engine — predictable & cash accretive. ~$10 Bn 5–7 Year addressable market. O&M now 38% of order book (₹63.5 Bn). Pioneered One City One Operator model.
Global Water Market Growth
$75–100 Bn global water market. Rising scarcity, urbanisation and climate stress driving unprecedented infrastructure investment.
India's Water Infrastructure Build
JJM 2.0 (₹8.69L Cr), AMRUT 2.0 (₹2.99L Cr), Namami Gange II (₹3,100 Cr FY27) — largest domestic water pipeline in history.
GCC & Africa Infrastructure Boom
KSA Vision 2030 ($80 Bn+ water spend), Kuwait desalination expansion, AfDB/JICA-funded programmes accelerating.
New Economy Water Demand
Semiconductors, solar, green hydrogen, data centres and AI creating structural demand for UPW, desalination and ZLD.
Geopolitical Tensions in Middle East
Management states 'Zero execution disruption. Water is non-discretionary'. Diversified across 25+ countries.
Government Spending Pace in India
Massive allocations, but ordering and execution delays possible. Company tracks closely and maintains balanced India-international mix (48:52).
Currency & Input Cost Volatility
Natural hedging via multi-currency revenue. Contractual escalation clauses protect margins on input costs.
Growing Competition
125+ proprietary IPRs, Top 3 global desalination, 100-year track record. Competes on technology, not price.
Geopolitical Tensions
Geopolitical tensions in Middle East. Management states 'Zero execution disruption. Water is non-discretionary'. Diversified across 25+ countries.
Execution Delays
Government spending pace in India: ordering and execution delays possible. Company tracks closely and maintains balanced India-international mix (48:52).
Input Cost Volatility
Currency & input cost volatility. Natural hedging via multi-currency revenue. Contractual escalation clauses protect margins on input costs.
Competition
Growing competition. 125+ proprietary IPRs, Top 3 global desalination, 100-year track record. Competes on technology, not price.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
For an industrials/infrastructure company like WABAG, annual comparisons (YoY) are more relevant to assess project execution cycles, order book growth, and overall financial health, as projects often span multiple quarters and can have seasonal variations.
Order Book
₹172 Bn+ Order Book, 26% backlog growth
Order Intake FY26
₹75 Bn in FY26, +31% over FY25
Revenue Growth
19.7% Revenue Growth, ₹3,944 Cr
EBITDA Margin
13.3% EBITDA Margin, improved 20 bps YoY, Within 13–15% guidance
EBITDA Margin Guidance
Guided 13–15% EBITDA Margin.
O&M Revenue Target
Target: 20% of revenue from O&M annuity income.
Net Cash & Dividend Policy
Perpetual net cash positive; progressive dividend policy.
Emission Reduction Target
Achieve a 20% reduction of emissions under direct control (scope 1 & scope 2) by 2035.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Book Growth | ₹172 Bn+, 26% YoY growth | Sustained growth in order book and conversion to revenue. |
| EBITDA Margin | 13.3% | Adherence to 13-15% guidance amidst input cost volatility. |
| O&M Revenue Share | O&M is 38% of order book | Progress towards the 20% revenue target from O&M. |
| Net Cash Position | ₹950 Cr | Continued positive net cash generation and effective deployment. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +18.5% / mo · near 52W high
Technical chart
WABAGdaily · 1Y+12.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 65. Wait for confirmation.
- SMA20 rising (~1.1% over last month) — short-term momentum positive.
- RSI(14) at 65 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 40.9%.
- Growth contributes 19/25 to the score.
Main drags
- Valuation is weaker at 11/30; verify the latest quarterly trend.
- Cash flow is weaker at 5/10; verify the latest quarterly trend.
- Balance sheet is weaker at 8/15; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 91st percentile of the scored universe and 92nd percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero. Key concern: Promoter holding is only 19.1%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 92nd pctile, median 68 · Micro: 87th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.1%.
- ▸7 years of positive FCF.
- ▸Debt/equity is 0.09.
Trust risks
- ▸Promoter holding is only 19.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 25.70
- P/B
- 3.75
- EV/EBITDA
- 20.40
- Market Cap
- 9624.00Cr
Profitability
- ROE
- 15.90%
- ROCE
- 21.30%
- ROA
- 6.04%
- Dividend Y
- 0.26%
Growth (CAGR)
- Revenue 5Y
- 7.00%
- EPS 5Y
- 28.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- 93.00%
Balance Sheet
- Debt/Equity
- 0.09
- Interest Coverage
- 6.53×
- Altman Z
- 3.26
- Book Value
- 412.00
Cash Flow
- FCF Yield
- 1.94%
- FCF Positive Y
- 7/5
- OCF
- 207.00 Cr
- EPS TTM
- 59.46
Shareholding
- Promoter Hold
- 19.09%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 80%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.