WPIL — Q1 FY26 earnings call

Call held 5 Aug 2025

Management summary

WPIL Limited reported a mixed Q1 FY26, with consolidated revenues growing 4% YoY to INR 379 crores, driven by strong international performance and product division growth. However, consolidated EBITDA declined 18% YoY to INR 49 crores, with margins at 13%, primarily due to transaction and legacy costs from international acquisitions. The company maintains a robust total order backlog of INR 4,253 crores and anticipates margin normalization and improved domestic project business in the second half of the year as Jal Jeevan Mission issues resolve.

Highlights

  • Consolidated revenues from operations stood at INR 379 crores, an increase of 4% YoY.

  • Consolidated EBITDA was INR 49 crores, a decline of 18% YoY, with EBITDA margins at 13%.

  • Profit after tax amounted to INR 26 crores.

  • Standalone revenue was INR 181 crores, a decline of 24% YoY, with EBITDA at INR 28 crores and margins at 15.62%.

  • Product division revenues grew to INR 65 crores from INR 55 crores in Q1 FY25.

  • Highest ever product order booking in Q1 at INR 139 crores, increasing product order backlog to INR 411 crores.

  • International business revenues increased to INR 197 crores compared to INR 126 crores in Q1 FY25.

Key financials

  1. Consolidated Revenue ₹379 Cr +4%YoY
  2. Consolidated EBITDA ₹49 Cr -18%YoY
  3. Consolidated EBITDA Margin 13%
  4. Consolidated PAT ₹26 Cr
  5. Standalone Revenue ₹181 Cr -24%YoY
  6. Standalone EBITDA ₹28 Cr
  7. Standalone EBITDA Margin 15.6%
  8. Standalone Net Profit ₹19 Cr

What they filed

Q1 FY27: revenue up 32.2%, net profit up 126.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue491 382 572 379 426 −13%539 +41%511 −11%501 +32%
EBITDA104 48 80 49 80 −23%113 +135%76 −5%75 +53%
Net profit70 37 -24 26 52 −26%76 +105%47 +296%59 +127%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
Product Division (Total) ₹206 Cr 21.6%
International Business (Total) ₹197 Cr 20.6%
Project Business (Total) ₹172.6 Cr 18.1%
Product Division (International) ₹141 Cr 14.8%
Project Business (Domestic) ₹116 Cr 12.2%
Product Division (Domestic) ₹65 Cr 6.8%
Project Business (International) ₹56.6 Cr 5.9%

Order book

high confidence

Total value

₹4,253 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹139 Cr

Execution

Domestic project business: 2 years for INR 800 crores revenue. International project business: 2.5 to 3 years.

Composition

Mix 2 product geographies
  • Product Order Backlog (Domestic) 9.7%
  • Product Order Backlog (International) 15.1%

Share of order book by product geography· partial disclosure (24.8% of the book)

Pipeline

qualified rfp

Strong inquiry pipeline, especially in power and irrigation sectors, new orders from Navy for new vessels, encouraging pipeline for projects, lot of projects in LOI stage.

The company has a robust and diversified order book across product and project segments, with strong international contribution and a healthy product order inflow this quarter. Domestic project execution is expected to improve in H2 FY26.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Net cash ₹200 Cr
    roughly about INR200 crores net cash is there in the books.
  • M&A International Acquisitions Acquisition · Integrated · Consideration ₹[object Object] (undisclosed)

    Strengthened position in various markets and expanded product range.

    Margins affected by transaction and legacy costs in Q1, expected to normalize.

    The international business. Revenues increased to INR197 crores compared to INR126 crores in Q1 FY '25 driven by the strength of our new acquisitions. Margins were affected by transaction and legacy costs in the first quarter, but are expected to improve and normalize through the year. ... Roughly about INR100 crores.
  • Liquidity Cash ₹200 Cr Net cash position as of June, expected to improve further by September due to Jal Jeevan Mission payments.
    roughly about INR200 crores net cash is there in the books. And I think this was as of June and further as we have received outstanding, as I said, on Jal Jeevan significant amount. So it is further improving and you will see it quite significantly improved by September.

Guidance & targets

Profitability

  • Overseas EBITDA Margin Profitability · by year-end · High confidence 16-20%

    From 11% today

    The overseas EBITDA for this quarter came down to 11%. Our typical is between 16% to 20%? ... And by the year-end, we expect to go back to our normalized level EBITDA levels.

    — Prakash Agarwal

  • Domestic EBITDA Margin Profitability · ongoing · High confidence 15-20%

    From 15.1% today

    So domestic was 15%, 15.1% which will go because again, the first quarter is a bit erratic. And I think we will be in the higher range between 15% to 20% as we normally are. We don't see any concerns on margin.

    — Prakash Agarwal

Revenue

  • International Revenue Growth Revenue · throughout the year · Medium confidence Maintain Q1 growth rate
    The international product and project that revenue has jumped up to 197 from 120. So I think this growth should be maintained throughout the year.

    — Prakash Agarwal

Revenue Mix

  • Domestic vs International Revenue Mix Revenue Mix · throughout the year · High confidence 50-50
    I think this ratio of 50-50 will be maintained throughout the year. So the overseas will jump to meet these targets.

    — Prakash Agarwal

Project Business Mix

  • Domestic vs International Project Business Mix Project Business Mix · ongoing · High confidence 60% domestic, 40% international

    From 75% domestic, 25% international today

    So you can see that there is a shift towards we are now in the project business, we are getting to a ratio of about -- already this year, it was 75%, 25%, 75% domestically, 25% international. And we are targeting to bring this to 60%, 40%.

    — Prakash Agarwal

Project Execution

  • Jal Jeevan Mission (JJM) Project Resolution Project Execution · from second half of the year · Medium confidence Clear direction and positive results
    But I think it will be on a positive note, and we expect the results of this review to start giving - taking shape from second half of the year.

    — Prakash Agarwal

Liquidity

  • Receivables Improvement Liquidity · by September · High confidence Significantly improved
    So it is further improving and you will see it quite significantly improved by September.

    — Prakash Agarwal

What to watch in Q2 FY26

JJM Project Payment Resolution & New Tenders

H2 FY26
Current Review completed, payments slowly improving, major chunk expected shortly.
Target Clear direction on schemes, fresh tenders expected, significant payment releases.

Why it matters

Critical for domestic project business recovery and working capital improvement.

But I think it will be on a positive note, and we expect the results of this review to start giving - taking shape from second half of the year. Some payments have been released, and we expect the major chunk of payments to be released shortly also as this review has been conducted.

Risks & concerns

  • Domestic Project Business Constraint

    medium

    Domestic project business remained constrained due to sectorial challenges, leading to lower revenues in Q1 FY26 compared to Q1 FY25.

    Management acknowledged

  • Jal Jeevan Mission (JJM) Payment Delays

    medium

    Payment situation for JJM projects has been slow, impacting working capital, but is now slowly improving with major payments expected in H2 FY26.

    Management acknowledged

  • International Acquisition Costs Impacting Margins

    medium

    Transaction and legacy costs from recent international acquisitions affected Q1 international EBITDA margins (11% vs typical 16-20%), but are expected to normalize.

    Management acknowledged

  • Disturbing Domestic Bid Pipeline

    medium

    Management noted that the domestic bid pipeline is 'quite disturbing', potentially impacting future domestic order inflow.

    Management acknowledged

Q&A highlights

6 direct
Jal Jeevan Mission (JJM) resolution and payment cycle Direct
The government set up a committee to review the JJM schemes and future financing. Apparently, the review has been conducted and the final report submitted, and we expect a clear direction going forward. ... Some payments have been released, and we expect the major chunk of payments to be released shortly also as this review has been conducted.

Addresses a key concern regarding working capital and domestic project business viability, with a timeline for resolution.

Asked by Deepak Purswani

Opportunity pipeline from Navy business Partial
The Indian Navy has taken up a large plan to modernize and to a large manufacturing plant for a number of vessels over the next 50 years. So we have been aligning ourselves with the Navy's needs and getting our products approved. ... we should see a good amount of business increasing the trajectory going forward.

Highlights a new strategic growth area for the pumping business, though specific financial details were not provided.

Asked by Deepak Purswani

South African acquisition revenue, order book, and consolidation Direct
The international business. Revenues increased to INR197 crores compared to INR126 crores in Q1 FY '25 driven by the strength of our new acquisitions. Margins were affected by transaction and legacy costs in the first quarter, but are expected to improve and normalize through the year. ... the order backlog for products was about 1,053 for products. This is, again, 411 in domestic and 642 international. ... the order backlog is INR3,200 crores, INR2,260 crores is from domestic and the balance is from international.

Clarifies the financial contribution and order book composition from recent international acquisitions, and explains the Q1 margin impact.

Asked by Deepak Purswani

Reason for Q1 bottom line decline Direct
I think it is as we have explained, 1 of the issues is that the overseas operation is now a significant part of the revenue. For example, it is INR197 crores and INR181 crores is domestic. The overseas EBITDA for this quarter came down to 11%. Our typical is between 16% to 20%? So this has happened because there were some costs in the first quarter, and the revenues are were not aligned.

Provides a clear explanation for the consolidated EBITDA decline, attributing it to one-off costs in international acquisitions, and sets expectations for normalization.

Asked by Ravi Naredi

Total spend on international acquisitions Direct
Roughly about INR100 crores.

Quantifies the capital deployed for the recent international acquisitions, which were a major focus this quarter.

Asked by Saket Kapoor

NSE listing priority Partial
Actually, it wasn't a priority for us. We were really focused on stabilizing and consolidating our business. As the year goes by, we will again look into this.

Addresses investor interest in a potential NSE listing, indicating it was deprioritized but will be revisited.

Asked by Saket Kapoor

Net cash and debt position Direct
roughly about INR200 crores net cash is there in the books. And I think this was as of June and further as we have received outstanding, as I said, on Jal Jeevan significant amount. So it is further improving and you will see it quite significantly improved by September.

Provides a clear financial health indicator and links it to expected improvements from JJM payments.

Asked by Saket Kapoor

Working capital days and receivables Direct
So we have got a significant debtor pile up with the Jal Jeevan Mission, which is now reducing over the last three months and we expect it to completely normalize in the next 3 months. So we don't see any major challenge.

Explains the reason for increased working capital days and provides a timeline for its normalization, alleviating a potential concern.

Asked by Devyash Jain

2 min read 6 chapters

Detailed narrative

Q1 FY26 Consolidated Financial Performance

WPIL Limited reported consolidated revenues from operations of INR 379 crores for Q1 FY26, marking a 4% year-on-year increase. However, consolidated EBITDA saw an 18% year-on-year decline to INR 49 crores, resulting in an EBITDA margin of 13%. Profit after tax for the quarter amounted to INR 26 crores, reflecting the impact of certain one-off costs and unaligned revenues.

Segmental Revenue and Order Book Dynamics

The product division demonstrated robust growth, with revenues reaching INR 65 crores in Q1 FY26, up from INR 55 crores in Q1 FY25. This segment also achieved its highest-ever product order booking of INR 139 crores, increasing its order backlog to INR 411 crores. In contrast, the domestic project business faced constraints, with revenues at INR 116 crores compared to INR 184 crores in Q1 FY25, primarily due to sectorial challenges.

International Business Performance and Margin Impact

The international business was a significant growth driver, with revenues increasing to INR 197 crores in Q1 FY26 from INR 126 crores in Q1 FY25, largely attributed to recent acquisitions. Despite this strong revenue growth, international EBITDA margins were impacted, falling to 11% due to transaction and legacy costs associated with these acquisitions. Management expects these margins to normalize to their typical range of 16-20% by the year-end.

Overall Order Backlog and Execution Outlook

WPIL's total order backlog stands at INR 4,253 crores, comprising INR 1,053 crores for products (INR 411 crores domestic, INR 642 crores international) and INR 3,200 crores for projects (INR 2,260 crores domestic, INR 940 crores international). The OEM O&M order book contributes INR 530 crores. Domestic project execution is anticipated over 2 years for INR 800 crores of revenue, while international projects have a longer execution cycle of 2.5 to 3 years.

Jal Jeevan Mission (JJM) and Working Capital Management

The company noted that the Jal Jeevan Mission (JJM) projects have been under review, impacting payment cycles and leading to a significant debtor pile-up. However, management expects a clear direction and major payment releases from the second half of FY26, which should improve the receivable cycle and normalize working capital within the next three months. The net cash position stood at roughly INR 200 crores as of June, with further improvement expected by September.

Strategic Growth Areas and Future Outlook

WPIL is actively expanding its product range, particularly in naval applications, and sees strong inquiry pipelines in the power and irrigation sectors. The company aims to maintain a 50-50 domestic-international revenue mix and target a 60-40 domestic-international split for project business. While the domestic bid pipeline is currently 'disturbing,' management is optimistic about the second half of the year for both rural and urban water sectors, expecting improved traction.

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