WPIL

WPIL Limited reported consolidated Q2 FY26 revenue of INR 426 crores, with an EBITDA of INR 80 crores, translating to an 18.87% margin. Profit after tax for the quarter was INR 52 crores, at a 12.16% margin. For the first half of FY26, consolidated revenue reached INR 805 crores, with EBITDA at INR 130 crores (16.09% margin) and PAT at INR 78 crores (9.64% margin). Standalone figures also showed healthy margins, with Q2 EBITDA margin at 20.01% and PAT margin at 14.21%.

The Product Division demonstrated strong performance in H1 FY26, with revenues of INR 151 crores, marking a 9.42% increase over the previous year, and achieving its highest-ever order backlog of INR 422 crores. Conversely, the Project Business faced significant headwinds, with Q2 FY26 revenues declining by 63.96% YoY to INR 89 crores. The International Business was a key growth driver, with H1 FY26 revenues surging by 58.33% YoY to INR 456 crores, contributing significantly to overall business stability and margin recovery.

The company maintains a robust order book across its segments. The Product Division's backlog reached a record INR 422 crores, while the International Project Division holds an order book of INR 930 crores. The remaining exposure for Jal Jeevan Mission projects stands at INR 1,100 crores, with most projects over 60% complete. Additionally, the O&M sector has an order backlog of approximately INR 600 crores. Management noted a robust enquiry pipeline, expecting continued order book growth across all sectors.

The domestic project business, particularly JJM, continues to face challenges primarily due to funding issues between the Central and State governments. This has impacted cash flows and project execution timelines. However, management expressed confidence that the issue is making good progress towards resolution, with expectations for funds to be released and balance project activities to accelerate by March 2026, leading to more commissioning in H2 FY26.

International revenues grew sharply, driven by strong order books and improved performance in regions like South Africa, where execution is picking up in H2 due to different financial year cycles. Gruppo Aturia secured strong orders in oil and gas, and Australian operations showed improved performance with promising opportunities. WPIL Thailand also introduced new drainage products, further diversifying the international portfolio. International business now accounts for 56-60% of the total, providing a balanced revenue mix.

WPIL maintains a negligible CAPEX outlook, as existing plants have sufficient capacity for anticipated growth. The company has a strong cash balance and has increased its authorized capital, positioning it to pursue larger inorganic opportunities. Management is actively engaged in conversations for strategic acquisitions, particularly to expand its geographic reach into markets like the US, emphasizing a 'buy and build' model to maximize gains from acquired footprints.

The company's margin profile is consistently maintained between 16-20%. While Q1 FY26 saw a temporary blip^📎 due to newly acquired businesses and one-time^📎 expenses, margins recovered in Q2 FY26, with consolidated EBITDA margin at 18.87%. Management expects this normalized margin level to be sustained through the year, driven by improved execution and a favorable product mix, with the product business contributing 56-60% of the total.