Detailed Narrative
Q3 & 9M FY26 Performance Highlights
WPIL Limited reported a strong consolidated performance for Q3 FY26, with revenue increasing by 41% year-on-year to INR 539 crores. Consolidated EBITDA saw a significant jump of 134% year-on-year, reaching INR 113 crores, with margins at 20.88%. Profit after tax for the quarter grew 104% year-on-year to INR 76 crores. For the nine months ended December 2025, consolidated revenue stood at INR 1,343 crores, up 9% year-on-year, and EBITDA was INR 242 crores, a 14% increase, with margins of 18.03%.
Robust Order Book and Project Pipeline
The company maintains a healthy total order backlog of INR 5,229 crores. This includes a product order backlog of INR 1,035 crores (41% domestic, 58.7% international) and a project order backlog of INR 4,194 crores (INR 2,080 crores domestic, INR 2,114 crores international). A significant new product order worth INR 320 crores was secured for 30-megawatt large pumps for the Rajasthan Eastern Canal Project. International project wins for PCI Africa include the Trans-Caledon Tunnel project (ZAR 821 million) and the Macassar Wastewater project (ZAR 1.1 billion), which are expected to drive medium-term revenue growth over a 3-4 year execution horizon.
International Business as a Key Growth Driver
International revenues were a major contributor to growth, increasing by 81% year-on-year to INR 822 crores for the nine-month period, now accounting for 60% of total revenues. International EBITDA margins improved to 15% for the period. This strong performance is attributed to successful operations in Africa, expansion in the MENA region by Gruppo Aturia, and record Q3 revenue from WPIL Thailand. Management emphasized that their international businesses are well-positioned and expected to exceed market growth rates, supported by strategic acquisitions and strong market presence.
Domestic Business and Jal Jeevan Mission Challenges
While the domestic product business showed robust 50% year-on-year revenue growth for the nine months, the domestic project business remains subdued. A key challenge is the INR 300 crores outstanding in receivables from Jal Jeevan Mission (JJM) projects, which has contributed to high working capital days of 208 for H1 FY26. However, management expressed optimism that recent government budget allocations of INR 17,000 crores for FY26 and an additional INR 67,670 crores for FY27 will provide a significant boost to JJM projects and help normalize working capital within 3-6 months.
Margin Management and Acquisition Strategy
WPIL is committed to maintaining EBITDA margins in the 15-20% range across all its businesses and geographies, prioritizing margins over growth. The Pumps and Accessory segment demonstrated strong profitability with a 27% margin for 9M FY26. The company's success in overseas acquisitions, including two in Africa and one in Italy, is attributed to this disciplined margin focus, combined with strong R&D, manufacturing capabilities, and deep market understanding, enabling them to pursue inorganic growth effectively.
Emerging O&M Business and Long-term Vision
The Operation & Maintenance (O&M) business is gaining momentum and is projected to generate close to INR 700 crores by FY27. Management anticipates that O&M activities will eventually contribute 25-30% of project revenues within the next five years, providing a stable, recurring revenue stream post-EPC project completion. The company aims to double its size in the next 3-4 years, implying an 18-22% growth rate, by balancing product and project businesses and leveraging its diversified international portfolio.