WPIL — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

WPIL Limited delivered a strong consolidated performance in Q3 FY26, driven by significant growth in international business and product orders. Consolidated revenue and EBITDA saw substantial year-on-year increases, reflecting effective execution and improved margins. The company maintains a robust order book of INR 5,229 crores, providing clear revenue visibility. Despite challenges with working capital tied up in domestic projects, management anticipates normalization with upcoming government fund flows and remains focused on strategic growth and margin expansion across its diversified portfolio.

Highlights

  • Q3 FY26 Consolidated Revenue: INR 539 crores, up 41% YoY.

  • Q3 FY26 Consolidated EBITDA: INR 113 crores, up 134% YoY, with margins of 20.88%.

  • Q3 FY26 Consolidated PAT: INR 76 crores, up 104% YoY, with margins of 14.03%.

  • 9M FY26 Consolidated Revenue: INR 1,343 crores, up 9% YoY.

  • 9M FY26 Consolidated EBITDA: INR 242 crores, up 14% YoY, with margins of 18.03%.

  • Total Order Backlog: INR 5,229 crores (Product: INR 1,035 crores; Domestic Project: INR 2,080 crores; International Project: INR 2,114 crores).

  • International business contributed 60% of 9M revenues, growing 81% YoY to INR 822 crores.

  • Working capital days were 208 for H1, primarily due to INR 300 crores blocked in Jal Jeevan Mission projects, with relief expected in 3-6 months.

Key financials

2 periods

Q3 FY26

  • Consolidated Revenue
    ₹539 Cr
    YoY +41%
  • Consolidated EBITDA
    ₹113 Cr
    YoY +134%
  • Consolidated EBITDA Margin
    20.9%
  • Consolidated PAT
    ₹76 Cr
    YoY +104%
  • Standalone Revenue
    ₹204 Cr
    YoY -6%
  • Standalone EBITDA
    ₹49 Cr
    YoY +38%
  • Standalone EBITDA Margin
    23.8%
  • Standalone Net Profit
    ₹33 Cr
    YoY +61%

9M FY26

  • Consolidated Revenue
    ₹1,343 Cr
    YoY +9%
  • Consolidated EBITDA
    ₹242 Cr
    YoY +14%
  • Consolidated EBITDA Margin
    18%
  • Consolidated PAT
    ₹153 Cr
    YoY +2%
  • Standalone Revenue
    ₹561 Cr
    YoY -29%
  • Standalone EBITDA
    ₹112 Cr
    YoY -18%
  • Standalone EBITDA Margin
    20%
  • Standalone Net Profit
    ₹77 Cr
  • Standalone PAT Margin
    13.7%

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

  • International Business
    ₹822 Cr Revenue (9M FY26)81% YoY Growth (9M FY26)60% Contribution to Total Revenue (9M FY26)15% EBITDA Margin (9M FY26)
  • Domestic Product Business
    50% YoY Revenue Growth (9M FY26)
  • Pumps and Accessory Segment
    ₹750 Cr Revenue (9M FY26)₹204 Cr PBT (9M FY26)27% Margin (9M FY26)

Order book

high confidence

Total value

₹5,229 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹320 Cr

Execution

Recent large orders have a 3-4 year time horizon, with peak revenue around 30% of the timeframe executed.

Composition

Mix 2 geographies
  • Domestic Product Business 8.1%
  • International Product Business 11.6%

Share of order book by geography· partial disclosure (19.7% of the book)

Pipeline

qualified rfp

Exceptionally strong inquiry pipeline for product business; many tenders and projects in Africa.

The order backlog is robust and increasing, providing clear visibility for medium-term revenue growth, especially with strong international project wins and a healthy inquiry pipeline.

Source: Prepared remarks

Capital allocation

medium confidence
  • Liquidity Liquidity disclosed Working capital days for H1 FY26 stood at 208, primarily due to funds blocked in Jal Jeevan Mission projects. Management expects relief and normalization within 3-6 months due to budget announcements.
    My question was on the working capital days. So from what I see from the presentation is that our working capital days is 208 days for H1. So just wanted to understand, are we comfortable. It's almost 7 months of working capital. Are we comfortable and if we want to improve, what is the Management looking at? ... Regarding working capital days, it is higher right now if you see the previous trend, that's primarily due to the money which is blocked in Jal Jeevan projects. So hopefully, as we have said, as per budget announcements, this should be relieved actually in the next medium term, say, like 3 months to 6 months, and that should give us some relief there and get normalized.

Guidance & targets

Company Growth

  • Company Size Doubling Company Growth · 3-4 years · High confidence Double
    double the size of the company between 3 and 4 years, which roughly points to somewhere between 18% to 22% growth rate?

    — Prakash Agarwal

  • Growth Rate Company Growth · 3-4 years · High confidence 18-22%

    — Prakash Agarwal

O&M Revenue

  • O&M Revenue O&M Revenue · FY27 · High confidence INR 700 crores
    The O&M business is actually projected to generate close to INR 700 crores by FY '27.

    — Rohan Baranwal

O&M Contribution

  • O&M as % of Project Revenues O&M Contribution · 5 years · High confidence 25-30%
    We hope to reach a balance in 5 years' time, if you take it, outlook to be at about 25% to 30% from O&M and 70% from new contracts.

    — Prakash Agarwal

Profitability

  • EBITDA Margin Profitability · Longer period · High confidence 15-20%
    One is our margin focus. We are very focused on margins staying in 15% to 20% range, and we are not sacrificing margins for growth is one.

    — Prakash Agarwal

Domestic Project Business

  • Business Boost Domestic Project Business · Upcoming financial years · Medium confidence Significant boost
    The government's budget allocation of INR 17,000 crores for '25, '26 and an additional INR 67,670 crores for 2026- '27 is expected to provide a significant boost to Jal Jeevan Mission projects.

    — Prakash Agarwal

Product Business

  • Focus Product Business · Future · Medium confidence Increase
    The Product business will be the core and the project business would be balanced there. So I think we are close to the split we are looking at. And our focus Product business would increase.

    — Prakash Agarwal

What to watch in Q4 FY26

JJM Fund Flow & Working Capital Normalization

within 3-6 months
Current 208 working capital days for H1 FY26, INR 300 crores outstanding in JJM
Target Normalization of working capital days, significant reduction in JJM receivables

Why it matters

Improvement in working capital is crucial for cash flow and operational efficiency, directly impacting profitability.

Regarding working capital days, it is higher right now if you see the previous trend, that's primarily due to the money which is blocked in Jal Jeevan projects. So hopefully, as we have said, as per budget announcements, this should be relieved actually in the next medium term, say, like 3 months to 6 months, and that should give us some relief there and get normalized.

Risks & concerns

  • Blocked working capital due to Jal Jeevan Mission receivables

    medium

    INR 300 crores outstanding in JJM projects has led to high working capital days (208 for H1 FY26), but relief is expected in 3-6 months from budget allocations.

    Management acknowledged

  • Subdued domestic project business

    medium

    While international projects are strong, the domestic project business has been subdued, though budget allocations are expected to provide a boost.

    Management acknowledged

  • Long execution timelines for large international orders

    low

    Recent large international orders have a 3-4 year time horizon, meaning revenue recognition will take time, with peak revenue around 30% of the timeframe.

    Management acknowledged

Q&A highlights

6 direct
Product order book closing position and execution timeline Direct
So the product order backlog is INR 1,035 crores with split of 41% Domestic, and International 58.7%. ... It varies across different regions. It is not possible because there are different product lines with different requirements.

Clarified the exact product order book value and the variable execution timelines for different product lines.

Asked by Saket Kapoor

Details of the Rajasthan pump order Direct
Actually, we have been discussing regarding river linking projects. So we had supplied river linking projects for the Kaleshwaram Project 30 megawatt, which was successfully commissioned a few years ago. And this is a great breakthrough because this is a new large project in Rajasthan, and we have the pump orders. So this is a product order, and we are executing it for a large contractor. Value is about INR 320 crores.

Provided specific value and context for a significant new domestic product order.

Asked by Saket Kapoor

Jal Jeevan Mission (JJM) exposure and expected fund flows Partial
I think with JJM, as we have been mentioning that we are reducing our exposure constantly. So we are reducing our exposure by executing backlog, and we received some funds, but most of that is adding to the outstanding. So we are INR 300 crores outstanding. Hopefully, yesterday's announcement, mentioned on both sides. One is for the '25-'26, which is February, March, next 2 months and INR 67,670 crores for the next financial year. So outlook should be translated soon.

Addressed the current outstanding amount in JJM and the expectation of fund release following recent government budget allocations.

Asked by Jainam Doshi

High working capital days and impact of JJM receivables Direct
Regarding working capital days, it is higher right now if you see the previous trend, that's primarily due to the money which is blocked in Jal Jeevan projects. So hopefully, as we have said, as per budget announcements, this should be relieved actually in the next medium term, say, like 3 months to 6 months, and that should give us some relief there and get normalized.

Explained the reason for elevated working capital and provided a timeline for its expected normalization.

Asked by Roshan Gandhi

Confidence in doubling company size and O&M contribution Direct
I think our basic thing, which we elaborated few years ago, and again, we do now is that we will hit a lot of critical thresholds as far as our businesses are concerned. And today, we are very happy and proud to have our International business at 60%, which we have grown over the last 15 years. And it has been a slow growth because it has been on a very consolidated basis. These are now very strong businesses, very well established in their markets. So they will exceed the growth rate of those markets.

Reiterated the company's long-term growth ambition and highlighted the strong performance and strategic importance of the international business.

Asked by Nirav Sheth

Success factors for overseas acquisitions Direct
So I think this has been one of our major strengths. There are certain fundamentals which we are following. One is our margin focus. We are very focused on margins staying in 15% to 20% range, and we are not sacrificing margins for growth is one. And secondly, we are completely focused on our business. We are aware of all the opportunities in different geographies and product lines and we have a huge R&D technology support with us, great manpower, great manufacturing facilities.

Provided insights into the strategic pillars behind the company's successful integration and performance of international acquisitions.

Asked by Nirav Sheth

Margin profile of Pumps and Accessory segment Partial
I think we should just stick to our focus of EBITDA between 15% and 20% for all our businesses across all geographies. And we have been consistently performing in line with that. In the last quarter, I think it was mentioned that our margin was lower and we had mentioned that they will be on track. So we are on track now. ... Again, the same thing. We are focused on keeping margins in that profile. And the margins fluctuate, different geographies, different product lines, and we cannot say the timing of it, so.

Addressed the sustainability of high segment-specific margins, emphasizing overall company margin targets and the impact of mix fluctuations.

Asked by Saket Kapoor

PCI Africa large contracts: revenue recognition timeline and margin profile Direct
So the margin profile, as we have mentioned, would be as between the range of 15% to 20% as per our business model, that's our targeted margin profile, in EBITDA sense. Secondly, execution-wise, the projects vary. But if you take it, there are 3 to 4 years, I think peak revenue is around when 30% of the timeframe is executed.

Clarified the expected margin range and typical execution timelines for large international projects, providing visibility on future revenue flow.

Asked by Mukta Chandani

3 min read 6 chapters

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.

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