VA Tech Wabag expects revenue growth at the higher end of its 15-20% guidance for FY27. CFO Skandaprasad Seetharaman said, "We are very confident with the order book as well as the bid pipeline." The company aims to maintain margins between 13-15% while focusing on profitable growth and strong cash generation.
VA Tech Wabag aims to maintain margins of 13-15% in FY27, with a focus on profitable growth and strong cash generation, CFO Skandaprasad Seetharaman said.
Chennai-based water treatment company VA Tech Wabag expects to maintain its strong growth momentum in the second half of FY27, with revenue growth likely to exceed 20%, supported by a healthy order book and a strong pipeline of opportunities.
Skandaprasad Seetharaman, CFO of VA Tech Wabag said, "We have seen our order book grow from ₹7,000 to ₹10,000 crores to over ₹20,000 crores. We are very confident with the order book as well as the bid pipeline, the year should also be strong."
Despite geopolitical tensions in the Middle East, VA Tech Wabag has not seen any significant disruption to its business. The company is executing major projects in the region, including the Ras Tanura refinery project and the Al Haer sewage treatment plant in Saudi Arabia. It has also recently commenced work in Kuwait and continues to operate several operation and maintenance contracts.
Seetharaman said international business has grown faster than the domestic business and has also delivered better margins.
July-September 2026 (Q2FY27), VA Tech Wabag reported revenue of ₹1,000 crore, profit after tax of ₹104 crore and margins at 14.4%.
The CFO added that the company is also looking to sustain margins in the 13-15% range, with an aim to remain around the middle of that band. Management said its priority would be profitable growth, backed by strong cash generation.
Water-intensive data centers could open up another growth opportunity for VA Tech Wabag, particularly as operators look for alternatives to groundwater.
The company is currently pursuing two to three data center-related opportunities in India, with one project at a more advanced stage than the others. These opportunities are being evaluated across locations, including Mumbai and Visakhapatnam.
The company sees two potential areas of business in this segment: water reuse plants, which could have capacities of around 40-50 million litres per day (MLD), and smaller ultra-pure water facilities. While ultra-pure water projects are relatively smaller, they involve higher technology requirements and offer better margins.
With net cash exceeding ₹1,000 crore, the company also has financial flexibility to invest in future opportunities. However, management indicated that reinvesting in the business remains a priority rather than making an immediate commitment towards a buyback.