Shares of VA Tech Wabag traded lower on Monday, November 10, even after the company reported a strong year-on-year growth in net profit for the quarter ended September 2025 (Q2 FY26). The stock was down 0.99% at Rs 1,375.70 on the BSE.
The water treatment solutions provider reported a 22.05% rise in standalone net profit to Rs 70.3 crore in Q2 FY26, compared to Rs 57.6 crore in the same period last year. Revenue from operations increased 12.51% year-on-year to Rs 690 crore. Profit before tax rose 22.09% to Rs 95.6 crore, while EBITDA grew 21.9% to Rs 140.8 crore.
However, despite the rise in profits, the decline in margins weighed on investor sentiment. The EBITDA margin slipped to 10.7% from 13.4% a year earlier, and total expenses rose 16.75% YoY to Rs 636.4 crore. Cost of sales and services increased 16.42% to Rs 531.7 crore, while employee benefit expenses were up 15.3% to Rs 61.8 crore.
VA Tech Wabag reported an order intake of around Rs 3,400 crore and an overall order book of Rs 16,000 crore, ensuring strong revenue visibility. The company maintained a healthy financial position with a gross cash balance of Rs 797.9 crore and a net cash position of Rs 561.4 crore, marking its 11th consecutive quarter of being net cash positive.
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