WABAG H1 profit rises 29% as operating cash turns positive

VA TECH WABAG LIMITED reported consolidated profit of Rs 194.6 crore for the half year ended September 30, 2026, up 29% from Rs 150.6 crore a year earlier, as revenue from operations rose 20% to Rs 1,887 crore and operating cash flow changed to an inflow of Rs 224.6 crore from an outflow of Rs 48.6 crore.

How did WABAG perform in the half year ended September 2026?

WABAG’s consolidated revenue from operations increased by Rs 318.5 crore to Rs 1,887 crore in the half year ended September 30, 2026, from Rs 1,568.5 crore in the corresponding 2025 period. Total income, including foreign-exchange gains and other income, rose by Rs 362.3 crore to Rs 1,970.1 crore from Rs 1,607.8 crore.

Profit before tax increased to Rs 254.2 crore from Rs 197.5 crore, while profit for the period rose by Rs 44 crore to Rs 194.6 crore. Basic earnings per equity share, not annualised, were Rs 31.21 for the six months, compared with Rs 24.21 a year earlier, and diluted earnings per share were Rs 30.79 against Rs 23.88.

The quarter ended September 30, 2026 also exceeded the year-earlier quarter. Revenue from operations was Rs 1,000.2 crore, compared with Rs 834.5 crore in the September 2025 quarter, while profit for the period rose to Rs 104.5 crore from Rs 84.8 crore. September-quarter profit was also above Rs 90.1 crore reported in the June 2026 quarter.

What drove WABAG’s revenue and profit movement?

WABAG reported higher segment revenue in both geographical operating segments in the 2026 half year. India segment revenue increased to Rs 877.3 crore from Rs 822.9 crore, while revenue from the rest of the world rose to Rs 1,010.4 crore from Rs 746.8 crore. The rest-of-the-world segment therefore accounted for the larger absolute increase, rising Rs 263.6 crore against India’s Rs 54.4 crore increase.

Total expenses rose by Rs 309.9 crore to Rs 1,721.4 crore, below the Rs 362.3 crore increase in total income. Cost of sales and services increased by Rs 220.7 crore to Rs 1,396.7 crore, employee benefits expense rose by Rs 36 crore to Rs 178.2 crore, and other expenses increased by Rs 53.7 crore to Rs 112.1 crore.

Foreign-exchange gains were Rs 57 crore, compared with Rs 17.6 crore in the prior-year half year, while other income was Rs 26.1 crore against Rs 21.7 crore. WABAG also recorded Rs 5.5 crore as its share of profit from associates and a joint venture, compared with Rs 1.2 crore a year earlier. Finance cost declined to Rs 34.9 crore from Rs 38.4 crore, while total tax expense rose to Rs 59.6 crore from Rs 46.9 crore.

How did WABAG turn operating cash flow positive?

WABAG generated net cash from operating activities of Rs 224.6 crore in the half year ended September 30, 2026, compared with net cash used in operating activities of Rs 48.6 crore in the corresponding 2025 period. Cash generated from operations before direct taxes was Rs 297.7 crore, compared with a cash outflow of Rs 50 lakh a year earlier, while direct taxes paid increased to Rs 73.1 crore from Rs 48.1 crore.

Operating profit before working-capital changes rose to Rs 293.3 crore from Rs 216.9 crore. The working-capital movement in trade receivables used Rs 80.7 crore of cash, substantially below the Rs 326.7 crore use in the prior-year period. A Rs 79.5 crore decrease in other assets supported cash generation, compared with a Rs 5.8 crore increase in other assets a year earlier.

Trade payables decreased by Rs 75.3 crore during the 2026 half year, using cash, after contributing Rs 49.6 crore in the prior-year period. Other liabilities increased by Rs 72.3 crore, compared with a Rs 65.9 crore increase a year earlier, while inventories increased by Rs 4 crore after a Rs 9.3 crore increase in the corresponding period.

Investing activities used Rs 64 crore, compared with cash generated of Rs 28.8 crore in the previous half year, including a Rs 67.1 crore net movement in bank deposits. Financing activities used Rs 75 crore, compared with an outflow of Rs 162.3 crore a year earlier. Cash and cash equivalents at September 30, 2026 were Rs 875.5 crore, up from Rs 582.2 crore at September 30, 2025.

What changed in WABAG’s balance sheet?

WABAG’s consolidated cash and cash equivalents increased to Rs 875.5 crore at September 30, 2026 from Rs 785.1 crore at March 31, 2026. Bank balances other than cash equivalents rose to Rs 341.7 crore from Rs 274.1 crore, while total assets increased to Rs 6,219.7 crore from Rs 6,122.4 crore over the six months.

Trade receivables moved in opposite directions between current and non-current classifications. Current trade receivables increased by Rs 57.1 crore to Rs 2,580.7 crore, while non-current trade receivables declined by Rs 54.1 crore to Rs 594 crore. The combined reported balance was Rs 3,174.7 crore at September 30, 2026, marginally above Rs 3,171.7 crore at March 31, 2026.

Total borrowings declined by Rs 43.4 crore to Rs 182.1 crore, comprising Rs 141.8 crore of non-current borrowings and Rs 40.3 crore of current borrowings. Total equity rose by Rs 181.6 crore to Rs 2,755.3 crore, while total liabilities fell by Rs 84.3 crore to Rs 3,464.4 crore from the March 2026 position.

Conclusion

WABAG’s half-year results show that revenue growth of 20% was accompanied by a faster, 29% increase in consolidated post-tax profit. The change from a Rs 48.6 crore operating cash outflow to a Rs 224.6 crore inflow coincided with a smaller cash use from trade receivables, higher cash equivalents and lower borrowings.

The next results will show whether the H1 cash conversion continues, particularly as current trade receivables stood at Rs 2,580.7 crore and trade payables fell by Rs 75.3 crore during the period. The November 5, 2026 filing does not disclose a forward financial target, leaving subsequent results to indicate changes in revenue, operating cash flow and working-capital balances.