WPIL FY26: Products stay resilient as projects wait for Jal Jeevan cash

WPIL closed FY26 with steady consolidated growth, even as the domestic project business remained under pressure. Consolidated revenue from operations rose 2.6% year-on-year to INR 1,854.6 crores, while EBITDA increased 8.8% to INR 318.3 crores. EBITDA margin improved to 17.16% from 16.19% in FY25. PAT on continuing operations was INR 199.7 crores, up 1.5%, with a PAT margin of 10.77%.

Q4 FY26 was softer on the top line. Consolidated revenue declined 10.6% year-on-year to INR 511.2 crores, and EBITDA margin fell to 14.91% from 20.88% in Q3. Management attributed quarterly volatility to mix and timing differences across products versus projects and across geographies.

The year’s core contrast was clear. The product division grew and remained demand-supported across power, industrial, and export markets, while the domestic project division saw a sharp fall in execution as Jal Jeevan Mission payments and tendering slowed.

FY26 performance in one table

Products: growth led by domestic momentum and international platforms

WPIL’s product division delivered a stronger year. FY26 product revenue rose to INR 1,036.5 crores from INR 943.6 crores in FY25. The growth was supported by domestic product performance, where revenues increased to INR 374.2 crores from INR 323.4 crores.

Management highlighted continued traction in order intake and demand from key sectors. Recent domestic wins included large power plant cooling water pump contracts for DVC and Deepak Chemicals. The management also indicated that Jal Jeevan Mission Phase 2 could act as a demand driver for pumps and related equipment, especially as project activity returns.

Internationally, management commentary pointed to improving conditions across multiple regions. Gruppo Aturia in Italy is seeing demand from the MENA region, spanning oil and gas as well as water-related applications, including pumps for gas turbines. In Australia, Sterling and United are seeing demand from LNG and mining sectors. The company also noted a record performance from WPIL Thailand, with revenues of INR 300 crores in FY26.

Order visibility in products remained supportive. FY26 product order backlog was INR 984.1 crores, with 58.9% international and 41.1% domestic.

Projects: domestic execution subdued, South Africa becomes the swing factor

The project division was the weak link in India during FY26. FY26 domestic project revenues declined sharply to INR 388.5 crores from INR 824.3 crores in FY25. In Q4, domestic project revenue dropped to INR 92.3 crores compared with INR 252.7 crores in Q4 FY25.

Management said the domestic project business stayed subdued as the company focused on commissioning and starting operations and maintenance activities, while fund releases under Jal Jeevan Mission remained delayed. On the concall, management also connected this delay to elevated receivables. When asked about the rise in consolidated trade receivables, management cited Jal Jeevan Mission as the major reason and indicated overdue receivables of roughly INR 350 crores.

In contrast, international projects are now positioned as the medium-term growth lever. While FY26 international project revenue was flat at INR 429.6 crores, the order inflow commentary was materially stronger. Management referenced large contract wins by PCI Africa, including contracts from the City of Cape Town and Umngeni-Uthukela Water.

A key operational point was the execution profile. Management indicated South African project contracts typically run 36 to 48 months, with engineering and site establishment phases preceding a revenue ramp. They also stated that peak revenues generally come in year two of project execution.

Critically, management described South African projects as more process and electromechanical rather than civil-heavy EPC, suggesting a better margin profile and lower dependence on pipeline and large civil components. They also stated that commercial terms are strong, including advances and fast payment cycles.

Project order visibility remained large at the end of FY26. FY26 project order backlog was INR 3,951.7 crores, split nearly evenly between domestic (49.5%) and international (50.5%).

FY27 setup: two catalysts and one key watch item

Management’s FY27 narrative revolves around two catalysts.

First is Jal Jeevan Mission Phase 2. Management said cabinet clearance came in March and expects momentum to restart as funds are released and new tenders are announced. They also indicated activity may move slowly at first but could pick up by the second quarter, with stronger demand by the second half of the year.

Second is the South Africa ramp. Management indicated it expects revenue momentum from the second half and higher momentum in the following year as execution ramps.

The key watch item remains working capital. WPIL’s working capital days increased to 202 in FY26, and consolidated trade receivables rose year-on-year. Finance costs also increased to INR 47.7 crores in FY26 from INR 38.9 crores in FY25. Management suggested that as funds are released and collections improve, interest costs could come down.

On profitability, management reiterated a consolidated EBITDA margin bandwidth of 15% to 20% and indicated margins could be on the higher side going forward, supported by strong product performance and better-margin international projects.

Capital allocation and inorganic growth

Management also highlighted an intent to pursue acquisitions. The board increased authorized capital, which management described as an enabling step for fundraising and potential acquisitions. The focus is stated to be on product space and geographic reach, including interest in entering the US market.

On capex, management indicated there is no major capex requirement currently, with only small brownfield additions expected to support domestic product growth.

Takeaways

WPIL’s FY26 performance shows a company with stable consolidated profitability, supported by products and international diversification, but constrained by domestic project execution and collections. The setup for FY27 depends on whether Jal Jeevan Mission Phase 2 restarts meaningfully and whether South African project execution converts the large order pipeline into revenues.

If collections improve and international project ramps play out as indicated, WPIL could see a better mix and potentially stronger margins within management’s stated 15% to 20% EBITDA range. Until then, receivables and cash conversion remain the most important near-term variables.