WPIL Limited Q3 FY26 Earnings Call Summary

Summary

WPIL Limited - Q3 FY26 Earnings Call Summary Monday, February 02, 2026, 4:00 PM IST

Event Participants

Executives 2 Krishna Kumar Ganeriwala (Executive Director), Prakash Agarwal (Managing Director)

Analysts 6 Balu Lamkhade (Parami Financial Services), Jainam Doshi (KRIIS PMS), Mukta Chandani (Individual Investor), Nirav Sheth (Emkay Global Financial Services), Praveen Jayaraman (Avendus Spark Institutional Equities), Rohan Baranwal (Trinetra Investment Capital), Saket Kapoor (Kapoor & Company)

Financials & KPIs

Geographic & Segment Commentary

• International Business: Contributed 60% of total revenue with 9M earnings of ₹822 crores and 15% EBITDA margins. Growth was spearheaded by PCI Africa (strategic tunnel and wastewater contracts) and WPIL Thailand, which delivered record Q3 revenues.
• Domestic Product Business: Reported a robust 50% YoY revenue growth for 9M FY26. Secured a breakthrough ₹320 crore order for 30-megawatt large pumps for the Rajasthan Eastern Canal Project, leveraging experience from the Kaleshwaram Project.
• Domestic Project Business: Performance remained subdued due to regulatory hurdles and funding delays in the Jal Jeevan Mission. However, O&M (Operation & Maintenance) activity showed a pickup, providing near-term stability.

Company-Specific & Strategic Commentary

• Inorganic Growth Success: Management highlighted the successful integration of three recent acquisitions in Africa and Italy made a year ago, noting that these entities are now outperforming their respective local markets.
• O&M Shift: WPIL is transitioning toward a service-led model with O&M contracts spanning 5-15 years. Management targets O&M to contribute 25-30% of project revenues within the next five years.
• Product Specialization: The company is expanding its footprint in high-margin niches, including drainage systems for the Indian Navy and specialized pumps for LNG projects in Australia and India.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Domestic Breakthroughs

• Question: Can you provide details on the Rajasthan pump order value and timeline? (Saket Kapoor)
• Answer: The order is valued at approximately ₹320 crores for 30-megawatt large pumps. It is a product order for a river-linking project and will be executed over a larger timeframe due to the scale of the equipment. (Prakash Agarwal)

International Strategy & Margins

• Question: Are the new African contracts at similar margins to the historical average? (Jainam Doshi)
• Answer: Yes, our business model focuses on an EBITDA range of 15% to 20%. The current results, primarily driven by Africa, align with this target. (Prakash Agarwal)

Jal Jeevan Mission (JJM) Exposure

• Question: What is the current outstanding receivable for JJM and the impact of the new budget? (Jainam Doshi)
• Answer: Outstanding stands at approximately ₹300 crores. The government’s allocation of ₹67,670 crores for FY27 is a positive signal, and we expect normalization within the next 3 to 6 months. (Prakash Agarwal)

Acquisition Framework

• Question: What filters does WPIL use for its successful overseas acquisitions? (Nirav Sheth)
• Answer: We focus on margin discipline (15-20% range), R&D synergy, and remaining strictly within our core sector. Recent acquisitions in Africa, Italy, and the oil & gas space are all performing well. (Prakash Agarwal)

Key Takeaway

WPIL Limited delivered a strong Q3 FY26, characterized by a 134% YoY surge in consolidated EBITDA, primarily driven by its international operations which now account for 60% of total revenue. While the domestic project business faced headwinds due to ₹300 crores in stalled receivables from the Jal Jeevan Mission, the domestic product segment grew 50% YoY, anchored by high-value orders like the ₹320 crore Rajasthan pump contract. Management is strategically pivoting toward a higher-margin, predictable O&M model, aiming for it to represent 30% of project revenue in five years. Despite elevated working capital days of 208, the company remains optimistic about a 3-6 month recovery window for domestic cash flows following favorable Union Budget allocations. WPIL appears well-positioned to leverage its global manufacturing footprint and specialized product R&D to sustain 15-20% EBITDA margins as it scales its international presence.