Wabag sees ₹17,200 cr backlog, plans to double maintenance revenue share
Record backlog and ₹950 cr cash cushion give the water-treatment firm runway for its push into semiconductors and green hydrogen.
— 6 earlier stories on VA Tech Wabag Ltd. →What's new
- Wabag's order backlog hit a record ₹17,200 cr, up 26% YoY.
- Net profit grew 26% to ₹371 cr; the company holds ₹950 cr in net cash.
- Targeting 20% of revenue from operations and maintenance by FY28, up from current levels.
Why this matters
The backlog growth is the standout. At ₹17,200 crore it provides multi-year revenue visibility and validates Wabag's diversification bets. The push into O&M revenue, which is higher-margin and recurring, is a clear strategic shift away from lumpy project execution. The ₹950 crore cash pile gives management the firepower to fund both the vertical expansion and potential acquisitions.
What we're watching
- Whether O&M contract wins actually materialise at the pace needed to hit the 20% FY28 target.
- Execution on the new economy verticals — semiconductors and data centers are new territory for Wabag.
- Sustaining the 15-20% revenue growth guidance in a competitive water-treatment market.
The full read
Wabag's conference call reaffirmed a story the numbers already told. The order backlog of ₹17,200 crore is a record, up 26% year-on-year, and it provides a clear runway for the ₹371 crore net profit the company posted. The ₹950 crore net cash position is the fuel. Management's plan to channel that fuel is where the call added color: a push into semiconductors, data centers, and green hydrogen, and a specific target to lift operations and maintenance revenue to 20% of the total by FY28. The O&M target is the more telling move. It signals a deliberate pivot toward recurring, higher-margin work, which should smooth out the revenue lumpiness that plagues project-based peers. The new verticals are the growth story. Whether Wabag can win contracts in semiconductor fabrication or hyperscale data centers is unproven. The balance sheet can back the attempt.
Questions answered
- How big is the backlog, and what does it mean for near-term revenue?
- The ₹17,200 crore backlog is a record and represents a 26% year-on-year increase. This gives Wabag strong revenue visibility over the next 2-3 years, assuming normal execution rates.
- What is the new O&M revenue target, and why does it matter?
- Wabag wants to grow its operations and maintenance revenue to 20% of total revenue by FY28. This is a strategic shift toward higher-margin, recurring income streams, reducing reliance on one-off project awards.
- Which new verticals is Wabag entering?
- The company is targeting semiconductors, data centers, and green hydrogen. These are new economy sectors where water and wastewater treatment is critical, and they represent a diversification from Wabag's traditional municipal and industrial water projects.
- Is the net profit growth in line with revenue?
- Net profit grew 26% year-on-year to ₹371 crore, matching the 26% growth rate of the order backlog. This suggests stable margin performance alongside top-line expansion.
Story so far
All notes on WABAG →- 25 May 2026 · 7:44 PM IST Wabag sees ₹17,200 cr backlog, plans to double maintenance revenue share
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