A Good Q4 For VA Tech Wabag | Execution Could Surpass 20% Guidance In FY27, Says Company |
📅 May 22, 2026CNBC-TV188 MIN926 VIEWS15 SEGMENTS · 4 SPEAKERS
#4QWithCNBCTV18 | VA Tech Wabag Reports Good Q4FY26 Earnings
CMD, Rajiv Mittal To CNBC-TV18
Maintain medium-term revenue guidance of 15-20% & EBITDA guidance of 13-15%
Execution could surpass 20% guidance in FY27
#vatechwabag #2026results #2026earnings #earningsgrowth #revenuegrowth #margingrowth #orderbookgrowth #profitgrowth #ebitdamargingrowth #2026growth #cnbctv18 #cnbctv18market #businessnews #businessnewstoday #businessnewsinenglish #sharemarkettoday
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What Rajiv Mittal said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Rajiv Mittal, Chairman and Managing Director of VA Tech Wabag, said the company remains bullish despite West Asia disruptions, citing operations in over 25 countries and intact project execution. He reported an all-time high order backlog of over 17,200 crore and noted some delayed decisions but no major impact. Mittal declined to give annual guidance, reaffirming a 3-5 year target of 15-20% revenue growth, which he expects to exceed 20% next year. He confirmed the 13-15% margin guidance, with current standalone margins above 14% and consolidated above 13%. He estimated Middle East projects under execution at around 5,000 crore, with work continuing and workers safe. Mittal highlighted growing government interest in building water buffer capacities, comparing water to oil. He confirmed preferred bidder status for a $384 million Kuwait order and a $200 million Hadada sewage plant, expecting them in the order book by Q2.
Key takeaways
Order backlog at all-time high of over 17,200 crore, with no shortage of orders.
Revenue growth guidance of 15-20% over 3-5 years, likely to be surpassed with over 20% achieved this year.
Margin guidance of 13-15% maintained, with standalone at 14% plus and consolidated at 13% plus.
Middle East projects under execution valued at approximately 5,000 crore, with no disruption.
Preferred bidder for $384 million Kuwait order and $200 million Hadada sewage plant, expected in order book by Q2.
2:55What's the kind of order inflow guidance that you have for this year? Revenue guidance and margin guidance?
4:08And even the margin guidance of 13 to 15% stays despite the inflationary impulse going up?
4:31Just one thing in the Middle East, what is the value of projects under execution on some of the plants in the total value in the region, Middle East?
5:10And work on all this has continued through this over the last 2 months?
5:44... you seen any actual visibility, people picking up the phone and talking to you that this may or have you seen this come through the pipeline with regards to you know, just projects being conceptualized or maybe just the idea being floated?
6:36Is it a part of your order book right now that 17,200 crore or a part of L1 or when do you expect it to convert?
VA Tech Wabag, that's the management on our show right now, reported a good set, especially given the likely disruptions from West Asia. The revenues jumped 22%, margins have fallen. Rajiv Mittal, who's the chairman and managing director at VA Tech Wabag, joins in now. Thanks a lot, Mr. Mittal, for joining in. It's a good performance. So, the question, however, is what goes on from here on on three parameters. One, order wins because of the disruption in West Asia, etc. What's the kind of order inflow outlook that you have? The second part is on execution because we've been speaking to a lot of people and they say that labor availability execution remains a bit of a challenge. And then the third part is on raw materials. So, cost of execution has increased. On all these parameters, what's your guidance? What's the outlook? What's the setup like?
Thank you, Mangalam, and thank you for having us on your show. I think we are still very bullish. I've said this before that today we are a multinational company with presences more than 25 countries. So, we are not dependent on one geography. Our risks are spread out. And even when you're talking about West Asia, I think all our execution of the projects are very much intact. And we have been performing well. All our sites are not disrupted. We have adequate workforce to give the desired output. And you can see from the numbers we have exceeded our expectation. So, there is no disruption per se in the execution side. On the order intake side, I think we are at all time high with 17,200 crore plus order backlog. So, we are not short of orders. Yes, definitely we have seen some delayed decisions over the last 3 months, but I think it's fine. We are full with execution. It's a matter of time and water is something where the decisions cannot be delayed beyond a point both in the drinking water side or in the waste water side because it affects directly the people. So, we are very much intact and we have a very bullish order outlook. And last thing about your raw material prices, most of the orders which are under execution, we have already blocked our cost by placing orders both on the construction and on the supply. So, we don't see much effect on the present execution. And the new orders, obviously, when we take, there will be a clause to negotiate if there is a continued to be price increase. So, there also we are not very concerned.
So, can you put numbers to the qualitative commentary that you've made? What's the kind of order inflow guidance that you have for this year? Revenue guidance and margin guidance?
I think Mangalam, we have given this 3 years back. We don't give year to year or quarter on quarter guidance. We have given a 3 to 5 year guidance which is we are very much on it. You can see even this year revenue guidance are very much what we had given. We had given a 15 to 20% and we have already achieved more than 20% and with the kind of order backlog we have, I'm sure we can do much better than 20% when we will give our next guidance in next year, probably you will see that this CAGR number of 20% will further go up. And same thing on order, you have seen in this crisis, the water has come into discussion. They have been all talking about destroying each other's water assets. So, I'm sure each country is going to build adequate reserve capacities of this water. So, we see going forward the governments are going to come up with the policy to have a spare or buffer capacities, which will also help us to build new plants.
In fact, Rima, yes, it does. And you have seen even this year we are both on standalone we are 14% plus and on console we are 13% plus. So, yes, this margin guidance will stay and can improve.
Uh right, Mr. Mittal, good morning. Yeah, water has been in the headlines, water desalination plants and threats to destroy it and whatnot, right? I mean, absolutely crazy stuff. Just one thing in the Middle East, what is the value of projects under execution on some of the plants in the total value in the region, Middle East?
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Mittal, R. (2026, May 22). A Good Q4 For VA Tech Wabag | Execution Could Surpass 20% Guidance In FY27, Says Company | [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/1032395/
MLA
Rajiv Mittal. "A Good Q4 For VA Tech Wabag | Execution Could Surpass 20% Guidance In FY27, Says Company |." CNBC-TV18, 22 May. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/1032395/.
BibTeX
@misc{mittal2026_1032395,
author = {Rajiv Mittal},
title = {A Good Q4 For VA Tech Wabag | Execution Could Surpass 20\% Guidance In FY27, Says Company |},
howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
year = {2026},
month = {may},
url = {https://ceointerviews.ai/interview/1032395/},
note = {Speaker-attributed transcript with timestamps}
}
