Are Va Tech Wabag Ltd latest results good or bad?

VA Tech Wabag Ltd's latest financial results for the quarter ended December 2025 reveal a period of notable operational performance. The company reported consolidated net sales of ₹961.30 crores, reflecting an 18.53% year-on-year growth compared to ₹811.00 crores in the same quarter last year. This growth is indicative of strong order execution and project ramp-ups within its water infrastructure portfolio, marking the strongest quarterly revenue performance in recent history. Consolidated net profit reached ₹91.70 crores, demonstrating a significant year-on-year growth of 30.63%. This profit growth notably outpaced revenue growth, showcasing the company's ability to convert top-line gains into improved bottom-line results. The operating profit margin stood at 12.64%, which represents a year-on-year improvement of 26 basis points, indicating resilience in profitability despite the capital-intensive nature of the sector. The company also experienced a sequential increase in net sales of 15.19% from the previous quarter, alongside an 8.14% increase in net profit. This sequential growth further emphasizes the company's operational momentum and effective project execution. In terms of financial health, VA Tech Wabag continues to maintain a robust balance sheet, characterized by a net cash position and a conservative debt-to-equity ratio. The company's ability to generate strong operating cash flows has enhanced its strategic flexibility for future growth initiatives. Overall, VA Tech Wabag's recent results reflect a positive operational trend, with improvements in both revenue and profitability metrics. Additionally, the company saw an adjustment in its evaluation, indicating a shift in market perception regarding its financial performance and growth potential.