Denta Water and Infra Solutions Limited, a Bengaluru-based listed company, has announced a strong start to FY26, delivering robust growth and profitability in its first-quarter performance. During Q1 FY26, the company recorded revenue from operations of ₹67.28 crore, marking a 35.92% increase year-on-year and a 24.24% rise over the previous quarter. EBITDA stood at ₹25 crore with a margin of 37.15%, while PAT reached ₹18.55 crore, translating to a 26.57% profit margin.

The growth is driven by accelerated execution in water management projects, completion of main stone-linked deliverables, and the realization of deferred billings from Q4 FY25. The company's order book as of June 30, 2025, stands at ₹593.68 crore, providing multi-quarter revenue visibility. Water management forms the core of operations, complemented by diversification into roads, railways, and irrigation projects.

Management highlighted significant operational achievements, including groundwater recharging initiatives using treated urban wastewater, improving livability, public health, and fish culture in project areas. The company’s work has been recognized by the Government of India, G20 Summit leaders, and the UN General Assembly President.

Denta Water is actively expanding beyond Karnataka into water-deficit states such as Gujarat, Maharashtra, Madhya Pradesh, Uttar Pradesh, and Haryana under the Atal Jal scheme, focusing on sustainable water availability and groundwater management. The company also continues to bid for new projects in Karnataka, with several tenders in the final DPR or bidding stage.

Management guidance indicates a modest revenue of around ₹300 crore for FY26, with anticipated 30% growth in FY27, backed by an expected ₹1,000 crore order inflow. The operating margin is expected to remain strong, supported by a debt-light balance sheet and efficient execution model.

Key orders under consideration include:

• Water supply and sewerage project in Karnataka valued at ₹750–800 crore.

• Sandur town project under the Karnataka Mineral Rehabilitation Exploration Fund, expected to close in Q2 FY26, with multiple components in technical approval stages.

The company emphasizes robust procurement efficiency and timely execution, ensuring minimal cost overruns. Approximately 80% of Q1 FY26 sales were realized in cash, and the working capital cycle remains efficient at 40–50 days, despite an overall working capital requirement of ₹184 crore.

Additionally, minor investments include a 95-acre coffee plantation in Madikeri and a resort named UVA Sands in Kundapura, totaling ₹25 crore, primarily used as collateral for non-fund-based obligations.

With its strong order book, operational efficiency, and sustainable water project initiatives, Denta Water is well-positioned to maintain high margins, deliver on execution commitments, and continue creating long-term value for stakeholders. The company continues to adhere to SEBI LODR compliance norms, ensuring transparency and timely updates for investors.

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