WPIL’s Rs51 bn order backlog supports anticipated second-half recovery after weak quarter
WPIL Ltd.
BUY
₹410
₹381.9
₹550
34.15%
Investment View and Valuation
Emkay Research’s November 1, 2026 result update on WPIL retained its BUY recommendation despite a weak 2QFY27. The broker expects recovery in 2HFY27, supported by a strong order backlog and improving domestic execution.
Emkay reduced its target price by about 15% to Rs550 from Rs650, valuing the stock at 20 times September 2028E EPS. The target-price cut followed reductions of 17% in revenue estimates and 26% in PAT estimates on average over FY26-29E, driven by lumpiness and subdued performance in the Projects business.
2QFY27 Financial Performance
WPIL reported consolidated 2QFY27 revenue of Rs3,543 mn, down 16.8% YoY and 29.2% QoQ. EBITDA declined 41.2% YoY to Rs472 mn, while EBITDA margin contracted 550 bps YoY to 13.3%. Reported PAT fell 35.1% YoY to Rs336 mn.
The results missed Emkay’s expectations because of weaker product dispatches and project revenue booking. However, net working-capital days improved by 21 days to 217, while cash flow from operations improved to Rs1,100 mn in 1HFY27 from negative Rs986 mn in 1HFY26.
| Consolidated metric | 2QFY27 | YoY change | QoQ change |
|---|---|---|---|
| Revenue | Rs3,543 mn | -16.8% | -29.2% |
| EBITDA | Rs472 mn | -41.2% | — |
| EBITDA margin | 13.3% | -550 bps | — |
| Reported PAT | Rs336 mn | -35.1% | — |
Products Division
The Products division generated 2QFY27 revenue of Rs2,100 mn, down 14.7% YoY. Domestic product revenue declined 28.6% YoY to Rs617 mn because of dispatch deferments during heavy monsoons, while international product revenue declined 7.2% YoY to Rs1,500 mn.
Product EBIT margin moderated to 16.3% from 27.5% in 2QFY26, partly because the prior-year quarter included execution of high-margin orders. Management expects product dispatches to normalise in 2HFY27 and margins to normalise within the 22-25% range.
The product order backlog of Rs10,300 mn provides revenue visibility. Domestic power-sector orders and a potential Kuwait water-supply order are identified as opportunities.
| Products division metric | 2QFY27 | YoY change |
|---|---|---|
| Total revenue | Rs2,100 mn | -14.7% |
| Domestic product revenue | Rs617 mn | -28.6% |
| International product revenue | Rs1,500 mn | -7.2% |
| Product EBIT margin | 16.3% | 25.5% in 2QFY26 |
| Product order backlog | Rs10,300 mn | — |
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Projects Division and Domestic Execution
The Projects division reported revenue of Rs1,400 mn, down 19.9% YoY, affected by lumpy international revenue booking and slower domestic Jal Jeevan Mission execution. Domestic project revenue was Rs565 mn, down 36.2% YoY, although project EBIT margin improved to 17.4% from 14.9%.
The Projects backlog stood at Rs40,800 mn. Management expects domestic execution and operations and maintenance revenue to improve in 2HFY27 after Jal Jeevan Mission payment releases and project commissioning.
Around 50-60% of the approximately Rs14,000 mn executable domestic project backlog is exposed to West Bengal, making fund releases an important recovery trigger.
International Growth Opportunities
International business is a key growth driver, with 1HFY27 international revenue increasing 31% YoY to Rs6,300 mn. Management highlighted opportunities across MENA, Australia and South-East Asia.
- Italy has completed legacy projects and secured fresh orders.
- PCI Africa has begun new-project execution.
- South Africa has a Rs24,000 mn backlog across Products and Projects.
Key Recovery Triggers and Risks
The expected recovery in 2HFY27 depends on normalisation of product dispatches, improving domestic execution, Jal Jeevan Mission payment releases and project commissioning. The strong Products and Projects backlogs provide revenue visibility, while international opportunities remain an important growth driver.
Risks to the recovery include:
- Continuing delays in product dispatches.
- Government infrastructure-spending constraints.
- Delayed Jal Jeevan Mission payments.
- Lumpy international project revenue.
- Geopolitical uncertainty delaying Middle East contract finalisation.
Disclaimer: This is a summary of a research report published by the broker/research house identified above. The views, recommendations, target prices and estimates are those of the respective broker and do not represent DSIJ investment advice. The summary may be AI-assisted, hence please refer to the original report for complete details, disclosures and risks.
