WPIL - WPIL

📊 BSE: 505872 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached INR 804.6 Cr. The Product Division grew 9.4% YoY to INR 15.1 Cr in H1 FY26. Conversely, the Project Business revenue declined 64% YoY to INR 8.9 Cr in Q2 FY26 due to execution challenges and payment delays. International business revenue surged 60% YoY to INR 25.9 Cr in Q2 FY26.

Geographic Revenue Split

As of H1 FY26, the revenue split is 54% International (INR 430.9 Cr) and 46% Domestic (INR 351.0 Cr). The international segment has seen significant growth following the integration of acquisitions in Italy, South Africa, and Australia.

Profitability Margins

Consolidated PAT margins stood at 9.64% for H1 FY26 (INR 77.5 Cr) and 12.16% for Q2 FY26 (INR 51.8 Cr). Standalone PAT margins were higher at 14.21% in Q2 FY26. Margins are influenced by the mix between high-margin pump sales and lower-margin EPC turnkey projects.

EBITDA Margin

Consolidated EBITDA margin was 16.09% for H1 FY26 (INR 129.5 Cr) and improved to 18.87% in Q2 FY26 (INR 80.4 Cr). Standalone EBITDA margins reached 20.01% in Q2 FY26, reflecting a 79 bps YoY improvement due to better overhead absorption in overseas operations.

Capital Expenditure

WPIL has no major debt-led capex plans in the medium term. Routine capex is met through internal accruals. The company recently improved liquidity by INR 750 Cr following the sale of its stake in the Rutschi business in FY24.

Credit Rating & Borrowing

The company maintains a CARE A+; Stable rating for long-term facilities (INR 237.21 Cr) and CARE A1+ for short-term facilities (INR 813.79 Cr). Fund-based limit utilization averaged 76% through February 2025, while non-fund based utilization was ~70%.

⚙️ Operational Drivers

Raw Materials

Steel products and related castings/components represent the primary raw material, accounting for approximately 68% of the total cost of sales.

Import Sources

Sourced through a mix of domestic Indian suppliers for Kolkata and Ghaziabad units and local sourcing for international subsidiaries in Italy, South Africa, and Australia.

Key Suppliers

Not specifically named in the documents, but procurement is linked to global steel and casting markets.

Capacity Expansion

Current operations include 2 units in Kolkata, 1 in Ghaziabad, and 2 in Maharashtra. Expansion is primarily focused on inorganic growth through acquisitions like Eigenbau Pty Limited and Paterson Candy International rather than greenfield capacity.

Raw Material Costs

Raw material costs are approximately 68% of total costs. Profitability is highly susceptible to steel price volatility; however, 10-15% of contract value is typically received upfront to hedge initial procurement.

Manufacturing Efficiency

Efficiency is driven by a 70+ year legacy and the ability to offer up to 50% customization in the pumping segment, allowing for premium pricing on engineered solutions.

Logistics & Distribution

Distribution is managed through a global network of subsidiaries, agent networks, and service centers across Italy, South Africa, Australia, and Zambia.

📈 Strategic Growth

Expected Growth Rate

15-18%

Growth Strategy

Growth will be driven by a massive standalone order book of INR 2,990 Cr and a consolidated order book of INR 3,054 Cr. The strategy focuses on expanding the O&M portfolio to reach INR 70-100 Cr by FY27 and pursuing further inorganic acquisitions in the flow control sector.

Products & Services

Vertical and horizontal pumps, castings, valves, engineered pumps, and turnkey water supply projects including erection and commissioning.

Brand Portfolio

WPIL, Johnston Pumps, Gruppo Aturia, Finder, MISA, APE Pumps, Mather & Platt, Sterling Pumps, and United Pumps.

New Products/Services

Expansion into O&M services for commissioned water projects is expected to contribute significantly to future recurring revenue.

Market Expansion

Targeting deeper penetration in the Middle East and African markets through South African subsidiaries and expanding the industrial pump range in Italy.

Market Share & Ranking

Established as a leading player in the Indian pump industry with a significant global footprint in engineered pumps.

Strategic Alliances

Joint ventures and subsidiaries in South Africa (APE Pumps), Australia (Sterling Pumps), and Italy (Gruppo Aturia).

🌍 External Factors

Industry Trends

The industry is shifting toward life-cycle support and O&M rather than just equipment supply. WPIL is positioning itself as a 'world player' with local manufacturing bases in three major global regions.

Competitive Landscape

Intense competition from both large established players and small regional manufacturers in the domestic market.

Competitive Moat

Moat is built on a 70-year legacy, high switching costs for engineered pumps, and a global service network. This is sustainable due to the long-term nature of water infrastructure projects.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and steel price cycles. A 10% increase in steel prices significantly impacts the 68% cost base if not covered by escalation clauses.

Consumer Behavior

Municipalities and industrial units are increasingly demanding turnkey solutions (EPC) rather than standalone pump procurement.

Geopolitical Risks

Trade barriers or political instability in South Africa or Zambia could impact the 54% international revenue stream.

⚖️ Regulatory & Governance

Industry Regulations

Subject to state-level irrigation department standards and international manufacturing certifications for engineered pumps.

Environmental Compliance

Complies with manufacturing standards across its global units; no specific ESG cost disclosed.

Taxation Policy Impact

Effective tax rate is reflected in the difference between PBT (INR 187.4 Cr for FY25) and PAT.

Legal Contingencies

The company faces risks related to contract liabilities and performance guarantees common in large-scale turnkey projects, though no specific high-value pending court cases were quantified.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'working capital intensive' nature of the project business, where 30-40% of contract value is tied to successful commissioning, which can be delayed by external factors.