DENTA - Denta Water

📊 NSE: DENTA 🏢 Construction 📅 Last Updated: 12/13/2025 21:29

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations declined 14.80% YoY to INR 2,032.85 Mn in FY25, primarily due to project billing milestone phasing. Water-related projects constitute 97% of the unexecuted order book. H1 FY26 revenue reached INR 1,467.15 Mn.

Geographic Revenue Split

Karnataka contributes 80–85% of the total order book, exposing the company to significant regional concentration. Expansion is underway in Maharashtra, Uttar Pradesh, Madhya Pradesh, and Gujarat.

Profitability Margins

EBITDA margin improved from 34.53% in FY24 to 35.63% in FY25 (+110 bps). PAT margin increased from 25.34% to 26.02% (+68 bps) in the same period. Q2 FY26 PAT margin was 24.61%.

EBITDA Margin

EBITDA margin was 35.63% in FY25, a 3.2% YoY improvement. Q2 FY26 EBITDA margin remained healthy at 35.42% (INR 263.07 Mn) due to cost efficiency and execution excellence.

Capital Expenditure

The company raised net proceeds of INR 195 Cr through an IPO in January 2025 to scale operations and fund working capital. FY25 Net Capital Turnover Ratio was 0.54 times.

Credit Rating & Borrowing

CARE BBB; Stable / CARE A3+ reaffirmed in April 2025. The company maintains a zero-debt model (Debt-Equity Ratio of 0.00 in FY25) with healthy cash and bank balances of INR 848 Mn.

⚙️ Operational Drivers

Raw Materials

Water management infrastructure components including pipes, pumps, and construction materials. Specific percentage of total cost not disclosed.

Capacity Expansion

Not applicable for EPC model; however, the company is expanding its execution footprint into Maharashtra and Uttar Pradesh to diversify its INR 7,347.39 Mn order book.

Raw Material Costs

Raw material costs are managed through advance procurement using IPO funds to mitigate inflationary pressures. Inventory turnover ratio declined from 18.35 in FY24 to 4.38 in FY25.

Manufacturing Efficiency

Not applicable (EPC); Inventory turnover ratio was 4.38 times in FY25 compared to 18.35 times in FY24.

📈 Strategic Growth

Growth Strategy

Growth will be driven by executing the INR 7,347.39 Mn order book (2-2.5 years visibility) and targeting INR 10,000 Mn in new order inflows for FY26. Strategy includes geographic expansion into MH, UP, MP, and GJ, and sectoral diversification into roads and railways.

Products & Services

Design, installation, and commissioning of water management infrastructure, groundwater recharge systems, lift irrigation systems, and long-term operations and maintenance (O&M) services.

Brand Portfolio

Denta Water And Infra Solutions Limited.

New Products/Services

Expansion into road and railway infrastructure projects to build a complementary portfolio beyond water solutions.

Market Expansion

Strategic entry into Maharashtra, Uttar Pradesh, Madhya Pradesh, and Gujarat to diversify the client base and reduce dependency on Karnataka.

Strategic Alliances

Partners through unincorporated joint ventures for specific large-scale infrastructure projects.

🌍 External Factors

Industry Trends

Growing national focus on sustainable water solutions, groundwater recharge, and wastewater reuse, aligning with Denta's core expertise.

Competitive Landscape

Highly fragmented EPC market characterized by intense price competition from both large national players and regional contractors.

Competitive Moat

Durable advantage through niche technical expertise in groundwater recharge and lift irrigation, supported by a proven execution track record with government agencies.