Denta Water Q1 FY27 Results (NSE: DENTA)
Signal: Revenue declined
The read
The key inflection is sequential rather than YoY: revenue rose 6.06% QoQ, EBITDA rose 22.73% and margin recovered 357bps to 26.30%, but the 12.80% revenue decline and 1085bps YoY margin contraction show that government-transition delays are still suppressing execution; the ₹8,508.96 million order book and ₹655.66 million July wins provide visibility if approvals and payments normalize.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹58.66 Cr | -12.8% | +6.06% |
| EBIT | ₹15.3 Cr | -38.4% | |
| Net profit | ₹11.17 Cr | -39.8% | |
| EPS | ₹4.18 | -39.9% | |
| EBIT margin | 26.30% |
P&L walk
Revenue recovered 6.06% QoQ but remained down 12.80% YoY, while EBITDA fell 38.27% YoY and margin contracted 1085bps to 26.30% because government-transition delays slowed approvals, payments, tendering and project execution; sequential EBITDA and PAT improved 22.73% and 22.59%.
Key positives
- Sequential recovery is visible: revenue increased 6.06% QoQ to ₹586.64 million, EBITDA increased 22.73% to ₹154.31 million and PAT increased 22.59% to ₹111.68 million.
- Order book stood at ₹8,508.96 million as of July 31, 2026, including ₹655.66 million of new orders, supporting future execution visibility.
- Two new projects worth approximately ₹655.66 million, both scheduled for completion within 11 months, strengthen near-term order conversion potential.
Key concerns
- Revenue declined 12.80% YoY to ₹586.64 million and EBITDA declined 38.27% to ₹154.31 million as delayed approvals, payments, tender announcements and project execution affected Karnataka's water-infrastructure market.
- EBITDA margin contracted 1085bps YoY to 26.30%, indicating that the recovery has not yet restored last year's profitability profile.
- The business remains exposed to state-government decision-making and payment timing, which management identified as the primary causes of the quarterly slowdown.
Research and educational content only. Not investment advice.