Denta Water Reports Strong FY2025 Performance with Margin Growth and Strategic Expansion
Healthy Profitability and Robust Order Book Signal Long-Term Growth
Bengaluru, May 29, 2025 – Denta Water and Infra Solutions Limited, a leading civil engineering contractor specializing in water infrastructure, announced its financial results for the fiscal year ended March 31, 2025, showcasing resilient profitability and strategic advancements despite minor revenue fluctuations.
The company reported a revenue of ₹2,032.85 million for FY2025, with a slight dip attributed to project execution cycles and billing adjustments. However, improved cost efficiency and operational discipline drove significant margin expansion, reinforcing the strength of its core business.
Margin Expansion Highlights Financial Resilience
Denta Water’s EBITDA for the year stood at ₹724.32 million, reflecting an impressive margin of 35.63%, up from the previous year. Profit After Tax (PAT) also rose to ₹528.85 million, with a PAT margin of 26.02%, compared to 25.34% in FY2024.
The margin improvement was achieved despite temporary delays in revenue recognition due to late procurement of specialized materials, particularly in Q4. Management expects these deferred revenues to materialize in the first half of FY2026.
In the fourth quarter alone, the company reported revenue of ₹541.52 million and a PAT of ₹137.20 million, demonstrating sustained profitability amid billing adjustments.
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IPO Strengthens Financial Foundation
A key milestone for Denta Water in FY2025 was the successful completion of its Initial Public Offering (IPO), which bolstered its capital base and liquidity. The proceeds have been strategically deployed toward working capital and corporate purposes, enhancing the company’s ability to pursue growth opportunities.
Strong Order Book Ensures Future Revenue Visibility
As of March 31, 2025, Denta Water’s order book stood at a robust ₹6,143.79 million, providing long-term revenue visibility. The company maintains a fortified balance sheet with minimal debt and substantial cash reserves, ensuring financial agility for future projects.
Strategic Focus on Water Infrastructure and Beyond
Water infrastructure remains Denta’s core revenue driver, with the company committed to sustainable water revitalization and groundwater recharge projects. It has also begun selective participation in adjacent sectors like railways and highways, aligning with its long-term expansion strategy.
Mr. C. Mruthyunjaya Swamy, Chairman of Denta Water and Infra Solutions Limited, commented:
*“FY2025 was a defining year for Denta Water. We reinforced our operational fundamentals, improved profitability, and completed a successful IPO, setting the stage for our next phase of growth. Our strong order book and execution capabilities position us to create long-term value while advancing our mission of sustainable water infrastructure.”*
Outlook for FY2026
With a strengthened balance sheet, a clear strategic roadmap, and a healthy project pipeline, Denta Water is well-positioned for sustained growth in FY2026. The company anticipates normalized cash flows as receivables convert and billing cycles stabilize, further supporting its expansion plans.
About Denta Water and Infra Solutions Limited
Denta Water is a leading civil engineering firm specializing in water infrastructure, groundwater sustainability, and environmental solutions. The company designs and executes high-impact projects to enhance water security across India.
Key Quotes
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From Management:
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“Our successful IPO and margin expansion reflect disciplined execution. With a strong order book and a debt-free balance sheet, we are poised for scalable growth in India’s critical water infrastructure sector.”
— Mr. C. Mruthyunjaya Swamy, Chairman, Denta Water
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On Financial Resilience:
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“Despite billing cycle adjustments, our profitability improved, proving the resilience of our business model. The deferred revenues will convert in H1 FY2026, further strengthening our cash flows.”
— CFO, Denta Water (unnamed in release)
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On Future Strategy:
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“While water infrastructure remains our core, selective diversification into railways and highways aligns with our long-term vision for sustainable nation-building.”
— Company Spokesperson
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Q&A Section
Q: FY2025 revenue dipped slightly—was this expected?
A: Yes, this was primarily due to project billing cycles and delayed material procurement. Importantly, our margins expanded, proving operational efficiency. The deferred revenues will reflect in early FY2026.
Q: How will the IPO proceeds be utilized?
A: Funds are being deployed for working capital and strategic growth, ensuring we can scale execution without liquidity constraints. Our near-zero debt status gives us added flexibility.
Q: What’s driving the 35%+ EBITDA margin?
A: Rigorous cost control, execution efficiency, and high-margin water infrastructure projects. We’re also leveraging technology to reduce waste and delays.
Q: Are you diversifying beyond water projects?
*A: Water remains our focus (80%+ of revenue), but we’re selectively bidding in railways and highways—adjacent sectors where our engineering expertise adds value.*
