Water infrastructure company WPIL Limited became the center of attraction in the market today after securing a major order from the Water Infra Agency of the South African Government. Following this announcement, the company’s shares saw a sharp rally.
With a market cap of ₹4,038.69 crore, WPIL’s stock jumped from ₹386.80 to ₹422.90, marking a 9.33% surge. However, after a slight correction, the stock is currently trading at ₹413.50.
What Is the Big News?
WPIL revealed that its South African subsidiary has secured a new contract from METSI KE MATLA JV for the MCWAP2 Project. This project is operated by the Trans Caledon Tunnel Authority, and the contract is valued at 821 million South African Rand, which is approximately ₹426 crore.
The contract includes complete electromechanical and instrumentation work, to be completed over the next 48 months. This order not only strengthens WPIL’s presence in Africa but also provides the company with long-term revenue visibility for the next four years.
WPIL’s Strong Order Book
WPIL has a very healthy and diversified order book, indicating steady execution in the coming years.
Order Book Breakdown (₹ crore)
| Order Type | Domestic | International | Total |
|---|---|---|---|
| Project Orders | ₹2,134 | ₹920 | ₹3,054 |
| Product Orders | ₹422 | ₹655.5 | ₹1,077.5 |
| Grand Total | — | — | ₹4,131.5 |
This balanced mix of domestic and international orders shows that WPIL’s global demand is consistently rising.
What Does the Company Do?
Founded in 1952 and previously known as Worthington Pump India Ltd, WPIL Limited is now a multinational pump engineering company.
Company’s Core Focus Areas
- Pump designing
- Manufacturing
- Erection
- Commissioning
- Global turnkey water projects
WPIL initially started with centrifugal pumps, but over time added civil construction capabilities, enabling it to achieve leadership in turnkey water projects.
Today, the company operates in Europe, Africa, Australia, and Southeast Asia. Its 12 manufacturing units cover the entire value chain—from pump production to assembly and testing.
Major Products
- Vertical turbine pumps
- Axial flow pumps
- Split case pumps
- Submersible pumps
- Motor pumps
These products are widely used in irrigation, water supply, sewage systems, power plants, industrial utilities, and global infrastructure projects.
Q2 Results
While the order book and international wins look strong, recent financial performance has been slightly under pressure.
Financial Comparison
| Metric | Q2 FY25 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue | ₹491 | ₹426 | ↓ 13.24% |
| Net Profit | ₹70 | ₹52 | ↓ 25.71% |
Despite weak quarterly results, the company’s five-year CAGR remains strong:
- Revenue CAGR: 14.73%
- Net Profit CAGR: 18.65%
Return Ratios
- ROCE: 15.6%
- ROE: 10%
Financial Strength
- EPS: ₹9.88
- Debt-to-Equity: 0.39x
This indicates that the company’s balance sheet is healthy and leverage remains manageable.
Conclusion
The ₹426 crore order from South Africa is a major strategic win for WPIL. It not only strengthens the company’s international presence but also enhances its revenue visibility for the next four years.
Although Q2 results were somewhat weak, the strong order book, rising global demand, and decades-old engineering expertise place WPIL in a strong position for sustained growth in the coming years.
