Synopsis: Denta Water shares fell 12% despite reporting an order book of Rs 841 crore, higher than its market cap, as weak Q3 execution and profit decline weighed on sentiment. Investors appeared concerned about revenue conversion pace, L1 orders awaiting approvals, and near-term billing volatility despite strong order inflows.
The shares of this company, which is in the field of water engineering, procurement, and construction services and deals with infrastructure project installations, including groundwater recharging through recycled water, had its shares tumble today despite reporting a robust order book.
With the market cap of Rs 747 crore, the shares of Denta Water & Infra Solutions Ltd have fallen about 12% and reached a low at Rs 271.25, compared to their previous day’s closing price of Rs 306.70. The shares are trading at a PE of 11.2, whereas its industry PE is at 20.3.
About the Q3 FY26 Result highlights
The revenue from operations for the company stood at Rs 54 crore when compared to Rs 51 crore in Q3 FY25, growing by about 6 per cent on a YoY basis and, on a QoQ basis, falling by 27 per cent from Rs 74 crore in Q2 FY26.
The PAT fell 7% on a YoY basis when you compare the Q3 FY26 profit at Rs 14 crore to the Rs 15 crore profit in Q3 FY25 and, on a QoQ basis, has fallen 26% from the Rs 19 crore profit in Q2 FY26.
Order Book Highlights
Denta Water and Infra Solutions has a healthy back order of around Rs 841.48 crore as of December 31, 2025, which provides a significant outlook for revenue growth in the coming quarters. For the 9 months of FY26, the company has secured orders worth Rs 377.31 crore, out of which Rs 161.12 crore were secured in the most recently concluded Q3, along with recent orders secured for two projects with the company in the capacity of a subcontractor and the L1 position in two projects, subject to final approvals.
Why the share price fall?
Therein lies a potential linkage of Denta Water’s share price weakness to concerns around execution visibility, rather than headline order book strength. While the company maintains an outstanding order book of Rs 841.48 crore, investors may be cautious regarding the pace of conversion into revenue, at least as often seen in such infrastructure companies’ timing mismatches between order wins and billing realisation.
Further, while the company received new orders of Rs 377.31 crore in 9M FY26 and Rs 161.12 crore in Q3, some of these are L1 positions subject to LOA issuance and agreement execution. Markets generally discount L1 wins until they are inked into executable contracts, which may create near-term uncertainty around confirmed revenue visibility.
Lastly, management itself highlighted that the third quarter usually witnesses execution and billing variation due to administrative approvals and seasonal factors. Even if industry-wide, such commentary can signal near-term revenue volatility. Additionally, the recent Rs 30.07 crore subcontract award may carry relatively lower margins compared to primary EPC contracts, which could raise concerns about profitability mix despite a healthy pipeline.
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