Denta Water Share Price Fell Over 10% After Release of Q4FY25 Results: Revenue Dropped Over 47%

On May 29, 2025, Denta Water share price dipped over 10%, reaching a day low of ₹266.00 at 11:30 AM, after opening at ₹272.60 on BSE. The fall in Denta Water shares came after the company released its Q4FY25 and FY25 results. In addition, FY25 emerged as a pivotal year, marked by operational discipline, enhanced financial strength, and the successful debut on the public markets.

Denta Water Q4 FY25 Results

For Q4FY25, Denta reported:

• Revenue: ₹541.52 million, down ~47% YoY
• PAT: ₹137.20 million

This performance reflects continued profitability and underscores Denta’s resilience and robust project execution capabilities amid timing-related fluctuations.

Denta Water FY25 Performance Highlights

• Revenue: ₹2,032.85 million, a slight decline from the previous year, primarily due to timing adjustments in project execution and billing cycles.
• EBITDA: ₹724.32 million, reflecting an EBITDA margin of 35.63%, driven by effective cost management and operational efficiency.
• Profit After Tax (PAT): ₹528.85 million, with a PAT margin of 26.02%, an improvement from 25.34% in FY2024.

Despite temporary revenue recognition delays—mainly due to late-stage procurement of specialised materials and treatments—the company maintained profitability and margin expansion. These deferred transactions are expected to positively impact revenue in the first half of FY2026.

Strategic Milestones and IPO Success

The successful completion of Denta’s Initial Public Offering (IPO) during FY2025 was a significant achievement, reinforcing the company's liquidity and capital structure. The IPO proceeds have been judiciously allocated towards working capital and general corporate purposes, equipping the company with the agility to execute projects efficiently and explore new growth avenues.

Outlook for FY2026

With strong operational fundamentals, a reinforced capital position, and a healthy pipeline of opportunities, Denta is well-positioned to accelerate growth in FY2026. Management remains confident that the delayed project revenues will materialise in early FY2026, enhancing top-line performance and supporting sustained profitability.

Conclusion

FY2025 served as a transformative year for Denta Water and Infra Solutions Limited, marked by strategic execution, financial strengthening, and a successful foray into the public markets. The company is poised to build on this momentum, leveraging its expanded capital base to pursue ambitious infrastructure goals in the years ahead.

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