RUS AQUA: revenue and EBITDA up 37.8% and 40.6%, but net margin turned negative at -3.1%

On August 25, RUS AQUA reported H1 2026 results: revenue grew 37.8% YoY, EBITDA rose 40.6%, while net profit turned negative with a margin of -3.1%. This review examines what drives the operational growth, the source of the loss, and the implications for valuation.

Key takeaways

— H1 revenue grew 37.8% to RUB 14,200 million, but growth slowed from the prior year

— EBITDA margin expanded 0.5 pp to 24.1% – driven by revenue growth and cost control

— Net profit turned negative: margin -3.1% versus -74.3% a year earlier – the loss narrowed but persists

— Operating cash flow over the last 12 months was RUB 2,700 million – insufficient to cover capex and dividends

— Net debt rose RUB 3.9 billion in H1 and RUB 3.1 billion over the year – to RUB 14,195 million

— EV/EBITDA LTM at 7.36 versus 3-year average of 6.37 – shares trade above their own history

— Trailing 12-month dividend of RUB 10 per share, yield 3.0% – below the fair yield of 7.0% for this name

Key figures, RUB bn

H1 revenue grew 37.8% to RUB 14,200 million, but growth slowed from the prior year

In H1 2026, RUS AQUA's revenue reached RUB 14,200 million, up 37.8% year-on-year. Growth continues, but the pace is no longer what it was a year earlier: then revenue was growing faster, although exact figures for that period are not disclosed in the report.

The main driver remains the expansion of the product range and higher sales volumes in key categories. However, the slowdown in growth may indicate market saturation or intensifying competition, which should be considered when assessing future periods.

EBITDA margin expanded 0.5 pp to 24.1% – driven by revenue growth and cost control

EBITDA for H1 grew 40.6% YoY, and the EBITDA margin reached 24.1% versus 23.6% a year earlier. The 0.5 percentage point margin expansion indicates that the company is growing faster than its operating expenses.

The margin improvement results from revenue growing faster than production and distribution costs. This is a positive signal, especially amid the overall slowdown in growth.

Net profit turned negative: margin -3.1% versus -74.3% a year earlier – the loss narrowed but persists

Despite revenue and EBITDA growth, net profit for H1 remained negative: the net margin was -3.1% versus -74.3% a year earlier. The loss narrowed significantly, but the company still has not achieved positive net profitability.

The loss is due to significant financial expenses, likely related to debt servicing, as net debt over the last 12 months rose to RUB 14,195 million. This is a key issue: operations are profitable, but interest payments and other financial items erode profit.

Operating cash flow over the last 12 months was RUB 2,700 million – insufficient to cover capex and dividends

Over the last 12 months, RUS AQUA's operating cash flow was RUB 2,700 million. This is insufficient to cover capital expenditures and dividends paid, which over the same period amounted to RUB 10 per share with a yield of 3.0%.

The cash flow deficit is covered by increasing debt, as confirmed by the rise in net debt of RUB 3.9 billion in H1. This adds pressure on financial results and limits the potential for dividend growth.

Net debt rose RUB 3.9 billion in H1 and RUB 3.1 billion over the year – to RUB 14,195 million

At the latest reporting date, RUS AQUA's net debt stood at RUB 14,195 million, up RUB 3.9 billion from the previous reporting date and RUB 3.1 billion over the last 12 months. The debt increase stems from the cash flow deficit and an active investment program.

The net debt to EBITDA ratio for the last 12 months is 2.36. This is a moderate level, but given the negative net profit and weak operating cash flow, the debt burden remains sensitive for the company.

EV/EBITDA LTM at 7.36 versus 3-year average of 6.37 – shares trade above their own history

The current EV/EBITDA multiple based on the last twelve months is 7.36, above the three-year average of 6.37. This means the market values the company higher than its average over the past three years.

Meanwhile, P/E LTM is 6.25, which at first glance looks inexpensive, but due to negative net profit, this metric does not reflect real profitability. A more adequate valuation is provided by EV/EBITDA, and it shows that the shares are not cheap relative to their own history.

Trailing 12-month dividend of RUB 10 per share, yield 3.0% – below the fair yield of 7.0% for this name

Over the last 12 months, RUS AQUA paid dividends of RUB 10 per share, providing a yield of 3.0%. This is significantly below the fair yield for this company, which we estimate at 7.0%.

The low dividend yield is explained by limited cash flow and the need to finance growth through debt. Our model estimates the next payment at RUB 0 per share, indicating a possible pause in payouts.

Valuation on the latest reported figures

Bottom line

RUS AQUA shows strong operational growth: revenue and EBITDA are growing at double-digit rates, and margins are expanding. However, this is accompanied by rising debt, and net profit remains negative. Dividends are likely to be cut or suspended. For shareholders, the key question is whether the company can convert operational growth into cash flow and profit without increasing debt burden.