Sabesp Q3 shows 9% revenue growth and strong margins despite net income drop, buy rating maintained.

Sabesp reported a 9% year-over-year increase in net revenue and maintained a strong 61% EBITDA margin in Q3, driven by tariff hikes and cost control. However, net income fell due to higher debt and depreciation linked to heavy investments and delayed regulatory asset monetization. The stock is valued at 6.9 times EV/EBITDA, offering a 14.5% upside compared to historical averages. Key risks include challenges in investment execution and meeting operational targets, but the company’s operational strength post-privatization supports a continued buy rating.

Sabesp's shares show modest positive momentum on Pluang, with a 1-day gain of 0.20% to USD 4.96. The stock trades near its 52-week low of USD 4.42 but well below the 52-week high of USD 7.08, reflecting mixed investor sentiment as of Nov 10, 2026 18:31 WIB.