Shares of VA Tech Wabag Limited have rallied sharply over the past month, supported by strong order inflows, a healthy growth outlook and leadership strengthening measures.
The Chennai-headquartered water technology company, which provides water treatment, wastewater treatment, desalination, recycling and reuse solutions, closed at ₹2,061.15, up 3.92 percent from the previous close of ₹1,983.40. The company has a market capitalization of ₹12,844 crore.
Over the last month, the stock has gained 44.54 percent, while returns stand at 60.87 percent over six months and nearly 495 percent over five years.
Growth roadmap boosts sentiment
Investor sentiment received a lift after the company’s presentation issued on May 25, 2026, outlining its medium-term strategy.
VA Tech Wabag said it aims to maintain an order book equivalent to nearly three times annual revenue and targets:
- Revenue growth CAGR of 15-20 percent.
- EBITDA margins of 13-15 percent.
- Return on capital employed (RoCE) above 20 percent.
- Return on equity (RoE) above 15 percent.
- Operations and maintenance business contribution of 20 percent of revenue.
Management also reiterated its focus on maintaining an asset-light model.
Leadership team strengthened
The company appointed Bhupesh Chowdary Nagineni as Deputy Managing Director and named Rohan Mittal as Head of Strategy & Business Growth (GCC).
The appointments are intended to strengthen the leadership team and support the company’s long-term expansion plans.
Large project wins add revenue visibility
Recent order wins have been another key driver behind the stock’s rise.
On June 19, 2026, VA Tech Wabag secured a major desalination project from Kuwait’s Ministry of Electricity, Water and Renewable Energy. The contract involves a 272 MLD seawater desalination plant along with five years of operations and maintenance services.
Earlier, on June 9, the company won a contract in the UAE for the Ajman Sewage Biorefinery Plant – Phase 3, involving a 60 MLD sewage treatment facility equipped with advanced sludge management and power generation systems.
On May 22, the company also received an order from the Delhi Jal Board for a wastewater treatment plant in Delhi, including long-term operation and maintenance services.
Order book stands at ₹17,235 crore
VA Tech Wabag ended FY26 with an order backlog of approximately ₹17,235 crore, providing visibility for future revenues.
The order book composition includes:
By segment
- Municipal: ₹14,105 crore (82%)
- Industrial: ₹2,519 crore (15%)
- Framework contracts: ₹611 crore (3%)
By business
- EPC: ₹10,277 crore (62%)
- Operations and maintenance: ₹6,346 crore (38%)
By geography
- India: ₹9,612 crore (58%)
- Overseas markets: ₹7,011 crore (42%)
Revenue mix
The company reported FY26 revenue of around ₹3,908 crore.
- Municipal business contributed ₹3,118 crore (80%).
- Industrial business contributed ₹790 crore (20%).
By business segment:
- EPC contributed ₹3,226 crore (82.5%).
- Operations and maintenance contributed ₹682 crore (17.5%).
International markets accounted for 52.4 percent of revenue, while India contributed 47.6 percent, reflecting a balanced geographical mix.
Diverse client base
VA Tech Wabag serves municipal agencies and utilities across India, Bahrain, Qatar, Saudi Arabia, Nepal and Singapore.
Its industrial clients include:
- Reliance Industries
- Indian Oil Corporation
- Bharat Petroleum
- ONGC
- Petronas
- CPCL
- Nayara Energy
- HMEL
Projects are also supported by institutions such as the World Bank, JICA, KfW, ADB, AIIB, and India Exim Bank.
Financial performance
For the quarter ended March 2026, revenue rose to ₹1,414 crore from ₹1,156 crore in the corresponding quarter of the previous year, an increase of 22.3 percent.
Net profit increased to ₹128 crore from ₹100 crore, up 28 percent.
Over the past three years, revenue and net profit have recorded CAGR growth of 10 percent and 93 percent, respectively.
The company reported:
- RoCE: 21.3 percent
- RoE: 15.9 percent
- EPS: ₹59.5
- Debt-to-equity ratio: 0.09
About the company
VA Tech Wabag Limited is a Chennai-based multinational water technology company focused exclusively on water and wastewater treatment solutions. It operates in more than 25 countries and serves municipal and industrial customers across emerging markets.
TL;DR:
VA Tech Wabag shares have surged more than 44% in a month, supported by major project wins, a ₹17,235 crore order backlog and medium-term growth targets. The company expects revenue growth of 15-20% and maintains a strong presence in both domestic and international water infrastructure markets.
AI summary:
- VA Tech Wabag stock has gained 44.5% in one month.
- FY26 order book stood at ₹17,235 crore.
- Recent projects include contracts in Kuwait, UAE and Delhi.
- Management targets 15-20% revenue CAGR and 13-15% EBITDA margins.
- Q4 FY26 net profit rose 28% to ₹128 crore.
