The water supply and management sector in India is rapidly growing, driven by urgent water scarcity and government initiatives. The water and wastewater market was valued at Rs 192.44 billion in 2024 and is expected to reach Rs 353.50 billion by 2030, growing at a CAGR of 10.72 percent. Over 15.7 crore rural homes now have safe tap water under the Jal Jeevan Mission.
With a market capitalisation of Rs 8,540.54 crore, the shares of VA Tech Wabag Ltd closed at Rs 1,371.00 per share, decreased around 1.14 percent as compared to the previous closing price of Rs 1,386.85 apiece.
Brokerage Recommendation
Geojit BNP Paribas has issued a ‘Buy’ rating on the water management company, setting a target price of Rs 1,877 per share, reflecting a 37 percent upside from the current Rs 1,371.00 apiece. The bullish outlook is driven by strong order inflows, robust execution, and expanding opportunities in global water infrastructure and sustainable project segments.
VA Tech Wabag delivered solid top-line growth in H1FY26, with revenue rising 18.2% to ₹1,569 crore, led by strong momentum in municipal EPC and industrial O&M segments. However, margin pressure emerged as higher EPC mix lifted costs, causing Q2 EBITDA to slip despite steady operational execution.
Additionally, Profitability remained resilient, supported by a sharp surge in other income due to forex gains, pushing Q2 PAT up 20.6% YoY. The company strengthened its balance sheet with ₹675 crore net cash for the 11th straight quarter.
Future Outlook
VA Tech Wabag Ltd medium-term outlook projects strong growth, targeting a 15–20 percent revenue CAGR with an order book three times annual revenue. It aims for 13–15 percent EBITDA margins. Its targeted revenue mix, over 50% from international projects, 30% from industrial clients, 20% from O&M, and one-third of EPC from EP projects, is expected to support margin expansion
Financial & Operational Highlights
The company reported a strong Q2FY26 performance with revenue rising 19 percent year-on-year to Rs 834 crore and net profit up 21 percent to Rs 85 crore. The growth reflects robust demand, improved operational efficiency, and effective cost management, highlighting the company’s steady financial momentum and sustained profitability.
In H1FY26, the company generated total revenue of Rs 1,548.9 crore, with EPC contributing 81 percent and O&M 19 percent. The municipal segment dominated with Rs 1,195.3 crore, accounting for 77 percent of revenue, while the industrial segment added Rs 353.6 crore, or 23 percent, reflecting strong public infrastructure demand and steady private sector engagement.
Geographically, revenue distribution was balanced, with India contributing Rs 820.9 crore (53 percent) and overseas markets Rs 728.0 crore (47 percent). This near-equal split highlights the company’s strong global presence alongside robust domestic operations, supported by large-scale water infrastructure projects and expanding international contracts, driving sustained growth and diversification.
The company serves a diverse clientele across municipal and industrial sectors, including global names like Reliance, GAIL, IndianOil, and NMDC, alongside government water boards. Supported by leading funding agencies such as the World Bank, KfW, and Exim Bank, it operates in water, oil and gas, power, and industrial infrastructure segments worldwide.
The company ranks among the world’s top three private water operators and desalination plant suppliers, serving over 96 million people across 25 countries. With an order book of Rs 16,000 crore, 1,500+ plants executed with global R&D centres, and 125+ in-house innovations, it follows an asset-light model focused on sustainable water management and circular economy solutions.
VA Tech Wabag Ltd is a leading global water technology company headquartered in Chennai, specializing in water treatment, wastewater management, and desalination solutions. With operations across countries, it provides sustainable, innovative, and large-scale infrastructure services, helping industries and municipalities ensure efficient water use and environmental sustainability.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
