This small-cap Water Management Stock, engaged in providing water and wastewater treatment solutions, focusing on sustainable technologies for municipal, industrial, and infrastructure sectors across global markets, is in focus after the company expects its order book to reach Rs. 16,000-17,000 Cr in the coming months.
With a market capitalization of Rs. 10,229.08 crores, the share of Va Tech Wabag Limited has reached an intraday high of Rs. 1,660.65 per equity share, rising nearly 1.35 percent from its previous day’s close price of Rs. 1,638.45. Since then, the stock has retreated and is currently trading at Rs. 1,644.80 per equity share.
VA Tech Wabag’s current order book is nearly Rs. 14,000 crore and is expected to grow to around Rs. 16,000–Rs. 17,000 crore soon. The company is focusing on expanding in emerging markets and high-value projects in water, wastewater, and desalination.
It is confident of achieving compounded annual revenue growth between 15 and 20 percent and aims to maintain healthy EBITDA margins of 13 to 15 percent. According to CFO Skandaprasad Seetharaman (CNBC-TV18 interview), the company is seeing improved execution on large projects and expects strong demand from sectors like electric vehicles, semiconductors, and green hydrogen to drive future growth.
VA Tech Wabag Limited was established in 1924 by Max Reder and is headquartered in Chennai, India. It focuses on providing water and wastewater treatment solutions to both municipal and industrial sectors. The company is also regarded as one of the leading three desalination solution providers worldwide.
At the start of FY25, VA Tech Wabag Limited had an order backlog of Rs. 11,448.4 crore. Over the year, it secured new orders totaling Rs. 5,691.8 crore and executed projects generating revenue of Rs. 3,276 crore. As a result, the company ended the year with a closing order backlog of Rs. 13,666.67 crore, reflecting a 19 percent increase.
The total order backlog was distributed across various business segments. The EPC (Engineering, Procurement, and Construction) segment accounted for Rs. 7,110.1 crore, the O&M (Operations and Maintenance) segment contributed Rs. 5,373.6 crore, and Framework contracts comprised Rs. 1,183 crore.
Geographically, VA Tech Wabag Limited’s order backlog included Rs. 7,711.2 crore from India, Rs. 4,772.6 crore from international markets, and Rs. 1,183 crore from Framework contracts. This diverse distribution highlights the company’s robust performance and well-balanced order portfolio across regions and sectors.
The company boasts a diverse client base, serving municipal bodies like Delhi Jal Board, CIDCO, and Maynilad Water, alongside industrial giants such as Dangote, Marafiq, Reliance Industries, GAIL, NMDC, Indosol, HMEL, and Sibur. They also collaborate with funding agencies like India Exim Bank, KFW, JICA, ADB, and the World Bank, showcasing their global reach.
Coming into the financial highlights, VA Tech Wabag Limited’s revenue has increased from Rs. 934.2 crore in Q4 FY24 to Rs. 1,156.2 crore in Q4 FY25, which has grown by 23.76 percent. The net profit has also grown by 27.40 percent, from Rs. 78.1 crore in Q4 FY24 to Rs. 99.5 crore in Q4 FY25.
VA Tech Wabag Limited’s revenue and net profit have grown at a CAGR of 5.20 percent and 28.56 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 20 percent and 14.9 percent, respectively. VA Tech Wabag Limited has an earnings per share (EPS) of Rs. 47.5, and its debt-to-equity ratio is 0.17x.
Written By – Nikhil Naik
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