Synopsis: A century-old, pure-play water technology company has secured a fresh mandate from Bengaluru’s civic water utility to design, build and operate two sewage treatment facilities integrated with biogas-based power generation, adding to an order book that already stands well above ₹17,000 crore.
Water infrastructure in India’s IT capital is set for a significant upgrade, with the city’s water utility turning once again to one of the country’s most established names in the sector to expand its sewage treatment capacity.
With a market capitalization of around ₹12,995 crore, shares of Va Tech Wabag Limited were trading near ₹2,098. The stock went up by 5 percent after the announcement; the stock trades at a P/E of close to 35x.
Order Details
VA Tech Wabag has secured orders from the Bangalore Water Supply and Sewerage Board (BWSSB) for two sewage treatment facilities on a Design, Build, Operate (DBO) basis. The scope covers a 100 MLD Sewage Treatment Plant (STP) and a 25 MLD Tertiary Treatment Plant (TTP) at Byramangala, along with a 60 MLD STP at Bellandur, the latter being a second phase of a facility WABAG had previously executed the first phase of.
The mandate includes complete EPC work, including design, engineering, procurement, construction, and commissioning, along with biogas-based captive power generation. The STPs will run on the Activated Sludge Process integrated with a Biological Nutrient Removal system, while the Byramangala TTP will use ultrafiltration to produce high-quality treated water suitable for release into surrounding water bodies. The EPC phase is scheduled for completion within 36 months, followed by a 7-year Operations & Maintenance period.
Per BWSSB’s own order-size classification, the combined value falls in the “Large” bracket between Rs 250 crore and Rs 600 crore for domestic projects. The company said the facilities are designed to address Bengaluru’s growing wastewater treatment needs amid rapid urbanisation, with anaerobic sludge digestion and biogas-based captive power aimed at cutting greenhouse gas emissions and improving energy efficiency at the plants.
Commenting on the win, S. Natrajan, Vice President & Head – Sales and Marketing, India Cluster, said the twin orders reinforce WABAG’s leadership in India’s municipal wastewater treatment space and its focus on building sustainable, resilient water infrastructure that supports Bengaluru’s long-term water security and circular economy goals.
Financial Snapshot & Business Overview
WABAG operates as a pure-play water technology multinational with over a century of legacy, running R&D centers in Europe and India, more than 125 in-house intellectual property rights, and a presence across 25+ countries. Its delivery models span EP, EPC, DBO, DBOT, O&M, BOOT, HAM, PPP and BOT, giving it flexibility across municipal and industrial water and wastewater projects, including desalination, zero liquid discharge and water reuse.
VA Tech WABAG closed FY26 with sales of Rs 3,944 crore, up from Rs 3,294 crore in FY25, alongside a steady improvement in profitability. Operating profit came in at Rs 477 crore, with operating margins at 12%, continuing a multi-year trend of margin expansion from single digits a decade ago. Net profit for the year rose to Rs 370 crore, up from Rs 295 crore in FY25, with EPS at Rs 59.46.
The March 2026 quarter alone delivered sales of Rs 1,414 crore and net profit of Rs 128 crore, with an EPS of Rs 20.59, continuing the sequential growth trend seen through FY26.
The company’s order book stood at over Rs 17,200 crore as of its recent investor presentation, offering revenue visibility of more than four times FY26 sales, with fresh order intake of Rs 7,500 crore during the year and a further Rs 6,300 crore-plus pipeline in sight.
Operations & Maintenance contracts, which run on 10–20 year annuity-like structures, now make up 38% of the order book, a share management intends to grow further. The balance sheet remains asset-light, with net cash of Rs 950 crore, the sixth consecutive year of positive net cash, and a Return on Capital Employed of 19.4%.
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