₹16,000 Cr Order Book: Stock jumps 3% after receiving sewage treatment plant project in Saudi Arabia

Synopsis: Shares of small cap water treatment stock with an exisitng orderbook of Rs. 16,000 Crores, was named as the preferred  EPC partner in the Hadda Independent Sewage Treatment Plant project of Saudi Arabia. 

A small cap company which is in the business of water treatment saw its stock surge soon after being named as the preferred EPC partner in the Hadda Independent Sewage Treatment Plant project in Saudi Arabia. With a market cap of Rs 8,059 Cr, Va Tech Wabag Ltd saw its stock hit an intraday high of Rs 1334 which is 3.1 percent higher than the previous close of Rs 1293.

What’s the News?

On Wednesday, VA Tech Wabag announced that it has been named as the preferred EPC partner for the Hadda Independent Sewage Treatment Plant project in Saudi Arabia, awarded by the Saudi Water Partnership Company under a 25-year BOOT model. 

The developer consortium for this project includes Metito Utilities, Etihad Water and Electricity Company PJSC, and SkyBridge Limited Company. Wabag’s scope covers design, engineering, procurement, and construction of the sewage treatment facilities. The plant will have an initial capacity of 100,000 cubic metres per day, expandable to 250,000 cubic metres per day, along with advanced treated sewage effluent reuse systems, storage infrastructure, and a 38-kilometre transmission pipeline with a throughput capacity of 350,000 cubic metres per day. This project has strengthened Wabag’s Middle East presence and Saudi partnerships.

According to the latest investor presentation, the company has its order book standing at Rs 16,000 crore, out of this Rs 3500 Cr orders were secured in H1FY26, and the company was declared as the preferred bidder in Rs 3000 Cr worth projects.

Business & Financial Overview

VA Tech Wabag Ltd is a water treatment solution provider, engaged in the design, engineering, construction, and operation of drinking water, wastewater, industrial water, and desalination plants. Incorporated in 1995 and headquartered in Chennai, the company has a strong presence in municipal and industrial water infrastructure projects.

In the latest quarter the company saw a YoY revenue growth of 19 percent, going from Rs 700 Cr in Q2FY25 to Rs 834 Cr in Q2FY26, while the QoQ went up by 13.6 percent from Rs 734 Cr in Q1FY26. The YoY Net Profits growth is at 21 percent, going from Rs 70 Cr in Q2FY25 to Rs 85 Cr in Q2FY26, while the QoQ growth stood at 28 percent from Rs 66 Cr in Q1FY26.  While the 3 year Profit CAGR is at 32 percent The company’s stock has given a compounded return of 62 percent in the past 3 years.

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