Water Management Stock Jumps 3% After Receiving Over ₹1,000 Cr Order for Water Recycling Project

Synopsis: Shares of VA Tech Wabag are likely to remain in focus after the company secured a “mega” order exceeding Rs 1,000 crore from the Chennai Metropolitan Water Supply and Sewerage Board. The project involves upgrading and operating a major wastewater recycling facility in Chennai, strengthening the company’s position in water management solutions. The company has a total order book exceeding Rs 16,300 crore. 

The stock of water management company VA Tech Wabag can continue to be in focus after the company said that it has secured a letter of award from the Chennai Metropolitan Water Supply and Sewerage Board for a mega wastewater recycling project in Chennai. This term, ‘mega’, is often used in reference to orders worth over Rs 1,000 crore. This underlines the importance that the company is gaining in advanced water recycling and industrial water management.

With a market cap of Rs 7,865 crore, the shares of Va Tech Wabag Ltd jumped about 3% in today’s trading session and reached a high of Rs 1,285. When compared to its previous day’s closing price of Rs 1,253.15. The shares are trading at a PE of 22.8, whereas their industry’s PE is at 17.1, and they have given a return of more than 380% in the last 5 years.

About the order 

Shares of VA Tech Wabag may continue to remain in focus as the company has announced that it has received a Letter of Award from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) for a large water recycling project in Chennai. The order has been categorised as a “mega” order, which refers to projects above Rs 1,000 crore. 

The project involves the refurbishment, financing, operation, maintenance, and transfer of a 45 million litres a day tertiary treatment reverse osmosis plant at Kodungaiyur in Chennai. The plant is expected to recycle treated wastewater and provide quality water to industries located along the Manali-Ennore Industrial Corridor and Manali-Minjur Industrial Corridor.

Project Details and Time Frame

According to the agreement, the company will undertake the renovation of the existing TTRO facility and restore its full treatment capacity of 45 MLD in a time frame of 18 months. After the renovation phase, the company will be responsible for the operation and maintenance of the facility for a period of 18.5 years, ensuring the supply of recycled water in accordance with the required quality parameters. 

The company is currently involved in the operation of similar advanced water recycling plants. These include a 45 MLD TTRO facility at Koyambedu in Chennai and a 40 MLD facility in Ghaziabad supplying treated water to industries.

These projects are a testament to the growing reputation of Wabag in the domain of sustainable water recycling solutions. With the new project award in hand, the company is strengthening its position in the water recycling and reuse segment of the industry.

Financials

The revenue from operations for the company stood at Rs 961 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 811 crore, up by about 18 per cent YoY. Similarly, the net profit stood at Rs 91 crore in Q3 FY26, up compared to the Rs 70 crore profit in Q3 FY25.

The company reported a strong order book exceeding Rs 16,300 crore, reflecting healthy demand visibility and a robust project pipeline. The order book has grown about 15% YoY, indicating a continued inflow of large contracts across its key business segments. A strong backlog of this scale provides long-term revenue visibility and execution stability, supporting the company’s growth outlook over the medium term while reinforcing confidence in its operational momentum.

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.

The post Water Management Stock Jumps 3% After Receiving Over ₹1,000 Cr Order for Water Recycling Project appeared first on Trade Brains.