Water management stock jumps 5% after bagging ₹1,730 Cr contract from Oman

Synopsis: Ion Exchange shares rose 5% after securing a Rs 1,730 crore, 20-year water management contract from Petroleum Development Oman. The DBOM model strengthens long-term revenue visibility and boosts its Rs 2,833 crore order book. While Q3 revenue grew 6% YoY, profit declined, keeping near-term earnings mixed despite strong order inflow.

The shares of this company, which is engaged in a wide range of solutions across the water cycle from pre-treatment to process water treatment, wastewater treatment, recycling, zero liquid discharge, sewage treatment, packaged drinking water, seawater desalination and more, had its shares in the news after the company bagged a 20-year contract from Petroleum Development Oman.

With the market cap of Rs 5,835 crore, the shares of Ion Exchange (India) Ltd have gained about 5% and reached a high at Rs 404.95, compared to their previous day’s closing price of Rs 387.20. The shares are trading at a PE of 30.1, whereas its industry PE is at 20.1. The shares have given a return of more than 200% over the last 5 years.

About the Contract

Ion Exchange (India) Limited today announced that its subsidiary in Oman has secured an important international order, on a long-term basis, from Petroleum Development Oman. Details of the order: The order value of OMR 73.46 million (approximately Rs 1,730 crore), on a 20-year commitment, is in respect of a Design, Build, Own, Operate and Maintain (DBOOM) contract for potable water and sewage treatment facilities in the South PDO Concession Area.

The 20-year execution period offers a high level of revenue visibility and predictability of revenue, rather than one-time revenue from EPC execution. Since the agreement is structured around the DBOM model, not only will they execute the facility, but they will also operate it, which will give them stronger annuity streams and better ties with clients, especially in the Middle East market.

Importantly, the disclosure confirms there is no promoter or related party presence within the entity for the awarding of the contract, which supports the role of good governance transparency. Overall, the contract helps the company’s international presence, order book position, and its capabilities in the field of integrated water/wastewater solutions.

Financials

The revenue from operations for the company stood at Rs 734 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 691 crores, up by about 6 per cent YoY. However, the net profit stood at Rs 21 crore in Q3 FY26, down compared to the Rs 50 crore profit in Q3 FY25.

The company’s engineering order backlog as of 31st December 2025 stands robust at around Rs 2,833 crore, which is indicative of the good visibility in executing the orders. The company’s engineering orders comprise an amount of Rs 2,423 crores from core engineering orders, Rs 320 crores from UP SWSM orders, and an amount of Rs 90 crores from projects in Sri Lanka.

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