Water management stock jumps after securing projects worth over ₹106 Cr for water infrastructure project

Synopsis: Denta Water & Infra Solutions Limited secured four Karnataka water projects worth over ₹106 crore from KUIDFC, covering sewerage systems and multiple Sewage Treatment Plants across Tumakuru, Belagavi, Kalburgi, Bagalkot, Dharwad, Gadag, and Vijayapura districts.

This Water Management Stock, engaged in design, installation, and commissioning of water management infrastructure projects, specializing in groundwater recharging, irrigation, and O&M services, jumped 2.20 percent after securing four major projects worth over Rs. 106 crore for a water infrastructure project.

With a market capitalization of Rs. 918.35 crores, the share of Denta Water & Infra Solutions Limited has reached an intraday high of Rs. 355 per equity share, rising nearly 2.20 percent from its previous day’s close price of Rs. 347.35. Since then, the stock has retreated and is currently trading at Rs. 343.95 per equity share. 

Reason Behind the Surge

Denta Water and Infra Solutions Limited has secured four major water infrastructure projects worth over Rs. 106 crore in Karnataka from the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), a Government of Karnataka undertaking. The projects focus on the construction and upgradation of Sewage Treatment Plants (STPs) and sewerage systems under government initiatives such as Swachh Bharat Mission (Urban) 2.0 and the NGT Fund. 

The largest project is in Tumakuru city, valued at Rs. 41.74 crore, involving sewerage system development under the DBOT model. Another project, SBM/BGM Package-2, worth Rs. 30.16 crore, includes STPs in five ULBs of Belagavi district with capacities ranging from 1.20 MLD to 9.59 MLD. 

Additionally, SBM/KLB Package-1, valued at Rs. 20.40 crore, covers new STPs in Aland and Shahabad and rehabilitation of an STP in Sedam, Kalburgi district. The fourth project, SBM/BGM Package-5, worth Rs. 13.99 crore, includes STPs across Bagalkot, Dharwad, Gadag, and Vijayapura districts.

Management Guidance

Denta Water & Infra Solutions Limited has outlined a strong and ambitious growth plan, with revenue expected to cross Rs. 300 crore in FY26, reflecting a growth of about 47.78 percent over FY25. The company further projects revenues of Rs. 375-400 crore in FY27, which would represent nearly 97.04 percent growth compared to FY25 levels. 

Looking ahead, revenues are expected to reach Rs. 500-525 crore by FY28, marking a robust growth of around 158.62 percent over FY25. Backed by efficient project execution, attractive valuations, and favorable long-term trends in the water infrastructure sector, Denta Water’s turnaround story is shaping up as a sustainable and scalable growth opportunity.

Order Book

As of November 2025, Denta Water’s order book stands at around Rs. 720 crore. The management has further indicated that the company expects additional order inflows of ₹Rs. 800-1,000 crore by the end of Q3 or Q4 of the current financial year, strengthening revenue visibility and supporting future growth.

Company Overview

Denta Water & Infra Solutions Limited was incorporated in 2016 and is an integrated water and infrastructure solutions company. It specialises in groundwater recharging, irrigation systems, and water management projects, along with infrastructure development across railways and highways. 

The company is involved in the design, installation, and commissioning of water management infrastructure, with strong expertise in groundwater recharging using recycled water, as well as the execution of railway and highway construction projects.

Recent Quarter Results

Coming into financial highlights, Denta Water & Infra Solutions Limited’s revenue has increased from Rs. 48 crore in Q2 FY25 to Rs. 74 crore in Q2 FY26, which has grown by 54.17 percent. The net profit has also grown by 72.73 percent from Rs. 11 crore in Q2 FY25 to Rs. 19 crore in Q2 FY26. Denta Water & Infra Solutions Limited’s revenue and net profit have grown at a CAGR of 62.66 percent and 51.73 percent, respectively, over the last four years.

In terms of return ratios, the company’s ROCE and ROE stand at 25.2 percent and 18.4 percent, respectively. Denta Water & Infra Solutions Limited has an earnings per share (EPS) of Rs. 27, and its debt-to-equity ratio is 0.03x.

Written By – Nikhil Naik

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