Synopsis:- Shares gained after winning a Rs 250–600 crore EPC order for refinery water treatment. The 22-month project strengthens the order book, supports a 15–20% growth outlook, targets 13–15% EBITDA margins, and benefits from strong overseas exposure of nearly 80%.
The shares of a prominent water treatment player gained 4 percent in today’s trading session after the company has bagged a ‘Large’ EPC order from Bharat Petroleum Corporation Limited.
With a market capitalization of Rs 7,390.63 crore, the shares of VA Tech Wabag Ltd were trading at Rs 1,186.35 per share, increasing around 0.77 percent as compared to the previous closing price of Rs 1,174.80 apiece.
Significant order
The shares of VA Tech Wabag Ltd have seen bullish movement after winning a ‘Large’ EPC order worth Rs 250–600 crore from Bharat Petroleum Corporation Limited for industrial water treatment at BPCL’s Bina refinery. The 22-month project includes RWTP, RO-DM, and ZLD plants, strengthening WABAG’s order book and oil & gas segment presence.
Future Outlook
VA Tech Wabag Ltd medium-term outlook projects strong growth, targeting a 15–20 percent revenue CAGR with an order book three times annual revenue. It aims for 13–15 percent EBITDA margins. Its targeted revenue mix, over 50% from international projects, 30% from industrial clients, 20% from O&M, and one-third of EPC from EP projects, is expected to support margin expansion
Financials
The company reported a strong Q2FY26 performance with revenue rising 19 percent year-on-year to Rs 834 crore and net profit up 21 percent to Rs 85 crore. The growth reflects robust demand, improved operational efficiency, and effective cost management, highlighting the company’s steady financial momentum and sustained profitability.
In H1FY26, the company generated total revenue of Rs 1,548.9 crore, with EPC contributing 81 percent and O&M 19 percent. The municipal segment dominated with Rs 1,195.3 crore, accounting for 77 percent of revenue, while the industrial segment added Rs 353.6 crore, or 23 percent, reflecting strong public infrastructure demand and steady private sector engagement.
Geographically, revenue distribution was balanced, with India contributing Rs 820.9 crore (53 percent) and overseas markets Rs 728.0 crore (47 percent). This near-equal split highlights the company’s strong global presence alongside robust domestic operations, supported by large-scale water infrastructure projects and expanding international contracts, driving sustained growth and diversification.
VA Tech WABAG reported a strong H1 FY26 order intake of Rs 34,772 million, dominated by EPC projects ( Rs 30,072 million) and municipal orders ( Rs 33,628 million). O&M contributed Rs 4,700 million, reinforcing recurring revenue visibility, while industrial orders remained modest at Rs 1,145 million.
Geographically, overseas markets accounted for Rs 27,845 million (~80%), highlighting WABAG’s strong international traction, while India contributed Rs 6,928 million. Key wins included a Rs 20,379 million desalination project in Saudi Arabia and large wastewater projects in India and Bahrain, underlining execution strength across EPC, DBO, O&M, and BOT models.
The company serves a diverse clientele across municipal and industrial sectors, including global names like Reliance, GAIL, IndianOil, and NMDC, alongside government water boards. Supported by leading funding agencies such as the World Bank, KfW, and Exim Bank, it operates in water, oil and gas, power, and industrial infrastructure segments worldwide.
VA Tech Wabag Ltd is a leading global water technology company headquartered in Chennai, specializing in water treatment, wastewater management, and desalination solutions. With operations across countries, it provides sustainable, innovative, and large-scale infrastructure services, helping industries and municipalities ensure efficient water use and environmental sustainability.
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