Synopsis: Va Tech Wabag won a $30-$75 million contract to design, build, and operate a 255 million liters per day water treatment plant in Kathmandu, Nepal. Funded by the Asian Development Bank, the project will strengthen water security and support sustainable development in the region.
A leading Indian water technology firm, renowned for its expertise in sustainable water management solutions, has secured a major contract to design, build, and operate a large-scale water treatment plant in Nepal. This project, funded by the Asian Development Bank, will significantly boost water security in Kathmandu Valley. The upcoming article details the scope, impact, and strategic importance of this landmark deal.
Va Tech Wabag Limited’s stock, with a market capitalisation of Rs. 8,869 crores, rose to Rs. 1,449.20, hitting a high of up to 3.2 percent from its previous closing price of Rs. 1,403.60. However, the stock over the past year has given a negative return of 16.4 percent.
Order Update
The company has won a large contract from Nepal’s Melamchi Water Supply Development Board to design, build, and operate a new water treatment plant in Kathmandu Valley, funded by the Asian Development Bank.
The plant will handle 255 million liters of water per day, and the EPC work will take 36 months, followed by five years of operation and maintenance. This order, valued between $30 million and $75 million, highlights WABAG’s strong technical skills and supports water security for Kathmandu’s population.
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Order Backlog
Company has a order book of 16,019.9 crore as of H1 FY26. Company order intake is Rs. 3,477.2 crore in during H1 FY26, with 86% coming from EPC projects and 14% from O&M contracts. Most orders (97%) were from municipal customers, with only 3% from industrial clients. Only Rs. 692 crore orders came from India, while overseas orders dominated at Rs. 2,784.5 crore.
Key orders included large water projects like desalination in Saudi Arabia, sewage treatment in Bahrain, and bio-gas production in Uttar Pradesh. This shows WABAG’s strong focus on municipal water and wastewater solutions across different global markets, with overseas business making up most new orders
Q2 Financial Highlights
Revenue in Q2FY26 rose 19 percent year-on-year to Rs. 834 crore from Rs. 700 crore in Q2FY25, driven by steady business performance. Sequentially, revenue increased 14 percent from Rs. 734 crore in Q1FY26, reflecting improved demand momentum during the quarter. The company has delivered a modest three-year sales CAGR of 3 percent.
Profit for Q2FY26 stood at Rs. 85 crore, up 21 percent year-on-year from Rs. 70 crore in Q2FY25 and 29 percent higher sequentially from Rs. 66 crore in Q1FY26. The company reported a robust three-year profit CAGR of 32 percent and maintained a healthy three-year ROE CAGR of 11 percent, showcasing consistent operational efficiency and profitability growth.
Written By Fazal Ul Vahab C H
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