VA Tech Wabag soars after bagging contract worth Rs 3,251 crore in Saudi Arabia

VA Tech Wabag jumped 6.52% to Rs 1455 after the company announced that it has bagged a significant consortium order worth $371 million (approximately Rs 3,251 crore) from Al Haer Environmental Services Company.

The scope of the project involves engineering, procurement and construction (EPC) of a 200 MLD independent sewage treatment plant (ISTP), including connections to outfall delivery facilities.

This ISTP is being developed by a consortium of Miahona Company (lead), Marafiq, and N.V. Besix S.A. for its off-taker, the Saudi Water Partnership Company (SWPC). SWPC is the principal off-taker for water and wastewater projects in the Kingdom of Saudi Arabia.

The EPC consortium for this project comprises of WABAG and Mutlaq Al-Ghowairi Contracting Company (MGC). WABAG as the technology partner and leader of the EPC consortium will design and build the 200 MLD independent sewage treatment plant, while MGC will undertake the scope of laying the transmission pipelines and construction of the reservoirs.

Sivakumar V, regional head sales and marketing, said: "We are extremely happy to secure this 200 MLD Independent Sewage Treatment Plant order from our existing client.

We express our gratitude to Miahona Company, Marafiq, Besix Group and SWPC for their trust and confidence in WABAG. This state-of-the-art technology order is a testament to our technologically superiority and commitment to delivering high-quality solutions worldwide.

This order win marks another significant milestone for us in Saudi Arabia and reinforces our leadership position in the Middle East Region."

After market hours on Friday (07 February 2025), VA Tech Wabag announced its earnings for the quarter ended on 31 December 2025.

The company has reported 11.61% increase in consolidated net profit to Rs 70.20 crore on 15.13% rise in revenue from operations to Rs 811 crore in Q3 FY25 over Q3 FY24.

EBITDA improved by 15.1% YoY to Rs 811 crore during the period under review. EBITDA margin was 13% in Q3 FY25 as against 14% in Q3 FY24.

The companys order intake for Q3 FY25 was Rs 2,781.3 crore, up 525.4% YoY.

Wabags net cash position as on 31 December 2025 was Rs 262.5 crore, making it the 8th consecutive quarter with a positive net cash position.

In its medium-term outlook, Wabag stated that in three to five years, the company expects its order book to be three times of its revenue. In that same period, revenues are expected to grow at a CAGR of 15% to 20% and EBITDA to range between 13% and 15%.

The business is expected to deliver a return on capital employed of more than 20% and return on equity of more than 15%. It would be run an on asset light model.

Rajiv Mittal, chairman & managing director, VA Tech Wabag, said: "We continued our profitable growth journey driven by steady execution and sustainable operating margins.

The healthy and robust order pipeline provides us sufficient confidence to continue this momentum in alignment with our medium-term outlook."

VA Tech Wabag is a pure-play water technology company. It offers a complete range of technologies and services for total water solutions in both municipal and industrial sectors.

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