VA Tech Wabag shares gained 2.6% in early trading on Thursday, March 12, reaching ₹1,285.1 following the announcement of the major contract award. As per CNBC TV18, the stock movement reflects positive market sentiment toward the company's substantial new order win. The company classifies orders above ₹1,000 crore in value as "mega" orders, highlighting the significance of this contract in VA Tech Wabag's portfolio.
VA Tech Wabag has secured a significant contract from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) worth over ₹1,000 crore. According to an exchange filing, the mega order involves the refurbishment, financing, operation, maintenance and transfer of a 45 MLD (million litres per day) tertiary treatment reverse osmosis plant in Chennai's Kodungaiyur area. The project will be executed under the public-private partnership mode, positioning the company for substantial revenue generation over the 18.5-year operational period.
The Kodungaiyur TTRO plant, originally developed by CMWSSB in 2019, supplies high-quality treated wastewater to industries in the Manali–Ennore and Manali–Minjur industrial corridors in Chennai. Under the new contract, VA Tech Wabag will refurbish and upgrade the existing TTRO facility to restore its full treatment capacity of 45 MLD within 18 months. Following the refurbishment phase, the company will operate and maintain the facility for 18.5 years, ensuring reliable treated water supply that meets quantity and quality standards throughout the operational period.
S Varadarajan, Whole Time Director and Chief Growth Officer at VA Tech Wabag, emphasized the project's strategic importance. As reported by CNBC TV18, he stated that "this project further strengthens our leadership in the Indian water sector and reinforces our position at the forefront of water recycling and reuse, which will play a critical role in enabling sustainable industrial water management and supporting Chennai's long-term water security." The company is already operating the 45 MLD TTRO facility at Chennai's Koyambedu, which was designed, built, and commissioned by VA Tech Wabag in 2019, demonstrating its established expertise in water treatment solutions.
VA Tech Wabag currently operates multiple water treatment facilities across India. According to the latest reports, the company is also running a 40 MLD Ghaziabad TTRO facility, which supplies treated water to multiple industries in the Sahibabad Industrial Area. This existing portfolio demonstrates the company's established presence in the water treatment sector and its capability to handle large-scale infrastructure projects under public-private partnership models.
