VA Tech Wabag shares hit a new 52-week high of ₹1,919, surging 5% in Friday's intra-day trade and now quotes close to its all-time high of ₹1,943.95 touched on December 9, 2024. The stock has soared 26% over the past six trading days and outperformed the market by 37% in the past month, significantly outpacing the benchmark Sensex's 3% rise. As per Business Standard, the stock was trading 4% higher at ₹1,894.05 at 11:22 AM on Friday, while the BSE Sensex was down 1% at 76,612. This represents the sixth consecutive day of gains for the water technology company, demonstrating strong investor confidence in its growth prospects.
VA Tech Wabag secured the Design, Build, Operate (DBO) contract for the Doha SWRO Desalination Plant-Stage II from the Ministry of Electricity, Water & Renewable Energy (MEWRE), Kuwait. This marks WABAG's maiden entry into Kuwait and further consolidates its leadership and expanding footprint across the GCC region. The project involves the design, engineering, procurement, construction, and commissioning of a 60 MIGD (approximately 272 MLD) Seawater Reverse Osmosis (SWRO) Desalination Plant featuring a state-of-the-art Recarbonation System, scheduled to be completed over a 36-month period. The contract includes a five-year Operation & Maintenance period and incorporates Solar Photovoltaic (PV) systems to partially meet the plant's energy requirements, supporting Kuwait's renewable energy ambitions. As per Business Standard, the company classifies international orders above ₹1,000 crore as 'mega' orders, making this a landmark win for the company.
The company reported robust Q4FY26 results with revenue rising 22.3% year-on-year to ₹1,414.4 crore, while EBITDA increased 11.8% YoY to ₹157 crore. As reported by Business Standard, profit after tax grew strongly by 28.6% YoY to ₹128.30 crore during the quarter. The company's order backlog stood at ₹17,200 crore as of May 25, 2026, providing robust revenue visibility with funding from multilateral agencies and sovereign-funded projects including Namami Gange, AMRUT, and Jal Jeevan Mission programs. ICICI Securities highlighted that the order backlog of ₹17,235 crore at end of FY26, growing 26% YoY, provides revenue visibility of more than 4x FY26 revenue, significantly higher than the company's internal threshold of maintaining order book at ~3x annual revenue.
Beyond the Kuwait project, VA Tech Wabag secured a large contract for design & build the proposed Ajman Sewage Biorefinery Plant – Phase 3 in the United Arab Emirates from Ajman Sewerage (Private) Company Limited on June 9, 2026. The company operates as a market leader in the water sector with operations spread across four continents and over 25 countries, ranking among the top three global private operators and global desalination players. As per Business Standard, the company has successfully delivered over 1,500 projects over 25+ years across drinking water treatment, wastewater treatment, recycle-reuse, desalination, and industrial water treatment for marquee clients. The order backlog remains well diversified across desalination, wastewater treatment, industrial water and O&M businesses, with increasing contribution from international geographies such as Middle East and Africa.
ICICI Securities maintains a BUY rating with a revised target price of ₹1,930 per share, based on 20x FY28E EPS. Analysts expect revenue and PAT to grow at 17.6% and 27% CAGR over FY26-FY28E respectively. According to Geojit Investments, the company's earnings are expected to grow at 23% CAGR over FY26-28E with disciplined margin delivery around 13%, underpinned by operating leverage and an increasing share of annuity-like operations & maintenance (O&M) revenues. The brokerage highlighted that the company is well positioned for sustained growth, supported by a robust order backlog of around ₹17,200 crore (~4x revenue visibility) and strong order inflows during FY26. The balanced geographic mix (50% international) and strengthening presence in high-growth regions such as the Middle East and Africa are expected to support both margin profile and working capital efficiency.
