VA Tech Wabag shares rally 13% on strong Q3, new order

Shares of VA Tech Wabag Ltd (WABAG), a leading player in the water technology space, surged over 13% on Monday after the company reported robust earnings in December quarter of the current fiscal, supported by improved operating performance. The sentiment was further lifted after the Chennai-based company secured an order worth $371 million (₹3,251 crore) in Saudi Arabia.

Boosted by the development, VA Tech Wabag share price soared 13.5% to hit an intraday high of ₹1,550 on the BSE, in an otherwise bearish broader market. Early today, the smallcap stock opened at ₹1,538.70, up 12.6% against Friday’s closing level of ₹1,365.90.

At the time of reporting, WABAG shares were trading 2% higher at ₹1,395, while the benchmark indices Sensex and Nifty were down by 0.7% each.

The share price of VA Tech Wabag touched an all-time high level of ₹1,943.95 on December 9, 2024, zooming over 3 times from its 52-week low of ₹650.05 hit on March 14, 2024. In the last one year, the stock has risen 110%, while it added over 5% in six months. In the calendar year 2025, the counter has seen a correction of 17%.

In an exchange filing on February 9, VA Tech Wabag said that it bagged consortium order for Al Haer Independent Sewage Treatment Plant located in the city of Riyadh, the Kingdom of Saudi Arabia. The contract covers 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. 

WABAG has been active in Saudi Arabia for decades, building and operating water and wastewater treatment plants. Earlier this year, the pure-play water technology company bagged engineering and procurement order of a 20 MLD Industrial Wastewater Treatment Plant (IWWTP) at Ras Tanura Refinery Complex, the Kingdom of Saudi Arabia, where Miahona Company is the project developer.

On the earnings front, the company’s standalone profit rose to ₹64 crore in the December 2024 quarter when compared with ₹62 crore in the December 2023 quarter. Revenue from operations rose to ₹676 crore in Q3 FY25 as against ₹624 crore in the year ago period.

Recently, India Ratings & Research upgraded its long-term rating to “IND AA-” with a “Stable” outlook, citing its robust operating performance with improvement in EBITDA margins.

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