VA Tech Wabag shares rise 3% on securing major water treatment project in Nepal

Shares of VA Tech Wabag Ltd. gained over 3% on Thursday on the announcement of a substantial new order from Nepal. The company said the order was awarded by the Melamchi Water Supply Development Board (MWSDB) and covers the design, construction, and operation of the Sundarijal Water Treatment Plant, with a capacity of 255 million litres per day in the Kathmandu Valley.

The project, which is to be executed within 36 months and followed by five years of operations and maintenance, is funded by the Asian Development Bank. The company described the deal as a "large" repeat order, placing its value between $30 million and $75 million.

On Thursday, VA Tech Wabag shares were trading 3.36% higher at ₹1,449.35 , compared to the previous close of ₹1402.  Market cap of the firm stood at Rs 8,881 crore. 

So far in 2025, the stock is down 17%. The new plant will be built adjacent to the existing Melamchi Water Treatment Plant and will treat water from the Melamhi, Yangri, and Larke rivers, thereby improving water security for residents in the Kathmandu region.

In its communication, the company said: the water technology solutions provider said that the "large" repeat order is from Melamchi Water Supply Development Board (MWSDB) in Nepal, and pertains to the design, build and operations of the state-of-the-art Sundarijal Water Treatment Plant, with a capacity of 255 million liters per day (MLD) in the Kathmandu Valley.

Commenting on the development, Arvind Dullu, Regional Business Head of South and Southeast Asia at WABAG, said: "This Large order further consolidates WABAG's strategic presence in Nepal and reinforces our position as an industry leader across the South Asian region."

The project is expected to strengthen VA Tech Wabag's position in South Asia's water technology sector and expand its operational footprint in neighbouring markets. The company continues to focus on leveraging opportunities in the region, with the Sundarijal project reflecting its ongoing engagement in large-scale water infrastructure.