VA Tech Wabag wins 'Large' UAE order; Geojit maintains 'Buy'; check share price target

Shares of VA Tech Wabag Ltd rose in early trade on Tuesday after the water treatment company announced a 'Large' order win in the United Arab Emirates (UAE), marking its entry into the country's wastewater management market. The stock opened higher following the announcement and was last seen trading 2.23 per cent up at Rs 1,579.60.

The Chennai-based company said it has secured an order for the Ajman Sewage Biorefinery Plant in the UAE, strengthening its presence in the Gulf Cooperation Council (GCC) region. The company classifies a domestic large order in the Rs 250-600 crore range and an international large order between $30 million and $75 million.

"The project which is scheduled to be executed over a 24-month period includes the design, engineering, procurement, and construction of a 60 MLD Sewage Treatment Plant, along with inlet works, primary and secondary treatment systems, and comprehensive sludge management facilities comprising digesters, gas holders, scrubbers, and power generation systems," VA Tech stated.

"This order marks WABAG's strategic entry into the UAE and further reinforces our position as a trusted partner in delivering sustainable and innovative Wastewater management solutions across the GCC region. This breakthrough significantly strengthens WABAG's presence within the regional water ecosystem and enhances our credentials to pursue larger and more complex opportunities across the Middle East," it added.

Geojit maintains 'Buy'

Following the company's March quarter and FY26 performance, brokerage Geojit Financial Services reiterated its positive stance on the stock.

Geojit said: "Q4 FY26 revenue grew 22 per cent YoY to Rs. 1,414cr, driven by strong execution across both the EPC Industrial and Municipal segments."

The brokerage noted: "FY26 revenue increased 20 per cent YoY to Rs. 3,944cr. Gross margin expanded by 157bps to 23.8 per cent, while EBITDA stood at Rs. 679cr, with EBITDA margin contracting by 53bps YoY. Q4FY26 EBITDA stood at Rs. 198cr, with a margin of 11.1 per cent, down 102 bps YoY. The contraction came despite a 363 bps expansion in gross margin, primarily due to higher other expenses."

Geojit also highlighted the company's financial strength, stating: "The balance sheet remains robust with ~Rs 950cr net cash position for the sixth consecutive year, supported by ~Rs 300cr annual free cash flow generation and disciplined working capital management."

The brokerage expects sustained growth backed by a strong order book and healthy earnings visibility.

"VA Tech remains well positioned for sustained growth, supported by a robust order backlog of ~Rs.17,200cr (~4x revenue visibility) and strong order inflows during FY26. The company's earnings are expected to grow at 23 per cent CAGR over FY26-28E with disciplined margin delivery around 13 per cent, underpinned by operating leverage and an increasing share of annuity-like O&M revenues," Geojit said.

It further added: "Improving return ratios and strong structural tailwinds in desalination, water reuse and emerging segments, the company offers favourable earnings visibility and scope for gradual re-rating. Hence, we value the stock at 21x FY28E EPS to arrive at a (12-month) target price of Rs 1,870 and maintain a BUY rating."

VA Tech Wabag is a Chennai-headquartered multinational company focused on water technology solutions. It specialises in the turnkey execution and operation of water and wastewater treatment plants, serving both municipal and industrial customers globally.