VA Tech Wabag Gains More than 13% After Obtaining A Saudi Arabian Order for ₹3,251 Crore

After acquiring a ₹3,251 crore order for a sewage treatment plant in Saudi Arabia, VA Tech Wabag’s stock increased by more than 13%. The project, which reflects good financial performance and improved order intake, supports Wabag’s position in the Middle East and aligns with Vision 2030.

VA Tech Wabag Shares Surge Over 13% on Securing ₹3,251 Crore Order from Saudi Arabia:

After securing a substantial order worth ₹3,251 crore in Saudi Arabia and achieving impressive Q3 results for the quarter ending December 2024 (Q3FY25), VA Tech Wabag’s shares jumped more than 13 percent in early trade on Monday, February 10.

The Al Haer (ISTP) in Riyadh, which entails the (EPC) of a 200 MLD sewage treatment facility along with connections to outfall delivery infrastructure, has a consortium order worth ₹3,251 crore ($317 million), VA Tech Wabag announced on Sunday.

For its off-taker, the Saudi Water Partnership Company (SWPC), a consortium consisting of Miahona Company (lead), Marafiq, and N.V. Besix S.A., is developing the ISTP. SWPC is the main off-taker for water and wastewater projects in Saudi Arabia.

The ISTP project aligns with Saudi Arabia’s “Vision 2030” plan, which intends to increase sewage treatment capabilities and the quality of life of its inhabitants. The order further confirms Wabag’s leadership position in the Middle East, another significant milestone for the company in Saudi Arabia, said Sivakumar V, Regional Head of Sales and Marketing.

With Miahona Company as the project developer, Wabag obtained an engineering and procurement order for a 20 MLD industrial wastewater treatment facility at the Ras Tanura Refinery Complex in Saudi Arabia earlier this year.

Financial Performance:

VA Tech Wabag said on Friday that its December quarter consolidated profit after tax (PAT) was ₹70.2 crore, representing an 11.6 percent YoY rise. Earnings before interest, taxes, depreciation, and amortization increased 6.3% yearly to ₹105.1 crores. Its EBITDA margin, however, decreased from 14 percent in the same period last year to 13 percent.

At ₹811 crore, revenue for the quarter grew 15.1% year over year. During the quarter, the company’s order intake increased by 525.4 percent year over year to ₹2,781.3 crore.

VA Tech Wabag announced an order intake of ₹5,075 crore for the nine months ending in December 2024, a YoY growth of 188.1 percent. EBITDA climbed 10.8% YoY to ₹289.4 crore, while revenue was up 11.2% YoY to ₹2,137.8 crore. PAT increased 13.2 percent year over year to ₹195.8 crore.

The shares of VA Tech Wabag jumped up to 13.5 percent after the announcement, reaching an intraday high of ₹1,550. It is still more than 20% lower than its peak of ₹1,943.95, reached in December 2024. Despite this, the multi-bagger stock has spectacularly recovered, rising over 138% from its 52-week low of ₹650.05 in March 2024.

The stock has returned 99 percent during the last 12 months. Additionally, after declining more than 16 percent in January and more than 8 percent in December, it rebounded more than 5 percent in February after declining for two consecutive months.