VA Tech Wabag Limited (WABAG) AI Stock Analysis

• Market Cap: ₹74.65B
• Dividend Yield: 0.31%
• Average Volume (3M): 11.30K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 1.74
• Revenue Growth: 19.23%
• EPS Growth: 22.61%
• Country: IN
• Employees: 1,600
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 14.67
• Shares Outstanding: 62,297,253
• 10 Day Avg. Volume: 11,829
• 30 Day Avg. Volume: 11,305
• PEG Ratio: 1.49
• Price to Book (P/B): 4.15
• Price to Sales (P/S): 2.70
• P/FCF Ratio: 25.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,900.00
• Price Target Upside: 47.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,312.00 ▲(2.07% Upside)

VA Tech Wabag Limited's strong financial performance is the most significant factor, supported by robust revenue growth and cash flow generation. Technical analysis indicates a neutral trend with some bullish momentum, while valuation metrics suggest the stock is relatively expensive. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Revenue Growth

Sustained revenue growth near 19.2% indicates expanding market share and successful project wins across water-cycle segments. Over 2–6 months this supports stronger backlog conversion, improved bargaining power with suppliers, and better visibility for medium-term cash flows and reinvestment.

Cash Generation

Very strong free cash flow expansion and operating cash conversion (OCF/Net Income ~1.20) demonstrate durable cash-generating ability. This strengthens liquidity for bid bonds, working capital for EPC projects and funding O&M expansion without heavy reliance on external financing over the medium term.

Balance Sheet Strength

Low leverage and a solid equity base provide financial flexibility to underwrite large turnkey projects and cope with timing mismatches in receivables. Improved ROE (~13.8%) also signals efficient capital deployment, supporting sustainable investment in operations and long-term contracts.

Negative Factors

EPC Execution Risk

The core EPC model exposes margins to procurement, construction and execution risks that persist over months. Cost overruns, supply-chain delays or labor issues can materially compress margins and delay revenue recognition, creating durable operational risk to earnings and cash flows.

Order-Book Sensitivity

Company performance hinges on winning new EPC contracts and the EPC/O&M mix; variability in award timing or shift towards lower-margin EPC work can cause multi-month swings in revenue and profitability. This structural dependence increases medium-term earnings volatility.

Total Liabilities Exposure

Although leverage ratios are low, elevated absolute total liabilities create a vulnerability if project cash flows slow or receivables are delayed. In adverse scenarios this can strain liquidity, increase working capital needs and necessitate additional financing or guarantees over the medium term.

VA Tech Wabag Limited Business Overview & Revenue Model

Company Description

VA Tech Wabag Limited, together with its subsidiaries, engages in the design, supply, installation, construction, and operational management of drinking water, waste and industrial water treatment, and desalination plants in India and internationally. The company offers sewage treatment, drinking water treatment, effluent treatment, water recycle and reuse, desalination, wastewater treatment, and sludge treatment services for municipal and industrial users; engineering, procurement, and construction services, as well as operation and maintenance services; and financing, construction, and operation solutions for water and wastewater projects. It serves oil and gas, power plants, steel, fertilizer, food and beverage, water reclamation, industrial park, and other industries. The company was formerly known as Balcke Durr and Wabag Technologies Limited and changed its name to VA Tech Wabag Limited in April 2000. VA Tech Wabag Limited was incorporated in 1995 and is headquartered in Chennai, India.

How the Company Makes Money

WABAG generates revenue through multiple streams, primarily focusing on Engineering, Procurement, and Construction (EPC) contracts for water and wastewater treatment facilities. The company earns money by designing and building these plants for municipal and industrial clients, often securing long-term Operation & Maintenance (O&M) contracts to manage the facilities post-construction. Additionally, WABAG may engage in Build-Operate-Transfer (BOT) projects, where it develops and operates treatment plants for a period before transferring ownership. Strategic partnerships with technology providers, governments, and private sector clients also contribute to its earnings, enhancing its ability to deliver comprehensive water management solutions.

VA Tech Wabag Limited Financial Statement Overview

Summary

VA Tech Wabag Limited exhibits a solid financial standing with strong revenue growth, profitability, and cash flow generation. The company effectively manages its leverage, maintaining a stable balance sheet. While there are potential risks associated with liabilities, overall financial health appears robust.

Income Statement

VA Tech Wabag Limited has demonstrated strong revenue growth and profitability over the years. The company achieved a revenue growth rate of 15.32% from 2024 to 2025, with a consistent increase in net income. The Gross Profit Margin improved to 14.23% in 2025. EBIT and EBITDA margins are robust at 14.23% and 12.82% respectively, indicating operational efficiency. Solid profit margins and growth trajectory make the income statement strong.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.17, showing low leverage. The equity ratio stands at 40.62%, indicating a strong capital base. Return on Equity (ROE) improved to 13.80% in 2025, signifying effective utilization of equity for generating profits. While the company maintains a solid equity position, the relatively high total liabilities could pose risks in adverse conditions.

Cash Flow

The cash flow statement reveals positive trends with a substantial growth in free cash flow, evident from a 188.17% increase from 2024 to 2025. The operating cash flow to net income ratio is 1.20, suggesting strong cash generation capabilities. The free cash flow to net income ratio is robust at 1.19, indicating efficient capital expenditure management. The consistent positive cash flows underscore the company's ability to sustain operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.02B	32.94B	28.56B	29.60B	29.79B	28.34B
Gross Profit	7.00B	4.61B	4.58B	6.91B	4.17B	3.91B
EBITDA	4.73B	4.22B	4.19B	821.90M	2.69B	2.27B
Net Income	3.06B	2.95B	2.46B	130.00M	1.32B	1.10B
Balance Sheet
Total Assets	0.00	52.67B	45.74B	40.89B	40.02B	41.61B
Cash, Cash Equivalents and Short-Term Investments	9.42B	9.45B	5.06B	2.69B	3.37B	3.48B
Total Debt	0.00	3.62B	2.89B	2.19B	4.36B	3.58B
Total Liabilities	-21.45B	31.22B	27.51B	25.15B	24.76B	26.49B
Stockholders Equity	21.45B	21.40B	18.19B	15.75B	15.39B	15.26B
Cash Flow
Free Cash Flow	0.00	3.51B	1.22B	798.00M	61.20M	1.20B
Operating Cash Flow	0.00	3.55B	1.33B	849.80M	116.40M	1.35B
Investing Cash Flow	0.00	-1.21B	841.00M	157.80M	-339.70M	-41.40M
Financing Cash Flow	0.00	340.00M	436.00M	-2.40B	446.40M	-858.90M

VA Tech Wabag Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1285.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WABAG, the sentiment is Negative. The current price of 1285.45 is above the 20-day moving average (MA) of 1135.73, above the 50-day MA of 1237.83, and below the 200-day MA of 1417.25, indicating a neutral trend. The MACD of -29.13 indicates Negative momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 90.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:WABAG.

VA Tech Wabag Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹43.44B	9.24	―	0.16%	-42.73%	-44.36%
WABAG	69 Neutral	₹74.65B	21.86	―	0.31%	19.23%	22.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
POWERMECH	61 Neutral	₹69.40B	21.24	―	0.05%	28.54%	19.19%
HGINFRA	60 Neutral	₹43.87B	10.62	―	0.25%	-8.92%	-22.83%
KIRLOSBROS	59 Neutral	₹124.62B	31.22	―	0.43%	4.16%	-0.73%
HCC	45 Neutral	₹51.97B	28.41	―	―	-31.50%	-74.38%

VA Tech Wabag Limited Corporate Events

India Ratings Reaffirms VA Tech Wabag’s ‘IND AA-/Stable’ Credit Ratings

VA Tech Wabag Limited announced that India Ratings & Research has reaffirmed its credit ratings, maintaining the company’s Non-Convertible Debentures and bank loan facilities at ‘IND AA-/Stable’ and ‘IND AA-/Stable/IND A1+’ respectively. The affirmed ratings, alongside a reduction in the outstanding amounts of both NCDs and bank facilities, signal continued confidence from the rating agency in Wabag’s credit profile and financial stability, supporting its position in the water infrastructure sector and offering reassurance to lenders and investors about its ability to meet funding obligations.

VA Tech Wabag Clarifies NSE Query on Quarterly Financial Results and EPS Discrepancy

VA Tech Wabag Limited has responded to a clarification sought by the National Stock Exchange of India regarding its financial results for the quarter ended 31 December 2024, specifically relating to compliance with the prescribed presentation format and discrepancies in the consolidated earnings per share figures between PDF and XBRL submissions. The company stated that both its standalone and consolidated financial results conform to Regulation 33 of SEBI’s Listing Obligations and Disclosure Requirements and confirmed that the consolidated basic and diluted EPS figures have been updated on the NEAPS portal to reflect the values after comprehensive income, addressing the NSE’s observations and reinforcing its adherence to regulatory reporting standards.

VA Tech Wabag Wins Large EPC Order for Advanced 50 MLD BWRO Plant in Saudi Arabia

VA Tech Wabag has secured a repeat ‘large’ international order from the Saudi Water Authority to execute a technologically advanced 50 million litres per day brackish water reverse osmosis plant at Aljouf in Saudi Arabia, classified by the company as a large-sized contract under its order taxonomy. The EPC project, to be completed in 14 months, will use ceramic membrane pre-treatment, micron cartridge filtration and reverse osmosis to treat bore well water containing rare elements, strengthening Wabag’s position in the Gulf’s high-end water treatment segment and aligning it with Saudi Arabia’s push for sustainable, next-generation water infrastructure under its long-term development vision.

WABAG Secures Major Water Treatment Project in Nepal

VA TECH WABAG has secured a significant order from the Melamchi Water Supply Development Board in Nepal for the design, construction, and operation of a new water treatment plant in Kathmandu Valley. Funded by the Asian Development Bank, this project will enhance water security for the region and further solidify WABAG’s strategic presence in Nepal and its leadership in the South Asian water technology market.

VA Tech Wabag Releases Q2 & H1 FY 2025-26 Financial Results

VA Tech Wabag Limited has released its unaudited financial results for the quarter and half year ending September 30, 2025. The presentation of these results, both standalone and consolidated, has been made available on the company’s website, reflecting its commitment to transparency and regulatory compliance. This announcement may impact stakeholders by providing insights into the company’s financial health and operational performance, potentially influencing investor confidence and market positioning.