VA Tech Wabag Limited (WABAG) AI Stock Analysis

• Market Cap: ₹74.69B
• Dividend Yield: 0.31%
• Average Volume (3M): 11.30K
• Price to Earnings (P/E): 22.2
• 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): 14.85
• Shares Outstanding: 62,301,510
• 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: ₹1,786.50
• Price Target Upside: 38.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 59.43
• Revenue Forecast (FY): ₹37.89B

• Rating: 69 Neutral
• Price Target: ₹1,313.00 ▲(2.14% Upside)
• Action: Reiterated Date: 09/25/25
• Date: Action: Reiterated 09/25/25

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 & Margin Strength

Sustained double-digit revenue growth combined with improving gross and operating margins indicates the company is winning larger or higher-margin contracts and improving execution efficiency. These durable improvements support reinvestment, higher retained earnings and stronger medium-term profitability even if project timing fluctuates.

Free Cash Flow Generation

A large increase in free cash flow and operating cash flow exceeding net income demonstrate high-quality earnings and strong cash conversion. This persistent cash-generating ability supports capex, working capital needs, O&M investments and selective deleveraging, enhancing financial flexibility over the next several quarters.

Recurring O&M Revenue

A material O&M business provides durable, annuity-like revenue and lifecycle follow-on work that reduces reliance on lumpy EPC cycles. Multi-year contracts improve revenue visibility, strengthen customer relationships and support margin resilience, making earnings less volatile across project cycles.

Negative Factors

Elevated Total Liabilities

Although leverage ratios look low, the report flags relatively high total liabilities which can magnify stress if receivables are delayed or projects underperform. In adverse macro or sector conditions, higher liabilities raise refinancing and liquidity risk, pressuring working capital and operational flexibility.

EPC Execution Risk

The business remains exposed to typical EPC risks: contract timing, procurement cost swings and on-site execution. These factors can materially affect margins and cash flow when large projects are concentrated, making medium-term earnings dependent on disciplined project management and contract structuring.

Limited Management Disclosure

The absence of earnings-call disclosures and guided commentary reduces visibility into management's view on order book health, margin drivers and capital allocation. Limited public engagement can hinder investor understanding of operational risks and long-term strategy execution over coming quarters.

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 primarily makes money through (1) EPC/project execution revenue and (2) recurring operations & maintenance (O&M) revenue. EPC revenues are earned by undertaking turnkey or design-and-build contracts in which WABAG provides engineering/design, procures equipment and materials (often including proprietary process know-how and system integration), constructs/installs the plant, and commissions it for the customer; revenue is typically recognized over the project execution period based on contract progress/achievement of milestones under customer contracts. O&M revenues are earned from multi-year service contracts to operate and maintain water and wastewater treatment plants after commissioning (whether built by WABAG or others), generating more recurring, annuity-like cash flows tied to service fees and performance/availability requirements specified in the contract. Depending on contract structure, additional earnings can also come from rehabilitation/upgrade works, supply of spares/consumables, and other lifecycle services associated with operating treatment facilities. The company’s overall earnings are influenced by the size and mix of its order book (new EPC wins), timely project execution and cost control (as EPC margins depend on managing procurement, construction and project risks), and the scale and tenure of its O&M portfolio, which can provide steadier revenue visibility than one-time construction projects.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• RSI: Neutral
• STOCH: Neutral

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 1262.04, above the 50-day MA of 1217.37, and below the 200-day MA of 1407.89, indicating a bearish trend. The MACD of -5.94 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.88 is Neutral, 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	₹34.82B	11.13	―	0.16%	-42.73%	-44.36%
WABAG	69 Neutral	₹74.69B	22.21	―	0.31%	19.23%	22.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
POWERMECH	61 Neutral	₹62.67B	19.27	―	0.05%	28.54%	19.19%
HGINFRA	60 Neutral	₹31.96B	13.05	―	0.25%	-8.92%	-22.83%
KIRLOSBROS	59 Neutral	₹125.21B	25.72	―	0.43%	4.16%	-0.73%
HCC	45 Neutral	₹42.07B	118.38	―	―	-31.50%	-74.38%

VA Tech Wabag Limited Corporate Events

VA Tech Wabag to Appeal ₹43.7 Lakh GST Demand Over Alleged Excess ITC

VA Tech Wabag has disclosed that it received a GST demand order from the Deputy Commissioner, GST Commissionerate, Uttar Pradesh, alleging excess input tax credit claimed for FY 2019-20. The order, issued under Section 74 of the CGST Act, seeks a total of about ₹43.7 lakh, including basic tax, interest and penalty, which the company says will not have a material impact on its financial or operational activities.

The company intends to challenge the order and pursue legal remedies, including filing an appeal before the appropriate authority. By signalling its plan to contest the demand while downplaying its financial significance, VA Tech Wabag aims to reassure investors and other stakeholders that the dispute is manageable and not expected to disrupt its ongoing business operations.

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.