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VA Tech Wabag Limited (IN:WABAG)
:WABAG
India Market
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VA Tech Wabag Limited (WABAG) AI Stock Analysis

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IN:WABAG

VA Tech Wabag Limited

(WABAG)

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Neutral 69 (OpenAI - 5.2)
Rating:69Neutral
Price Target:
₹2,172.00
▲(68.97% Upside)
Action:Downgraded
Date:06/20/26
The score is driven primarily by improving growth/profitability and a notably strong, low-leverage balance sheet, partially offset by volatile cash flow trends. Technically, momentum is strong but signals are overbought, and valuation is a headwind due to the high P/E and very low dividend yield.
Positive Factors
Low leverage / strong balance sheet
Sustained very low debt-to-equity (~0.09) gives the company financial flexibility to bid large EPC projects, absorb working-capital swings and invest in O&M capacity without heavy refinancing. This durable balance-sheet strength lowers solvency risk and supports strategic growth over months.
Negative Factors
Volatile operating and free cash flow
Uneven OCF and a material FY2026 FCF decline point to working-capital and timing sensitivity typical for EPC firms. Such volatility can constrain self-funding for capex, increase reliance on receivable financing, and amplify liquidity pressure during large project ramps or delayed milestone payments.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Sustained very low debt-to-equity (~0.09) gives the company financial flexibility to bid large EPC projects, absorb working-capital swings and invest in O&M capacity without heavy refinancing. This durable balance-sheet strength lowers solvency risk and supports strategic growth over months.
Read all positive factors

VA Tech Wabag Limited (WABAG) vs. iShares MSCI India ETF (INDA)

VA Tech Wabag Limited Business Overview & Revenue Model

Company Description
VA Tech Wabag Limited, an Indian-headquartered company established in 1995, delivers comprehensive water treatment solutions on a global scale through its subsidiaries. The firm designs, supplies, constructs, and manages facilities for drinking wa...
How the Company Makes Money
WABAG primarily makes money by executing water and wastewater treatment projects and by operating and maintaining treatment assets for customers. A major revenue stream comes from EPC/turnkey contracts where WABAG is paid for designing, engineerin...

VA Tech Wabag Limited Financial Statement Overview

Summary
Strong balance sheet with low and improving leverage (debt-to-equity ~0.09) and healthy latest-year ROE (~14%), alongside re-accelerating revenue growth (~11.6% YoY) and improved profitability (FY2026 net margin ~9.4%). The main constraint is cash flow consistency: operating cash flow and free cash flow have been uneven, with free cash flow down materially in FY2026 versus FY2025.
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
60
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue35.36B39.44B32.94B28.56B29.60B29.79B
Gross Profit7.09B6.34B4.61B4.58B6.91B4.17B
EBITDA4.92B4.77B4.22B4.19B821.90M2.69B
Net Income3.20B3.71B2.95B2.46B130.00M1.32B
Balance Sheet
Total Assets54.62B61.22B52.67B45.74B40.89B40.02B
Cash, Cash Equivalents and Short-Term Investments8.32B11.12B9.45B5.06B2.69B3.37B
Total Debt2.40B2.28B3.62B2.89B2.19B4.36B
Total Liabilities31.33B35.49B31.22B27.51B25.15B24.76B
Stockholders Equity23.23B25.68B21.40B18.19B15.75B15.39B
Cash Flow
Free Cash Flow-516.00M2.25B3.51B1.22B798.00M61.20M
Operating Cash Flow-486.00M2.31B3.55B1.33B849.80M116.40M
Investing Cash Flow288.00M-670.00M-1.21B841.00M157.80M-339.70M
Financing Cash Flow-1.62B-1.62B340.00M436.00M-2.40B446.40M

VA Tech Wabag Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1285.45
Price Trends
50DMA
1559.81
Positive
100DMA
1398.33
Positive
200DMA
1383.30
Positive
Market Momentum
MACD
161.09
Negative
RSI
86.21
Negative
STOCH
92.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WABAG, the sentiment is Positive. The current price of 1285.45 is below the 20-day moving average (MA) of 1722.93, below the 50-day MA of 1559.81, and below the 200-day MA of 1383.30, indicating a bullish trend. The MACD of 161.09 indicates Negative momentum. The RSI at 86.21 is Negative, neither overbought nor oversold. The STOCH value of 92.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:WABAG.

VA Tech Wabag Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹131.56B33.590.31%19.74%25.16%
69
Neutral
₹160.17B41.760.43%1.02%-10.02%
65
Neutral
₹38.46B21.048.22%-10.20%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
₹71.66B27.970.14%7.21%-39.15%
54
Neutral
₹58.29B34.220.40%7.52%-16.28%
45
Neutral
₹25.51B-108.3110.73%-166.63%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:WABAG
VA Tech Wabag Limited
1,998.30
521.06
35.27%
IN:EIEL
Enviro Infra Engineers Limited
219.40
-17.10
-7.23%
IN:IONEXCHANG
Ion Exchange (India) Ltd.
411.90
-129.42
-23.91%
IN:JISLDVREQS
Jain Irrigation Systems Limited
23.67
-9.11
-27.79%
IN:KIRLOSBROS
Kirloskar Brothers Ltd.
1,961.30
-389.96
-16.59%
IN:SHAKTIPUMP
Shakti Pumps (India) Limited
590.05
-353.08
-37.44%

VA Tech Wabag Limited Corporate Events

VA Tech Wabag to Appeal GST Order Upholding ₹6.47 Crore Tax Demand
Jun 19, 2026
VA Tech Wabag has disclosed that it received an order from the Principal Commissioner of Central Tax, Bengaluru East, rejecting its rectification application related to a GST assessment for FY 2019-20 under Section 73 of the CGST Act. The order up...
VA Tech Wabag boosts equity capital with ESOP share allotment
Jun 19, 2026
VA Tech Wabag has allotted 39,113 equity shares of INR 2 each to employees who exercised options under its WABAG Centenary Stock Option Scheme 2023. The new shares, issued at an exercise price of INR 513, increase the company’s paid-up equit...
VA Tech Wabag GST Demand Slashed After Favourable Rectification Order
Jun 19, 2026
VA Tech Wabag has received a favourable rectification order from the Uttar Pradesh GST authorities regarding an earlier demand alleging excess input tax credit claims for FY 2019-20. The original GST demand of INR 43.73 lakh has been quashed and r...
Wabag Wins Mega SWRO Desalination Contract in Kuwait, Enters New GCC Market
Jun 19, 2026
VA Tech Wabag has won a design-build-operate contract from Kuwait’s Ministry of Electricity, Water and Renewable Energy for the Doha SWRO Desalination Plant – Stage II, marking its first project in Kuwait and strengthening its foothold...
VA Tech Wabag Wins Delhi Contract for 17 MGD Wastewater Treatment Plant
May 22, 2026
VA Tech Wabag has secured a medium-sized design, build and operate contract from the Delhi Jal Board for a 17 MGD wastewater treatment plant at Mitraon in Delhi, including sludge dewatering facilities, pumping stations and associated piping. The p...
VA Tech Wabag Clears FY26 Results, Proposes 250% Final Dividend
May 21, 2026
VA Tech Wabag’s board has approved the audited standalone and consolidated financial results for the quarter and full year ended 31 March 2026, with the statutory auditors issuing unmodified opinions. The results, along with the accompanying...
Wabag Wins EIB-Funded Wastewater Project in Georgia, Enters CIS Market
Mar 20, 2026
VA Tech Wabag has won a large international consortium order from United Water Supply Company of Georgia to build a 19 million litres per day wastewater treatment plant in Kutaisi, funded by the European Investment Bank. The project, designed for ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 20, 2026