VA Tech Wabag shares surge over 13% on securing ₹3,251 crore order from Saudi Arabia, Q3 results

Shares of VA Tech Wabag surged over 13 percent in early trading on Monday, February 10, after the company secured a significant order worth ₹3,251 crore in Saudi Arabia and strong Q3 results for the quarter ended December 2024 (Q3FY25).

VA Tech Wabag announced on Sunday that it had secured a ₹3,251 crore ($317 million) consortium order for the Al Haer Independent Sewage Treatment Plant (ISTP) in Riyadh, which involves the engineering, procurement, and construction (EPC) of a 200 MLD sewage treatment facility along with connections to outfall delivery infrastructure.

The ISTP is being developed by a consortium comprising Miahona Company (lead), Marafiq, and N.V. Besix S.A. for its off-taker, the Saudi Water Partnership Company (SWPC). SWPC serves as the principal off-taker for water and wastewater projects across Saudi Arabia.

The ISTP project aligns with Saudi Arabia’s ‘Vision 2030’ initiative, which aims to enhance sewage treatment services and improve the quality of life for residents. Sivakumar V, Regional Head of Sales and Marketing at Wabag, remarked that the order marks another significant milestone for the company in Saudi Arabia and further solidifies its leadership position in the Middle East.

Earlier this year, Wabag secured an engineering and procurement order for a 20 MLD industrial wastewater treatment plant at Ras Tanura Refinery Complex in Saudi Arabia, with Miahona Company as the project developer.

Financial Performance - Q3FY25

On Friday, VA Tech Wabag reported a consolidated profit after tax (PAT) of ₹70.2 crore for the December quarter, reflecting an 11.6 percent year-on-year (YoY) increase. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at ₹105.1 crore, up 6.3 percent YoY. However, its EBITDA margin declined to 13 percent from 14 percent in the corresponding quarter of the previous year.

Revenue for the quarter increased by 15.1 percent YoY to ₹811 crore. The company’s order intake surged by 525.4 percent YoY to ₹2,781.3 crore during the quarter.

For the nine months ended December 2024, VA Tech Wabag reported an order intake of ₹5,075 crore, reflecting a 188.1 percent YoY growth. Revenue for the period increased 11.2 percent YoY to ₹2,137.8 crore, while EBITDA rose by 10.8 percent YoY to ₹289.4 crore. PAT stood at ₹195.8 crore, marking a 13.2 percent YoY increase.

Stock Performance

Following the announcement, VA Tech Wabag’s stock surged as much as 13.5 percent to an intraday high of ₹1,550. However, it remains over 20 percent below its all-time high of ₹1,943.95, recorded in December 2024. Despite this, the multibagger stock has rebounded strongly, rallying more than 138 percent from its 52-week low of ₹650.05, registered in March 2024.

Over the past year, the stock has delivered a 99 percent return. It has also gained over 5 percent so far in February after two consecutive months of declines, having dropped over 16 percent in January and more than 8 percent in December.