1. At a Glance

Va Tech Wabag is India’s poster child for “turning murky water into clear profits.” With 6,500+ projects across 25+ countries, they’ve touched the lives of 88 million people — which is about the population of Germany plus Belgium. FY25 revenue clocked ₹3,294 Cr with PAT ₹295 Cr, and Q1 FY26 saw revenue ₹734 Cr (+17% YoY) and PAT ₹65.8 Cr (+20% YoY). Debt’s manageable, margins are steady at ~13%, and the order book is a whopping ₹15,800 Cr — meaning they’ve got work lined up even if new deals dry up.

2. Introduction

In a country where water politics can topple governments and tanker mafias run neighbourhoods, Va Tech Wabag found a way to make money by fixing water problems at scale. They don’t just build water treatment plants; they handle everything from designing to running them, often for decades.

It’s a tough business — long payment cycles (debtors at 223 days), bureaucratic customers, and the joy of bidding wars with rivals who think “low margin” is a badge of honour. Yet, Wabag has emerged as a consistent profit generator, outpacing peers in project size and execution track record.

The stock has rewarded believers — 5-year CAGR at 61% — but with P/E at 31.3x, it’s priced like it’s desalinating Evian.

3. Business Model (WTF Do They Even Do?)

Wabag’s core iswater treatment engineering, procurement, and construction (EPC)with a dash of O&M for stable recurring income.

Segments:

• Municipal Water Treatment:Drinking water plants, sewage treatment.
• Industrial Water Solutions:For power plants, oil & gas, manufacturing.
• Desalination:Sea & brackish water plants for coastal cities and industries.
• Sludge & Recycling:Closing the loop on waste water.

Revenue Streams:

1. Project Execution(lumpy but high value).
2. O&M Services(stable, margin-friendly).