VA Tech Wabag Share Price Declined Amid ₹340 Crore Contract

Market Performance

VA Tech Wabag's share price has declined 10% in the past month and over 20% on a year-to-date (YTD) basis. Despite this recent downtrend, the company's stock has yielded 102% returns over the past year and an impressive 872% gain over five years.

New Orders Secured

VA Tech Wabag has signed a contract with GAIL (India) Limited worth ₹340 crore. The project encompasses designing, constructing, and managing various water treatment facilities, including:

• A 450 cum/hr UF & RO-based Effluent Recycle Plant
• An Evaporator-based Zero Liquid Discharge (ZLD) Plant
• A new Waste Water Treatment Plant
• Augmentation of an existing Waste Water Treatment Plant

These facilities will be part of GAIL India's integrated petrochemical complex in Pata, Uttar Pradesh. This project's Engineering, Procurement, and Construction (EPC) scope is expected to be completed within 24 months, followed by a 6-month operation and maintenance (O&M) phase.

Additionally, Projects and Development India Limited (PDIL) has been designated as the engineer in charge project engineer-in-charge. These facilities' treated water will be used as Cooling Tower Make-Up water.

IOCL Order

VA Tech Wabag has also secured an Operations & Maintenance (O&M) contract from Indian Oil Corporation Limited (IOCL), valued at ₹20 crore. This order extends the company's role in managing the Tertiary Treatment Reverse Osmosis (TTRO) Plant at IOCL's Panipat Refinery in Haryana for another three years. The company has been handling the O&M of this plant since its commissioning in 2006.

Company Shareholding Structure

As per the shareholding pattern from the December 2024 quarter, the share distribution of VA Tech Wabag is as follows:

• Promoter & Promoter Group: Holds 1,18,95,168 shares (19.13%)
• Public Shareholders: Hold 5,02,95,260 shares (80.87%)

Summary

VA Tech Wabag has strengthened its project portfolio by securing contracts from GAIL (India) and IOCL, reinforcing its expertise in water treatment solutions. While the stock has seen a recent downturn, its long-term performance remains strong, backed by strategic projects and long-standing client associations. The company's involvement in critical infrastructure projects positions it as a key player in the water technology sector.