VA TECH WABAG has secured a large Design & Build contract for the proposed Ajman Sewage Biorefinery Plant – Phase 3 in the United Arab Emirates from Ajman Sewerage (Private) Company Limited. The project, classified as a large international order valued between USD 30 to 75 million, marks the company's strategic entry into the UAE market. The order strengthens VA TECH WABAG's presence in the GCC region and positions it to pursue larger infrastructure opportunities in the Middle East.

Project Structure and Timeline

The project will be executed through a consortium arrangement with VA TECH WABAG serving as the consortium leader and is scheduled for completion within a 24-month period. The scope encompasses the design, engineering, procurement, and construction of a 60 MLD Sewage Treatment Plant, including inlet works, primary and secondary treatment systems, and comprehensive sludge management facilities such as digesters, gas holders, scrubbers, and power generation systems.

Technical Scope

The plant will incorporate advanced mechanical and biological treatment processes based on the Activated Sludge Process (ASP). Tertiary treatment will be facilitated through disc filtration systems. Additionally, the scope includes odor control systems and disc filters to ensure compliance with guaranteed treated effluent quality.

Strategic Significance

Rowhan Mittal, Head – Strategy and Business Growth – GCC, stated that the project represents an important milestone in the company's Middle East growth journey. He noted that the UAE's focus on water security and infrastructure resilience creates a strong long-term opportunity landscape, enabling VA TECH WABAG to participate meaningfully in the region's next phase of growth.

Order Classification Framework

The order classification follows the company's defined thresholds for international projects. The table below outlines the classification bands:

VA Tech Wabag has reported its audited financial results for the quarter and financial year ended March 31, 2026, delivering strong growth across key metrics. The company achieved a consolidated net profit of INR 3,705 million for the full year, marking a 26% increase from INR 2,953 million in the previous year. Revenue from operations for the year stood at INR 40,385 million, up approximately 21% year-on-year from INR 33,386 million. Following the results declaration, the company hosted the Annual Investors Meet 2026 and Q4 & FY26 Results Conference Call on May 25, 2026, and released the audio recording on its website.

Annual and Quarterly Financial Performance

The company demonstrated strong operational efficiency across the consolidated financial statements for FY26. The following table summarises the key annual and quarterly metrics:

For the quarter ended March 31, 2026, net profit rose to INR 1,280 million compared to INR 995 million in the same period last year. Revenue for the quarter increased to INR 14,463 million from INR 11,676 million in the corresponding period of the previous year.

Dividend Declaration

The Board of Directors has recommended a final dividend of INR 5.00 per equity share of face value INR 2 each for the financial year 2025-26. This dividend is subject to the approval of the Members at the ensuing Annual General Meeting.

Operational Highlights and Order Book

VA Tech Wabag maintained a robust financial position with a gross cash position of INR 10,592 million and a net cash position of INR 8,337 million, marking the sixth consecutive year of being net cash positive. The company reported an order intake of over INR 75 billion and a total order book of over INR 172 billion, including framework contracts, providing strong revenue visibility. Notably, the order book currently stands at over four times revenue, and the company plans to maintain it at a minimum of three times revenue going forward. India Ratings & Research reaffirmed the company's Long Term Rating at IND AA-/Stable and Short Term Rating at IND A1+.

Management Guidance and Strategic Targets

Management has outlined a medium-term goal of achieving 15% to 20% revenue growth and EBITDA margins in the range of 13% to 15%, with the current performance noted to be at the higher end of the revenue growth target. The company also aims for over 20% Return on Capital Employed and over 15% Return on Equity, with current levels at 19.40% and nearly 16%, respectively, and plans to exceed 20% ROCE in the coming years. The following table summarises the key strategic targets:

VA Tech Wabag is also planning a new 5-year strategy with improved guidelines, aiming for growth within the water sector without diversification into other industries. As part of this strategy, the company intends to increase its Operations & Maintenance contribution from the current 17% to 20%, enhancing the quality and predictability of its revenue streams.