VA Tech Wabag shares gained 4% in today's trading session after the water treatment company secured a large EPC order from Bharat Petroleum Corporation Limited. With a market capitalization of ₹7,390.63 crore, the shares were trading at ₹1,186.35 per share, representing an increase of around 0.77% compared to the previous closing price of ₹1,174.80 apiece.

Major Order Win Strengthens Portfolio

VA Tech Wabag has won a large EPC order worth ₹250-600 crore from Bharat Petroleum Corporation Limited for industrial water treatment at BPCL's Bina refinery. The comprehensive 22-month project includes RWTP, RO-DM, and ZLD plants, which will strengthen the company's order book and enhance its presence in the oil & gas segment.

Strong Financial Performance in Q2FY26

The company reported robust Q2FY26 performance, demonstrating strong operational momentum. Revenue rose 19% year-on-year to ₹834 crore, while net profit increased 21% to ₹85 crore. This growth reflects robust demand, improved operational efficiency, and effective cost management, highlighting the company's steady financial momentum and sustained profitability.

H1FY26 Revenue Distribution and Geographic Presence

In H1FY26, VA Tech Wabag generated total revenue of ₹1,548.90 crore, with EPC contributing 81% and O&M operations contributing 19%. The municipal segment dominated revenue generation with ₹1,195.30 crore, accounting for 77% of total revenue, while the industrial segment contributed ₹353.60 crore, representing 23% of revenue.

Geographically, the company maintained a balanced revenue distribution. India contributed ₹820.90 crore (53% of total revenue), while overseas markets generated ₹728.00 crore (47% of total revenue). This near-equal split highlights the company's strong global presence alongside robust domestic operations, supported by large-scale water infrastructure projects and expanding international contracts.

Robust Order Book and International Expansion

VA Tech WABAG reported a strong H1FY26 order intake of ₹34,772 million, dominated by EPC projects worth ₹30,072 million and municipal orders totaling ₹33,628 million. O&M operations contributed ₹4,700 million, reinforcing recurring revenue visibility, while industrial orders remained modest at ₹1,145 million.

Overseas markets accounted for ₹27,845 million (approximately 80% of total order intake), highlighting the company's strong international traction, while India contributed ₹6,928 million. Key wins included a ₹20,379 million desalination project in Saudi Arabia and large wastewater projects in India and Bahrain.

Growth Outlook and Strategic Targets

The company's medium-term outlook projects strong growth, targeting a 15-20% revenue CAGR with an order book three times annual revenue. VA Tech Wabag aims for 13-15% EBITDA margins while maintaining its targeted revenue mix of over 50% from international projects, 30% from industrial clients, 20% from O&M operations, and one-third of EPC from EP projects to support margin expansion.

The company serves a diverse clientele across municipal and industrial sectors, including global names like Reliance, GAIL, IndianOil, and NMDC, alongside government water boards. Supported by leading funding agencies such as the World Bank, KfW, and Exim Bank, it operates in water, oil and gas, power, and industrial infrastructure segments worldwide.

VA Tech Wabag has secured a major domestic order from Bharat Petroleum Corporation Limited (BPCL) to establish advanced industrial water treatment facilities at BPCL's Bina Refinery and Petrochemical Expansion Project in Madhya Pradesh. The water technology company announced this development on Tuesday, January 13.

Order Details and Scope

The order value falls within the ₹250-600 crore range and encompasses a comprehensive Water Block Package. The project includes three key components:

The state-of-the-art project will be executed on an Engineering, Procurement, and Construction (EPC) basis, covering design, engineering, procurement, construction, installation, testing, and commissioning phases.

Management Commentary

S Natrajan, Head – Sales & Marketing, India Cluster, emphasized the company's commitment to delivering excellence. "This award further reinforces Wabag's leadership position in the Oil & Gas sector and underscores our strong track record in delivering complex, technology-intensive water projects," he stated. The management assured execution to the highest standards of quality, reliability, and operational performance.

Recent International Wins

The BPCL order follows a series of significant international contract wins. Last month, VA Tech Wabag secured a repeat order from the Saudi Water Authority for an advanced technology brackish water reverse osmosis (BWRO) plant with 50 million liter per day capacity at Aljouf in Saudi Arabia.

In December, The Saudi Water Partnership Company declared VA Tech Wabag as the preferred bidder in a consortium for the Hadda Independent Sewage Treatment Plant (ISTP) project in Saudi Arabia. This large EPC contract involves developing a major wastewater treatment facility under a 25-year build, operate and transfer model.

Market Response

Shares of VA Tech Wabag opened 3.10% higher at ₹1,210.20 on Tuesday following the order announcement. The stock subsequently moderated and was trading 1.93% higher at ₹1,196.40 as of 10:19 AM, reflecting positive investor sentiment toward the significant order win.