VA Tech Wabag Shares Rise 7% on ₹121 Crore Bahrain Deal

Shares of VA Tech Wabag rose by 7.12% on Wednesday, January 29, after the company announced a significant contract win worth Rs 121 crore. The contract, awarded by BAPCO Refining, is for operating and maintaining a wastewater treatment plant in Bahrain for seven years. This strengthens the company’s presence in the Middle East and expands its operations in the region.

The Industrial Wastewater Treatment Plant (IWTP) at BAPCO’s refinery uses advanced Membrane Bioreactor (MBR) technology to ensure high-efficiency wastewater treatment. The plant can process 4,400 US gallons per minute (USGPM) of industrial wastewater, meeting strict environmental and industrial standards. VA Tech Wabag has been operating the 40 MLD Madinat Salman Sewage Treatment Plant in Bahrain since 2018, and this new contract further solidifies its leadership in the operations and maintenance (O&M) segment.

Srinivasan K, General Manager of WABAG’s Middle East Regional Headquarters said, “This contract reflects our technological expertise and our ability to deliver world-class water solutions, particularly within the oil and gas sector. We appreciate BAPCO’s trust and confidence in our capabilities.”

Following the contract announcement, VA Tech Wabag’s share price surged to an intra-day high of Rs 1,312.70. However, despite the rally, the stock remains approximately 33% below its all-time high of Rs 1,944.00. 

The stock had been in a downtrend since Saudi Arabia canceled a Rs 2,700 crore seawater desalination project due to internal administrative reasons. The order was for a 300 MLD mega seawater reverse osmosis desalination plant in the Yanbu region. However, Saudi authorities later clarified that the project would be recalibrated and re-tendered. VA Tech Wabag has confirmed its intention to participate once the new tender is issued.

The company aims to achieve an order book of Rs 16,000 crore by the end of the fiscal year. As of H1FY25, its order book stood at Rs 14,500 crore. International projects have been a strong revenue driver, contributing 54% of H1FY25 revenue and comprising 39% of its order backlog. Since 1995, VA Tech Wabag has built over 60 desalination plants across 17 countries, serving both municipalities and industries.

Apart from the Bahrain contract, VA Tech Wabag has secured other major orders in recent months. The company won a Rs 145 crore contract from Chennai Petroleum Corporation Ltd (CPCL) for desalination water pipelines between the CPCL Manali Refinery and the Kattupalli desalination plant. Additionally, in December 2024, it secured a €78 million (Rs 700 crore) contract from Lusaka Water Supply and Sanitation Company in Zambia, further expanding its international portfolio.

Conclusion

VA Tech Wabag’s latest contract in Bahrain highlights its growing footprint in the Middle East and its expertise in wastewater management. Despite recent setbacks, the company remains on track with its expansion goals and continues to secure large-scale international projects. With a strong order pipeline and a commitment to sustainability, VA Tech Wabag is looking to be well-positioned for the future.