A Rekha Jhunjhunwala portfolio stock, VA Tech Wabag, jumped more than 5% in intraday deals on the BSE on Friday, 14 August, despite weak stock market sentiment. VA Tech Wabag share price opened at ₹1,900 against its previous close of ₹1,885.75 and jumped 5.2% to an intraday high of ₹1,984. On the other hand, equity benchmark Sensex declined by 0.50% during the session.
VA Tech Wabag, a pure-play Indian water technology multinational company, offers innovative and sustainable solutions for both municipal and industrial sectors, delivering end-to-end water solutions, tailored to meet diverse customer needs across the globe.
VA Tech Wabag Q1 results
In an exchange filing after market hours on 12 August, VA Tech Wabag said it recorded an all-time high order book of ₹19,400 crore, excluding framework contracts, in Q1FY27. The company’s order intake stood at ₹3,400 crore by the end of the quarter.
It said its consolidated revenue from operations jumped 21% year-on-year (YoY) to ₹8,86.8 crore, while consolidated profit after tax (PAT) jumped 37% YoY to ₹90.1 crore. Its consolidated EBITDA of ₹1,16.3 crore rose by 22% YoY.
“We are delighted to start the year with strong international and domestic orders, robust top-line momentum, and strong profitability. All clusters delivered on order intake, which resulted in our order book surging to approximately ₹19,400 crore, even as we persisted with our selective approach to bidding for projects,” said Rajiv Mittal, Chairman and Managing Director, VA Tech Wabag.
“We forayed into Kuwait with the award of a mega SWRO project and also entered the UAE market with an order win in Ajman. In India, we enhanced our long-standing relationships with BWSSB and DJB through new order wins. In Europe, we secured a key project win in Austria from Donauinsel Water Works. These wins provide us with strong revenue visibility and reflect our focus on complex technology jobs, which fall in our focus area and enable us to deliver value addition to our clients,” said Mittal.
The stock ended 1% lower on the next business day on 13 August.
A Rekha Jhunjhunwala portfolio stock
Rekha Jhunjhunwala, one of the famed Indian investors, had 50,00,000 shares, or an 8.02% stake, in VA Tech Wabag in the June quarter of FY27.
Jhunjhunwala held the same number of VA Tech Wabag’s shares by the end of the March quarter of FY26 also.
Foreign portfolio investors (FPIs) increased their stakes in the stock in the June quarter. FPIs cumulatively held 1,13,84,797 shares or 18.26% stake of the company by the end of Q1FY27, compared to 1,03,44,924 shares, or 16.60% stake in the company by the end of Q4FY26.
VA Tech Wabag a multibagger stock
VA Tech Wabag shares have delivered multibagger returns of 278% and 443% over the last three years and five years, respectively, as per the current BSE data.
In the last one year, the stock has given a return of 21%. The stock hit a 52-week high of ₹2,252.40 on 13 July after hitting a 52-week low of ₹1,033.95 on 27 January this year.
Axis Securities raises target price
Brokerage firm Axis Securities maintained a buy call on the stock but increased the target price to ₹2,105 from ₹1,930 earlier. The brokerage firm has raised its FY27E and FY28E earnings estimates to factor in sustained execution momentum, supported by a robust order pipeline.
Axis said VA Tech Wabag offers strong 3–5-year visibility, supported by a record ₹19,400 crore order backlog, which is over 4 times its annual revenue base.
Axis further said that the company’s management targets 15–20% revenue CAGR, with FY27 growth expected at the upper end of this range. EBITDA margins are guided at 13–14% near term, with a long-term target of 13–15% as scale benefits accrue.
“The asset-light model supports optimised NWC of 100–110 days, while management targets RoCE of more than 20%, RoE of over 15%, and operation and maintenance contributing nearly 20% of revenue. The next five-year strategic roadmap, ‘Vriddhi 2.0,’ focused on profitable growth and cash generation, is expected to be unveiled in May 2027,” said Axis Securities.
“With healthy execution momentum, strong order visibility, disciplined capital allocation, and technology-driven differentiation, the company appears well-positioned to capitalise on the ongoing global water infrastructure investment cycle,” Axis Securities said.
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