From mint · Pranati Deva · · 1m 20s
Rekha Jhunjhunwala stock VA Tech Wabag: Saudi project cancelled
Saudi Water Authority cancels ₹2,400 cr VA Tech Wabag desalination project.
In brief
Saudi Water Authority cancels ₹2,400 cr VA Tech Wabag desalination project. VA Tech Wabag shares remain in focus after Saudi Water Authority cancelled a ₹2,400 crore desalination project for internal reasons, with shares up 18% in six months. Originally reported by mint.
Saudi Water Authority cancels project
Saudi Water Authority cancelled VA Tech Wabag's ₹2,400 crore Yanbu desalination project for internal reasons.
“Saudi Water Authority subsequently notified all tender participants through the Kingdom's Etimad electronic government procurement and tendering platform that the tender had been cancelled due to internal reasons attributable to the customer”
Project details
The project covered design, engineering, supply, construction and commissioning of a 300 MLD desalination facility at Yanbu, Saudi Arabia.
“The project covered the design, engineering, supply, construction and commissioning of a 300 MLD desalination facility at Yanbu on Saudi Arabia's west coast”
Stock performance
Shares ended 2% lower at ₹2,040.10 on BSE after touching 52-week high of ₹2,320 in September 2026.
“The stock had touched a 52-week high of ₹2,320 in September 2026”
Recent growth
Shares gained 48% in six months and 506% over five years despite recent decline.
“it has gained 3.5% in one month, 8% in three months, 48% in six months, 45% in one year and 506% over five years”
Q2 results
VA Tech Wabag reported ₹1,000 crore revenue and ₹104 crore profit after tax in Q2 FY27.
“VA Tech Wabag reported revenue of around ₹ 1,000 crore and profit after tax (PAT) of ₹ 104 crore in Q2 FY27”
CFO outlook
CFO Skandaprasad Seetharaman expects revenue growth of 15-20% in FY27 with order book crossing ₹20,000 crore.
“CFO Skandaprasad Seetharaman expects revenue growth in FY27 to be at the higher end of the company's guidance range of 15-20%”
Motilal Oswal recommendation
Motilal Oswal reiterates 'Buy' recommendation with target price of ₹2,529 per share.
“Motilal Oswal has reiterated its 'Buy' recommendation on VA Tech Wabag, with a target price of ₹ 2,529 per share”
Order book strength
Current order book of ₹20,000 crore equals five times FY26 revenue with strong bid pipeline.
“The company's order book has crossed ₹ 20,000 crore, compared with ₹ 7,000-10,000 crore earlier”
Future growth
Expected revenue growth of 20% over next three to four years with strong free cash flow.
“Motilal Oswal expects the company to sustain margins in the 13-15% range, while continuing to focus on profitable growth and cash generation”
The short version
VA Tech Wabag shares remain in focus after Saudi Water Authority cancelled a ₹2,400 crore desalination project for internal reasons, with shares up 18% in six months.
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