VA Tech Wabag Rockets: Record Orders & Profit Surge! ICICI Securities Issues STRONG BUY Call – Don't Miss This!

VA Tech Wabag has delivered another impressive financial quarter. Revenue grew by 19% year-on-year to INR 8.3 billion, bolstered by consistent project execution both domestically and internationally. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a 17% year-on-year increase to INR 1.2 billion, with a reported margin of 14.4% (adjusted for foreign exchange fluctuations). Net profit surged by 20% year-on-year to INR 0.8 billion.

The company's order book has reached a record high of INR 160 billion, which is 3.2 times its trailing twelve months' (TTM) sales. This strong order backlog is supported by healthy order inflows, which grew 52% year-on-year in the first half of FY26, totaling INR 35 billion. VA Tech Wabag is also a preferred bidder for additional projects valued at INR 30 billion. Execution on key projects like Perur and Al-Haer remains robust.

Outlook: Given the improved execution, a strong order book, and promising future prospects, ICICI Securities forecasts revenue and profit Compound Annual Growth Rates (CAGRs) of 18% and 23%, respectively, for the fiscal years 2025 to 2027E. They maintain a BUY rating with a price target of INR 1,835.

Impact: This research report is likely to positively influence investor sentiment towards VA Tech Wabag, potentially leading to increased buying interest and stock price appreciation, especially given the clear BUY recommendation and price target. Rating: 8/10

Difficult Terms: * CAGR (Compound Annual Growth Rate): The average annual growth rate of an investment over a specified period longer than one year. * TTM (Trailing Twelve Months): A period of the last 12 months, used for financial reporting and analysis. * EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance before accounting for non-operating expenses such as interest, taxes, and non-cash expenses like depreciation and amortization. * Forex (Foreign Exchange): Refers to transactions involving different currencies. Adjustments for forex mean the financial figures have been modified to account for currency exchange rate fluctuations. * OB (Order Book): The total value of orders received by a company for goods or services that have not yet been fulfilled.