1 week ago
VA Tech Wabag Stock: Orders Support Bullish Brokerage Outlook
VA Tech Wabag builds and operates plants that clean and treat water.
A brokerage called Systematix believes the company’s stock could rise to Rs 2,263.
The company has received many orders, worth Rs 19,400 crore in total.
It also won Rs 3,430 crore of new orders in the first quarter of FY27.
These orders could help the company earn more money in the future.
The company has strong cash reserves and has kept a positive net cash position for 14 straight quarters.
However, its profit fell compared with the previous quarter, even though revenue increased from a year earlier.
New areas such as data centres, solar manufacturing, semiconductors and green hydrogen are expected to take three to five years to become important.
Systematix issued a bullish view on VA Tech Wabag with a target price of Rs 2,263.
The company’s order book reached a record Rs 19,400 crore, up 33% year-on-year.
VA Tech Wabag secured Rs 3,430 crore of orders in Q1 FY27, providing revenue visibility exceeding four times annualised revenue.
Management is targeting 13–14% EBITDA margins in FY27 and 15–20% medium-term revenue CAGR.
Q1 consolidated net profit fell 29.8% quarter-on-quarter to Rs 90.1 crore, while revenue rose 20.8% year-on-year to Rs 886.8 crore.
- Who
- VA Tech Wabag Limited and brokerage Systematix.
- What
- Systematix gave VA Tech Wabag a bullish outlook and Rs 2,263 target price, citing orders, cash generation and expected growth.
- Where
- The company operates in water treatment, desalination and related projects across its target geographies.
- When
- The update discusses Q1 FY27 results and projections through FY28E; the article also cites a 52-week low on January 27, 2026, and high on July 13, 2026.
- Why
- The bullish view is based on the record order book, strong order inflows, a bid pipeline, healthy balance sheet and expected margin improvement.
Positive Growth Case
Risks and Constraints
Order book and revenue visibility
Positive Growth Case
Systematix and management point to the record Rs 19,400 crore order book and Rs 3,430 crore of Q1 FY27 orders as support for medium-term growth.
Risks and Constraints
The company is pursuing selective bidding and focusing on complex, technology-intensive projects rather than maximizing order volume.
Profit and margin outlook
Positive Growth Case
Management expects EBITDA margins of 13–14% in FY27, with a longer-term ambition to exceed 15%; Systematix estimates strong EBITDA and PAT growth through FY28E.
Risks and Constraints
Q1 consolidated net profit declined 29.8% from the previous quarter to Rs 90.1 crore, while total expenses increased 25.4% year-on-year.
New business opportunities
Positive Growth Case
VA Tech Wabag is exploring data centres, solar PV manufacturing, semiconductors and green hydrogen as additional growth areas.
Risks and Constraints
The article says these businesses are expected to become meaningful contributors only over the next three to five years, not within the next 12–18 months.
Key facts
- Brokerage target
- Systematix set a target price of Rs 2,263 and is bullish on the stock.
- Order book
- Rs 19,400 crore, up 33% year-on-year and 16.7% quarter-on-quarter, excluding framework contracts.
- Q1 FY27 order inflow
- Rs 3,430 crore.
- Cash position
- Gross cash was Rs 1,080 crore, while net cash excluding HAM was Rs 970 crore.
- Q1 revenue
- Revenue from operations rose 20.8% year-on-year to Rs 886.8 crore.
- Q1 net profit
- Consolidated net profit was Rs 90.1 crore, down 29.8% from Rs 128.3 crore in Q4 FY26 but up 36.9% year-on-year.
- Medium-term targets
- Management is targeting 15–20% revenue CAGR and 13–15% EBITDA margins over the medium term.
Sources
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