Shares of VA Tech Wabag are expected to remain in focus after the company reportedly emerged as the lowest bidder for major international sewage treatment projects, signalling a potential boost to its future growth pipeline. As of 10:13 AM, the shares were trading 1.76% higher at Rs 1,397.60.

According to sources quoted by CNBC-TV18, the company is the lowest bidder for a Sewage Treatment Plant (STP) contract worth over ₹600 crore in Saudi Arabia. In addition, VA Tech Wabag has also secured the lowest bidder position for a significantly larger project in Kuwait, valued at around ₹3,400 crore, through a joint venture with a US-based company.

These developments underline the company’s strengthening presence in the Middle East, a region that continues to invest heavily in water infrastructure due to rising demand and limited freshwater resources. Sewage Treatment Plants play a critical role in wastewater recycling and environmental sustainability, making such projects strategically important for governments in the region.

The Kuwait project, given its large size, could be particularly impactful for VA Tech Wabag if it converts into a confirmed order. Large-scale EPC contracts typically offer multi-year revenue visibility and can significantly enhance execution scale and operating leverage.

The company had reported a robust order book of ₹16,300 crore at the end of Q3, providing strong revenue visibility. If these new bids are converted into firm orders, they could further strengthen the order pipeline and support long-term growth.

However, it is important to note that both projects are currently at the lowest bidder stage, and final contract awards are yet to be confirmed.

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TOPICS: VA Tech Wabag