Waya initiates coverage on VA Tech Wabag Ltd. with a BUY recommendation. Waya expects an upside of 42% in 1 year and sets a target price of ₹1,849.

VA Tech Wabag is one of the world’s leading pure-play water technology companies, designing and operating drinking water, wastewater treatment and desalination plants across 20+ countries. The company has a strong global presence with nearly half of its revenue coming from international markets and a steady, recurring O&M business.

Wabag has strong financials with revenue of ₹1,569 crore in H1 FY26 (+18% YoY), EBITDA of ₹216 crore and PAT of ₹151 crore (+20% YoY). The company is net-cash positive for 11 straight quarters and has an exceptional order book of ₹16,000 crore — almost 5x its FY25 revenue — giving 4+ years of visibility. Margins are also expected to improve as major projects ramp up.

We believe Wabag is well-placed for long-term growth, with revenue expected to rise from ₹3,294 crore in FY25 to nearly ₹5,700 crore by FY28E, driven by strong international demand, rising desalination projects, and higher-margin O&M and energy-transition opportunities.