ICICI Securities rates VA Tech Wabag Ltd Buy
Maintain BUY, TP INR 2,312, based on 25x FY28E EPS.
By ScoutQuest · · 1 min read
- Report date
- 10 Nov 2026
From the report
The figures below are as printed in the report by ICICI Securities.
- Rating
- Buy
- Target
- INR 2,312from INR 2,410
- Price at report
- INR 2,010
- Upside to target
- 15%from the price at report, worked out from the two figures above
- Valuation
- 25x · P/E · FY28E
- Report
- result update
Maintains BUY with a revised target price of INR 2,312 (earlier INR 2,410) based on 25x FY28E EPS, supported by strong order book, improving margins and healthy execution.
Estimate changes
- Revenue FY27E: 0
- Revenue FY28E: 0
- EBITDA FY27E: (4)
- EBITDA FY28E: (4)
- EPS FY27E: (4)
- EPS FY28E: (4)
Catalysts
The broker's points, summarised.
- Strong order inflows lifting order book to INR 202bn (4.7x book-to-bill)
- Minimal on-site disruption in Middle East projects
- Rising desalination investments in the Middle East
- Increasing wastewater recycling opportunities
- Higher industrial water treatment demand
Risks
The broker's points, summarised.
- Lower order execution in FY27
- Increased operating costs leading to lower EBITDA margin
Analysts: Mohit Kumar, Mahesh Patil, Abhinav Nalawade, Shubham Borade
Order inflows double, backlog reaches record high
VA Tech Wabag won INR 18bn of orders in Q2FY27, twice the year-earlier figure, taking the order book to INR 202bn. That is a book-to-bill of 4.7x, split into INR 137bn of EPC work and INR 65bn of O&M.
Execution picks up on key projects
Revenue grew 20% to INR 10bn, with EPC revenue up 19% to INR 8.1bn. EBITDA was INR 1bn at a 14.4% margin, and profit after tax also came to INR 1bn, up 23% year on year.
Middle East disruption stays minimal
On-site work has faced little interruption, and while freight remains disrupted, most equipment for those projects has already reached site. ICICI Securities sees this supporting revenue visibility over the medium term.
Guidance supported by a broader enquiry pool
Management guides to 15-20% revenue growth and 13-15% EBITDA margins for FY27, helped by a larger and more geographically diverse set of enquiries and a richer mix of international and O&M work. ICICI Securities models 17% revenue and 24% profit growth over FY26-28E.
ICICI Securities's call
ICICI Securities maintains BUY with a target price of INR 2,312, reduced from INR 2,410. The rating reflects a record order book that underpins earnings visibility, faster project execution, limited fallout from the Middle East conflict, and structural demand from desalination and wastewater recycling. The target is derived from 25x FY28E EPS.
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The call above is ICICI Securities's, reported here as they made it. Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.