The brokerage also estimates that India will need ₹20+ lakh crore in water infrastructure investment over the next decade. The need for investment is already visible. India generates nearly 72,000 million litres of sewage every day, but installed treatment capacity stands at only around 27,000 MLD.
Nearly 70% of sewage remains untreated. At the same time, stricter industrial discharge norms and rising demand for water recycling are creating additional requirements for treatment facilities. This investment cycle puts two engineering companies in the spotlight.
One designs and operates large-scale water treatment, desalination and recycling plants. The other manufactures specialised equipment used in water control and wastewater infrastructure. Both are also exploring opportunities in newer segments such as semiconductor manufacturing and data centre cooling.
#1 Va Tech Wabag
Va Tech Wabag builds and operates water treatment infrastructure. Industry surveys rank the company among the top three global private water operators for supplying desalination plants. The business covers several water treatment segments. These include municipal drinking water, wastewater treatment, seawater desalination and water recycling.
The company also provides sludge treatment and energy recovery systems. It uses an asset-light business model to execute projects. The company operates across two contract models:-
Engineering, Procurement, and Construction (EPC): 82% of H1FY27 revenue.
Operation and Maintenance (O&M): 18% of H1FY27 revenue
Engineering and Procurement is included in EPC.
Va Tech Wabag: Driving Revenue Through EPC & O&M Models
The O&M segment generates recurring revenue and offers higher operating margins. Management aims to increase the share of ‘pure EP’ contracts within the total order intake to between 20% and 30%. Pure EP contracts accounted for almost 80% of total order intake in H1 FY27. Total EPC (including EP contracts) order intake was 91% while O&M was 9%.
Two key contract wins drove this surge: the 272 MLD Kuwait desalination project and the Reliance Jamnagar desalination plant. Under the ‘Pure EP’ model, the company provides process engineering, detailed plant design, and specialised equipment. Under the EPC model, Va Tech assumes full responsibility for the entire project, from start to finish.
Decoding Va Tech’s ₹20,207 Crore Order Backlog
EPC remains the standard contract model for domestic Indian municipal projects. In H1FY27, EPC represented 82% of revenue and 68% of the closing order backlog. The order backlog stood at ₹20,207.1 crore as of November 08, 2026. The current order book provides strong execution visibility equivalent to more than 4 times annual revenue.
By Contract Model (Offering)
EPC (Engineering, Procurement, Construction): ₹13,697.3 crore (68% of total backlog).
O&M (Operation & Maintenance): ₹6,509.8 crore (32% of total backlog).
By Customer Segment
Municipal: ₹16,347.8 crore (81% of total backlog).
Industrial: ₹3,859.3 crore (19% of total backlog).
By Geography
India: ₹11,257.3 crore (56% of total backlog).
International: ₹8,949.8 crore (44% of total backlog)
In addition to the existing order book, bidding activity remains high across core operating regions. Management expects strong order additions over the next 12 to 18 months. Va Tech expects growth to be driven by the Middle East and Africa (large seawater desalination and municipal wastewater contracts), India (municipal and industrial projects) and Europe.
High-Tech Expansion: Semiconductors and Data Centres
The business is extending its water solutions into emerging high-tech industries:
Semiconductor and Solar PV Manufacturing: Supplying specialised raw water treatment, ultra-pure water, and zero liquid discharge systems.
Data Centres: Helping clients switch from air-cooled to water-cooled cooling systems to lower capital and operating costs.
Green Hydrogen: Providing purified process water required for hydrogen production facilities.
The timeline for completing these industrial projects is 12-15 months. This creates opportunities for repeat orders as clients expand their production capacity. VA Tech Wabag reported strong operational and financial performance in Q2 FY27.
Va Tech Wabag Q2 FY27 Financial Breakdown and Medium-Term Guidance
Revenue grew by 19.9% year-on-year to ₹1,000.2 crore. Execution across international and domestic project sites drove growth.
EBITDA rose 20.0% to ₹144.6 crore, with margins at 14.5%.
Net Profit surged 23.3% to ₹104.6 crore.
Net Working Capital days improved to 101 days at the end of H1FY27, down from 104 days as of March 2026.
Consolidated net cash generated from operations for H1FY27 reached ₹225 crore, up from ₹206.7 crore in H1 FY26
Total consolidated cash and bank balances increased to ₹1,217.2 crore in H1FY27 from ₹1,059.2 crore at the end of FY26
Looking ahead, management targets a 15-20% revenue CAGR over the medium term. Operating EBITDA margins are targeted at 13% to 15%. The company aims to maintain an order book of at least 3 times annual revenue.
Va Tech Wabag Share Price
#2 Jash Engineering: Scaling Beyond Traditional Water Control Infrastructure
Jash Engineering is an India-based manufacturer of engineering equipment. The company designs and produces equipment for water control infrastructure, wastewater treatment plants, and industrial process applications.
Core Product Lines and Applications
Water Control Equipment: Jash manufactures penstocks, sluice gates, and water control gates used in municipal and industrial water management systems.
Screening and Process Equipment: It produces fine and coarse screening equipment, screening machinery, and specialised industrial process units.
Industrial Vessels: Jash builds surge protection vessels for water distribution systems and selectively produces pressure vessels for data centre cooling systems when spare capacity is available.
Decoding Jash’s ₹1,130 Crore Order Visibility and Export Dependency
As of November 1, 2026, Jash Engineering has a consolidated order book of ₹955 crore. This figure excludes inter-company orders to determine net external bookings. The order backlog leans heavily toward international markets, giving the company diversified global coverage.
International Markets: ₹625 crore (65% of the order book)
Domestic (India) Market: ₹330 crore (35% of the order book)
Beyond the confirmed order book of ₹955 crore, Jash tracks incoming contracts across two pipeline categories.
Negotiated Orders (Expected in November 2026): ₹46 crore
India: ₹38 crore
International: ₹8 crore
Orders Under Active Negotiation (Expected in Q3 FY27): ₹129 crore
India: ₹119 crore
International: ₹10 crore
Adding these near-term new orders to the confirmed orders brings total order visibility to ₹1,130 crore. However, since these orders are not yet firm, their actual realisation is crucial. The company is also expanding into new Asian markets like Vietnam, Thailand and Indonesia to scale up the order book.
Five Growth Catalysts: US Manufacturing Expansion and Data Center Integration
Near-term growth triggers include:-
New US Plant Construction (Houston, Texas): Jash is building a new US manufacturing facility for Rodney Hunt to expand local production. The company aims to commission the plant by late 2027 or early 2028. This local capacity will eliminate shipping delays, avoid import tariffs, and support long-term US annual sales targets of $50 million.
Revenue Capacity Scaling: The manufacturing plants in India, the US, and the UK can generate up to ₹1,200 crore in annual revenue with minor process adjustments. The new US plant will increase the group’s total manufacturing capacity to ₹1,500 crore.
In-House Integration of Process Equipment: In India, following the acquisition of Vestec India, the company is integrating equipment manufacturing in-house to improve gross margins and oversight. Integrating these technologies has broadened the company’s water treatment product range. It has even received initial orders for 18-20 process units.
UK Market Rebound (Waterfront Fluid Controls): Waterfront revenue grew to ₹23 crore in H1FY27, up from ₹22 crore in H1FY26. The unit posted a net profit of ₹80 lakh in the half-year, turning profitable after a ₹1.5 crore loss in H1FY26. Management holds a FY27 revenue projection of ₹60 crore for the UK entity.
Expansion into Data Centre Cooling: Jash is utilising its excess manufacturing capacity to produce pressure vessels for data centre liquid cooling systems. The company supplied 4 units in Q1FY27. It has already received an order for an additional 9 units in Q2. Jash aims to supply 20 to 30 vessels annually.
Q2FY27 Financial Reality Check: Revenue Surges Amidst Tariff Recoveries
Jash Engineering reported top-line and profit growth in Q2FY27.
Revenue from Operations: ₹192.51 crore in Q2FY27, up from ₹157.54 crore in Q2FY26. Project deliveries in India, the US, the UK, Hong Kong, Vietnam and Thailand drove growth across the municipal water control and wastewater treatment sectors.
EBITDA & Margin: ₹27.31 crore (up 22.5% YoY), maintaining a 14.2% margin.
Net profit grew by 32.5% to ₹14.5 crore, boosted by an exceptional item. Ex-exceptional item, net profit fell 8.6% to ₹10 crore.
In Q2 FY27, a ₹4.5 crore recovery in US tariffs reduced operating expenses and increased profit. A further refund of ₹5.9 crore is still pending.
The company’s gross debt was ₹77.1 crore in H1FY27, down from ₹83.4 crore in FY26.
Combined with cash, bank balances, and liquid investments totalling ₹123.4 crore, the balance sheet is net cash positive.
Net working capital improved to ₹303.5 crore in H1FY27, down from ₹315.6 crore at the end of FY26.
Looking ahead, Jash Engineering has set a total annual revenue target of ₹875 crore for the financial year 2027 (FY27). To reach the ₹875 crore full-year revenue target, order execution is expected to accelerate in Q3 and Q4. Management has set a medium-term EBITDA margin target of 21-23%, up from the previous average range of 18-20%.
Jash Engineering Share Price
Decoding the Valuation Premium: High Growth at a Steep Price
Both companies operate in the water infrastructure space, but their return ratios and valuations tell different stories. Va Tech Wabag generates a higher return on capital employed (ROCE) of 21.3% and return on equity (ROE) of 15.9%, compared with Jash Engineering’s ROCE of 17.7% and ROE of 16.0%.
This suggests Wabag has a slight edge in capital efficiency, while shareholder returns are broadly comparable. However, the valuation gap is relatively narrow.
Va Tech Wabag trades at 29.7 times earnings, above its five-year median P/E of 20.6x and the industry median of 20.4x. Jash Engineering trades at a higher P/E of 38.2x, above its five-year median of 35.1x and the industry median of 33.3x.
Overall, Va Tech Wabag and Jash Engineering offer two distinct ways to participate in the water infrastructure opportunity. Wabag has a larger order backlog of ₹20,207 crore, with 32% coming from recurring O&M contracts. Jash, meanwhile, is expanding its US manufacturing footprint and entering data centre cooling through pressure vessels.
You could keep these names on your watchlist to track execution.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. We used an alternative, widely used, and accepted source of information only when the data was unavailable.
This article shares interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he shares honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities, or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.
