Summary:
VA Tech WABAG shares climbed to a fresh 52-week high after the company secured a mega desalination project from Kuwait's Ministry of Electricity, Water & Renewable Energy. The order marks WABAG's entry into the Kuwait market and strengthens its presence in the GCC region. Investors reacted positively to the overseas contract, which adds long-term revenue visibility through construction and maintenance services.
The shares of VA Tech WABAG have rallied almost 4% on Friday, June 19, reaching a new 52-week high of ₹1,898 at the National Stock Exchange following the announcement of its securing a landmark overseas deal in Kuwait. The stock was quoting at around ₹1,880 in the morning session, appreciating by more than 3% amid weakness in the overall market.
VA Tech WABAG has received the Design, Build, Operate (DBO) contract for the Doha Seawater Reverse Osmosis (SWRO) Desalination Plant with Recarbonation System – Stage II from Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEWRE). The order received by VA Tech WABAG is classified as a ‘Mega’ order as per VA Tech WABAG’s own classification system since overseas orders above $150 million fall in the mega order segment while the domestic orders above ₹1,000 crore are considered as mega orders.
Maiden Entry into Kuwait
This project is a first for VA Tech WABAG in Kuwait, and it is another step to solidify their presence in the GCC region. This project will be undertaken in the form of an unincorporated joint venture where WABAG will be working in collaboration with HEISCO.
Project Scope and Execution Timeline
Project scope includes design, engineering, procurement, construction and start-up of 60 MIGD (approx. 272 MLD) sea water reverse osmosis desalination plant featuring a state-of-the art recarbonation system. The Engineering Procurement and Construction (EPC) phase is scheduled to take 36 months.
In addition to construction works, the contract also includes 5 years of operation and maintenance services. This will provide reliable operation of the plant in the long run. The plant will implement latest desalination technologies to generate high quality drinking water and help to cope with the increasing demands for water in Kuwait.
Focus on Sustainability
The use of solar photovoltaic (PV) technology is included in the project to partly provide for the plant’s power needs. This will be in line with the country’s renewable energy plans, contributing to reduced emissions.
Management Commentary
Commenting on this development, Mr. Rohan Mittal, Head – Strategy and Business Growth – GCC, said "The Doha SWRO II Project marks a significant milestone in WABAG’s growth journey in the GCC region and our maiden entry into Kuwait, a strategically important market. We are honoured to have been entrusted by the Ministry of Electricity, Water & Renewable Energy with the delivery of this critical project, which will play a vital role in strengthening Kuwait’s water security. This landmark win reinforces our growing leadership in the Middle East desalination market and underscores our commitment to enabling a more water-secure and sustainable future through advanced and energy-efficient desalination solutions."
VA Tech WABAG Stock Performance
The order win comes amid strong momentum in the stock. VA Tech WABAG shares have gained around 14.5% over the last five trading sessions, surged nearly 35% in the past month and advanced about 43% so far in 2026.
Financial Performance
Financial performance of the company has also been consistent. Consolidated net profit for Q4 FY26 was ₹128.30 crore, which is an increase of 28.6%, while revenues were ₹1,414.4 crore, which is a rise of 22.3%. The recent mega deal will further improve the prospects for growth of the company, as well as consolidate its position in the international market for desalination plants.
