Shares of VA Tech Wabag soared 6.67% to ₹1,690 on the BSE during Friday’s intraday trading, driven by the announcement of a major design, build, and operate (DBO) contract worth €78 million (approximately ₹700 crore). The order, secured from the Lusaka Water Supply and Sanitation Company (LWSC) in Zambia, is funded by the European Investment Bank (EIB) and Germany’s Kreditanstalt für Wiederaufbau (KfW).
Breaking New Ground in Zambia
This contract marks VA Tech Wabag’s entry into Zambia, further solidifying its presence in Africa. The company has been a prominent player in the water sector, leveraging advanced technology to deliver sustainable water solutions globally.
Under the terms of the contract, VA Tech Wabag will manage the engineering, procurement, and construction (EPC) of two state-of-the-art wastewater treatment plants (WWTPs) located in Ngwerere and Chunga, Zambia. The project includes a 54 MLD (million litres per day) WWTP and a 19 MLD WWTP.
The EPC phase is expected to be completed within 36 months, followed by 24 months of operations and maintenance (O&M) to ensure optimal performance and long-term sustainability.
A Leader in Water Sustainability
With over a century of expertise in water technology, VA Tech Wabag is recognized as a pioneer in providing Total Water Solutions to municipal and industrial clients. The company has built more than 1,400 water and wastewater treatment plants worldwide over the past three decades.
VA Tech Wabag’s global team of 1,600 professionals operates in over 25 countries, delivering customized, cutting-edge water solutions that directly impact millions of lives daily. From design to long-term operational management, the company serves as a full life-cycle partner for water sustainability projects.
Stock Performance and Market Impact
VA Tech Wabag has been a standout performer on the stock market. Over the past six months, the stock has surged by 28%, significantly outperforming the BSE Sensex, which dipped by 0.43% during the same period. Over the past year, VA Tech Wabag shares have skyrocketed by 167%, while the Sensex saw a 9.5% decline.
The company’s strong financial performance is reflected in its market capitalization of ₹10,345.07 crore. With earnings per share (EPS) of ₹38.98, the stock trades at a price-to-earnings (P/E) ratio of 42.67 times.
Strategic Importance of the Zambia Project
This new contract reinforces VA Tech Wabag’s commitment to addressing water challenges in emerging markets. The partnership with LWSC not only strengthens the company’s footprint in Africa but also highlights its capabilities in delivering world-class water infrastructure.
By 9:49 AM on Friday, VA Tech Wabag shares were trading at ₹1,662.20 on the BSE, marking a 4.92% increase. In comparison, the BSE Sensex recorded a modest rise of 0.29% to 78,698.48 points, underscoring the stock’s strong momentum amidst a largely stable market.
VA Tech Wabag continues to position itself as a key player in the global water technology sector, combining innovative solutions with a focus on sustainability and efficiency.
