VA Tech Wabag shares gain after it receives repeat contract from Saudi Water Authority

Shares of VA Tech Wabag Ltd. gained on Monday, December 29, after the company said it has won a letter of award for a repeat 'large' order from the Saudi Water Authority.

The engineering, procurement and construction (EPC) contract is for the for the advanced technology brackish water reserve osmosis (BWRO) plant with a capacity of 50 million liter per day at Aljouf in Saudi Arabia, the company said in an exchange filing.

VA Tech Wabag classifies international orders in the $30 million to $75 million range as "large".

VA Tech Wabag said it will design, supply, contract and commission the plant over 14 months. The facility will treat raw water supplied from bore well

fields which contain rare elements, requiring a robust pre-treatment using ceramic membrane technology followed by micron cartridge filtration and reverse osmosis, to ensure long-term reliability and sustainable water supply for the region, it said.

The company has received the letter of award, following which the contracting formalities will commence. The effective date for commencement of execution will be announced after the contract is signed.

"The award reflects Saudi Arabia's proactive adoption of next-generation ater treatment technologies and further reinforces VA Tech Wabag's leadership in advanced technology solutions such as BWRO, SWRO and recycle-and-reuse systems," Phani Sathish Kadiyala, the company's country manager and branch GM for Saudi Arabia, said.

Last week, the company was declared the preferred bidder for the Hadda ISTP project in Saudi Arabia.

Shares of VA Tech Wabag are trading 1% higher on Monday ₹1,289.8. The stock is down 23% so far in 2025.

Also Read: Coforge shares gain over 2% on Encora acquisition but analysts stay skeptical