VA Tech Wabag shares jump 4%, hit fresh 52-week high on over ₹1,000 crore order win in Kuwait; details here

VA Tech Wabag shares rallied in the early trade on Friday, June 19, after the company announced it has secured the Design, Build, Operate (‘DBO’) contract for the Doha SWRO Desalination Plant with Recarbonation System - Stage II in Kuwait, from the Ministry of Electricity, Water & Renewable Energy (‘MEWRE’), Kuwait.

The stock gained as much as 4.18% to hit a fresh 52-week high of ₹1,898 on the NSE in the opening deals. Data show that the shares of the company have jumped around 14.5% over the past five sessions, and 35% over the past one month. YTD, the stock is up around 43%.

"This prestigious order marks WABAG’s maiden entry into Kuwait and further consolidates its leadership and expanding footprint across the GCC region. This project will be executed through an unincorporated Joint Venture (‘JV’) led by WABAG, in association with Heavy Engineering Industries & Shipbuilding Company K.S.C. (‘HEISCO’), as the JV partner," the company said in its press release.

Project details

The project entails the design, engineering, procurement, construction, and commissioning of a 60 MIGD (approximately 272 MLD) Seawater Reverse Osmosis (‘SWRO’) Desalination Plant featuring a state-of-the-art Recarbonation System, scheduled to be completed over a period of 36 months.

The contract includes a five-year Operation & Maintenance period, ensuring long-term reliability and operational excellence. The facility will employ advanced desalination technologies to deliver high-quality potable water, thereby addressing Kuwait’s rising water demand and reinforcing the nation’s water security.

Further underscoring its commitment to sustainability, the project incorporates Solar Photovoltaic (‘PV’) systems to partially meet the plant’s energy requirements, supporting Kuwait’s renewable energy ambitions and contributing to a lower carbon footprint.

The company said that "this landmark order further cements WABAG’s leadership in the desalination sector and deepens its strong foothold across the GCC region. It reaffirms WABAG’s capability to deliver large-scale, technologically advanced desalination solutions that contribute to sustainable water management and bolster long-term water security."

What the company official said

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."

Mittal added, "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."

Order classification

As per the company's order classification framework, domestic orders worth more than ₹1,000 crore and international orders exceeding $150 million are categorised as "Mega" projects.