VA Tech Wabag Ltd is strengthening its global position as an asset-light, technology-led water company, with the Gulf Cooperation Council (GCC) emerging as a key growth engine amid rising demand for desalination, wastewater treatment, reuse and resource recovery.
The company’s strategy is focused on expanding beyond conventional water and wastewater treatment into desalination, reuse, resource recovery, Bio-CNG, digitalisation and advanced industrial water applications, VA Tech Wabag Group Chief Financial Officer Skandaprasad Seetharaman said during the company’s Q1 FY27 earnings conference call.
“Order book quality is as important as its size,” Seetharaman said, adding that WABAG continues to maintain discipline in order acquisition, with a focus on payment security, technology fit, contractual risks and returns.
The company said its Q1 performance remained aligned with its medium-term outlook, supported by profitable growth, capital efficiency and a net cash-positive balance sheet.
GCC emerges as key growth engine
Wabag strengthened its presence across the GCC, India and Europe during the quarter, securing orders in Kuwait and the UAE while adding repeat orders in Bengaluru and Delhi and a technologically advanced project in Europe.
The Middle East and Africa (MEA) region is increasingly becoming an important growth engine for Wabag, with water security concerns creating opportunities across desalination, wastewater treatment and water reuse.
GCC Head, Strategy and Business Growth, Rohan Mittal said the GCC remains one of Wabag’s most attractive markets globally, with water security a strategic priority.
Population growth, economic diversification, urbanisation and industrial expansion are driving sustained demand, while increasing emphasis on energy efficiency, sustainability, reuse and private-sector participation is creating opportunities across desalination, wastewater treatment, industrial water and operations and maintenance (O&M).
Despite recent geopolitical developments, Wabag has not seen any material impact on its projects, operations or underlying demand, Mittal said. The developments have, if anything, reinforced the strategic importance of water infrastructure and water security across the region.
Wabag has been present in the Middle East for more than four decades. The company is now seeking to leverage its established credentials to build a broader and more diversified presence across the GCC.
Kuwait entry strengthens desalination portfolio
A key development during the quarter was Wabag’s entry into Kuwait through a 60 million imperial gallons per day (MIGD) seawater reverse osmosis (SWRO) desalination plant awarded by the Ministry of Electricity, Water and Renewable Energy.
The project is Wabag s maiden project in Kuwait and is being executed in partnership with HEISCO, a Kuwaiti engineering and construction company.
The project provides Wabag with a marquee reference in Kuwait while expanding its addressable market in the GCC. It also strengthens the company’s credentials in large-scale desalination, an area where Wabag has significant global experience.
The O&M component of the project is also aligned with Wabag’s strategy of building recurring revenue and maintaining long-term, lifecycle relationships with customers.
The partnership with HEISCO combines Wabag’s water technology and engineering capabilities with local execution expertise, the company said.
India portfolio expands
India continues to offer significant opportunities for Wabag, particularly in municipal water and wastewater treatment.
New projects with the Bengaluru Water Supply and Sewerage Board (BWSSB) at Byramangala and Bellandur, along with the Mitraon project from the Delhi Jal Board (DJB), have strengthened the company’s municipal water and wastewater portfolio.
These projects reflect the growing focus on energy-efficient treatment, resource recovery and water reuse.
WABAG’s industrial portfolio is also progressing as planned, with projects under execution for major customers including Reliance Industries, GAIL, BPCL and CPCL.