India’s rising demand for clean water is boosting infrastructure firms. VA Tech Wabag recently crossed ₹20,000 crore in its order book for the first time. The company said, "Growth is on track, driven by efficient execution and new projects." Strong margins and new deals helped it deliver positive net cash.
Summary
India's growing demand for water treatment and wastewater management is creating opportunities for infrastructure companies. Here are three stocks to watch and the factors driving their growth.
Water infrastructure is emerging as an important investment theme in India, with rising demand for clean drinking water, sewage treatment, and wastewater recycling.
Government initiatives, urbanization, and industrial expansion are creating opportunities for companies involved in water management and infrastructure development. Several listed companies are also expanding their project portfolios and reporting revenue and order-book growth.
However, the pace at which these projects translate into actual earnings will depend on execution, margins and timely payments.
In this editorial, we look at three fast-growing water infrastructure stocks and examine what is driving their growth and future business prospects.
VA Tech Wabag
The company is a water technology company specializing in drinking water treatment, sewage treatment, desalination, and wastewater recycling. It executes projects for municipal bodies and industrial customers in India and overseas.
VA Tech Wabag continues to grow rapidly.
While the company has grown sales at a 10% CAGR over the last three years, net profits have grown at a solid 222.7%. The outlook is promising because of the large order book. Recently, it crossed ₹20,000 crore in order book for the first time ever.
The company says that growth is on track, driven by efficient execution and new projects. The company expects revenues to grow at 15-20% CAGR over the next few years, with a strong Ebitda margin of 13-15%.
In H1FY27, VA Tech Wabag secured two landmark "Mega" orders, a "Mega" SWRO project that marks its entry into Kuwait, and a "Mega" deal with Reliance Industries for one of the largest desalination plants in India at Jamnagar.
Together with its entry into the UAE through Ajman, expansion in Europe with Donauinsel Water Works, and key municipal orders from BWSSB and DJB, these wins showcase the trust its clients place in it for their most complex, technology-intensive projects.
In H1 FY27, the company reported strong margins and better working capital management that helped it deliver its 15th back-to-back quarter of positive net cash, which crossed ₹1,100 crore excluding HAM, another major milestone for WABAG.
The management says that rising water security needs and the push on treated water reuse and desalination both for municipal and industrial sectors, are strong tailwinds for the sector. They will stay selective, focusing on securing more "Large" and "Mega", technology-led projects.
Enviro Infra Engineers
Next on the list is the stock of Enviro Infra Engineers.
The company is engaged in designing, construction, operation, and maintenance of Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs). It also has a presence in the renewables space.
While the company has grown sales at a 57.3% CAGR over the last three years, net profits have grown at 50.4%.
The company has a large and diversified order book of approximately ₹6,778 crore across water infrastructure and renewable energy, providing healthy revenue visibility.
Q2FY27 reflected strong growth in the company's operations, supported by continued execution across its core water and wastewater infrastructure business and the increasing contribution from the renewable energy portfolio.
During the quarter, revenue grew by 60% year-on-year, while Ebitda increased 15.3%, reflecting the growing scale and diversification of its business.
The core Water and Wastewater segment contributes around 71% of consolidated revenue, underscoring its significance to the overall business.
The company is in the advanced stages of completing three STP projects, namely, the 60 MLD STP at Mathura, the 77 MLD STP at Yamuna Nagar, and the 50 MLD STP at Amritsar, all being delivered well ahead of time.
The management says the focus is on strengthening execution capabilities, expanding its presence across sustainable infrastructure segments and creating long-term value for stakeholders.
Concord Enviro Systems
The company is a top player in water and wastewater treatment, specializing in zero liquid discharge (ZLD) technology, with in-house expertise spanning design, R&D, manufacturing, installation, commissioning, operation & maintenance (O&M), and IoT-driven digital solutions.
While the company has grown sales at a 17.6% CAGR over the last three years, net profits have grown at 60.8%.
Moving ahead, Concord has taken initiatives to grow the business. In H1FY27, the company's H-Xtreme Heat Exchanger and the compressed biogas platform achieved their first order milestones during the period.
The company's dehumidification platform has also moved into action. The initiative is now operational, expanding the Company's addressable market across pharmaceuticals, food and beverages, batteries, solar manufacturing, and semiconductors.
As of 30 September 2026, the order book stands at ₹716.40 crore.
The company says that with rising water scarcity, tighter environmental compliance and increasing adoption of water recycling solutions, India is expected to remain its principal growth market over the coming years.
Conclusion
India's water infrastructure sector is attracting attention as rising urbanisation, industrial demand, and government investment drive the need for better water supply, sewage treatment, and wastewater management.
Companies operating in this space could benefit from large-scale projects under government initiatives, including the Jal Jeevan Mission and Namami Gange.
However, investors should not confuse the opportunity with guaranteed earnings growth. Order book expansion, project execution, working capital requirements, and debt levels will determine how much of this demand translates into profits.
Investors should also be cautious about high valuations, delayed payments, and intense competition before considering these stocks.
Happy investing.