Rs 19,400 Crore Order Book: Rekha Jhunjhunwala Portfolio Stock Receives Mega Order from Reliance Industries for Jamnagar Project in Gujarat

VA Tech Wabag’s growth strategy has increasingly focused on technology-led desalination, wastewater reuse and industrial water projects alongside its municipal business. The company has now secured a Mega domestic order from Reliance Industries Limited for a desalination and remineralisation project at Jamnagar, Gujarat.

Under Wabag’s classification, a Mega order carries an inflow value above Rs 1,000 crore. The contract covers the design, engineering, supply, installation, pre-commissioning, commissioning and performance guarantee test run of the facility, which will be executed in phases over 25 months.

The seawater reverse-osmosis desalination plant will initially have a capacity of 8,400 cubic metres per hour. It can be expanded to 12,600 cubic metres per hour, equivalent to 302 million litres a day. The project also includes a 3,000 cubic metres per hour remineralisation plant using a limestone process system.

The desalination facility will use lamella clarifiers, dissolved air flotation filters, ultra-filtration, chemical-dosing and backwash systems, followed by seawater reverse-osmosis and brackish-water reverse-osmosis systems. Product-water storage and brine-outfall pumping systems are also part of the scope. The remineralisation plant will include limestone filters, lime handling, carbon-dioxide storage and dosing facilities.

The order strengthens Wabag’s industrial-water portfolio at a time when desalination demand is being supported by water-security needs and water-intensive industrial activity. Its FY2025-26 consolidated revenue rose 19.7 per cent YoY to Rs 3,944.2 crore, while its Order Book stood at around Rs 19,400 crore after the first quarter of FY2026-27. A Mega order is therefore material in relation to the company’s annual revenue base, although revenue recognition will depend on progress over the project’s execution period.

Wabag said the award is not a related-party transaction and that its promoters and group entities have no interest in Reliance Industries. The company’s sales and marketing head, S. Natrajan, said the contract reflected Reliance’s confidence in Wabag’s technology and execution record in large-scale water infrastructure.

Va Tech Wabag Share Price Performance

At 9:25 am on October 27, 2026, VA Tech Wabag shares were trading at Rs 1,761.10, up 3.14 per cent from the previous close of Rs 1,707.45. The stock has gained 21.98 per cent over one year, while the BSE 500 has declined 9.01 per cent over the same period, indicating an outperformance of about 31 percentage points. The shares remain below their 52-week high of Rs 2,276.90.

Rekha Jhunjhunwala Portfolio Stock

Rekha Jhunjhunwala, wife of the late legendary investor Rakesh Jhunjhunwala, holds a significant stake in VA Tech WABAG Limited. She owns 50,00,000 equity shares, representing 8 per cent of the company’s total equity share capital, making her one of its prominent individual shareholders.

What This Means for Investors

The Reliance order adds a large domestic industrial project to Wabag’s already sizeable backlog and reinforces its position in desalination, where technical capability and project execution matter more than simple Construction capacity. The expandable plant design gives the project strategic relevance for a water-intensive industrial site. It also supports management’s stated ambition to grow through selective, technology-led contracts while retaining an asset-light operating model.

The financial benefit will accrue over the 25-month execution schedule rather than immediately. The main consideration is execution discipline, particularly cost control, milestone billing and cash collection in a project business where receivables and dues from construction contracts were elevated as of March 31, 2026. At 27.03 times trailing earnings, the valuation places importance on sustained backlog conversion, profitability and cash generation. The new order is supportive of earnings visibility, but its eventual contribution will depend on delivery quality and margin performance.

Disclaimer: The article is for informational purposes only and not investment advice.