India is home to the world’s fifth-largest water and wastewater treatment market, valued at around $11 billion and expected to exceed $18 billion by 2026. Despite accounting for 18% of the global population, the country has access to only 4% of the world’s freshwater—making water scarcity a critical concern.
Water is a fundamental resource essential for life, agriculture, and industry. As demand continues to rise due to population growth, urbanization, and industrial activity, water management and infrastructure have become areas of increasing focus across sectors.
In this context Let’s take a look at some of the best water sector stocks in India in July 2025.
Name | Market Cap | PE Ratio | ↓5Y CAGR |
Va Tech Wabag Ltd | 9,216.00 | 31.21 | 65.36 |
Felix Industries Ltd | 225.43 | 27.39 | 64.52 |
Indian Hume Pipe Company Ltd | 2,113.33 | 3.79 | 18.97 |
Note: The stocks listed above are ranked based on 5-year CAGR as of June 24, 2025.
VA Tech Wabag Ltd. posted a strong Q4 FY25 performance, with net profit rising 37.4% YoY to ₹99.5 crore and revenue increasing by 23.8% to ₹1,156.2 crore. The company's EBITDA grew 21.9% to ₹140.8 crore, with stable operating margins at 12.2%.
Headquartered in Chennai, VA Tech Wabag is a leading water technology firm specializing in municipal and industrial water treatment. Operating in over 30 countries, it offers EPC and O&M services for water purification, sewage treatment, and desalination projects.
Key metrics:
ROE: 14.45%
ROCE: 19.14%
Felix Industries Ltd. reported a 49.85% sequential rise in revenue to ₹14.94 crore in Q4 FY25, but net profit and EBITDA declined, reflecting a mixed quarter. The results highlight growth in top-line performance despite profitability pressures.
Specialising in water and wastewater treatment, Felix Industries also offers ZLD, desalination, and effluent recycling. Its services extend to air pollution control and solid waste management, positioning it as a diverse environmental solutions provider.
Key metrics:
ROE: 12.19%
ROCE: 19.28%
Indian Hume Pipe Company reported a net profit of ₹558.05 crore—an exceptional rise driven largely by a one-time gain of ₹545.22 crore from the sale of land in Yelahanka, Bengaluru.
However, the company’s operational performance in Q4 FY25 reflected a modest decline, with total income dipping 2.96% year-on-year to ₹395.23 crore.
The company specialises in manufacturing and laying pipelines for water supply, irrigation, and sewerage projects, and continues to benefit from steady government contracts, particularly those focused on rural development.
Key metrics:
ROE: 10.18%
ROCE: 79.61%
Name | Market Cap | PE Ratio | 1Y Return | Net Profit Margin | Debt to Equity | ROCE | Return on Equity |
Ion Exchange (India) Ltd | 6,447.70 | 31.03 | 2.8 | 7.46 | 0.15 | 25.29 | 21.13 |
Enviro Infra Engineers Ltd | 3,711.23 | 21.05 | 2.11 | 16.24 | 0.8 | 70.1 | 51.95 |
Denta Water and Infra Solutions Ltd | 761.08 | 14.4 | -16.47 | 25.41 | 0.01 | 43.47 | 44.41 |
Urban Enviro Waste Management Ltd | 131.2 | 12.79 | -8.1 | 7.25 | 1.38 | 39.72 | 51.8 |
VL Infraprojects Ltd | 67.41 | 9.6 | -48.78 | 5.79 | 1.01 | 63.85 | 46.18 |
Note: The list above ranks water sector stocks based on their market capitalisation as of June 24, 2025, showcasing recently listed companies in the industry.
Name | Market Cap | PE Ratio | Net Profit Margin | Debt to Equity |
Indian Hume Pipe Company Ltd | 2,113.33 | 3.79 | 27.28 | 0.62 |
Denta Water and Infra Solutions Ltd | 761.08 | 14.4 | 25.41 | 0.01 |
Felix Industries Ltd | 225.43 | 27.39 | 19.44 | 0.04 |
Enviro Infra Engineers Ltd | 3,711.23 | 21.05 | 16.24 | 0.8 |
Va Tech Wabag Ltd | 9,216.00 | 31.21 | 8.84 | 0.16 |
Ion Exchange (India) Ltd | 6,447.70 | 31.03 | 7.46 | 0.15 |
Urban Enviro Waste Management Ltd | 131.2 | 12.79 | 7.25 | 1.38 |
VL Infraprojects Ltd | 67.41 | 9.6 | 5.79 | 1.01 |
Note: The list above ranks water sector related stocks based on their net profit margin, highlighting the profitability of each company as of June 24, 2025.
India’s water sector holds meaningful promise as demand for clean and efficient water solutions rises. Companies in this space are driving innovation while addressing essential needs. As always, informed investing backed by research and clarity of goals remains key. Always make any choice based on your risk appetite, time horizon, and long-term financial objectives.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 24, 2025, 2:57 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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