Best Water Stocks in September 2025: Enviro Infra, Va Tech Wabag & More Based on 1-Yr Return

India’s water management and treatment sector continues to attract investor attention as the country faces mounting challenges of water scarcity, rapid urbanisation, and rising industrial demand. 

With the market expected to grow steadily in the coming years, listed companies in the space are emerging as key beneficiaries of infrastructure spending, smart city projects, and industrial compliance requirements.

Let’s take a look at some of the best water sector stocks based on 1-year return.

Top Water Sector Stocks in September 2025 – 1 Yr Return Basis

Note: The stocks listed above are ranked based on 1-year return as of August 25, 2025.

Overview of the Best 5 Water Stocks in September 2025

1. Enviro Infra Engineers Ltd

Enviro Infra Engineers delivered the strongest 1-year return in the sector at 28.17%. With a healthy ROE of 27.45% and ROCE of 25.25%, the company is showcasing operational efficiency and steady growth.

Its relatively low debt-to-equity ratio (0.24) also indicates strong financial discipline.

2. Va Tech Wabag Ltd

One of the most established names in the sector, Va Tech Wabag posted a solid 17.04% 1-year return. 

With a market cap of nearly ₹10,000 crore, the company maintains a strong balance sheet (debt-to-equity of 0.17) and continues to benefit from municipal and industrial water treatment projects across India and abroad.

3. Denta Water & Infra Solutions Ltd

Denta Water posted a 1-year return of 16.42%, backed by a debt-free balance sheet and stable profitability.

With ROE at 18.45%, the company is a mid-cap player with key protfolio in infrastructure driven growth.

4. Indian Hume Pipe Company Ltd

Despite a steep negative return of -31.43% over the past year, Indian Hume Pipe maintains exceptionally high return ratios (ROCE 50.53% and ROE 50.60%), driven by project efficiencies and asset utilisation. 

5. Urban Enviro Waste Management Ltd

Urban Enviro has struggled with a -33.91% return, mainly due to its higher debt-to-equity ratio of 1.38. However, strong return ratios (ROE 51.80% and ROCE 39.72%) suggest underlying operational strength.

Conclusion

While companies like Enviro Infra Engineers, Va Tech Wabag, and Denta Water are delivering positive investor returns with strong balance sheets, others such as Ion Exchange and VL Infraprojects face market pressure despite robust fundamentals. 

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.