VA Tech Wabag Shares Soar 9% on Strong Q4 FY25 Results, Dividend Boost

VA Tech Wabag Ltd continued its strong upward momentum on May 22, 2025, emerging among the top gainers of the day. The stock climbed 7.22% to hit an intraday high of ₹1,538, at 10:30 AM on the NSE, up from its previous close of ₹1,409.20.

It opened sharply higher at ₹1,489 and maintained strong levels throughout the session, with a low of ₹1,470. The volume-weighted average price (VWAP) stood at ₹1,507.46, reflecting sustained buying interest.

Q4 FY25 Highlights: Solid Growth Across the Board

The water treatment solutions company posted a 37.4% year-on-year (YoY) jump in net profit to ₹99.5 crore in the fourth quarter. This was driven by a 23.8% rise in revenue, which stood at ₹1,156.2 crore.

The company also reported healthy operating metrics, with EBITDA growing 21.9% to ₹140.8 crore and stable operating margins of 12.2%.

The board has recommended a final dividend of ₹4 per equity share for FY25.

Strong Financial Position and Order Pipeline

VA Tech Wabag ended the fiscal year with a strong balance sheet, maintaining a gross cash position of ₹946.2 crore and net cash of ₹589 crore.

Excluding Hybrid Annuity Model (HAM) projects, net cash stood at ₹706 crore. The company marked its fifth consecutive year of being net cash positive.

The order inflow for FY25 reached ₹5,700 crore, pushing the total order book to ₹13,700 crore including framework contracts ensuring strong revenue visibility in the coming quarters.

Shares Volume Surge Adds Momentum

The rally was accompanied by a significant rise in trading volumes on the BSE, with over 95,000 shares changing hands, ubstantially higher than the two-week average of 20,000. The turnover for the day touched ₹14.29 crore, pushing the company’s market capitalisation to ₹9,353.75 crore.

Read More: BSE Share Price in Focus Ahead of 2:1 Bonus Issue Record Date Tomorrow, May 23.

Conclusion

VA Tech Wabag’s strong quarterly performance, healthy order book, and a dividend announcement have made the stock a market standout this week. With continued financial discipline and strong visibility into future revenues, investor sentiment remains upbeat. However, due to the stock’s high beta and elevated valuations, investors should keep an eye on volatility and broader market cues.

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