5 Water Infra Stocks With Strong Order Book

#2 Welspun Enterprises Ltd

Welspun Enterprises Limited (WEL), the infrastructure arm of Welspun World, has undergone a strategic transformation to become a specialist in integrated water solutions.

The business model is characterized by an asset-light approach, focusing on high-value project management across the entire water value chain, including bulk water distribution, sewage treatment plants (STP), and water transmission.

WEL's revenue model is diversified across Hybrid Annuity Model (HAM), Build-Operate Transfer (BOT), and Engineering, Procurement, and Construction (EPC) contracts.

Growth Plans and Order Book Trend

WEL is scaling its water vertical, targeting Rs 300 bn opportunity pipeline in India's water sector.

Growth is driven by the execution of flagship projects like the Rs 19,894 m Dharavi-Ghatkopar Tunnel and the Bhandup Water Treatment Plant, which will manage a significant portion of Mumbai's freshwater supply.

The company is also expanding into wastewater recycling through its new initiative, Welspun SmartOps.

Latest Order Book (Rs mn)

Welspun Enterprises Financial Performance

For the FY25, companies consolidated revenue from operations growing 25% year-on-year (YoY) to Rs 35,841 m. Operating profit (EBITDA) rose 18% to Rs7,300 m, maintaining a healthy operating profit margin of 20.4%.

Net profit (PAT) reached Rs 3,538.3 m, an 11% increase over the prior year, reflecting good project execution.

In the latest 9M FY26 period, consolidated revenue was Rs 24,800 m, a 9% YoY decline. This dip was due to execution of shifts and extended monsoons, which delayed the commencement of major tunneling projects.

However, operating profit (EBITDA) for the nine months grew 10% to Rs 5,730 m, as the operating profit margin expanded to 23.1%.

Net profit for 9MFY26 reached Rs 2,790 m, representing a 12% YoY growth.

#3 VA Tech Wabag Limited

VA Tech Wabag is a leading Indian multinational specialising in the pure-play water technology sector.

Its business focuses on providing end-to-end solutions for drinking water treatment, wastewater management, and seawater desalination.

The revenue model is primarily built on two pillars: large-scale Engineering, Procurement, and Construction (EPC) projects and long-term Operation and Maintenance (O&M) contracts.

Following an asset-light strategy, the company avoids heavy ownership of physical assets, focusing instead on high-value engineering expertise and over 125 proprietary technologies.

Growth Plans and Order Book Trend

The company is expanding into fast-growing, water-intensive sectors such as green hydrogen, solar PV, and semiconductor manufacturing.

Its "Wriddhi" strategy focuses on leadership in the Middle East and Africa while pursuing high-tech projects in Europe and CIS regions.

The company targets long-term order book visibility of at least 3x of its annual revenue.

Latest Order Book (Rs mn)

VA Tech Wabag Financial Performance

On a consolidated basis in FY25, revenue from operations reached Rs 32,940 m, growing 15.3% YoY, while operating profit (EBITDA) rose 14.2% to 4,302 m with a 13.1% margin.

Net profit for FY25 stood at 2,953 m, up 20.2% YoY.

For 9M FY26, revenue was 25,298 m, an 18.3% YoY increase. Operating profit surged 19.9% to 3,470 m, improving the operating margin to 13.7%.

Net profit grew significantly by 23.7% YoY to 2,422 m. These gains were because of a strategic shift toward high-margin international projects and a rising contribution from the O&M segment.

Disciplined bidding, vigilant cost control, and a focus on the Engineering & Procurement (EP) model over full EPC have improved margins.

#4 Ion Exchange (India) Ltd

Ion Exchange (India) Ltd, founded in 1964, is a provider of water, wastewater treatment, and environmental solutions. The company operates a diversified business model catering to industrial, municipal, and residential sectors.

Its revenue primarily comes from three segments: Engineering, Chemicals, and Consumer Products. The Engineering division (61% of revenue) involves large-scale EPC (Engineering, Procurement, and Construction) projects, including desalination and zero-liquid discharge plants.

The Chemicals division (29%) provides a recurring revenue stream through the sale of ion exchange resins and specialty chemicals.

The Consumer Products segment (10%) delivers home water purification solutions under the brand ZeroB.

Growth Plans and Order Book Trend

Ion Exchange is focusing on high-tech "sunrise" sectors such as semiconductors, solar energy, and green hydrogen, which require high-purity water systems.

A big growth driver is the new Roha greenfield plant, which is ramping up resin production for exports.

Latest Order Book (Rs mn)

Ion Exchange (India) Financial Performance

In FY25, the consolidated revenue from operations reached Rs 27,371 m, a 17% YoY increase.

Operating profit (EBITDA) rose 8% to Rs 2,939 m, with an operating profit margin of 10.74%, while net profit grew 7% to Rs 2,083 m.

For 9M FY26, revenue grew 8% YoY to Rs 20,516 m. However, operating profit for the nine-month period fell 9% to Rs 1,902 m, with margins compressing to 9.27%.

Net profit for 9M FY26 declined to Rs 1,189 m. These changes were primarily due to muted execution in the UP Jal Nigam project caused by slow fund allocation and the deferral of high-value international dispatches to the fourth quarter.

Furthermore, profitability was affected by Rs 169 m provision for new labor codes and increased interest and depreciation costs from the Roha facility.

#5 EMS Ltd

EMS is a prominent multi-disciplinary engineering company that specialises in providing end-to-end turnkey solutions for water and wastewater infrastructure.

The core business involves the engineering, design, and construction of sewage treatment plants (STPs), water treatment plants (WTPs), and the laying of extensive pipeline networks for government authorities.

The company operates a B2G (Business-to-Government) revenue model, where they secure projects funded by central government programs like AMRUT and the Jal Jeevan Mission, as well as international agencies like the World Bank.

Water and sewerage projects are primary revenue drivers, accounting for approximately 70% to 80% of their total business.

Growth Plans and Order Book Trend

The company's growth strategy centers on a 25-30% annual revenue because of organic expansion and internal accruals, while remaining essentially debt-free.

They are aggressively targeting larger Hybrid Annuity Model (HAM) projects and expanding their geographical footprint into states like West Bengal and Madhya Pradesh.

Latest Order Book (Rs mn)

EMS Financial Performance

For the full year FY25, EMS reported consolidated revenue from operations of Rs 9,658.32 m, representing a healthy YoY growth of 21.75%.

Operating profit reached Rs 2,540 m with a margin of 26%, while net profit grew 20.38% YoY to Rs 1,837.84 m.

However, the 9M FY26 performance showed a temporary contraction, with consolidated revenue declining to Rs 6,120 m compared to Rs 6,840 m in 9M FY25.

Net profit for the nine-month period also dropped to Rs 850 m from Rs 1,380 m YoY.

This slowdown was primarily caused by heavy monsoon rains and natural disasters in Uttarakhand, which severely affected underground digging and pipeline laying.

Furthermore, nearly 50% of the current order book was in the pre-engineering and design stage.

Which Water Infrastructure Stock is the Best?

India's water infrastructure sector offers strong long-term visibility because of policy support and rising demand.

However, many companies in this space have relatively low promoter holding, which investors should evaluate carefully.

While strong order books indicate growth potential, it's important to assess fundamentals, execution risks, and align investments with your own risk appetite.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stocks when conducting due diligence before making any investment decision.

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