Buy VA Tech Wabag; target of Rs 1626: Geojit Financial Services

Geojit Financial Services is bullish on VA Tech Wabag has recommended buy rating on the stock with a target price of Rs 1626 in its research report dated February 18, 2026.

Broker Research

February 18, 2026 / 15:03 IST

Buy

Geojit Financial Services research report on VA Tech Wabag

VA Tech Wabag (VATW) is a Chennai-based multinational company specialising in water technology. With its expertise in the turnkey execution and operation of water and wastewater treatment plants, the company primarily serves both municipal and industrial sectors, focusing on providing comprehensive solutions for water-related challenges. Q3FY26 revenue stood at Rs.961cr, up 18.5% YoY, supported by strong execution in the EPC municipal segment. Lower cost of sales supported a 227 bps YoY improvement in gross margins to 25%, driving gross profit to Rs.240cr, reflecting a 30.4% YoY growth. In Q3FY26, EBITDA stood at Rs.121.5cr, with a margin of 12.6%, aided by lower employee costs, though partially offset by an increase in other operating expenses. Depreciation rose 23.1% YoY, while finance costs fell 11.8% YoY to Rs.17.9cr. EBT reached Rs.102cr with an 89 bps margin expansion. Other income grew 20% YoY, supporting PBT of Rs.121.3cr. After accounting for Rs.4.7cr labour-code impact, adjusted PAT rose 36.8% YoY to Rs.96cr, with margins improving to 10% (up 133 bps).

Outlook

Hence, we value the stock at 18x FY28E EPS to arrive at a target price of ₹1,626 and maintain a BUY rating.

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