VA Tech Wabag Loses ₹2,400 Crore Saudi Desalination Project After Contract Cancellation; Company Seeks Clarity

VA Tech Wabag Limited has suffered a setback after the Saudi Water Authority cancelled its tender for a desalination project worth approximately ₹2,400 crore. The water treatment company disclosed the development to the stock exchanges on 14 November 2026. The project involved a 300 million litres per day (MLD) seawater desalination plant at Yanbu, Saudi Arabia.

The company received the project award in July 2025. Then, it completed the necessary formalities, signed the contract and sent it to the customer for counter-signature and formal commencement.

However, the Saudi Water Authority later notified tender participants through Saudi Arabia’s Etimad procurement platform that it had cancelled the tender for internal reasons attributable to the customer.

On the National Stock Exchange (NSE), the VA Tech Wabag share price closed at ₹2,040.10 on 13 November 2026, down 1.95% from the previous close of ₹2,080.60. The stock opened at ₹2,065 and touched an intraday high of ₹2,083.20 and a low of ₹2,033. VA Tech Wabag shares have advanced over 55% so far in 2026.

What Is VA Tech Wabag Doing After Contract Cancellation?

The company is approaching the Saudi authority to understand the reasons behind the decision and assess its next course of action. The cancelled contract covered the design, engineering, supply, construction and commissioning of the Yanbu desalination facility. Its reported value was around $272 million, equivalent to 1.019 billion Saudi riyals (₹2,400 crore).

This is not the first cancellation involving a similar project. The Saudi Water Authority also cancelled a 300 MLD desalination tender in December 2024, for internal administrative procedures.

Can VA Tech Wabag Order Book Offset The Setback?

Despite the VA Tech Wabag Saudi order cancellation, VA Tech Wabag’s order book stood at ₹20,200 crore at the end of Q2 FY27. This represented around 4.7 times its trailing 12-month revenue.

The company reported Q2 FY27 revenue of about ₹1,000 crore and profit after tax (PAT) of ₹104 crore, with a margin of 14.4%. Its Chief Financial Officer (CFO) indicated that FY27 revenue growth could reach the higher end of the 15-20% guidance, with scope to exceed it if anticipated orders materialise.

The company also expects to maintain margins in the 13-15% range while focusing on profitable growth and cash generation.

Source

NSE

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