Water is quietly becoming India’s next big infrastructure narrative. Pipes being installed today are as vital as the roads that once linked cities, and the treatment facilities going up in towns are as crucial as power plants were a few years ago.
According to a recent report by Share India Securities, India’s water and wastewater market is estimated to grow at 11.6% annually to reach USD 17.9 billion in FY29. With missions such as Jal Jeevan and AMRUT 2.0 of the government driving investments of almost Rs 1 trillion annually, keeping the tide of opportunity robust and continuous.
As urbanization gathers speed and industries come of age, effective water management is no longer a policy priority — it’s a business necessity. The firms constructing, treating, and taking care of this flow now stand to capitalize on India’s blue revolution.
For investors, this is not about utilities or public infrastructure. It’s about the underpinning of every contemporary economy — a resource that’s becoming scarcer, more expensive, and much more valuable. This is the time to consider the companies constructing the pipelines of India’s water future.
Each of the stocks chosen here represents a different pillar of that transformation — from treatment and recycling to pipelines and infrastructure delivery. They are unlike diversified conglomerates in that they derive a significant percentage of their income from water-related projects and are closely connected to continuing national agendas.
With solid order books, consistent margins, and increasing involvement in public–private partnerships, they are among the major gainers of India’s increasing investment in water infrastructure.
1 VA Tech Wabag: The global water tech leader
Va Tech Wabag is involved in the business of water treatment. Its main activities are design, supply, installation, construction and operational management of potable water, waste water treatment, industrial water treatment and desalination plants.
It has consolidated its position as a top water technology company with projects across India, the Middle East, Africa, and Asia. Its order book as on 30 June 2025 was above Rs 15,750 crore, backed by fresh additions and consistent project execution.
In India, the firm won a Rs 380 crore World Bank-funded project from the Bangalore Water Supply and Sewerage Board to develop an energy-efficient water reuse plant. The 400 MLD Perur desalination plant in Chennai, which is supported by JICA, has accomplished crucial marine works and is progressing toward advanced civil construction.
Internationally, Wabag won its biggest overseas order — a 300 MLD seawater desalination facility at Yanbu, Saudi Arabia — valued at approximately Rs 2,332 crore. Major jobs at Riyadh, Zambia, and Bangladesh also made progress as per plan.
Management indicated execution is on track with robust payment security and an ideal blend of EPC and O&M jobs.
Increasing input prices, environmental approvals, and international execution risks are still major concerns to watch out for.
In the past one year, VA Tech Wabag share price has tumbled 16.4%
VA Tech Wabag 1 Year Share Price Chart
2 Ion Exchange (India): The high-tech solutions specialist
Ion Exchange (India) is engaged in a wide range of solutions across the water cycle from pre-treatment to process water treatment, waste water treatment, recycle, zero liquid discharge, sewage treatment, packaged drinking water, sea water desalination etc.
Ion Exchange (India) continued to build its position in the water infrastructure sector even as large project slowdowns moderated the flow of new execution. The company continues to look at high-value industrial and municipal projects and is backed by a strong order book of Rs 26,640 crore (as on 30-06-2025) and over Rs 92,000 crore bid pipeline (as on 30-06-2025).
Performance on major contracts like the Sri Lanka water project has been better with recent payment, while the UP Jal Nigam project still continues to be plagued by slow fund flow and execution challenges. The company is also growing selectively in the global markets, going after EPC opportunities in the Middle East and other emerging markets where investments in water security are increasing.
Ion Exchange is consolidating its position in high-tech water equipment, especially ultra-pure water systems used for solar, semiconductor, and pharma industries. Increased input costs, project clearances, and sluggish government contracts continue to be near-term issues for the company’s infrastructure business. In the past one year, Ion Exchange (India) share price has tumbled 39.1%.
Ion Exchange (India) 1 Year Share Price Chart
3 Welspun Enterprises: The diversified infra player
Welspun Enterprises (WEL), formerly known as Welspun Projects, is a part of the Welspun Group. The Company operates in the infrastructure space with investments in oil & gas. In the infrastructure space, WEL is focused on the road and water sectors. While the Company’s main focus is on Hybrid Annuity Model (HAM) projects as a developer, it also takes up value accretive projects in the BOT-Toll and EPC space.
Welspun Enterprises is expanding its footprint in India’s water infrastructure space through an increasing portfolio of high-value urban and rural projects. The company has a consolidated water order book of Rs 2,805 crore under its subsidiary Welspun Michigan Engineers, backed by projects like the Dharavi wastewater treatment plant, the Bhandup water treatment plant, and the Uttar Pradesh Jal Jeevan Mission.
All key approvals for the Rs 2,000-crore Bhandup project have been in place, and full-scale construction will take off after the monsoons. The Dharavi project is on track with civil and structural activities likely to be finished in the second quarter. The Jal Jeevan Mission project in Uttar Pradesh is in advanced stages of completion and will provide water to nearly 2,500 villages.
Welspun is also pushing its Smart Ops programme—a joint venture aimed at reviving polluted urban water bodies—after the execution of projects in Guwahati and Varanasi. Management anticipates execution momentum to increase in the second half of FY26, although risks associated with clearances, monsoon-related delays, and commodity prices could impact timelines. In the past one year, Welspun Enterprises share price is down 4.2%
Welspun Enterprises 1 Year Share Price Chart
4 Enviro Infra Engineers: The high-growth ZLD expert
Established in 2009, Enviro Infra Engineers is engaged in the design, construction, operation, and maintenance of water and Waste-Water Treatment Plants (WWTPs) and water supply projects (WSSPs) for government agencies/entities
Enviro Infra Engineers Ltd consolidated its position in India’s water infrastructure space through new order wins and foray into high-tech treatment categories. The company won new orders of fresh water and wastewater amounting to Rs 1,178 crore during Q1 FY26, increasing its aggregate execution order book to Rs 2,051 crore on 21 ongoing projects.
One of the biggest highlights was the Rs 395 crore Maharashtra zero liquid discharge (ZLD) project, which utilizes state-of-the-art ultrafiltration, reverse osmosis, and mechanical vapor recompression technologies to facilitate near-total reuse of treated water. The company ventured into new geographies such as Maharashtra and Odisha, increasing tertiary treatment plants and long-term O&M contracts in its fold. Its O&M pipeline of Rs 946 crore provides income visibility for several years.
Enviro Infra plans to bid on desalination and reuse projects under AMRUT and Namami Gange by utilizing its expertise in complex effluent and tertiary treatment systems. However, reliance on government-sponsored funding and vulnerability to postponed clearances or payment cycles continue to be the key operating challenges, even with superior order visibility and growing demand for cutting-edge water treatment systems. In the past one year, Enviro Infra Engineers share price has rallied 16.4%
Enviro Infra Engineers 1 Year Share Price Chart
5 Indian Hume Pipe: The veteran pipeline engineer
Indian Hume Pipe was incorporated in 1926. The company is in the business of manufacturing, laying and joining of pipelines. The company has also been undertaking infrastructure development programmes by way of execution on turnkey basis the combined water supply projects. The company also manufactures and supplies concrete railway sleepers to Indian Railways.
Through a combination of urban and rural projects covering water supply, irrigation, and sewage, Indian Hume Pipe Company Ltd strengthened its standing in the nation’s water infrastructure sector. The company is still among the nation’s most veteran pipeline engineering companies, undertaking turnkey contracts involving the design, production, and construction of pipelines, pumping stations, treatment works, and storage reservoirs.
The latest order book features significant projects such as the Rs 357 crore Madurai Water Supply Scheme located in Tamil Nadu, which involves considerable civil and electro-mechanical works. As of May 2025, the company’s order book totaled Rs 4,002 crore, demonstrating a consistent order flow under government programs like Har Ghar Jal and other lift irrigation schemes.
Still, execution schedules are vulnerable to state agency fund-release delays and competition from other pipe makers like ductile iron and HDPE manufacturers. The firm also experiences margin compression on account of volatile input costs, especially steel and cement, but anticipates consistent demand for water supply and sewerage infrastructure to drive long-term expansion. In the past one year, Indian Hume Pipe Company share price has rallied 16.4%
Indian Hume Pipe Company 1 Year Share Price Chart
Valuations
Let’s now look at the valuations of these water infrastructure companies through the lens of the Enterprise Value to EBITDA (EV/EBITDA).
| Sr No | Company | EV/EBITDA | 10-year EV/EBITDA | ROCE |
| 1 | VA Tech Wabag | 16.7 | 9.2 | 19.7% |
| 2 | Ion Exchange (India) | 16.0 | 9.6 | 22.3% |
| 3 | Welspun Enterprises | 11.0 | 10.8 | 18.2% |
| 4 | Enviro Infra Engineers | 12.8 | 21.0 | 31.7% |
| 5 | Indian Hume Pipe Company | 10.2 | 10.8 | 11.9% |
The picture is not uniform. Ion Exchange (India) and VA Tech Wabag trade far higher than their 10-year norms, indicating a premium for technological breadth and execution quality.
Given that Welspun Enterprises is mostly within its historical range, values appear to be flat. Enviro Infra Engineers and Indian Hume Pipe, in contrast, trade below their long-term medians, implying normalization from previous highs or upside scope for rerating.
High returns are not necessarily commanding higher multiples. Enviro Infra Engineers demonstrates the highest ROCE (Return on Capital Employed) but is trading lower than its long-term multiple — a plain counter-example. This indicates that the market is also factoring in seasoning of execution, funding/cycle risk, project mix, and sustainability of margins, rather than just ROCE. Indian Hume Pipe’s lower ROCE is consistent with a conservative multiple.
Overall, the industry reflects cautious optimism instead of widespread euphoria. Essentially, this is a two-speed industry: established players enjoy premium multiples, with newer or policy-driven companies still waiting for rerating. For shareholders, the challenge lies in determining which of the laggards can turn solid project pipelines and enhancing cash flows into lasting earnings visibility.
Conclusion
India’s water narrative is no longer limited to shortage or conservation — it is today an investment thesis based on need and innovation. The size of the opportunity is enormous, but so are the challenges. Delays in execution, erratic input prices, and policy-connected funding risks continue to stress even the most efficient companies.
But the demand underlying it, fuelled by population growth, urbanisation at speed, and industrial reuse requirements, keeps building steadily. The industry is also maturing. The companies are progressing from the typical pipeline or sewer projects to high-tech initiatives such as desalination, zero liquid discharge, and smart water management. This indicates a slow transformation from volume-contracting to value-engineering.
For investors, timing and selection will be key. The market has already rewarded companies with clear balance sheets and proven execution, but the next leg of opportunity may lie with players improving project delivery and cash flow discipline. In a country where every drop is beginning to count, the ones building systems to save and recycle it could define the next decade of infrastructure growth.
Disclaimer:
Note: We have relied on data from http://www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Ekta Sonecha Desai has a passion for writing and a deep interest in the equity markets. Combined with an analytical approach, she likes to dig deep into the world of companies, studying their performance, and uncovering insights that bring value to her readers.
Disclosure: The writer and her dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
