While the world is attracted to the shining blue glass of India’s solar fields, a far more potent and concentrated transformation is working its magic quietly in the background. Many believe that the road to India’s Net Zero 2070 goal looks like a story written entirely in renewable silicon.
However, if you do the math of a $10 trillion economy, the story that comes up is completely different. Solar and wind are undoubtedly the sprint, but what India needs is a marathon runner now. It requires a huge, unshakeable baseload of energy that doesn’t vanish when the sun sets or the wind dies down. That inevitable pillar is Nuclear energy.
But isn’t Nuclear a Government of India’s prerogative? Well, it was till recently…
The legislative catalyst: Breaking the state monopoly
The new SHANTI Bill the government passed recently turned the game on its head. It wasn’t just a policy update; but a Rs 20,000 cr invitation to the private sector to build the next generation of Small Modular Reactors (SMRs). By breaking the state’s historical monopoly on the atom, the government has opened a high-tech frontier for those who can build with microscopic precision.
So, while the headlines are focused on the big private power giants, there are two less known companies which have quietly spent decades building technical moats that are now being monetized by this legislative pivot. They are at the core and all set to ride India’s nuclear energy aspirations.
KSB Ltd: Cooling the heart of the reactor
Incorporated in 1960, KSB Ltd manufactures a range of standard Industrial end suction and high-pressure multistage pumps, submersible motor pumps and monoblock pumps and other value-added parts, for the agricultural, waste-water treatment, energy (nuclear and conventional power), and oil and gas sectors, as well as other industries.
With a market cap of Rs 12,250 cr, the company is the Indian arm of the German engineering titan KSB SE. The Indian identity is however forged in its deep integration with the Nuclear Power Corporation of India (NPCIL).
KSB is currently one of the only domestic players certified to manufacture Primary Coolant Pumps (PCPs) for India’s Indigenous Pressurized Heavy Water Reactors (PHWRs).
You see, in a nuclear environment, there is a need for components that must be capable of handling radioactive fluids under extreme pressure. Because failure is not an option. This circulatory system is what KSB makes.
Before the SHANTI Bill, KSB’s nuclear growth was tied to the slow, bureaucratic pace of government budgeting. Now, with the Bill permitting private companies to participate in plant operations and equipment manufacturing, KSB is no longer just a vendor to the state. It is the primary technology partner for any private entity entering the space.
Financial deep-dive: Margins and order books
Let us dive into the company financials to see how KSB has been doing in the last few years.
The sales of the company have grown at a compound rate of 14% from Rs 1,208 cr in FY20 to Rs 2,533 cr in FY25, and for H1FY26, the sales logged have been Rs 1,317 cr.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was Rs 169 cr in FY20 and has grown at a compound rate of 15% to the FY25 figure of Rs 338 cr. And for H1FY26, the EBITDA logged by the company is Rs 176 cr.
Net Profits logged a compound growth of 22% from Rs 94 cr in FY20 to Rs 247 cr in FY25. For H1FY26, the company has recorded profits of Rs 138 cr.
The share price of KSB Ltd was around Rs 131 in February 2021 and as on 2nd February 2026 it was Rs 704. This is a 437% jump in about 5 years. Rs 1 lakh invested in the stock 5 years ago would have been close to Rs 5.4 lakhs today.
However, the price has seen about a 15% correction in the last 6 months and is now trading at a discount of 34% from its all-time high of Rs 1,060.
The stock trades at a premium P/E of 47x while the industry median is 36x, which means that buyers are willing to pay a premium to own a piece of the company.
At the end of September when the company files the H1FY26 figures, the company’s order book stood at Rs 2,639 cr, with Rs 1,314 cr orders on hand only from the nuclear sector.
In the November 2025 Investor presentation, Managing Director Rajeev Jain said that although they are facing delays when it comes to nuclear orders, once the first pump qualification test is completed, the execution will be faster, and the company will see continuous smooth progress on all projects.
He also said that in terms of the energy sector, the company is a leader and when it comes to nuclear, they are in the top 3. He said they are aiming for a market share of upto 15% in pumps.
VA Tech Wabag: The heavy water gatekeepers
Incorporated in 1995 as Balcke Durr Cooling Towers Limited, the company was renamed to Balcke Durr and Wabag Technologies Limited and further to VA Tech Wabag Limited in 1999.
With a market cap of Rs 6,629 cr, the company is engaged in the business of water treatment field. Its principal activities include design, supply, installation, construction and operational management of drinking water, waste water treatment, industrial water treatment and desalination plants.
The big question is, how does a water treatment company fit into the larger scheme of India’s nuclear aspirations?
In a nuclear reactor, there are a couple of technologies used for managing the massive thermal and chemical discharge. Top of the list are “Zero Liquid Discharge” (ZLD) and “Reverse Osmosis” (RO) technologies, both an area where VA Tech Wabag demonstrates dominance.
Under the SHANTI Bill, the mandate for Civil Liability and Safety Standards has been tightened, that will make private operators gravitate toward companies like Wabag, which has 100+ patents and proven track record in executing complex turnkey EPC projects.
No wonder the company has recently won a Rs 600 cr water treatment package for BPCL’s Bina Refinery, which has commissioned one of India’s largest Green Hydrogen plants (5 MW).
The super-investor vote of confidence
The stock also has a good backing from one of the most followed super investors of India, Rekha Jhunjhunwala, who holds a stake in the company at least since September 2020 (per trendlyne). Currently she holds an 8% stake in the company worth Rs 532 cr.
Looking at the financials of the company, the sales have grown at a compound rate of 5% from Rs 2,557 cr in FY20 to Rs 3,294 cr in FY25, and for H1FY26, the sales have been Rs 1,568 cr.
EBITDA grew from Rs 217 cr in FY20 to Rs 422 cr in FY25, logging a compound growth of 14% and for H1FY26, the EBITDA logged by the company is Rs 185 cr.
Net Profits saw a huge drop in FY23, but the company has since then staged what could be called a turnaround, logging 26% compound growth in the last 5 years. And for H1FY26, the company has logged Rs 151 cr in profits.
| FY | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
| Profit/Rs Cr | 84 | 101 | 132 | 11 | 250 | 295 |
The share price of VA Tech Wabag Ltd was around Rs 200 in February 2021 and as on 2nd February 2026 it was Rs 1,064, which is a 432% jump in 5 years. Rs 1 lakh invested in the stock in 2021 would have turned close to Rs 5.4 lakhs today.
The stock price has seen a sharp drop of 30% in the last 6 months from Rs 1,510 to Rs 1,064 and now trading at a discount of 45% from its all-time high of Rs 1,944.
Looking at the valuations, the company’s share is trading at a PE of 21x which is closer to the current industry median of 19x.
The company has an order book of over Rs 16,000 cr at the end of September 2025. In January 2026, the company received the Rs 600 cr order from BPCL with a 22-month execution window.
This order and revenue visibility is possibly what drives the company’s high valuation than those of its peers.
As per the November 2025 earnings call, the management has doubled down on its medium-term outlook, projecting a robust revenue growth of 15-20% (CAGR) over the next 3-5 years. With a target to maintain an order book three times its annual revenue and have a preferred bidder status on projects exceeding Rs 3,000 cr.
Vendors to strategic partners – The nuclear leap
As India pivots towards a strong nuclear future, the traditional lines between government agencies and private vendors seem to be blurring. The shift from massive, decade-long mega-projects to modular, industrial-scale SMRs creates a predictable and recurring revenue stream for those already inside the high-precision supply chain.
For companies like KSB and Wabag, the next few years will likely be defined by their ability to scale their moats from being niche technical suppliers to becoming the backbone of India’s private nuclear infrastructure.
Execution risks and the path to 2070
However, the road ahead isn’t without its hurdles, as the long lead times for reactor qualifications and the complexity of nuclear safety standards still pose a significant execution risk. Investors are clearly paying a premium for this future, but the real test will be whether these companies can convert their massive pipelines into consistent quarterly earnings.
For now, the numbers suggest a story of quiet preparation, waiting for the moment when India’s nuclear aspirations transition from parliamentary bills to active reactor cores.
Note: We have relied on data from www.Screener.in and www.trendlyne.com 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.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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