The Jal Jeevan Mission programme was launched in 2019 by the Government of India under the Ministry of Jal Shakti to ensure “Har Ghar Jal” (tap water in every home) in rural areas. At the time of launch, only about 17% of rural households had tap water connections, and most villages depended on wells, hand pumps, or tanker supply.
The mission focuses on building village-level water infrastructure, including pipelines, treatment plants, storage tanks, and measures to sustain sources. Since its launch, the programme has expanded access to rural water. By 15 December 2025, the penetration increased to 81% of rural homes.
However, over the last 1.5 years, the water sector has faced significant headwinds, primarily because the scheme has underperformed due to the slow release of funds. This slowdown was reflected in the government budget, with allocation revised down to ₹17,000 crore in FY26 (from an estimate of ₹67,000 crore).
The ₹8.7 Lakh Crore Jal Jeevan Mission Project
The budget was increased to ₹67,670 crores for FY27, indicating a positive intent. Not only that, but in March 2026, the Union Cabinet also extended the Jal Jeevan Mission until December 2028, with a revised total outlay of about ₹8.7 lakh crore to complete the remaining rural household tap connections and improve water service delivery.
This article examines three water stocks expected to benefit from this move…
#1 EMS: The Water Engineering Gem Bidding for ₹4,000 Crore in Tenders
EMS is an infrastructure development company. It operates as a sewerage solutions provider and works on water supply systems, water and waste treatment plants, power transmission and distribution, as well as road and related works. Thus, the increased outlay under the ‘Jal Jeevan Mission’ is a positive sign for this company.
From ₹100 Cr to ₹930 Cr: Decoding the 10-Year Revenue Surge
Over the last decade, EMS has successfully scaled its operations, growing from a modest initial revenue of about ₹100 crore to roughly ₹930 crores in the previous financial year. In fact, 70% to 80% of the company’s total revenue is generated from the water sector.
The ₹2,200 Crore Backlog: Why EMS Has 2 Years of Revenue Guaranteed
As of December 2025, EMS has an unexecuted order book of approximately ₹2,200 crores. This provides revenue visibility of around two years. In addition, EMS is aggressively bidding for new projects, mainly targeting Delhi Jal Board and AMRUT-2.0 tenders across various states.
The current bidding pipeline stands at about ₹4,000 crore. EMS aims to increase its historical average winning ratio from 10-15% to 20%. Management expects to secure additional orders worth ₹1,000 crore over the next 3-4 months, taking the total order book to about ₹3,000 crore by Q1FY27.
Beyond Q2 Rainfall: The Strategy to Rebound from 19.9% Margins
From a financial perspective, revenue fell 10.5% year-on-year to ₹612 crore in 9MFY26. Operating profit fell 35.8% to ₹122 crore, while margins declined 790 basis points to 19.9%. Net Profit was 38.4% lower at ₹85 crore.
High rainfall and natural disasters during Q2 in Uttarakhand, along with high upfront costs for new projects, contributed to poor performance. Higher raw material costs, ballooning interest costs, and other expenses also compressed the company’s margin.
EMS Share Price Surged 20% Post Policy Announcement
#2 Enviro Infra: ₹3,000 Crore Revenue Runway
Enviro Infra specialises in the design, construction, operation, and maintenance of water and wastewater treatment facilities. It provides end-to-end lifecycle solutions across several areas, including sewage treatment, water supply treatment plants, and renewable energy.
Securing Cash Flow from 1,000-Village Water Networks
They serve major government and public entities, including the National Mission for Clean Ganga, various Jal Nigams, municipalities, public works departments, and industrial clients. It is currently implementing Jal Jeevan Mission projects exclusively in Madhya Pradesh. Enviro’s work involves establishing water connectivity for about 1,000 villages.
Trial and Testing: How ₹20 Crore Monthly Accruals Stabilize the Balance Sheet
The company is currently in the phase of conducting trials, testing, and making test connections functional across these villages. This activity generates a steady monthly revenue accrual of around ₹15-20 crore. Of the five JJM projects, it expects to fully commission one by June.
The broader testing and commissioning process is expected to continue over the next 6-8 months. Post this, the projects will transition into their Operation and Maintenance phases. Unlike the industry, Enviro is not facing receivables challenges as MP projects are supported by state government funding.
However, Enviro currently has no intention of bidding for new Jal Jeevan Mission projects unless the scheme stabilizes at 100%. It believes that most of the bidding for the scheme is already complete nationwide. With the new allocation, Enviro is expected to be a key beneficiary of this scheme.
Meanwhile, Enviro is shifting focus toward urban water and wastewater initiatives, particularly the AMRUT scheme, due to a robust project pipeline and healthy fund allocation.
Outperforming the Peer Group: How Enviro Hit 27.4% Operating Margins
From a financial perspective, revenue increased 7.9% year-on-year to ₹718.3 crore in 9MFY26. Operating profit rose 22.4% to ₹197 crore, while margins improved 320 basis points to 27.4%. Net Profit was 30% higher at ₹134.1 crore. The order book stood at ₹3,093 crore, providing revenue visibility of approximately three years.
The AMRUT Pivot: Why Enviro is Shifting Focus to ₹26,000 Crore Urban Projects
Enviro aims to secure new orders worth ₹2,500 crore in the water and wastewater sector during FY27, of which ₹1,500 crore orders have already been received. The bid pipeline is also strong at ₹5,000 crore. Furthermore, the company anticipates additional opportunities worth ₹26,000 crore under the government’s AMRUT 2.0 scheme.
Enviro Share Price Surged over 15% on 11 March, 2026
#3 Denta Water: The Karnataka Leader with a 75% Tender Success Rate
Denta Water is a civil engineering and infrastructure company. It provides end-to-end “Concept to Commissioning” solutions and partners extensively with government projects to strengthen India’s water security. It has completed 40 water projects worth ₹224 crore as of January 2026.
The majority of its operations are concentrated in the water sector, in collaboration with government schemes such as the Jal Jeevan Mission and AMRUT. In addition, it also selectively undertakes high-potential infrastructure projects in the roads, railways, and irrigation segments.
Concept to Commissioning: Upgrading India’s Traditional Tube Well Networks
Through its work on the Jal Jeevan Mission, Denta is upgrading traditional water delivery methods. For instance, by transforming conventional tube wells into modern networks that supply water to multiple villages. To achieve this, it is laying new pipelines and enhancing water purification capacities.
Denta currently has 26 ongoing projects, with an order book of ₹838 crore, providing revenue visibility for 2-3 years. Most of its projects are located in the state of Karnataka. Denta maintains an impressive tender-winning success rate of around 75%. The company is aggressively bidding for projects with good margins, ranging in size from ₹100 crore to ₹300 crore.
Beyond Karnataka: Why Denta is Moving into High-Growth Markets in MP and UP
Moving forward, the company aims to sustain its growth through geographical expansion. While its focus currently remains primarily on Karnataka, it is also planning to expand into other states, including Gujarat, Madhya Pradesh, Maharashtra, and Uttar Pradesh.
The 30% Revenue Jump: What’s Driving Denta Water’s Aggressive FY27 Guidance?
With a strong order book, Denta anticipates a 30% increase in revenue for FY27. Over the next 2-3 years, the company aims to maintain a steady 15% year-over-year growth rate, driven by the rising demand for improved water delivery mechanisms and 24/7 water supply solutions across India.
From a financial perspective, revenue increased 31% year-on-year to ₹195 crore in 9MFY26. Operating profit rose 34% to ₹70.9 crore, while margins improved 91 basis points to 36.4%. Net Profit was 32% higher at ₹51.7 crore. The growth was driven by accelerated project execution.
Denta Water Share Price Surged 14%
Valuation Check: Are These Stocks Trading at a ‘Jal Jeevan’ Discount?
Return ratios such as Return on Capital Employed (ROCE) and Return on Equity (ROE) for all three companies are robust, indicating a focus on higher-margin projects and strong execution. Valuation-wise, all three companies are trading at a discount to industry multiples following a sharp correction over the last year. Due to their limited trading history, we have not taken historical multiples.
| Peer Comparison (X) | ||||
| Company | P/E | Industry P/E | ROCE (%) | ROE (%) |
| EMS | 12.7 | 20.2 | 26.9 | 20.7 |
| Enviro | 13.9 | 17.1 | 31.7 | 27.4 |
| Denta | 10.3 | 17.1 | 25.2 | 18.4 |
| source: screener.in | ||||
The extension of the Jal Jeevan Mission (JJM 2.0) and higher allocation signal a renewed policy push toward rural water infrastructure. With a revised outlay of about ₹8.7 lakh crore and the scheme extended until December 2028, the government seems committed to completing the remaining household tap connections while improving supply reliability.
For companies involved in water supply systems (EMS, Enviro, and Denta Water), this renewed spending cycle could translate into stronger order inflows over the coming years. The up to 20% move on 11 March 2026 clearly reflects investors’ optimism.
However, beyond budgetary outlay, order awarding and execution matter more, given the reliance on the government for orders. Meanwhile, add them to your watchlist and stay tuned.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternative, widely accepted, and widely used 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 educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, their employees (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 the 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.