Shares of VA Tech Wabag Ltd. rallied up to 9% on Friday after the Chennai-based desalination and water treatment solutions company received an order worth ₹2,700 crore from Saudi Water Authority for Desalination Plant.

The project is scheduled to be completed within a 30- month period.

“Wabag’s track record and technologically superior proposal were critical in winning this order towards Engineering Procurement, Construction and Commissioning (EPCC) of a 300 million litre per day (MLD) mega Sea Water Reverse Osmosis (SWRO) Desalination Plant in Yanbu, Kingdom of Saudi Arabia (KSA),” the company said in a filing.

The EPCC contract includes the scope of design, engineering, supply, construction and commissioning of the 300 MLD Mega Desalination Plant, which will be developed on a greenfield site located in the west coast of KSA, south of the Red Sea-facing city Yanbu al-Bahr.

The plant will be built with the state-of-the-art desalination technologies, designed for superior energy efficiency and will produce stellar quality of water complying with the environmental regulations of the KSA.

Wabag is present in the KSA, building and operating water and waste-water treatment plants, for over four decades.

“We are extremely honoured and proud to secure this mega order from prestigious customer SWA, which will contribute to the ambitious Saudi Vision 2030. This mega order is a testament to our expertise and commitment to delivering high-quality, sustainable water solutions worldwide. This win reinforces our position in the desalination sector and we are confident that Wabag’s Global Leadership in Desalination will grow further with this win,” said Rohan Mittal, Head – Strategy and Business Growth – GCC.

In a recent interaction with CNBC-TV18, the company’s Chief Financial Officer Skandaprasad Seetharaman expressed confidence in growing the order book through this financial year. He expects to see the company’s order book to reach between ₹16,000-17,000 crore by the end of the year.

He highlighted VA Tech Wabag’s status as the preferred bidder in orders worth ₹6,000 crore driven by the Middle East, Africa and India region, emphasising that international projects generally offer better margins, though these can vary depending on the specific project.

Seetharaman also mentioned that he is confident of achieving the medium-term revenue growth guidance of 15-20%, noting that growth tends to pick up in the second half of the year compared to the first.

Shares of VA Tech Wabag Ltd. are currently trading 5.21% higher at ₹1,355. The company’s current market capitalisation stands at ₹8,427 crore.