VA Tech Wabag Shifts Focus to Cash Flow and Sustainable Growth

VA Tech Wabag (

), a leading water treatment company, is targeting 15–20% annual revenue growth over the next five years but has prioritized cash flow under its “Wriddhi” strategy. Chairman Rajeev Mittal emphasized that profits converted into cash are more important than top-line expansion, with the company generating significantly higher cash flows than reported profits in recent years. The firm is reducing working capital days by shifting from EPC contracts to EP and O&M models, leveraging its core engineering and technology strengths. With O&M already contributing 18% of revenue, the company aims for at least 20%, offering stable margins and consistent cash generation. Geographically, VA Tech Wabag is eyeing the Middle East and Africa as its next major growth engine, supported by long-term contracts backed by multilateral agencies like the World Bank and JICA. These projects offer better payment terms and resilience against geopolitical risks. By focusing on cash conversion, operational efficiency, and high-margin services, VA Tech Wabag is positioning itself for sustainable, value-driven growth.