VA Tech Wabag (VATW), is a Chennai-based multinational company specialising in water technology. With its expertise in the turnkey execution and operation of water and wastewater treatment plants, the company primarily serves both municipal and industrial sectors. Q3FY25 revenue stood at Rs.811cr., registering 15.1% YoY growth driven by EPC municipal/O&M Municipal/O &M industrial segments. Strong order intake of Rs.2,781.3cr. in this quarter with notable inflow in O&M industrial segment. Revenue visibility remains strong with the current orderbook at £13,103cr. ( excluding framework contracts) , implying 4.6XTTM revenue. However, higher cost of sales impacted margins which came in lower than expectations. Gross/EBITDA margins registered 202/166bps contraction while PAT registered 23bps contraction, as margin contraction was partially offset by higher other income. Therefore, we value the stock at 22.5XFY27EPS of £69.8 to set a target price of £1,571 and upgrade to ACCUMULATE rating.