Vishvaraj Environment IPO

Vishvaraj Environment Limited IPO Strengths

Leading Developer and Industry Pioneer

Vishvaraj Environment Limited is a leading developer in water utility and wastewater management, strategically focused on the profitable reuse of treated sewage water for industrial use, a market with significant tailwinds. The company has a substantial Order Book of ₹160,113.44 million and a large operational and under-construction portfolio, including India’s first large-scale sewage water reuse Public-Private Partnership (PPP) project.

Asset Ownership with Predictable Cash Flows

The company adopts an asset ownership model with a focus on securing long-term concessions (up to 33 years) under PPP and Hybrid Annuity Model (HAM) frameworks. This strategy, combined with O&M service contracts, ensures predictable, annuity-like cash flows and long-term financial stability. It minimizes counter-party risk by primarily engaging with strong urban local, state, and central government entities.

Integrated End-to-End Execution Capabilities

Vishvaraj Environment possesses demonstrated end-to-end execution capabilities, managing projects from financial closure and design through in-house EPC and O&M. This integrated approach allows control over quality, timelines, and costs, enabling the company to retain project margins. They employ a technology-agnostic approach, utilizing advanced treatments like Ultrafiltration and Reverse Osmosis for complex wastewater reuse.

Substantial and Diversified Order Book

The firm maintains a substantial and well-diversified Order Book of ₹160,113.44 million, spread across multiple business models and project types, including wastewater reuse, water supply, and renewables. This large, high-value backlog provides a strong revenue visibility (9.10x revenue from operations as of March 31, 2025) and positions the company effectively to capitalize on the growing demand for water infrastructure.

Consistent Operational and Financial Performance

Vishvaraj Environment has a consistent track record of operational and financial performance, driven by focused growth, strategic bidding, and efficient project execution. The company maintains a strong financial position characterized by significant total equity and favorable credit ratings (CRISIL A/Stable for long-term borrowings), complemented by initiatives like using surety bonds to optimize capital structure and improve working capital.

More About Vishvaraj Environment Limited

Vishvaraj Environment Limited (VEL) stands as a leading developer of water-utility and wastewater-management projects in India, with a sharp focus on recycling treated sewage water for industrial use. According to external reports, as of 31 March 2025, VEL held an order book of ₹ 160,113.44 million and managed assets (AUM) worth ₹ 66,779.00 million. The company’s core services span the entire water cycle value chain: constructing and operating Water Treatment Plants (WTPs), Sewage Treatment Plants (STPs), industrial water-reuse projects and water-distribution networks.

Business Model & Operational Strength

VEL pursues long-term concession agreements and delivers solutions via multiple models including Public-Private Partnerships (PPP), Hybrid Annuity Model (HAM), Engineering, Procurement & Construction (EPC) and Operations & Maintenance (O&M) services. It currently supplies 240 MLD of treated sewage water through two PPP projects and has another 300 MLD under development. The company also features prominently on the global stage, ranked 24th among the world’s top 50 private water operators (by number of people served) and placed 4th among Indian firms in that listing. Furthermore, VEL achieved a revenue-from-operations CAGR of 62.02% from FY2023 to FY2025, positioning it second among its peers in growth terms.

Nationwide & Strategic Project Presence

With operations and under-construction projects across 30 cities in India, VEL works on marquee programmes. Under the National Mission for Clean Ganga, it is executing 13 STPs (177.60 MLD) in Agra, five STPs (192.00 MLD) in Dhanbad and a 35 MLD STP in Maheshtala, Kolkata. It also supplies fresh water to 1,805 villages through over 7,000 km of pipelines under the Jal Jeevan Mission across Uttar Pradesh, Maharashtra and Karnataka. In addition, VEL is undertaking a 300 MLD wastewater-reuse project using ultrafiltration and reverse-osmosis for MAHAGENCO in Maharashtra and a massive irrigation network covering 20,887 hectares of culturable command area (CCA).

Innovation, Track-Record & Renewable Expansion

VEL boasts a proven execution capability: it developed India’s first full-city 24×7 water-supply PPP project in Nagpur in 2011 and followed with India’s first large-scale sewage-water-reuse PPP project (200 MLD) supplying treated effluent to thermal power plants, thus freeing up 190 MLD of fresh water for the city. More recently (June 2025) it won a 486 MLD STP project in Nashik under HAM to ensure a cleaner Godavari River ahead of the 2027 Kumbh Mela. In FY2025 the company also entered the solar-power domain, establishing 201 MW of solar projects across six districts in Maharashtra under the PM-KUSUM scheme.

Strategic Position & Outlook

By operating across EPC, PPP, HAM and O&M, and branching into renewables, VEL has built a diversified revenue model and mitigated single-segment risk. The company’s alignment with national water-security imperatives, its execution expertise and strong order book provide a solid base for growth. With India facing acute water-stress—holding only 4% of the world’s freshwater resources while accounting for 18% of the global population—the need for infrastructure like VEL’s is urgent and increasing. Thus, Vishvaraj Environment is well-positioned to capitalise on the expanding water-and-wastewater market in India, driven by government initiatives such as Har Ghar Jal, AMRUT 2.0 and Namami Gange

Industry Outlook

India’s water and wastewater treatment industry is on a strong growth trajectory, supported by regulatory push, urbanisation, industrialisation and rising scarcity of freshwater. The sector offers robust potential both for water-treatment systems (such as WTPs, STPs, water-distribution and reuse infrastructure) and for wastewater-recycling/re-use solutions (especially industrial reuse, membrane technologies, zero‐liquid‐discharge etc.).

Growth Prospects & Key Figures

• The Indian wastewater-treatment market was valued at USD 9.64 billion in 2024 and is projected to reach USD 18.63 billion by 2033, a CAGR of about 7.6% for 2025-2033.

• The broader Indian water-treatment system market generated revenue of around USD 2,980 million in 2024, and is expected to reach roughly USD 6,905.8 million by 2033, reflecting a CAGR of about 10%.

• For recycling & reuse of treated water in India, the market is expected to grow at a CAGR of about 10.6% between 2025-2030, with industrial‐end-use as the largest driver.

• The industrial water & wastewater infrastructure segment specifically is forecast to expand from USD 2.87 billion in 2024 to approximately USD 4.65 billion by 2030, at a CAGR of ~8.3%.

Growth Drivers

• Government Initiatives: Programmes like Jal Jeevan Mission, AMRUT 2.0, Namami Gange and funding for sewage & reuse create large project pipelines.

• Water Scarcity & Stress: India has only ~4% of world’s freshwater but ~18% of world’s population, making water-treatment, reuse and distribution critical.

• Industrial & Urban Demand: Rapid urbanisation and manufacturing growth raise demand for treated water and wastewater-infrastructure in both municipal and industrial applications.

• Technological Adoption: Use of advanced technologies—membrane filtration (UF/RO), ZLD, smart monitoring, reuse systems—drives growth in higher-value segments.

• Wastewater Reuse Emphasis: Industries and municipalities increasingly target reuse of treated sewage water and industrial effluents to conserve fresh water and comply with discharge norms.

Outlook for Products & Services Relevant to the Company

For companies providing full-cycle solutions such as Water Treatment Plants (WTPs), Sewage Treatment Plants (STPs), industrial water reuse and distribution networks:

• The market for municipal STPs and reuse plants is expanding strongly due to urban sanitation mandates and river-cleaning efforts.

• Industrial water-reuse systems and membrane-based reuse plants (as the company executes) are high-growth sub-segments given ZLD mandates and corporate sustainability goals.

• Water-distribution networks and sewage-pipe infrastructure are driven by rural-supply programmes and urban-network expansion.

• EPC and O&M services linked to large concession projects (PPP/HAM) will see Increasing outsourcing and private-sector participation.

How Will Vishvaraj Environment Limited Benefit

• Vishvaraj Environment Limited (VEL) is well-positioned to capitalise on India’s expanding water and wastewater treatment market, projected to grow at a CAGR of 7.5–11%.

• Its expertise in large-scale WTPs, STPs and wastewater-reuse systems directly aligns with the rising demand for sustainable water infrastructure.

• With a strong presence in PPP and HAM projects, VEL can secure long-term revenue streams from government initiatives like Jal Jeevan Mission and Namami Gange.

• Growing emphasis on treated sewage reuse for industrial applications supports VEL’s core competency in recycling wastewater for power and manufacturing sectors.

• The company’s integrated EPC and O&M capabilities allow it to benefit from increased outsourcing by public authorities.

• Technological adoption in membrane-based treatment and solar-powered systems enhances its competitive edge.

• As ESG-focused investments rise, VEL’s sustainability-driven operations can attract institutional investors seeking impact-based opportunities.

Peer Group Comparison

Name of Company	Total Revenue (₹ in million)	Face Value (₹)	P/E	EPS (Basic) (₹)	EPS (Diluted) (₹)	RoNW (%)	NAV (₹ per share)
Vishvaraj Environment Limited	17,587.11	5.00	[●]	18.62	18.62	36.59%	50.89
Peer Group
VA Tech Wabag Limited	32,940.00	2.00	31.02	47.48	46.80	13.80%	344.09
ION Exchange India Limited	27,371.08	1.00	23.19	17.53	17.53	17.21%	101.89
Welspun Enterprises Limited	35,841.00	10.00	21.45	23.61	23.30	13.87%	185.97
Enviro Infra Engineers Limited	10,660.56	10.00	21.01	11.76	11.76	17.73%	66.35
EMS Limited	9,658.32	10.00	16.48	33.05	33.05	18.81%	175.70
Vishnu Prakash R Punglia Limited	12,374.18	10.00	19.82	4.70	4.70	7.52%	62.52

Key Strategies for Vishvaraj Environment Limited

Prioritize Wastewater Reuse Projects

VEL will intensify its focus on wastewater reuse projects, leveraging its ₹121 billion Order Book in this segment. They will continue developing advanced UF/RO treatment plants to supply treated sewage to industrial customers, such as thermal power plants, significantly reducing their freshwater dependency, while securing bids backed by strong funding agencies.

Scale Irrigation and Maintain Market Leadership

The company plans to maintain its leadership position by capitalizing on the growing water utility and wastewater market, supported by government schemes. VEL will strengthen PPPs for long-term cash flows and actively scale its irrigation business, including bidding for large-scale river-linking projects to improve agricultural water use efficiency across rural India.

Expand Geographic Reach and Pursue Acquisitions

Vishvaraj Environment intends to expand its geographic reach within India and into high-growth international markets, building on its experience in the Maldives. Concurrently, the firm will evaluate inorganic growth opportunities through acquisitions and strategic arrangements to consolidate its market position and enhance its service offerings and execution capabilities.

Modernize Infrastructure with Advanced Technology

The company plans to invest in modernizing its water utility infrastructure by partnering with technology firms. This involves integrating advanced solutions like smart meters, intelligent leak detection, and AI-based asset optimization. This dual approach, leveraging pilots and partnerships, aims to improve operational efficiency, reduce non-revenue water, and enhance real-time decision-making capabilities.

Ensure Prudent Financial Management

Vishvaraj Environment will maintain its prudent financial management practices to ensure disciplined capital allocation and sustainable value creation. This involves enforcing minimum gross contribution and strict cost discipline for EPC work. For investment projects, the strategy includes leveraging low-cost financing, setting minimum IRR thresholds, and optimizing the capital structure.