Best Water Management Stocks in India in March 2025 – Enviro Infra Engineers, Va Tech Wabag & More

Water management is becoming a crucial sector in India. With demand projected to be twice the available supply by 2030, sustainable water management is essential. The government has introduced initiatives like the Jal Shakti Abhiyan and Atal Bhujal Yojana to promote water conservation and efficient usage. This growing focus on water infrastructure, treatment, and conservation has created investment opportunities in water management stocks. In this article, check the best water management stocks in India in March 2025, based on net profit margin and other parameters like 5yr CAGR and debt-to-equity ratio.

Best Water Mangement Stocks in March 2025 – Based on Net Profit Margin

Note: The water management stocks in March 2025 are as of March 5, 2025. The stocks are picked from a market cap of ₹500 crore and sorted based on the net profit margin.

Overview of Water Mangement Stocks in March 2025

1. Denta Water and Infra Solutions Ltd

Denta Water and Infra Solutions Ltd specialises in water management, irrigation, and operations & maintenance (O&M) for water projects. For the quarter ended December 31, 2024, the company reported a total revenue of ₹523.02 million, marking an increase from ₹484.50 million in the previous quarter and ₹459.99 million in the same quarter last year. The company’s profit for the quarter ended December 31, 2024, stood at ₹149.64 million, higher than ₹110.51 million in the previous quarter and ₹66.33 million in the same period last year.

Key Metrics:

• ROCE: 49.53%
• ROE: 44.41%

2. Enviro Infra Engineers Ltd

Enviro Infra Engineers specialises in designing, constructing, operating, and maintaining water and wastewater treatment plants (WWTPs) and water supply projects (WSSPs) for government agencies. In Q3 FY25, the company reported revenue from operations of ₹247.45 crore, reflecting a 65% YoY growth. Its PAT surged 111% to ₹36.72 crore, compared to ₹17.38 crore in Q3 FY24.

Key Metrics:

• ROCE: 42.78%
• ROE: 51.95%

3. Va Tech Wabag Ltd

Va Tech Wabag Ltd operates in the water treatment sector, specialising in the design, supply, installation, construction, and management of drinking water, wastewater treatment, industrial water treatment, and desalination plants. In Q3 FY25, the company reported a consolidated revenue of ₹8,110 million, reflecting a 15.1% year-on-year growth. PAT stood at ₹702 million, marking an 11.6% YoY increase.

Key Metrics:

• ROCE: 16.58%
• ROE: 14.45%

4. Indian Hume Pipe Company Ltd

Indian Hume Pipe Co. Ltd is involved in the manufacturing, laying, and joining of pipelines. The company also executes turnkey infrastructure projects, particularly in combined water supply systems. The company reported a total income of ₹382.77 crores for Q3 FY25, compared to ₹320.23 crores in the same quarter last year. The company recorded a net profit of ₹14.37 crores, slightly varying from ₹15.14 crores, in the corresponding quarter of the previous year.

Key Metrics:

• ROCE: 19.43%
• ROE: 10.18%

Best Water Mangement Stocks in March 2025 – Based on 5yr CAGR

Note: The water management stocks in March 2025 are as of March 5, 2025. The stocks are picked from a market cap of ₹500 crore and sorted based on the 5yr CAGR.

Best Water Mangement Stocks in March 2025 – Based on Debt-to-Equity Ratio

Note: The water management stocks in March 2025 are as of March 5, 2025. The stocks are picked from a market cap of ₹500 crore and sorted based on the low debt-to-equity ratio.

Water and Wastewater Management in India

Water management involves the control, distribution, and utilisation of water from various sources. Effective strategies help maintain freshwater reserves, prevent wastage, and ensure a steady water supply for agriculture, industries, and households. Poor water management can lead to severe economic and social crises, impacting food security, public health, and overall development.

The Ministry of Jal Shakti introduced a water security plan in 2021, emphasising demand-supply balance and conservation techniques. As part of this initiative, the Jal Shakti Abhiyan, catch the Rain campaign, was launched in 2021 to promote rainwater harvesting and pre-monsoon water conservation efforts. Additionally, the Atal Bhujal Yojana, introduced in 2020, focuses on sustainable groundwater management through community participation. Another key initiative, the Sahi Fasal Campaign, led by the National Water Mission, educates farmers on efficient water usage and crop selection to minimise agricultural water wastage.

In India, the Department of Water Resources, River Development, and Ganga Rejuvenation (DoWR, RD & GR) plays a crucial role in formulating policies for water preservation and management. As India faces mounting water challenges, continued efforts in water conservation, wastewater treatment, and efficient resource allocation will be vital for long-term sustainability.

Conclusion

Water management is essential for sustainable development, ensuring efficient usage and conservation. With rising demand and government initiatives, the sector can present significant growth opportunities. However, consider your investment objective and risk appetite before making a decision.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.