VA Tech Wabag's About Rs 2,332 Crore Yanbu Order Is Cancelled
The Saudi Water Authority cancelled the tender for a 300 MLD seawater desalination plant that VA Tech Wabag won in July 2025.
Key Takeaways
- VA Tech Wabag disclosed the cancellation to the exchanges on November 14, 2026.
- The Saudi Water Authority cancelled the tender for a 300 MLD desalination plant at Yanbu.
- The order was worth about USD 272 million, or about Rs 2,332 crore.
- Wabag said bidders were told through the Etimad portal, citing internal reasons of the customer.
- Wabag's order book was about Rs 20,200 crore at the end of September 2026.
Table of Contents 6 sections
- VA Tech Wabag's cancelled Yanbu order at a glance
- Wabag's Yanbu order had reached the counter-signature stage
- VA Tech Wabag says it is seeking reasons from the Saudi Water Authority
- Wabag's order book and first-half results before the cancellation
- Where VA Tech Wabag stands after the Yanbu cancellation
- FAQs
VA Tech Wabag told the stock exchanges on November 14, 2026 that the Saudi Water Authority has cancelled the tender for a 300 MLD (million litres per day) seawater desalination plant at Yanbu in Saudi Arabia. Wabag had won this project in July 2025, and the company had valued it at about USD 272 million, or about Rs 2,332 crore.
In its filing, VA Tech Wabag said it had completed the needed formalities after the award and signed the contract, which it then sent to the Saudi Water Authority for counter-signature. The company said the customer has now told all tender participants, through Saudi Arabia's Etimad government procurement portal, that the tender has been cancelled due to internal reasons attributable to the customer.
VA Tech Wabag's cancelled Yanbu order at a glance
| Detail | Value |
|---|---|
| Company | VA Tech Wabag |
| Customer | Saudi Water Authority |
| Project | 300 MLD seawater desalination plant at Yanbu, Saudi Arabia |
| Scope of work | Design, engineering, supply, construction and commissioning |
| Order value | About USD 272 million (SAR 1,019 million, or about Rs 2,332 crore) |
| Award received | July 2025 |
| How bidders were told | Through the Etimad portal |
| Disclosed to exchanges | November 14, 2026 |
Wabag's Yanbu order had reached the counter-signature stage
VA Tech Wabag is a water technology company that works on water treatment, wastewater and desalination plants for municipal and industrial customers. The Yanbu order covered the full design, engineering, supply, construction and commissioning of the 300 MLD plant.
In December 2024, the Saudi Water Authority cancelled an earlier 300 MLD tender that it had awarded to the company. Wabag then received a new award for a 300 MLD plant at Yanbu in July 2025, the order that has now been cancelled.
| When | What happened |
|---|---|
| December 2024 | The Saudi Water Authority cancelled an earlier 300 MLD desalination tender awarded to VA Tech Wabag |
| July 2025 | VA Tech Wabag received the award for the 300 MLD Yanbu plant, worth about USD 272 million |
| November 14, 2026 | VA Tech Wabag told the exchanges that the Yanbu tender has been cancelled |
VA Tech Wabag says it is seeking reasons from the Saudi Water Authority
"We are in the process of approaching the Customer to understand the reason in better detail and the next course of action."
Wabag's order book and first-half results before the cancellation
VA Tech Wabag's order book stood at about Rs 20,200 crore at the end of September 2026, the company's investor presentation for the first half of FY27 shows. In the same presentation, the company listed a large desalination order from Reliance Industries at Jamnagar and a desalination order that marked its entry into Kuwait among its recent wins.
For the first half of FY27, VA Tech Wabag reported consolidated revenue of about Rs 1,887 crore, up about 20% from a year earlier, and consolidated profit after tax of about Rs 194.7 crore, up about 29%.
Where VA Tech Wabag stands after the Yanbu cancellation
The cancelled Yanbu order was worth about Rs 2,332 crore, set against an order book of about Rs 20,200 crore at the end of September 2026. VA Tech Wabag said the Saudi Water Authority cancelled the tender for all participants, and that it is approaching the customer to understand the reason and the next course of action.
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Frequently Asked Questions
What is VA Tech Wabag?
What did VA Tech Wabag announce on November 14, 2026?
Who cancelled VA Tech Wabag's Yanbu tender?
How much was VA Tech Wabag's Yanbu order worth?
How big was the plant VA Tech Wabag was to build at Yanbu?
What work did the Yanbu order cover for VA Tech Wabag?
When did VA Tech Wabag win the Yanbu order?
How were bidders told about the cancellation of VA Tech Wabag's Yanbu tender?
What reason did VA Tech Wabag give for the cancellation?
How far had VA Tech Wabag got with the Yanbu contract?
Has VA Tech Wabag had a Saudi desalination award cancelled before?
How large was VA Tech Wabag's order book at the end of September 2026?
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