About 55% of India’s rural population had piped water and 15% had household connections as of 2016. To address these challenges, the government has taken various measures and introduced many policies.
The government’s ‘Nal Se Jal’ or ‘piped water supply for all’ scheme endeavours to provide a piped water supply to all households by 2030.
Apart from this, there are several other water infrastructure programmes underway, such as the Namami Gange for the clean-up of India’s holy river, Ganges, a project to create inland waterways, Pradhan Mantri Krishi Sanchai Yojna aimed at boosting irrigation, etc.
Each of these water infrastructure programmes involve the usage of water treatment systems, piping systems, among other things from the entire water infra chain.
With industrial demand also rising amid tighter environmental norms, the stage is set for companies involved in the water infra segment.
In this editorial, we’ll look at the five fastest growing water infra stocks in India.
These companies have so far played their cards right and are enjoying tailwinds, backed by policy push, rising urban demand, and growing awareness around sustainability.
#1 Felix Industries
Established in 2012, Felix Industries provides water and environmental solutions. It operates in diverse sectors including water treatment, e-waste management, piping solutions, and specialty chemicals.
With a portfolio of over 450 proprietary technologies, including physicochemical, biological, membrane-based, and hybrid treatments, it manages water across various applications such as drinking water, industrial processes, wastewater treatment, and more.
Felix Industries’ financial performance reflects its robust growth trajectory. The company’s net sales have compounded at a growth rate (CAGR) of 125% over the past 3 years.
The company has a strong order book including recurring revenue of ₹350 million (m) from its plants, ₹560 m for EPC orders, and around ₹220 m from Oman.
The company expects its FY26 operating revenue to be in the range of ₹300-350 m, and ₹500–600 m by FY27.
Felix Industries is deliberately reshaping its revenue mix toward higher-quality annuity cash flows and scaling its Oman hydrocarbon-waste recovery platform.
#2 Enviro Infra Engineers
Enviro Infra operates in the wastewater management project sector and water supply projects.
It constructs and operates projects, including drinking water treatment plants (WTPs), sewage treatment plants (STP), Common Effluent Treatment Plants (CETP), and Industrial water reuse projects.
Its clientele includes Jal Nigam, municipalities, the public works department and industrial clients.
Coming to its financials, revenue increased 45% to ₹10 bn in FY25, driven by strong execution of the order book. Net profit rose 52% to ₹1.7 bn. RoCE also stood at a 3-year average of 53.9%.
Over the past 3 years, it has recorded a healthy sales and net profit CAGR of 76% and 72%, respectively.
Looking ahead, the company is projecting revenue to grow over 15% in FY26, and net profit is expected to grow over 24%. Its total order book stood at about ₹20 bn, offering revenue visibility of around 2 years.
The company sees a huge tailwind in the water sector, backed by government policies. It plans to capitalise on schemes like AMRUT 2.0, the Namami Gange Program, the National River Conservation Plan, and the National Plan for Conservation of Aquatic Ecosystems.
The company is also focusing on expanding its presence across PAN India to become a national player. Increasing the project size to earn better margins is another growth strategy.
#3 Jash Engineering
Jash Engineering specialises in the manufacture and trading of a diverse range of engineering products. The company’s offerings cater to industries like water and wastewater management, power generation, and bulk solids handling.
The product portfolio encompasses water control gates, mechanised screening systems, knife gate valves, Archimedes screw pumps, and micro-hydro turbines.
The company exports about 60% of its products. It has a geographical presence in Europe, the US, the Middle East, and Southeast Asia.
In 2025, it signed a joint venture with Invent of Germany to introduce secondary treatment equipment in India, including aerators and blowers.
Two new manufacturing facilities are under development in Chennai and Pithampur SEZ, expected to increase revenue capacity to ₹10 bn by FY28.
The company’s order pipeline is strong. Jash Engineering’s involvement in key government initiatives positions it favourably to capitalise on the growing demand for water infrastructure development driven by the JJM.
Coming to its financials, the company’s sales and net profit have grown at a CAGR of 26% and 39%, in the past 3 years, respectively.
Jash Engineering plans to expand its international presence, with a focus on the US. It aims to triple its Indian revenue over the next decade while relying on overseas orders, particularly for water treatment and related projects like desalination and wastewater management systems.
The company will leverage its expertise in water treatment solutions including wastewater management, stormwater pumping stations, and desalination plants to drive growth.
#4 NCC
Next on the list is NCC.
NCC is a key player in India’s infrastructure development. The company operates across sectors, including buildings, water pipelines, irrigation, transmission, power generation, and transportation.
NCC serves entities like the State Water & Sanitation Mission (Namami Gange and Rural Water Supply Department, Government of Uttar Pradesh), Hyderabad Metropolitan Water Supply & Sewerage Board (HMWSSB), Karnataka Urban Water Supply & Drainage Board, and Odisha Panchayat Raj & Drinking Water Department, etc.
In the past 3 years, the company’s sales and net profit have grown at a CAGR of 26% and 21%, respectively.
In FY25, its revenue rose 6.6% to ₹223.5 bn, while PAT grew 8.4% to ₹19.2 bn. However, in the first quarter of FY26, revenue declined 6.3% to ₹52.1 bn, and PAT rose 3.7% to ₹1.9 bn.
The reason for the slowdown is the large orders received at the end of March 2025. Revenue from new works is expected to start from September. This will improve growth rates.
Looking ahead, NCC’s order book stood at ₹700 bn, providing revenue visibility of over three years. Building construction accounted for 34% of the order book, followed by transport (26%), water and railways (6%), power (22%), mining (7%), and irrigation (5%).
The company has a healthy project pipeline of around ₹2,500 bn with order inflows of ₹220-250 bn expected in FY26.
#5 Ion Exchange
Last on the list is Ion Exchange.
Ion Exchange (India) is a water management company straddling engineering projects, speciality chemicals and consumer water solutions.
It plays across both infra-heavy and annuity-linked segments, with clients ranging from NTPC and Tata Group to luxury hotels and global industrial majors.
In the past 3 years, the company’s sales and net profit have grown at a CAGR of 21% and 9%, respectively.
In FY25, its consolidated revenue rose 17%, but profit growth was more muted. EBITDA grew 8%, with margins slipping slightly to 10.7%.
The company’s engineering segment, which accounts for 61% of revenue, grew 17%, but EBIT fell 2.5% due to delays in large projects and tighter bidding.
As of June 2025, the company reported an engineering order book of ₹27.6 bn. This includes around ₹22.5 bn worth of core engineering projects, along with ₹3.8 bn from the UP Swachh Jal Mission (SWSM) and ₹1.4 bn from a pending Sri Lanka contract.
Looking ahead, the new resin plant at Roha is expected to go live in Q2 FY26, boosting chemical capacity. The management is staying selective on new engineering orders to protect margins.
SAP rollout is underway, which may impact short-term execution but should aid long-term efficiency.
Snapshot of Fastest Growing Water Infra Stocks
Here’s a table showing companies above across various parameters on Equitymaster’s stock screener.
Conclusion
With increased government spending on water infrastructure, the fastest growing stocks in this sector are poised for significant growth. The five companies mentioned here are well-positioned in this space.
The need for sustainable water management solutions will only rise, ensuring a steady pipeline of projects and long-term revenue visibility for the companies in this sector.
For investors looking for growth opportunities with strong government backing, water infrastructure stocks offer a compelling investment avenue in India’s evolving economy.
However, before considering an investment, it’s crucial to analyse the fundamentals, growth prospects, corporate governance, and valuations of these companies.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com
