Best Water Stocks in India 2025: Complete Investor Guide

Water is not only the source of life but also an emerging commodity market in itself. Just like gold or oil, water has become scarce and increasingly valuable in today’s world. India, with its rising population, rapid urbanisation, and growing demand for clean drinking water, is set to witness a boom in the water sector.

Analysts predict that India’s water-related industry could be worth ₹25,000–30,000 crore annually in the coming years. Backed by government-led schemes such as Jal Jeevan Mission (targeting rural tap water connections by 2028) and AMRUT 2.0 (urban transformation mission for universal water supply), water companies are at the forefront of a structural transformation.

For investors, this translates into significant opportunities in stocks related to water infrastructure, treatment, utilities, and equipment manufacturing. This article provides a comprehensive overview of the best water stocks in India, industry outlook, financial highlights, key risks, and factors to consider before investing.

What Are Water-Related Stocks?

Water-related stocks are companies engaged in managing, conserving, distributing, or treating water resources. This includes:

• Infrastructure companies: involved in laying pipelines, building water supply systems, and sewage networks.

• Water treatment stocks: focused on purification, desalination, and wastewater recycling.

• Pump and equipment specialists: manufacturers of pumps, valves, and motors crucial for water distribution.

• Utilities and EPC companies: executing government contracts under Jal Jeevan Mission and Smart Cities Mission.

These companies form the backbone of India’s water economy, and their growth is linked with sustainability, government spending, and technology-driven innovation.

Industry Size and Growth

• In 2025, India’s wastewater management and water-related industry size is estimated at ₹200.66 billion.

• By 2030, it is projected to reach ₹353.50 billion, growing at a CAGR of 10.72%.

• The global water and wastewater treatment market is also witnessing a surge, giving Indian companies a chance to expand exports.

Key Growth Drivers:

1. Government policies – Jal Jeevan Mission, Namami Gange, and Atal Bhujal Yojana.

2. Urbanisation – India’s urban population is expected to cross 600 million by 2031, increasing demand for water supply and sewage treatment.

3. Industrialisation – Growing water-intensive industries such as textiles, chemicals, power, and electronics.

4. Sustainability – Rising ESG focus among investors driving demand for water-efficient technologies.

Best Water Stocks in India (2025 List)

Company-Wise Overview

1. Welspun Corp Ltd.

• Founded: 1995 | HQ: Mumbai

• Market leader in pipes and water infrastructure solutions.

• Order book: ₹9,056 crore.

• Growth across oil & gas, defence, and water projects.

• Investment View: Strong order visibility, steady profits, and structural growth in pipes.

2. ION Exchange Ltd.

• Founded: 1964 | HQ: Mumbai

• Specialises in water treatment & EPC contracts.

• Order book: ₹5,678 crore.

• Clients include Reliance, NTPC, JSW, Arcelor Mittal, Tata Group.

• Investment View: Diversified client base, strong balance sheet, plays a key role in government water contracts.

3. VA Tech Wabag Ltd.

• Founded: 1924 | HQ: Chennai

• India’s largest water infrastructure company, and global top-3 desalination player.

• Order book: ₹11,448 crore (56% EPC, 44% O&M).

• 1-year return: 128% – driven by global expansion and desalination projects.

• Investment View: Excellent long-term play on desalination and water infra.

4. Shakti Pumps Ltd.

• Founded: 1982 | HQ: Madhya Pradesh

• Leader in solar-powered pumps, 26% market share.

• QIP raised ₹200 crore for expansion.

• Strong presence in 118 countries.

• Investment View: High-growth, niche positioning in solar pumps.

5. EMS Ltd.

• Founded: 2010 | HQ: New Delhi

• EPC company with an order book of ₹12,083 crore.

• Targeting ₹21,000 crore revenue by FY25.

• Investment View: Aggressive growth, strong order pipeline, medium-risk investment.

6. Jash Engineering Ltd.

• Founded: 1948 | HQ: Madhya Pradesh

• Specialist in water treatment equipment.

• OPM: 25.69% | Order book: ₹816 crore.

• Investment View: Small-cap, high-growth, strong export potential.

7. Roto Pumps Ltd.

• Founded: 1968 | HQ: Noida

• Focus on pumps, including solar and downhole pumps.

• Presence in 55 countries with 275,000 pumps installed.

• Investment View: Long-term niche growth, small-cap exposure.

8. SPML Infra Ltd.

• Founded: 1981 | HQ: New Delhi

• Executed 650+ EPC projects.

• Clients: NTPC, PHED, Jal Jeevan Mission projects.

• Despite strong order book, profitability remains volatile.

• Investment View: High-risk, high-return EPC play.

9. Felix Industries Ltd.

• Founded: 2010 | HQ: Ahmedabad

• Specialises in wastewater recycling & e-waste management.

• OPM: 34.33% | 1-year return: 339.87%.

• Investment View: Attractive ESG-driven growth stock.

10. Taylormade Renewables Ltd.

• Founded: 2010

• Focused on solar-based wastewater treatment.

• Order book: ₹330 crore.

• Investment View: Innovative green-tech play, but small scale.

Budget 2025–26 Allocations for Water

• ₹67,000 crore – Jal Jeevan Mission (tap water to rural households).

• ₹7,192 crore – Swachh Bharat Mission (sanitation).

• ₹3,400 crore – Namami Gange Mission.

• ₹5,936 crore – Polavaram Irrigation Project.

• ₹1,780 crore – Atal Bhujal Yojana (groundwater).

These allocations provide multi-year visibility for water-related companies and investors.

6-Month Returns of Top Water Stocks

Dividend Yield of Best Water Stocks

Advantages of Investing in Water Stocks

1. Rising Demand: Population growth ensures consistent water demand.

2. Government Support: High budget allocations boost order books.

3. Technological Innovation: Desalination, solar pumps, and wastewater recycling create new growth avenues.

4. Sustainability: ESG-focused investors increasingly prefer water-related companies.

5. Defensive Nature: Demand for water is non-cyclical, making it relatively resilient to economic downturns.

Risks of Investing in Water Stocks

1. Regulatory Risks: Changing policies and compliance requirements.

2. Environmental Risks: Climate change, drought, or pollution impacting operations.

3. Execution Risks: Delays in large EPC projects.

4. Capital Intensive: Infra projects require high capex and debt.

5. Volatility: Smaller players like SPML Infra and Felix Industries can see sharp price swings.

Investment Considerations

• Check Order Books: Companies like Welspun, VA Tech Wabag, and EMS have strong pipelines.

• Financial Health: Look at OPM, debt-to-equity, and return ratios.

• Government Alignment: Firms linked with Jal Jeevan Mission have better growth visibility.

• Diversification: Spread across infrastructure, pumps, and water-treatment specialists.

• Valuation: P/E ratio comparison with sector average before entry.

Conclusion

Water is not just a necessity but a strategic investment theme. With government push, industrialisation, and ESG focus, India’s water sector presents a multi-year growth story.

• Top Picks for Long-Term Investors: Welspun Corp, VA Tech Wabag, Shakti Pumps.

• Mid-Cap Growth Ideas: EMS, ION Exchange, Jash Engineering.

• High-Risk High-Reward Small Caps: SPML Infra, Felix Industries, Taylormade Renew.

Investing in best water stocks in India not only diversifies portfolios but also contributes to sustainability and resource security. However, investors should be mindful of execution risks, volatility, and capital requirements before taking positions.

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