Water management stock jumps 10% after JV wins order worth ₹207 Cr from PHED in Rajasthan

Synopsis:
SPML Infra’s JV with Shree Hari Infraprojects won ₹207 crore Jal Jeevan Mission project in Rajasthan. It upgrades water supply for 10 lakh people in Kota-Bundi via wells, plants, reservoirs, pipelines.

Known for large-scale water management solutions and infrastructure development, this company is making headlines after its joint venture clinched a significant government project. Readers can expect details about a major Rs. 207 crore contract win related to water supply expansion in Rajasthan and its impact on shares.

SPML Infra Limited‘s stock, with a market capitalisation of Rs. 1,436 crores, rose to Rs. 205.50, hitting a high of up to 9.77 percent from its previous closing price of Rs. 187.21. However, the stock over the past year has given a negative return of 10.8 percent.

Order Update

SPML Infra Limited, in joint venture with Shree Hari Infraprojects, has received a Rs. 207.38 crore order from the Public Health Engineering Department, Jhalawar, Rajasthan, under the Jal Jeevan Mission’s Nonera Water Supply Project. The contract covers comprehensive construction along with 10 years of operations and maintenance to upgrade water supply for the Kota and Bundi region.​

The project scope includes building and commissioning three intake wells, three water treatment plants with total 118 MLD capacity, three clear water reservoirs of 16.1 million litres, and about 52.6 km of pipelines of 600–1300 mm diameter with PLC and SCADA systems. Once completed, it will provide functional household tap connections and safe drinking water to over 1.03 million people in the area.​

Industry & Demand Outlook

The company sees strong growth potential across water infrastructure and energy storage segments. Management highlighted a robust Rs. 17 lakh crore pipeline of fully funded water projects under schemes like Jal Jeevan Mission, AMRUT 2.0, Namami Gange, river-linking, and sanitation initiatives. Upcoming tenders are expected from states such as Madhya Pradesh, Maharashtra, Karnataka, and Odisha, indicating sustained infrastructure spending and steady order inflows in the coming quarters.

In the power and energy storage space, India’s Battery Energy Storage System (BESS) market is projected to reach about 236 GWh by FY32, attracting Rs. 5 lakh crore (USD 57 billion) in investments. This growth is underpinned by renewable capacity targets of 500 GW by 2030, a 10% storage mandate, and new tenders extending even to thermal power plants a shift management termed a “game changer.” The company anticipates Rs. 25,000 crore worth of tenders in FY26 across its water, power, and BESS portfolios, including Rs. 5,000 crore from BESS alone, marking it as a major future growth driver.

Q2 Financial Higlights

The company reported consolidated revenue of Rs. 188 crore in Q2FY26, almost flat year-on-year compared to Rs. 189 crore in Q2FY25, but showing a healthy 20.5% sequential growth against Rs. 156 crore in Q1FY26. The modest improvement QoQ indicates rising business momentum after a soft start to the fiscal year.

Profit rose sharply to Rs. 15 crore in Q2FY26, up 15% YoY from Rs. 13 crore and 25% QoQ from Rs. 12 crore, reflecting improved operating efficiency despite muted sales growth. Over the long term, the company posted a strong 3-year profit CAGR of 431%, even as sales declined at a 3-year CAGR of -7%, and ROE grew modestly at 3%, highlighting profitability gains driven by cost control and margin expansion.

Written By Fazal Ul Vahab C H

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