Sattva Engineering Construction Limited has announced a significant order win worth approximately Rs 125 crore (1.25 billion rupees) from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) for the development and operation of a water treatment plant at Surapet, Chennai. This contract underscores the company’s expertise and expanding footprint in urban infrastructure and water resource management solutions.
Key Highlights:
The order, valued at Rs 125.34 crore, is awarded under a Design, Build, Operate and Transfer (DBOT) model to construct a 47 million litres per day (MLD) water treatment plant with a construction timeline of 21 months followed by a 10-year operation and maintenance (O&M) phase.
The contract allocation includes Rs 74.75 crore for plant construction and Rs 50.59 crore earmarked for the long-term O&M services, providing stable and predictable revenue streams beyond the construction period.
Structured as per Tamil Nadu Tender Rules, the contract incorporates performance securities and price variation clauses, ensuring financial and operational safeguards throughout the project lifecycle.
The project is a testament to Sattva Engineering’s leadership in water infrastructure, including Water Supply Schemes (WSS), Underground Sewerage Systems (UGSS), Sewage Treatment Plants (STPs), and Water Treatment Plants (WTPs), primarily catering to government agencies.
Sattva Engineering maintains a robust order book of over Rs 308 crore as of March 2025, signaling 3-4 years of revenue visibility with projects funded by government and international agencies like World Bank and KfW.
The company recorded Rs 93.65 crore revenue from operations and Rs 9.14 crore net profit for FY25, reflecting strong operational performance and growth compared to previous years.
Following the order announcement, Sattva Engineering Construction shares witnessed a positive market response, rising over 2%, reflecting investor confidence in the company’s project execution capabilities and growth outlook.
The Surapet water treatment plant is a critical infrastructure project to support Chennai’s increasing demand for safe and sustainable water supply, interfacing with state initiatives like AMRUT 2.0 and Singara Chennai 2.0.
Market and Strategic Impact:
This landmark order reinforces Sattva Engineering’s growing prominence in the water treatment and urban infrastructure domain, with a balanced portfolio emphasizing integrated solutions and recurring revenues through O&M contracts. The long-term nature of the project supports a sustainable business model with annuity-like cash flows, mitigating revenue volatility often associated with EPC contractors.
The company’s consistent execution quality and alignment with government urban development programs position it well for future bids in water and wastewater management projects across India.
Sattva’s recent successful IPO and the expanding order book underpin its capital and operational strength to scale projects efficiently while delivering shareholder value and supporting urban sustainability initiatives.
In summary, the Rs 125 crore Surapet order marks a significant milestone for Sattva Engineering Construction Ltd, reinforcing its capacity to execute large-scale water infrastructure projects and solidifying its growth trajectory in the urban resource management sector.
Sources: JM Financial Services, Business Standard, Capital Market Live News, Screener.in, TradeBrains (September 2025)
