Antony Waste Handling Cell Limited — Q1 FY26 earnings call

Call held 11 Aug 2025

Management summary

Antony Waste Handling Cell Limited reported a strong Q1 FY26, with operating revenue up 13% YoY to ₹224 crores and EBITDA growing 12% to ₹62 crores at a 24% margin. Operational performance was robust, handling 1.33 million tons of waste, a 13% increase, and the WTE plant achieved an 84% PLF. While C&D revenue was impacted by seasonality, the processing segment's contribution to revenue increased, and the company maintained a healthy net debt-to-equity ratio of 0.4x.

Highlights

  • Operating revenue increased by 13% YoY to ₹224 crores in Q1 FY26.

  • EBITDA grew by 12% YoY to ₹62 crores, maintaining a 24% margin.

  • PAT grew by 8% YoY to ₹23 crores.

  • Total waste tonnage handled increased by 13% YoY to 1.33 million tons.

  • WTE plant operated at a healthy 84% PLF, generating over 25 million green units and avoiding 3,432 tons of CO2 emissions.

  • Construction & Demolition waste recycling achieved an impressive 96% rate.

  • Net debt-to-equity ratio improved to 0.4x, with ₹62 crores of debt repaid in Q1 FY26.

Concerns

  • C&D revenue was soft this quarter, less than ₹8 crores, due to monsoon seasonality.

  • One Mumbai C&T contract contributing less than 3% of consolidated revenue is expiring in December 2025.

  • Management is cautious on new non-municipal businesses like vehicle scrapping and tyre recycling due to market maturity and margin profile.

Key financials

  1. Operating Revenue ₹224 Cr +13%YoY
  2. EBITDA ₹62 Cr +12%YoY
  3. EBITDA Margin 24%
  4. PAT ₹23 Cr +8%YoY
  5. Gross Debt ₹448 Cr
  6. Net Debt ₹361 Cr
  7. Net Debt-to-Equity Ratio 0.4×

What they filed

Q1 FY27: revenue up 5.5%, net profit down 96.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue221 243 243 247 258 +16%262 +8%286 +18%261 +6%
EBITDA43 52 51 55 51 +19%43 −18%57 +12%37 −32%
Net profit15 18 46 23 17 +13%15 −19%37 −20%1 −97%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentShare of RevenueRevenueYoY Growth
MSW C&T60%₹151 Cr11%
Processing28%₹72 Cr17%
Contracts and Others12%——

Capital allocation

high confidence
  • Debt Gross ₹448 Cr · Net ₹361 Cr · 0.4× EBITDA Cost 9.2%
    • Repayment Repaid debt from March onwards till June in Q1 FY26 ₹62 Cr
    As of June 2025, the group's gross debt stood at approximately Rs. 448 crores, cash and bank balances of around Rs. 87 crores, results in a net debt of Rs. 361 crores. This indicates a net debt-to-equity ratio of 0.4x. The group's weighted cost of debt is approximately 9.2% and our daily sales outstanding remained stable, which ended at the quarter at 114.
  • Liquidity Cash ₹87 Cr
    As of June 2025, the group's gross debt stood at approximately Rs. 448 crores, cash and bank balances of around Rs. 87 crores, results in a net debt of Rs. 361 crores.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · next 2-3 quarters · High confidence 23%-23.5%
    So, 23%-23.5% EBITDA margin is something that is there for us.

    — Subramanian N. G.

  • WTE Plant EBITDA Expansion (from PLF improvement) Profitability · When PLF improves from 84% to 90% · High confidence 250-300 bps expansion
    if I were to look at a PLF of 90% versus 84%, there will be at least 250-300 bps expansion in my EBITDA of that particular operating asset.

    — Subramanian N. G.

Revenue

  • CAGR Revenue Growth Revenue · over 4-5 years · Medium confidence 25%
    Going back to our guidance of 25% CAGR growth that spread over 4-5 years.

    — Subramanian N. G.

  • C&D Revenue Revenue · end of 2nd Quarter till the end of 4th Quarter · High confidence Improvement from Q2 onwards (implied > ₹8 crores)
    We expect tonnage to improve from the end of 2nd Quarter till the end of 4th Quarter. That is the seasonality in the C&D business.

    — Subramanian N. G.

  • Core Operating Revenue Growth (YoY) Revenue · Year-on-year (ongoing) · High confidence 8%-10%
    on a year-on-year basis, 8%-10% growth is something that is baked in the numbers the way it is stacked today.

    — Subramanian N. G.

Capacity Utilization

  • WTE Plant PLF Capacity Utilization · Ongoing (average target) · High confidence 88%-90%
    average PLF that we are targeting, it should be upwards of 88%-90% is what we look at.

    — Subramanian N. G.

What to watch in Q2 FY26

New WTE project awards

Shortly / next quarter
Current Tenders submitted, awaiting declaration
Target Specific project wins announced

Why it matters

WTE is a key growth focus, and new project wins will drive future revenue and profitability.

Yes, we are definitely looking at WTE to be the next growth focus for the Company. There are a few tenders which are already out. We have already participated in a few of them. We expect those to be declared shortly.

Risks & concerns

  • Seasonality in C&D business

    medium

    Q1 FY26 C&D revenue was soft (<₹8 crores) due to monsoon, but expected to improve from Q2 onwards.

    Management acknowledged

  • Viability and scalability of non-municipal businesses (e.g., vehicle scrapping, tyre recycling)

    medium

    Management is proceeding slowly with new non-municipal ventures due to market maturity, margin profile, and inability to replicate high MSW margins.

    Management cautious approach

  • Expiry of Mumbai C&T contract

    low

    One Mumbai collection and transportation contract, contributing <3% of consolidated revenue, expires in December 2025, but new bids have been submitted.

    Analyst acknowledged

  • Kanjurmarg Landfill legal dispute

    low

    Supreme Court stay maintains status quo, and contractual terms protect the company from financial risk related to land usage and asset relocation.

    Analyst downplayed

Q&A highlights

6 direct
Future Waste-to-Energy (WTE) opportunities Direct
Yes, we are definitely looking at WTE to be the next growth focus for the Company. There are a few tenders which are already out. We have already participated in a few of them. We expect those to be declared shortly.

Indicates the company's strategic focus on expanding its WTE segment, which has shown strong performance and is expected to drive future growth.

Asked by Gaurav Gandhi

Long-term CAGR guidance and current project pipeline Partial
Going back to our guidance of 25% CAGR growth that spread over 4-5 years... Q1 core operating revenue growth of 13%, those are all from contracts that have already been executed today. There are no upcoming projects revenue which has been baked into those numbers. So, any future growth which we are confident to bag will help us achieve the target that the management set itself for.

Addresses analyst concern about not meeting historical CAGR guidance and clarifies that current growth is from existing contracts, with future growth dependent on new bids.

Asked by Bhavya Gandhi

Risk from Kanjurmarg Landfill Supreme Court stay Direct
from a cash flow point of view, from a revenue point of view and from a liability and a risk point of view, everything is hedged completely end-to-end. So, we don't see any risk to our project over here.

Reassures investors about the financial and operational impact of the ongoing legal dispute, stating the company is protected by contract terms.

Asked by Neerav Dalal

Non-participation in BMC bio-mining project Direct
contract specifications were too stringent, one. Second is, we technically didn't qualify because one of the main conditions is the Company should have handled 18.5 million tons of waste in 3-4 years, which we have not done... we felt it is at the price that it was granted and the costing worked out, we found it to be sub-optimal.

Provides transparency on the company's selective bidding strategy, highlighting technical qualification issues and sub-optimal pricing as reasons for not pursuing certain projects.

Asked by Neerav Dalal

Strategy for vehicle scrapping and tyre recycling businesses Partial
we are definitely working on those parameters... we would like to go slightly slower given the market maturity at this point of time... not able to replicate the same profile in a non-municipal business today... very cautious before spending money into a project about which we are not convinced about it.

Indicates a cautious approach to diversifying into new non-municipal revenue streams, prioritizing profitability and scalability over rapid expansion.

Asked by Prachi Sharma

WTE Plant PLF improvement and EBITDA impact Direct
average PLF that we are targeting, it should be upwards of 88%-90%... if I were to look at a PLF of 90% versus 84%, there will be at least 250-300 bps expansion in my EBITDA of that particular operating asset.

Provides specific quantitative guidance on potential margin improvement from optimizing WTE plant operations.

Asked by Faisal Hawa

Steps to address sales growth and achieve CAGR target Direct
we have been very acutely looking at new contracts that have been put up for bidding. And we are definitely putting our hat in the ring in those contracts which ensure that the profitability and the margins and the client profile... we are actually actively chasing a few projects which we feel will help us achieve the targets that we have set ourselves, which we also communicated to all the stakeholders. So, we are working towards achieving these numbers and we will be able to give you some more color in the current or the next quarter.

Reassures analysts about proactive measures to secure new contracts and drive growth, emphasizing a focus on profitable and strategically aligned projects.

Asked by Faisal Hawa

FY27 revenue growth expectations Direct
on a year-on-year basis, 8%-10% growth is something that is baked in the numbers the way it is stacked today... expect the volumes at the construction and demolition ways to move upwards from the end of second quarter onwards. So, that will be the positive flip to the numbers to help us achieve those kinds of targeted revenue growth.

Provides an updated, more conservative revenue growth outlook (8-10% YoY) compared to the long-term 25% CAGR, factoring in current contract dynamics and expected C&D recovery.

Asked by Neerav Dalal

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Antony Waste Handling Cell Limited reported a robust Q1 FY26, with operating revenue growing 13% year-on-year to ₹224 crores. EBITDA increased by 12% to ₹62 crores, maintaining a healthy margin of 24%, in line with company expectations. Net profit for the quarter stood at ₹23 crores, an 8% increase compared to Q1 FY25. The company's net debt-to-equity ratio was 0.4x, with gross debt at ₹448 crores and net debt at ₹361 crores as of June 2025.

Operational Highlights and Waste Processing Growth

The company demonstrated strong operational efficiency, handling a total of 1.33 million tons of waste in Q1 FY26, marking a 13% year-on-year increase. Collection and transportation operations managed 0.52 million tons (up 10% YoY), while processing facilities handled 0.81 million tons (up 13% YoY). The processing segment's revenue grew 17% to ₹72 crores, increasing its contribution to total revenue from 26% in Q1 FY25 to 28% in Q1 FY26, driven by WTE power sales and CIDCO bio-mining.

Waste-to-Energy (WTE) Segment Performance and Outlook

The PCMC-WTE plant operated at an impressive 84% Plant Load Factor (PLF) in Q1 FY26, generating over 25 million green units and avoiding approximately 3,432 tons of CO2 emissions. Management targets an average PLF of 88-90%, which could lead to a 250-300 basis points expansion in the WTE segment's EBITDA. The company views WTE as a key growth focus and is actively bidding on new tenders in this space, expecting declarations shortly.

Kanjurmarg Landfill Legal Status and Risk Mitigation

The Supreme Court's stay on the Bombay High Court's judgment regarding the Kanjurmarg Landfill ensures the continuation of operations and safeguards Antony Lara's contractual rights. Management confirmed that the company is absolved of land-related risks, with the Municipal Corporation of Greater Mumbai (BMC) and the Maharashtra government responsible for costs associated with land identification and asset relocation, ensuring no financial risk to the project.

Strategic Focus on Municipal Solid Waste (MSW) and Selective Expansion

While exploring new non-municipal ventures like vehicle scrapping and tyre recycling, management maintains a cautious approach, prioritizing scalability and profitability. The core growth focus remains on the MSW sector, which consistently delivers double-digit EBITDA and single-digit PAT margins. The company is selectively pursuing new municipal contracts that align with its profitability and margin profiles to achieve its long-term 25% CAGR target.

Debt Management and Liquidity

The company continued its focus on debt reduction, repaying ₹62 crores of debt during Q1 FY26, bringing gross debt down to ₹448 crores. With cash and bank balances of ₹87 crores and a net debt-to-equity ratio of 0.4x, the company maintains a robust financial position. The weighted average cost of debt stands at approximately 9.2%, reflecting prudent financial management.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Utilities earnings calls