Antony Waste Handling Cell Q1 FY27 earnings call

Antony Waste Handling Cell Limited reported a total operating revenue of ₹269 crores for Q1 FY27, marking a healthy 6% year-on-year growth. However, profitability saw a significant decline, with EBITDA falling 27% year-on-year to ₹45 crores, resulting in a compressed EBITDA margin of 16.8% compared to 24.4% in Q1 FY26. Net profit (PAT) was sharply lower at ₹0.7 crores, down from ₹23 crores in the prior year, primarily impacted by higher operating expenses and a one-time^📎 prepayment charge of ₹26 crores related to debt refinancing.

A tragic incident occurred at the PCMC Waste-to-Energy facility on July 8, 2026, due to unprecedented^🌐 heavy rainfall (650 mm) causing a legacy waste mound to collapse, resulting in 9 fatalities. As a precautionary measure, WtE plant activity was temporarily suspended, with material recovery and composting operations resuming on July 28. The WtE plant is expected to restart by the first week of October. The company anticipates an impairment charge of ₹22-24 crores for damaged project assets, which will be treated as an exceptional item^📎 and does not yet account for potential insurance recoveries, with more details expected in Q2 results.

In Q1 FY27, Collection & Transportation (C&T) operations handled approximately 0.55 million tons of waste, growing 6% year-on-year and contributing ₹156 crores in revenue (up 10% YoY). Processing facilities managed around 0.85 million tons of municipal solid waste, a 5% YoY increase, generating ₹75 crores in revenue (up 3% YoY). The Construction & Demolition (C&D) waste recycling facility achieved a 96% recycling rate. However, RDF sales declined 28% YoY to 40,000 tons, mainly due to the completion of the CIDCO bio-mining project in Q1 FY26.

The compression in EBITDA margin to 16.8% was attributed to three main factors: higher operating expenses including vehicle hiring and transportation costs (partially due to a ₹10 crore deferral from Q4 FY26), an 18% YoY increase in employee costs now at 34% of revenue, and increased finance costs (up 35% YoY). Management views Q1 profitability as transitional, expecting normalization of labour costs within the next three quarters and margin expansion as new, higher-margin projects like BMC and Atkoli commence in H2 FY27.

The company secured a new ₹243 crores contract over 5 years from the Greater Noida Industrial Development Authority for road sweeping, expected to commence in Q3 FY27 and contribute ₹46 crores in its first year. Management is strategically shifting its portfolio mix from a 70% C&T / 30% processing split towards a 50/50 balance, focusing on more margin-accretive and capex-intensive processing/WtE projects. Existing portfolio is expected to grow 6-9%, with new businesses adding 10-15% additional growth.

Antony Lara Renewable Energy Private Limited successfully refinanced its term loan, reducing the interest rate by 200 bps from 10.25% to 8.25% per annum and extending the tenure to 15 years. This strategic move involved a one-time^📎 prepayment expense of ₹26 crores but is projected to yield a net benefit of ₹14 crores over the loan's tenure. As of June 2026, gross debt stood at ₹435 crores, with cash and bank balances of ₹111 crores, resulting in a net debt of ₹324 crores and a net debt-to-equity ratio of 0.4x. Gross borrowing increased by ₹22 crores from Q4 FY26, primarily for the AP WtE project and the new BMC C&T contract.

Progress on the Andhra WtE project is on schedule, with land possession secured at both Kadapa and Kurnool sites. Civil designs have been completed by JFE India, and equipment mobilization has commenced in Kadapa, with Kurnool expected to follow in the next couple of weeks. Financial closure for the project is nearing completion, and the company is confident in completing these projects as per the planned schedule.