Antony Waste Handling Cell Limited — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Antony Waste Handling Cell Limited reported a steady Q3 FY26 performance with 9% YoY revenue growth, driven by strong execution and new contract wins. The company completed a key merger and maintained a healthy balance sheet with a net debt to equity of 0.4x. While Q3 margins were impacted by higher employee costs and lower power sales due to plant shutdown, management remains confident in achieving its 20% CAGR revenue growth and 20-23% EBITDA margin targets, supported by a robust project pipeline.

Highlights

  • Operating revenue for Q3 FY26 reached ₹240 crores, reflecting a 9% year-on-year growth, supported by higher volume across project sites and contractual tariff-linked escalation.

  • Secured two large Collection and Transportation contracts by BMC with a combined revenue potential of approximately ₹1,330 crores over a 7-year tenure.

  • Successfully completed the merger of AG Enviro Infrastructure Projects Private Limited with Antony Waste Handling Cell Limited effective from December 31, 2025.

  • Net debt to equity stood at 0.4x as of December 2025, with gross debt of ₹425 crores and net debt of ₹350 crores.

  • Waste-to-energy plant at PCMC generated over 2 million green units in Q3 and 68 million units in 9M FY26.

Concerns

  • Q3 FY26 operating revenue was softer than expectations, primarily due to lower power sales, with the PCMC plant shut down for 82 days.

  • Operating margins for Q3 FY26 were impacted by higher employee costs, a normal occurrence in Q3 due to annual appraisal and incentive cycle.

  • Days sales outstanding (DSO) remained elevated at 114-115 days during the period, though subsequent collections brought it down to 96 days.

Key financials

2 periods

Headline

  • Operating Revenue
    ₹240 Cr
    YoY +9%
  • EBITDA
    ₹50 Cr
  • EBITDA Margin
    18.4%
  • PAT
    ₹15 Cr
  • Total Tonnage Handled
    1.42 million tons
    YoY +19%
  • Waste-to-Energy Generation
    2 million green units

9M

  • Operating Revenue
    ₹696 Cr
    YoY +12%
  • EBITDA
    ₹169 Cr
  • EBITDA Margin
    21.4%
  • PAT
    ₹55 Cr
  • Total Tonnage Handled
    4.01 million tons
    YoY +12%
  • Waste-to-Energy Generation
    68 million green units

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

Share of Revenue
₹241 Cr Total
  • Collection and Transportation ₹175 Cr 72.6%
  • Processing ₹66 Cr 27.4%

Order book

high confidence

Total value

₹1,330 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹1,330 Cr

Execution

over a 7-year tenure

Composition

  • Collection and Transportation (BMC) (contract type) ₹1,330 Cr 100%
enhancing long-term revenue visibility and providing annuity-like cash flow while offering operating leverage through fleet optimization and route rationalization.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹600 Cr debt/equity ratio of around 75-25
    • Andhra WTE projects (Kadapa and Kurnool) ₹600 Cr
    Total project capex is expected to be around Rs.600 crores to Rs.650 crores with debt/equity ratio of around 75-25.
  • Debt Gross ₹425 Cr · Net ₹350 Cr · 0.4× EBITDA Cost 9.1%
    As of December 2025, the group's gross debt stands at approximately Rs.425 crores, with cash and bank balance of around Rs.75 crores, resulting in a net debt of approximately Rs.350 crores. This indicates a net debt to equity of 0.4x. The group's weighted average cost of debt is approximately 9.1%.
  • M&A AG Enviro Infrastructure Projects Private Limited Merger · Closed

    consolidation streamlines operations, enhance organizational efficiency, optimizes cash flow and strengthen the balance sheet, enabling more effective capital allocations towards growth and creating long-term shareholder value.

    Additionally, I would like to highlight that the company successfully completed the merger of AG Enviro Infrastructure Projects Private Limited with Antony Waste Handling Cell Limited effective from December 31, 2025, following NCLT approval.
  • Liquidity Cash ₹75 Cr
    cash and bank balance of around Rs.75 crores

Guidance & targets

Revenue Growth

  • Revenue CAGR Revenue Growth · long-term · High confidence 20%
    This robust platform supports our revenue growth target of 20% CAGR.

    — Mahendra Ananthula

  • Revenue Growth (Next Year) Revenue Growth · next year · High confidence 15% to 18%
    The revenue growth for the next year based on the Atkoli and maybe incremental capex should be in the range of 15% to 18% for us.

    — N. G. Subramanian

Profitability

  • EBITDA Margin Profitability · going forward · High confidence 20% to 23%
    we anticipate an improved margin profile of around 20% to 23% going forward as well.

    — Mahendra Ananthula

  • EBITDA Margin Threshold Profitability · ongoing · High confidence 22% to 23%
    So we try to keep that EBITDA as a threshold between 22% to 23%.

    — N. G. Subramanian

Project Timeline

  • Andhra WTE Projects Revenue Generation Start Project Timeline · next 20 years · High confidence FY29 onwards
    the projects are expected to commence revenue generation from FY '29 onwards for the next 20 years.

    — Mahendra Ananthula

Revenue

  • Thane Project Annual Revenue Revenue · per annum · High confidence ₹18-20 crores
    The quantum is about one second, let me just calculate. It's about Rs.18 crores to Rs.20 crores per annum.

    — Mahendra Ananthula

  • Total Revenue (Next Year) Revenue · next year · Medium confidence ₹1,200 crores
    Okay. So that means this year, we will end up roughly about Rs.1,000 crores. So next year, we should be ending roughly Rs.1,200 crores. Am I right?

    — Nitesh Kavanthkar

  • AP Project Commercial Operation Annual Revenue Revenue · first couple of years post FY29 · High confidence ₹90-140 crores initially, scaling to ₹130-140 crores
    So post the AP project commercial operation, we expect close to around Rs.90 crores to Rs.140 crores of annual revenue to start in the first couple of years, and that will scale up to around Rs.130 crores to Rs. 140-odd crores going forward.

    — N. G. Subramanian

Debt

  • Net Debt to Equity Debt · next couple of years · Medium confidence 1x to 1.2x
    With the planned capital expansions at both Atkoli and the AP project, we would, in the next couple of years, be around 1x to 1.2x our equity.

    — N. G. Subramanian

  • Blended Cost of Interest Debt · gradually · Medium confidence below 9%
    Our target is to bring it below 9% gradually.

    — N. G. Subramanian

Business Contribution

  • C&D Business Contribution to Revenue Business Contribution · next financial year · High confidence 10%

    Previously 5% → 10%

    As of now, the contribution of C&D business is 5%. We expect this to at least double in the next financial year.

    — Mahendra Ananthula

What to watch in Q4 FY26

Thane Project Commissioning

next 6-8 months
Current Under construction
Target Commercial operations by Dec 2026

Why it matters

Marks the start of revenue generation from a new asset-light project.

For the Thane project, the construction capex is fully paid by the client. We expect the entire project to be completed in 6 to 8 months and realize the revenue in by, let's say, December of 2026.

Risks & concerns

  • Operating Margin Compression

    medium

    Q3 operating margins impacted by higher employee costs due to annual appraisal and incentive cycle.

    Management acknowledged

  • Elevated Days Sales Outstanding (DSO)

    medium

    DSO remained elevated at 114-115 days, though subsequent collections improved it to 96 days.

    Management acknowledged

  • Municipal Payment Delays

    medium

    Municipalities are 'slightly tough pay masters,' requiring caution in growth and client selection.

    Management acknowledged

Q&A highlights

7 direct
PCMC Tipping Fees Escalation Direct
Yes. So the number -- you're right, was Rs.505 as the tipping fees. With escalation, our current tipping fee is about Rs.656 per ton, which will get escalated every year. There was a cascading effect of 3 to 4 years cumulatively, so that's why the first escalation was at a higher rate. But going forward, anything between 3% to 5% is a fair assumption.

Clarifies the impact of tariff escalation on a key project's revenue, indicating future growth.

Asked by Ronak Shah

Thane Project Annual Revenue and Margin Direct
For the Thane project, the construction capex is fully paid by the client. We expect the entire project to be completed in 6 to 8 months and realize the revenue in by, let's say, December of 2026. And then thereafter, the O&M will start for 10 years... The quantum is about one second, let me just calculate. It's about Rs.18 crores to Rs.20 crores per annum.

Provides specific revenue guidance for a new project and clarifies the capex funding model, indicating asset-light growth.

Asked by Ronak Shah

Targeted Net Debt to Equity and Cost of Debt Direct
So currently, we are around 0.4x on the net debt to equity. With the planned capital expansions at both Atkoli and the AP project, we would, in the next couple of years, be around 1x to 1.2x our equity... The blended interest rate would be around 9.1% to 9.5% for us over the next couple of years. Our target is to bring it below 9% gradually.

Outlines the company's capital structure targets and cost of debt management, crucial for assessing financial health and future funding.

Asked by Amit Agicha

PCMC Electricity Revenue Normalization Direct
So the WTE plant when it normally operates, we would have generated close to 9.25 million units. That's assuming 85% PLF. So that would be the kind of generation that we have done, translates to approximately around Rs.13 crores to Rs.14-odd crores of quarterly revenue.

Explains the reason for softer Q3 revenue (plant shutdown) and provides a baseline for normalized power sales, helping investors model future performance.

Asked by Neerav Dalal

TMC Order Revenue Recognition Direct
It won't be part of our project revenue. This would be similar to the bridge financing that we need, build the plant, transfer the assets. So it will be a lump sum revenue that we'll get as reimbursement of expenses incurred. It will not be part of the project revenue.

Clarifies the accounting treatment for the Thane project, indicating it's a reimbursement model rather than a traditional project revenue stream.

Asked by Neerav Dalal

New WTE Project Opportunities Direct
I mean, as we speak, there is one live tender in the eastern part of the country and a few more on the drawing board stage. We are expecting a few more tenders in South India, especially Tamil Nadu in the next 2 quarters after the elections in Tamil Nadu.

Provides insight into the company's future growth pipeline and geographical focus for new waste-to-energy projects.

Asked by Neerav Dalal

Impact of BMC Elections on Project Execution Direct
Collection and Transportation contracts are already bid out, and they already have been awarded. So, with the new standing committee and other general body coming in, we expect decision-making to be faster and execution should be smoother.

Addresses potential political risks and suggests an improved operational environment for existing and future projects in Mumbai.

Asked by Neerav Dalal

Dividend Strategy Post-Merger Partial
The Board would be taking a call on that and we'll keep you updated on the same.

Indicates that a dividend policy is under active consideration post-merger, which is a positive signal for shareholder returns.

Asked by Shivam Parakh

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Antony Waste Handling Cell Limited reported a steady Q3 FY26, with operating revenue growing 9% year-on-year to ₹240 crores. For the nine-month period, revenue reached ₹696 crores, up 12% YoY. Total tonnage handled increased by 19% YoY to 1.42 million tons in Q3, and 12% YoY to 4.01 million tons for 9M FY26. The Collection and Transportation segment grew 7% YoY to ₹175 crores, while the Processing segment grew 12% YoY to ₹66 crores.

Strategic Project Wins and Expansion

The company secured two large Collection and Transportation contracts from BMC, adding approximately ₹1,330 crores in revenue potential over a seven-year tenure. Additionally, a 10-year DBOT concession was secured from Thane Municipal Corporation for a 600-800 tons per day preprocessing and stabilization facility, backed by a fully reimbursable capital outlay of ₹67 crores. Two waste-to-energy projects in Andhra Pradesh, with a combined capex of ₹600-650 crores, are expected to commence revenue generation from FY29 onwards for 20 years.

Financial Performance and Margin Dynamics

Q3 FY26 EBITDA stood at ₹50 crores, with an 18.4% margin, while 9M FY26 EBITDA was ₹169 crores, at a 21.4% margin. Operating margins in Q3 were impacted by higher employee costs due to annual appraisals and incentive cycles, a normal occurrence in Q3. PAT for Q3 and 9M FY26 was ₹15 crores and ₹55 crores, respectively, with Q3 revenue being softer than expected due to lower power sales.

Capital Structure and Debt Management

As of December 2025, gross debt was approximately ₹425 crores, with cash and bank balance of ₹75 crores, resulting in a net debt of ₹350 crores. This indicates a healthy net debt to equity ratio of 0.4x. The group's weighted average cost of debt was approximately 9.1%. Management targets a net debt to equity of 1x-1.2x in the next couple of years and aims to bring the blended cost of interest below 9% gradually.

Outlook and Growth Drivers

The company maintains a long-term revenue growth target of 20% CAGR and anticipates an improved EBITDA margin profile of 20-23% going forward. Management expects next year's revenue to grow 15-18%, reaching roughly ₹1,200 crores, building on the current year's estimated ₹1,000 crores. The Construction & Demolition business, currently contributing 5% to revenue, is expected to double its contribution in the next financial year.

Waste-to-Energy and Sustainability Initiatives

The PCMC waste-to-energy plant generated over 2 million green units in Q3 and more than 68 million units in 9M FY26, contributing to avoided CO2 equivalent emissions. The plant was shut for 82 days in Q3 for certain technical modifications but is now fully operational. The company continues its resource recovery efforts, selling 37,840 tons of refuse-derived fuel and 4,359 tons of compost in Q3.

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