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.