Antony Waste Handling Cell Limited — Q4 FY26 earnings call

Call held 1 Jun 2026

Management summary

Antony Waste Handling Cell Limited reported a strong Q4 FY26 with operating revenue up 14% YoY to ₹254 crores and adjusted PAT growing 67% YoY. Full year FY26 operating revenue was ₹920 crores, up 9%, with PAT up 20%. The company achieved a milestone of crossing ₹1,000 crores in core operational revenue and boasts a record order book of ₹18,000 crores, supporting a 15-20% revenue CAGR guidance for the next five years, despite some operational challenges in the C&D segment and WTE plant PLF.

Highlights

  • FY26 operating revenue reached ₹920 crores, up 9% YoY.

  • Q4 operating revenue grew 14% YoY to ₹254 crores.

  • Adjusted Q4 PAT increased by 67% YoY, and full year PAT rose by 20%.

  • Order book at an all-time high of ₹18,000 crores provides exceptional revenue visibility.

  • Board recommended a maiden dividend of ₹0.50 per equity share, reflecting confidence in financial position.

Concerns

  • WTE plant operated at a lower PLF of 56% for FY26 due to 90 days of planned and reparative shutdown.

  • C&D business revenue was lower than anticipated for the year, though volumes picked up towards the end of Q4.

  • EBITDA margins held at ~22% but faced slight softness due to C&D volumes and additional vehicle deployment costs.

Key financials

3 periods

Headline

  • Core Operational Revenue (incl. project revenue)
    ₹1,000 Cr
  • EBITDA Margin
    22%
  • Full Year PAT
    ₹92 Cr
    YoY +20%
  • Adjusted Q4 PAT Growth
    67%
  • Gross Debt
    ₹426 Cr
  • Net Debt
    ₹302 Cr
  • Net Debt to Equity
    0.3×
  • Cost of Debt
    9.9%
  • DSOs
    108 days

Q4

  • Operating Revenue
    ₹254 Cr
    YoY +14%
  • PAT
    ₹37 Cr

FY26

  • Operating Revenue
    ₹920 Cr
    YoY +9%

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

  • Collection & Transportation (C&T)
    ₹646 Cr FY26 Revenue11% FY26 Revenue Growth₹160 Cr Q4 Revenue14% Q4 Revenue Growth2.12 million tons FY26 Volumes9% FY26 Volumes Growth
  • Processing
    ₹274 Cr FY26 Revenue5% FY26 Revenue Growth₹94 Cr Q4 Revenue15% Q4 Revenue Growth3.6 million tons FY26 Volumes19% FY26 Volumes Growth1.15 million tons Q4 Volumes32% Q4 Volumes Growth
  • Overall MSW Managed
    5.69 million tons FY26 Total MSW Managed15% FY26 Total MSW Managed Growth1.67 million tons Q4 Total MSW Handle23% Q4 Total MSW Handle Growth
  • Waste-to-Energy (WTE)
    69.3 million units PCMC WTE Green Power (FY26)56% PCMC WTE PLF (FY26)86% PCMC WTE PLF (Post-maintenance)
  • RDF Sales
    1,77,000 tons Annual RDF Sales20% Annual RDF Sales Growth

Order book

high confidence

Total value

₹18,000 Cr

as of 2026-03-31 quantified

Execution

40% of revenue executed in next 5-7 years (C&T), balance over next 15 years

Composition

Mix 2 segments
  • Processing 60%
  • C&T 40%

Share of order book by segment

The record order book provides exceptional revenue visibility and underpins confidence in sustained compounding growth.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹750 Cr
    • Atkoli processing
    • 2 WTE projects in Andhra Pradesh
    • BMC 2 C&T contracts
    So Rs.18,000 crores revenue split will be broadly 60% would be processing the balance 40% would be C&T businesses for us. That revenue split at that end. The incremental capex would be the capex related to my processing contracts largely. So that's around Rs.750-odd crores of capex that I would need to invest to achieve this group because bulk of the C&T operations, excluding the BMC's 2 contracts have already been funded and the revenues is already coming in. So, the incremental capex is mainly for the new projects, which is the Atkoli processing, the 2 WTE projects at Andhra Pradesh and the BMC 2 C&T contracts.
  • Debt Gross ₹426 Cr · Net ₹302 Cr Cost 9.9%
    • Repayment Total financing impact of debt repayment during the year ₹93 Cr
    On the balance sheet front, as of March 2026, the group's gross debt stands at approximately Rs.426 crores. Cash and bank balances is around Rs.123 crores, resulting in a net debt of approximately Rs.302 crores. Our net debt to equity stands at 0.3x, and the weighted average cost of debt is around 9.9%.
  • Dividend ₹0.5/share (maiden)
    In recognition of this milestone, the Board has recommended a maiden dividend of Rs.0.50 per equity share. That is 10% of the face value of Rs.5.
  • Liquidity Cash ₹123 Cr
    Cash and bank balances is around Rs.123 crores

Guidance & targets

Revenue

  • Revenue CAGR Revenue · next 5 years · High confidence 15-20%
    We remain confident of delivering 15% to 20% revenue CAGR over the next 5 years, backed by a record Rs.18,000 crores order book, 2 large-scale WTE projects in Andhra Pradesh and expanding EPR platform and India secured tailwind in urban-based infrastructure, all while deepening our sustainability impact and creating long-term value for all our stakeholders.

    — N. G. Subramanian

  • C&D business revenue Revenue · current year · Medium confidence ₹18-20 crores
    So, it will be not be wrong to assume that in the current year, we would be doing about Rs.18 crores to Rs.20 crores on the C&D business.

    — N. G. Subramanian

Margin

  • EBITDA Margin Margin · long-term · High confidence 20-22%
    So that kind of helps us maintain this margin profile of 20% to 22% for us.

    — N. G. Subramanian

Tax Rate

  • Effective Tax Rate Tax Rate · group companies · High confidence 25%
    I think 25% is our stated assumption of effective tax rate for the group companies.

    — N. G. Subramanian

Revenue Contribution

  • EPR Credits contribution to PCMC WTE revenue Revenue Contribution · Medium confidence 10%
    But once the pattern is said and we are able to quantify that, that will add close to 10% of our PCMC WTE's revenue.

    — N. G. Subramanian

What to watch in Q1 FY27

C&D Business Volume Uptick

next quarter
Current Averaging 480-520 tons/day (Feb-Mar 2026)
Target Continued increase in volumes

Why it matters

Indicates recovery and growth in a previously underperforming segment, contributing to overall revenue diversification.

Yes. So, on the construction and demolition, I think it contributed to around Rs.9 crores of our revenue this year. It's been lower than what we had anticipated. We expect an uptick in the current year, from February onwards, the volumes have jumped. We are averaging around 480 to 520 tons per day as compared to 280 to 300 tons in the previous 8 months. So that has been a significant uptick at that end.

Risks & concerns

  • Delay in realization of contractual payments

    medium

    Though there might be a delay in realizing cash flows, the liability is accepted and acknowledged by clients as per tender conditions and is contractual.

    Management acknowledged

  • Lower PLF for WTE plant due to shutdowns

    medium

    The PCMC WTE facility had approximately 90 days of planned and reparative shutdown, resulting in a lower PLF of 56% for FY26, though it's now consistently at 86%.

    Management acknowledged

  • Underperformance of C&D business

    medium

    C&D business revenue was lower than anticipated for the year, though management expects an uptick from February onwards.

    Management acknowledged

Q&A highlights

8 direct
Top line performance, working capital, debt, and margin pressure from rising costs Direct
So on the ability to raise debt and working capital for our upcoming projects, our net debt to equity today, is just 0.3x. So that gives us enough firepower to borrow more for upcoming projects, which have assured revenue streamlines and also are backed by long-term contracts. Both the WTE projects come with a firm commitment from JFE, our technology vendor, and comes at a fixed term cost contract for us. So thereby the cost overrun element has been captured well and time over in is also well within the nature of the business in this case.

Analyst questioned the sustainability of growth and margins given rising costs and future project funding, to which management affirmed strong financial position and contractual safeguards.

Asked by Ronak Shah

Status of WTE plant escalations and Mumbai WTE project Direct
So, the waste-to-energy project, which is ongoing, which is the waste-to-energy at Pimpri-Chinchwad, the escalation has already been completed, and we already got an escalation due for FY25, FY26. The next round of escalation is due from March 2026 onwards for which we have already submitted the document and that will be approved in the upcoming meeting of the client. So that is coming to us every quarter.

Clarified the status of critical tariff escalations for existing WTE projects and provided an update on the potential for a new WTE project in Mumbai.

Asked by Ronak Shah

Discrepancy between volume growth and revenue growth Direct
Yes. So if you look at the volumes jump, that's mainly coming from the CIDCO Biomining Project, which is a fixed-term contract. So, the entire revenue jump is not commensurate to the volumes up as the growth in revenue was mainly because of the CIDCO Biomining. But if you look at the non-CIDCO Biomining revenue zone, that has been up by around 8%, which is what the underlying revenue growth is.

Addressed a key investor concern about the quality of revenue growth relative to volume growth, attributing it to a fixed-term contract.

Asked by Ketan Chheda

Value and impact of EPR credit monetization Direct
So, we recognized close to Rs.2.2 crores of the EPR credits that was eligible for us earned in FY25 that come out. So it's not a significant amount today. But once the pattern is said and we are able to quantify that, that will add close to 10% of our PCMC WTE's revenue.

Provided specific financial details on a new revenue stream (EPR credits) and its potential future contribution to WTE operations.

Asked by Ketan Chheda

Reasons for long-term debt reduction Direct
Yes, yes. So normally the pay-down comes from our operations only. So, if you look at the cash flow from operations before working capital, we earned around Rs.220-odd crores, and we used part of it to repay our debt during the year. So, the total financing impact was Rs.93 crores. So, we have a very aggressive policy in paying down the debt so that we can then have a healthy cash cushion for future upcoming projects.

Clarified that debt reduction was driven by strong operational cash flows, indicating financial discipline and preparing for future growth.

Asked by Ketan Chheda

Contribution of C&D business and plans for revenue diversification Direct
All right. So going for the C&T revenue for FY26 was up 11% at Rs.646 crores and for processing, it's up 5% at Rs.274 crores. For Q4, the C&T was Rs.160 crores, processing was Rs.94 crores. Going forward, the non-municipal revenue streams for us is strongly skewed towards RDF sales, compost getting into recyclables and EPR. That's the revenue stream that we are seeing.

Provided a detailed breakdown of segment performance and outlined strategies for diversifying revenue streams beyond traditional municipal contracts.

Asked by Arjun Agarwal

Split of the ₹18,000 crores order book and associated capex requirements Direct
So Rs.18,000 crores revenue split will be broadly 60% would be processing the balance 40% would be C&T businesses for us. That revenue split at that end. The incremental capex would be the capex related to my processing contracts largely. So that's around Rs.750-odd crores of capex that I would need to invest to achieve this group because bulk of the C&T operations, excluding the BMC's 2 contracts have already been funded and the revenues is already coming in. So, the incremental capex is mainly for the new projects, which is the Atkoli processing, the 2 WTE projects at Andhra Pradesh and the BMC 2 C&T contracts.

Provided crucial details on the composition of the large order book and the capital expenditure needed to execute it, giving visibility into future investments.

Asked by Neerav Dalal

Reasons for increased employee/other expenses and impact on EBITDA margins Direct
Prashant, so the 19% and 20% increase in labor and other expenses, the head count has increased at the labor count and also because of normal wage inflation that has occurred over our system and the minimum wage changes that happened. So that has led to a significant increase in the wage bill a bit on a year-on-year basis.

Explained the drivers behind cost increases and their impact on profitability, offering transparency into operational challenges.

Asked by Prashant Singh

3 min read 8 chapters

Detailed narrative

Q4 & Full Year FY26 Financial Performance

Antony Waste Handling Cell Limited reported a robust Q4 FY26 with operating revenue reaching ₹254 crores, marking a 14% year-on-year increase. For the full fiscal year 2026, operating revenue stood at ₹920 crores, up 9% from the previous year. The company's core operational revenue, including project revenue, crossed the significant milestone of ₹1,000 crores. EBITDA margins were maintained at approximately 22% for both the quarter and the full year, aligning with stated guidance. Reported Q4 PAT was ₹37 crores, and full year PAT was ₹92 crores, with adjusted Q4 PAT showing a strong 67% year-on-year growth and full year PAT increasing by 20%.

Operational Highlights and Volume Growth

The company experienced broad-based volume growth across its platform in FY26. Collection & Transportation (C&T) volumes grew 9% year-on-year to 2.12 million tons, while processing volumes expanded 19% to 3.6 million tons. Total MSW managed for the year rose by 15% to 5.69 million tons. In Q4, processing volumes were particularly strong, up 32% to 1.15 million tons, driven by improved utilization at biomining and MRF facilities. The PCMC waste-to-energy facility delivered 69.3 million units of green power in FY26, and annual RDF sales reached a record 177,000 tons, up 20% year-on-year.

Strategic Initiatives and Milestones

FY26 marked Antony Waste's 25th anniversary, a period of significant transformation in India's waste management landscape. In recognition of this milestone, the Board recommended a maiden dividend of ₹0.50 per equity share. The company made deliberate, high-quality additions to its platform, including entering the EPR business and monetizing nearly 20% of allotted EPR credits. Key project wins included two waste-to-energy projects in Andhra Pradesh, two new collection and transportation contracts in Mumbai, and a preprocessing solid waste facility in Thane.

Financial Position and Capital Structure

As of March 2026, the company's gross debt stood at approximately ₹426 crores, with cash and bank balances of around ₹123 crores, resulting in a net debt of ₹302 crores. The net debt to equity ratio was healthy at 0.3x, and the weighted average cost of debt was approximately 9.9%. The company utilized ₹93 crores from its operating cash flow of ₹220 crores to repay debt during the year, demonstrating an aggressive policy to maintain a healthy cash cushion for future projects.

Order Book and Future Growth Visibility

The order book reached an all-time high of ₹18,000 crores as of March 2026, providing exceptional revenue visibility. This order book is broadly split with 60% in processing and 40% in C&T businesses. Management expressed confidence in delivering a 15-20% revenue CAGR over the next five years, backed by this record order book and upcoming projects. The execution timeline for the order book is spread over 5-7 years for C&T operations and up to 15 years for the remaining balance.

Legal & Regulatory Developments

A significant development in Q1 FY27 was the Hon' Supreme Court's dismissal of the Bhiwandi Nizampur City Municipal Corporation's Special Leave Petition. This ruling directed the corporation to disburse a settlement amount of ₹15 crores within three months, along with 9% interest on any delay. This favorable outcome reinforces the company's track record of contractual compliances and provides added confidence in resolving other arbitration matters.

Cost Management and Margin Stability

Despite rising fuel and labor costs, the company maintained its EBITDA margins at around 22% for both Q4 and the full year. This was attributed to disciplined cost management and contractual tariff escalation clauses built into 100% of its projects. While there were some increases in employee and other expenses due to headcount growth, wage inflation, and higher RDF transportation costs, the company's ability to pass on these costs helped preserve margin profiles.

C&D Business and Revenue Diversification

The Construction & Demolition (C&D) business contributed around ₹9 crores to revenue in FY26, which was lower than anticipated. However, volumes saw an uptick from February onwards, averaging 480-520 tons per day compared to 280-300 tons in previous months. The company is actively diversifying its revenue streams beyond municipal solid waste, focusing on RDF sales, compost, recyclables, EPR, and a new B2B segment called Click2Clean for pest control and housekeeping services.

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