Effwa Infra — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Effwa Infra reported a strong H1 FY26, with revenue growing 48.23% YoY to INR 90.21 crores and PAT increasing 112.93% YoY to INR 10.14 crores. EBITDA margin expanded significantly to 17.1%. The company maintains a robust order book of INR 450 crores and a pipeline of INR 2,600 crores, targeting INR 700 crores in confirmed orders by March 2026. Management is focused on ZLD solutions, international expansion, and increasing O&M revenue, while also developing a patented Zero Material Discharge technology.

Highlights

  • Revenue from operations for H1 FY26 was INR 90.21 crores, reflecting a 48.23% year-on-year growth.

  • EBITDA for H1 FY26 stood at INR 15.42 crores, marking a 111.30% year-on-year increase, with EBITDA margin improving by 510 basis points to 17.1%.

  • Net profit after tax for H1 FY26 was INR 10.14 crores, an increase of 112.93% year-on-year, and PAT margin expanded by 341 basis points to 11.24%.

  • The current order book is over INR 450 crores, complemented by a healthy pipeline of more than INR 2,600 crores, with a 20-25% success rate.

  • Secured a significant EPC project valued at over INR 150 crores from Hutni Projekt FM (India) Private Limited, which includes design, supply, installation, and commissioning of BOD treatment, raw water treatment, and a complete zero-liquid discharge system for SAIL.

Key financials

  1. Revenue from Operations ₹90.21 Cr +48.2%YoY
  2. EBITDA ₹15.42 Cr +111.3%YoY
  3. EBITDA Margin 17.1%
  4. PAT ₹10.14 Cr +112.9%YoY
  5. PAT Margin 11.2%

What they filed

Q4 FY26: revenue up 45.5%, net profit up 38.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue33 112 61 124 90 +173%163 +46%
EBITDA3 17 7 23 15 +400%27 +59%
Net profit1 13 5 15 10 +900%18 +38%
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

  • Effluent Treatment Plants with Recycling
    6.8% Revenue Contribution
  • Zero-Liquid Discharge Systems
    90.6% Revenue Contribution
  • Sewage Treatment and Reclamation Projects
    1.5% Revenue Contribution
  • Operation & Maintenance
    1.1% Revenue Contribution
  • Domestic Projects
    69% Revenue Contribution
  • Exports
    31% Revenue Contribution

Order book

high confidence

Total value

₹450 Cr

as of 2025-11-13 quantified

Inflow this quarter

₹160 Cr

Execution

18 months for commissioning of Hutni project

Pipeline

other

Healthy pipeline of more than INR 2,600 crores, with a 20-25% success rate expected.

Management expects to reach INR 700 crores in confirmed order book by March 2026, driven by new project wins and a strong bidding pipeline.

Source: Prepared remarks

Guidance & targets

Revenue

  • Revenue Growth Revenue · next 2 years · High confidence 40% plus
    So, for right now, we are looking for around, on an average, 40% plus growth year-on-year.

    — Bhavin Gor

  • O&M Revenue Contribution Revenue · coming couple of years · Medium confidence 3% to 4%
    3% to 4%, sir, on the top line.

    — Bhavin Gor

Profitability

  • EBITDA Margin Improvement Profitability · in a year · High confidence 1%
    Yes. There will be an improvement of around 1% and so on EBITDA per part.

    — Bhavin Gor

  • EBITDA Margin Profitability · expected · High confidence 16% to 17%
    So, you are saying basically 16% to 17% is what we can expect.

    — Bhavin Gor

Order Book

  • Confirmed Order Book Order Book · by March · High confidence INR 700 crores
    So, by March, we are expecting INR 700 crore confirm order book in hand.

    — Subhash Kamal

New Projects

  • First Zero Material Discharge Project New Projects · next 6 to 8 months · Medium confidence secured
    we hope in the next 6 to 8 months that first project we should get.

    — Subhash Kamal

  • Coke Oven Related Projects New Projects · by December · Medium confidence 2 more deals
    Well, I think there are 2 and we hope by December, before December, we should be inking a deal.

    — Subhash Kamal

What to watch in Q3 FY26

Confirmed Order Book

by March 2026
Current INR 450 crores
Target INR 700 crores

Why it matters

Achievement of this target will demonstrate strong execution and future revenue visibility.

So, by March, we are expecting INR 700 crore confirm order book in hand.

Risks & concerns

  • Highly Competitive Environment

    medium

    The RHP mentioned a highly competitive environment and the risk of not meeting eligibility criteria for future projects.

    So, in the RHP, it was mentioned that we as a company operate in a very highly competitive environment. And if we are unable to meet the eligibility criteria and industry expectation in comparison with our competitors, we may not be successful in qualifying to bid for various future projects.

    Analyst downplayed

  • Manpower Shortage for O&M

    low

    Initial challenges with qualified manpower for O&M, but now addressed by focusing on quality and integrating O&M into EPC contracts.

    You know, as far as earlier days of operation and maintenance was limited to supplying the manpower, not the quality manpower. So, when you have got sophisticated systems to operate, that is ZLD, right? These plants are almost like an industry, running industry, right? So, you need qualified people, qualified electrical engineers, you need mechanical, you need automation. These are all PLC-based systems, right? So, initially there was a challenge.

    Analyst acknowledged

Q&A highlights

7 direct
Trade Receivables Breakdown Direct
So, INR 95 crores comprise of some part of retention and some is regular receivables. So, almost 30% of our receivables that is around INR 27 to INR 28 crores is retention part and the rest is receivable within the 90 days' time.

Clarifies the composition and aging of the company's trade receivables, indicating a healthy collection cycle for the majority.

Asked by Siddhant Chauhan

Pipeline Conversion Rate Direct
This INR 2,600 crores projects, is the bidding in pipeline, as we mentioned. Now, those projects are under various levels, in bidding stages. Okay. So, generally our success rate is 20%-25%.

Provides a quantitative estimate of the conversion likelihood for the substantial project pipeline, aiding in future revenue projections.

Asked by Siddhant Chauhan

Overseas Project Margins Partial
See, we have enjoyed good profit also in some projects, but widely as we are putting a lot of thrust. So, now we know everywhere you have, what kind of competition is there, right? But it's still you can have a little more margin. Financial is more attractive for sure. Because of the increase in the dollar rate.

Suggests that while competitive, international projects offer potentially better financial attractiveness due to currency dynamics, contributing to overall margin improvement.

Asked by Darshil Jhaveri

Capacity Constraints for Growth Direct
No, in terms of capacity, see, we are EPC company. So, we are an asset-light company, basically. Okay. So, there is no capacity... Yes, working capital definitely, but bankers are ready to extend their cooperation. Okay. So, till reaching INR 500 crore plus top line, banks are ready to fund us. So, that is not a concern right now.

Reassures investors that the company's asset-light EPC model and bank support for working capital mitigate potential capacity or funding constraints for achieving growth targets.

Asked by Darshil Jhaveri

Hutni Contract Revenue Recognition Direct
No, it's back-to-back, like whatever terms Hutni has with the steel authority are the same terms of ours and they are milestone based... No, It's every month billing, monthly billing.

Clarifies that revenue from the significant Hutni contract will be recognized on a milestone and monthly billing basis, ensuring steady revenue flow rather than a lump sum at project completion.

Asked by Karthi

Zero Material Discharge (ZMD) Commercialization and Margins Direct
Now, papers are with our attorney. We have had several rounds of discussions and some additional input they needed. So, it's in advanced stage of filing... By '27, we are planning to do... I guess we will try to use what efforts we have put in. Naturally, we will encash it.

Highlights the progress towards commercializing the innovative ZMD technology by FY27 and management's expectation to monetize this effort through improved margins.

Asked by Shaurya Punyani

Order Book Growth Trajectory Direct
So, order book, we have already bidded last time also, and last call also we mentioned that more than INR 2,000 crore orders were already bidded. Out of which INR 150 crore order just we announced last week. Another INR 400, INR 500 crore orders are on the final stage where we are expecting to get it in a month's time. So, by March, we are expecting INR 700 crore confirm order book in hand.

Provides a clear roadmap for order book growth, detailing recent wins and near-term expectations, addressing analyst concerns about the current order book size.

Asked by Sivaramakrishna Kodali

Zero Material Discharge (ZMD) Market and Differentiation Direct
See, when you apply for patent, the process has been going on for more than 6 months internally... By part recovery, there are few in China. But the process that they adopt, your CapEx increases, and the output is not really zero. So, I am aware in one of the leading client, he's our client also, some companies approached, but they could not afford to implement. That process was so big, so complex. So, what we have done is a simple process. And if I have to set up a new project of zero material discharge, will cost you the same, if not less, what costs a ZLD system. Right? So, our whole process is different.

Explains the competitive advantage and market potential of their patented ZMD technology, emphasizing its simplicity, cost-effectiveness, and superior output compared to existing solutions.

Asked by Sivaramakrishna Kodali

2 min read 5 chapters

Detailed narrative

Strong H1 FY26 Financial Performance

Effwa Infra delivered a robust financial performance in H1 FY26, with revenue from operations growing 48.23% year-on-year to INR 90.21 crores. This growth was driven by steady execution across industrial ZLD and effluent recycling projects. EBITDA saw an impressive 111.30% year-on-year increase, reaching INR 15.42 crores, with the EBITDA margin expanding by 510 basis points to 17.1%. Net profit after tax also surged by 112.93% year-on-year to INR 10.14 crores, and the PAT margin improved by 341 basis points to 11.24%.

Robust Order Book and Pipeline Visibility

The company's current order book stands at over INR 450 crores, providing strong revenue visibility. This is further bolstered by a healthy pipeline of more than INR 2,600 crores, for which management anticipates a 20-25% success rate in converting bids into orders. A significant new EPC project valued at over INR 150 crores was secured from Hutni Projekt FM (India) Private Limited for SAIL, involving comprehensive water treatment and zero-liquid discharge systems. Management expects to achieve a confirmed order book of INR 700 crores by March 2026, with an additional two coke oven related projects targeted by December.

Strategic Focus on ZLD and O&M Segments

Zero-liquid discharge (ZLD) systems remain a core strength, contributing approximately 90.60% of the company's revenue, reflecting strong demand from highly regulated and water-intensive industries. The operation and maintenance (O&M) segment, though smaller at 1.13% of revenue, is scaling up and is expected to contribute 3-4% to the top line in the coming years, providing stable, recurring revenue. Effluent treatment plants with recycling and sewage treatment projects contributed 6.78% and 1.48% of revenue, respectively.

Innovation in Zero Material Discharge (ZMD) Technology

Effwa Infra is in the advanced stages of filing a patent for a Zero Material Discharge (ZMD) technology, which aims to eliminate residue and convert waste into a product. This innovation is expected to address a significant pain point for industries by reducing operating costs associated with waste disposal. Management plans to commercialize this technology by FY27 and anticipates securing the first ZMD project within the next 6-8 months, leveraging its unique, simpler, and more cost-effective process compared to existing solutions.

International Expansion and Operational Efficiency

International business continued to gain traction, with exports contributing 31% of H1 revenues, primarily from the African region. The company is also exploring expansion opportunities in East Asia through collaborations. Operationally, Effwa has focused on enhancing execution efficiency through advanced engineering software, streamlined project monitoring, and continuous training, leading to faster delivery cycles and improved margin performance. The company's asset-light EPC model and strong banking relationships ensure working capital is not a constraint for growth up to INR 500 crores in top line.

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