Effwa Infra — Q4 FY26 earnings call

Call held 13 May 2026

Management summary

Effwa Infra & Research Limited reported a strong financial performance for FY26, with significant year-on-year growth in revenue, EBITDA, and PAT. The company maintains a robust order book of INR 750+ crores and a substantial pipeline of INR 2,600+ crores, primarily driven by ZLD-based solutions for public sector undertakings. Strategic investments include a new 10,000 sq ft office and continued focus on advanced ZMD technology, despite some delays in patent finalization and order book conversion.

Highlights

  • FY26 Revenue from operations of INR 253.3 crores, up 36.8% YoY.

  • FY26 EBITDA of INR 42.1 crores, up 40.3% YoY, with a 16.6% margin.

  • FY26 PAT of INR 28.6 crores, up 42.3%, with an 11.3% margin.

  • Current order book of INR 750+ crores and pipeline of INR 2,600+ crores provide strong revenue visibility.

  • Acquired new office premises of 10,000 sq ft for future expansion, with INR 19.8 crores already paid.

Concerns

  • Order book remained at INR 750 crores at FY26 end, despite previous expectations of reaching INR 1000 crores, due to delays in receiving written intimation for declared orders.

  • Some dispatches in H2 FY26 were delayed due to the war situation and labor supply issues, impacting execution velocity.

  • Patent for Zero Material Discharge (ZMD) technology is still in process, with commercial launch expected by July 2027, potentially delaying its market entry.

Key financials

2 periods

H2 FY26

  • Revenue from Operations
    ₹163.09 Cr
    YoY +31.2%
  • EBITDA
    ₹26.68 Cr
  • EBITDA Margin
    16.4%
  • PAT
    ₹18.47 Cr
  • PAT Margin
    11.3%

FY26

  • Revenue from Operations
    ₹253.3 Cr
    YoY +36.8%
  • EBITDA
    ₹42.1 Cr
    YoY +40.3%
  • PAT
    ₹28.6 Cr
    YoY +42.3%

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

  • Institutional Revenue Mix (H2 FY26)
    63.2% Public Sector Undertakings36.7% Private Sector10% Government Institutions
  • Geographical Revenue Mix (H2 FY26)
    97% Domestic3% Exports
  • Service Mix (H2 FY26)
    95.1% Effluent Treatment Plants with ZLD1.7% Effluent Treatment with Recycling3.2% Operation & Maintenance
  • Institutional Revenue Mix (FY26)
    61.1% Public Sector Undertakings38.4% Private Sector50% Government Institutions
  • Geographical Revenue Mix (FY26)
    87.2% Domestic12.8% Exports
  • Service Mix (FY26)
    92.4% Effluent Treatment Plants with ZLD4.6% Effluent Treatment with Recycling3% Operation & Maintenance

Order book

high confidence

Total value

₹750 Cr

as of 2026-03-31 quantified

Inflow this quarter

₹600 Cr

Execution

normally 12 months to 20 months, with largest projects extending up to 36 months

Composition

Mix 2 client types
  • Private Sector 66.7%
  • Public Sector 33.3%

Share of order book by client type

Pipeline

qualified rfp

pipeline of more than INR2,600 crores

The order book remains strong at INR 750 crores, with a significant pipeline, and management expects to reach INR 1000 crores soon with pending intimations.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • Acquisition of new office premises (10,000 sq ft) in Thane ₹19.8 Cr
    the company acquired new office premises measuring approximately 10,000 square feet in a location which is a prime location in Thane... capital work in progress of around INR20 crores, close to INR20 crores, INR19.8 crores. So, what is that related with? ... That is basically we have bought office, which is under construction. So, the INR19 crores is the amount, which we have already paid to the developer.
  • Debt Debt disclosed
    we have got sufficient bank limits from our bankers since our credibility from CRISIL has gone up. And looking at our financials, our banks has proposed a reduction in collateral also. So, we are sufficient enough with the fund-based limit plus non-funded limit to execute project plus project of around INR450 crores.
  • Liquidity Undrawn ₹235 Cr Total limit of INR 235 crores, with INR 62 crores as fund-based, is sufficient to execute projects up to INR 450 crores.
    With the present limit, we can do INR450 plus crores revenue. And we have around INR235 crores total limit, of which INR62 crores is fund-based, balance is non-fund based.

Guidance & targets

Revenue

  • Revenue Growth CAGR Revenue · next three to four years · Medium confidence 35-40%
    35% to 40% CAGR we are expecting to grow for next three to four years.

    — Bhavin Gor

  • Revenue Commissioned Revenue · FY27 · Medium confidence INR 350 crores plus
    We are anticipating around INR350 crores plus to commission in next coming financial year in this.

    — Bhavin Gor

Service Mix

  • O&M Revenue Share Service Mix · future projects · Medium confidence 3-5%
    And that is spread out to three to four years of any projects. So, we are expecting to 3% to 5% revenue should come from O&M.

    — Subhash Kamal

Technology

  • ZMD Patent Grant Technology · July 2027 · Medium confidence by July 2027
    July '27 we expect to launch it. We should have got the patent by then.

    — Subhash Kamal

  • ZMD Commercial Launch Technology · July 2027 · Medium confidence by July 2027
    So, we have planned to launch it commercially by July '27. So, we hope it should happen much before.

    — Subhash Kamal

Headcount

  • Employee Growth Headcount · next year · Medium confidence 10-15%
    That is around 10% to 15%.

    — Bhavin Gor

Corporate Action

  • SME to Main Board Migration Corporate Action · July 2027 · High confidence July 2027
    Once the time -- three years completed, we will be doing shifting to the main board in July '27.

    — Bhavin Gor

What to watch in Q1 FY27

Order Book Value

next 1-2 months
Current INR 750+ crores
Target INR 1000 crores

Why it matters

Achievement of the INR 1000 crore order book will demonstrate successful conversion of declared orders and enhance revenue visibility.

Manoj Shetty: Correct? Okay. Now, regarding the order book size, you are mentioning that as on January or February when you did the last call, you had order book of INR750 crores as on that day. Thereafter, whatever you have executed in last three months, that is January, February, March, plus whatever the new one have come, so all put together it is again it's that INR750 crores only and another INR250 crores you're expecting in another one or two months. Is that understanding is correct? Bhavin Gor: Yes, yes. We are expecting in two, three months that additional one. Manoj Shetty: So that it will become INR1,000 crores? Bhavin Gor: Yes.

Risks & concerns

  • Execution delays due to external factors

    medium

    Some dispatches in H2 FY26 were delayed due to the war situation and labor supply issues, impacting project execution.

    Management acknowledged

  • Geopolitical tensions impacting oil and gas projects

    low

    Management stated that no reduction or deferment of capex from oil industries is currently observed despite geopolitical tensions.

    Analyst downplayed

Q&A highlights

7 direct
Order Book Discrepancy Partial
Yes. This present order value is whatever was executed, so balance of that, and few orders are already in our favour declared, but still we have not got the written intimation, which will be intimated.

Analyst questioned the static order book value despite previous guidance, revealing delays in formalizing new orders.

Asked by Ravinderbir Singh

Zero Material Discharge (ZMD) Patent Progress Direct
July '27 we expect to launch it. We should have got the patent by then. However, with one of the client with some NDA, we are trying to implement.

Clarified the timeline for ZMD patent and commercial launch, indicating parallel efforts for implementation with a client.

Asked by Ravinderbir Singh

ZMD Project Margins Direct
This will definitely we'll be improving our margin, because this is the technology. ... First mover advantage. And first time, and which is going to save huge money for the industry.

Management confirmed ZMD technology is expected to significantly improve margins due to its innovative nature and cost-saving benefits for clients.

Asked by Ravinderbir Singh

Capital Work in Progress (CWIP) Direct
That is basically we have bought office, which is under construction. So, the INR19 crores is the amount, which we have already paid to the developer. Okay, the registration is already done on the name of Effwa, and the possession will be in December '27.

Explained the INR 19.8 crores CWIP as an advance payment for a new 10,000 sq ft office, indicating expansion plans.

Asked by Ravinderbir Singh

Difference between ZMD and ZLD Direct
Yes, at present what we are doing under ZLD is whole liquid is turned into water, and the residue is all unwanted stuff, which is a hazardous thing for disposal, which we are paying heavily, a client is paying heavily for safe disposal, okay? So, what we are going to do in our process, we'll have water and then we'll have several byproducts for reuse in different industries, either the self-industry, or you can have some other industry. So, you will not have anything dispose, so you will save lot of money in disposal cost and also in energy cost.

Provided a clear distinction between ZLD and ZMD, highlighting ZMD's superior environmental and economic benefits by eliminating waste disposal and creating byproducts.

Asked by Pritesh Chheda

Impact of Raw Material Inflation Direct
We have in most of the contract escalation clause. For almost all the contracts that we have are with the escalation clause. ... They are basically indices, RBI indices where metal comes, electrical components come separately. Diesel and petrol rate also affect that goes with the civil. So, we have for almost everything. And these are part of the contract.

Management assured that most contracts include escalation clauses, mitigating the risk of raw material inflation impacting margins.

Asked by Aditya

Entry into Municipal Business Direct
Because this business is not being dealt or controlled by municipalities. This is falling under industrial estates. They are not run by municipal authorities. So, we are dealing with agency like GIDC or MIDCs, number one. ... So why we are now interested is, because at one point, I'm getting the treated sewage from there I have to further treat and recycle it and supply to industrial estates.

Clarified that the company's entry into sewage projects is for industrial estates, not direct municipal contracts, addressing concerns about payment delays and project complexities.

Asked by Aditya

Funding for Future Growth Direct
No, we have got sufficient bank limits from our bankers since our credibility from CRISIL has gone up. And looking at our financials, our banks has proposed a reduction in collateral also. So, we are sufficient enough with the fund-based limit plus non-funded limit to execute project plus project of around INR450 crores.

Management confirmed sufficient existing bank limits to support growth up to INR 450 crores in revenue, reducing immediate concerns about external funding needs.

Asked by Manoj Shetty

2 min read 7 chapters

Detailed narrative

Strong Financial Performance in FY26

Effwa Infra & Research Limited delivered a robust financial performance for the fiscal year ended March 31, 2026. Revenue from operations grew by 36.8% year-on-year to INR 253.3 crores. EBITDA increased by 40.3% to INR 42.1 crores, resulting in an EBITDA margin of 16.6%. Net profit after tax (PAT) saw a significant rise of 42.3% to INR 28.6 crores, with a PAT margin of 11.3%.

Robust Order Book and Pipeline

The company's order book stands at a healthy INR 750 crores plus, providing strong revenue visibility. This is further bolstered by a substantial pipeline of over INR 2,600 crores, indicating future growth potential. Order inflow for the last year was approximately INR 600 crores. The execution timeline for projects typically ranges from 12 to 20 months, with larger projects extending up to 36 months.

Strategic Focus on Zero Material Discharge (ZMD) Technology

Effwa is at the forefront of environmental engineering, transitioning from pollution control to sustainable resource recovery with its Zero Material Discharge (ZMD) technology. The patent for ZMD is in an advanced stage, with commercial launch anticipated by July 2027. This technology is expected to significantly improve margins and offer a first-mover advantage, as it eliminates hazardous waste disposal and generates reusable byproducts, saving substantial costs for industries.

Operational Efficiencies and Working Capital Management

The company achieved stronger operational efficiencies through continuous monitoring, focused value engineering, and advanced engineering software. This, combined with efficient realization of receivables and stringent credit control measures, contributed to a healthy operating cash flow during FY26. Management noted that most contracts include escalation clauses, protecting margins from raw material inflation.

Expansion and Workforce Growth

In line with its long-term growth vision, Effwa acquired new office premises measuring approximately 10,000 square feet in Thane, with INR 19.8 crores already paid towards this capital work in progress. This expansion supports the planned increase in manpower, with employee headcount expected to grow by 10-15% in the coming year. The new office possession is anticipated by December 2027.

Institutional and Service Mix Dominance

From an institutional perspective, public sector undertakings contributed 61.1% of FY26 revenue, with the private sector accounting for 38.4%. Geographically, domestic markets generated 87.2% of total revenue, while exports contributed 12.8%. The service mix is dominated by effluent treatment plants with Zero Liquid Discharge (ZLD), which accounted for 92.4% of revenue in FY26, followed by recycling at 4.6% and O&M at 3%.

Capital Allocation and Funding Outlook

The company's capital allocation strategy remains asset-light. The primary capital expenditure discussed was the INR 19.8 crores paid for the new office premises. Management confirmed that existing bank limits of INR 235 crores (including INR 62 crores fund-based) are sufficient to support revenue generation up to INR 450 crores, indicating no immediate need for additional fundraising to achieve its 35-40% CAGR growth target over the next three to four years.

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