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Enviro Infra Engineers Q1 FY27 results (Apr–Jun 2026) and concall

Utilities ·Concall AI· Call held 12 Aug 2026

Company page: Enviro Infra Engineers share price, financials & guidance record

Source transcript

Management summary

Enviro Infra Engineers Limited reported a strong Q1 FY27 with 49% Y-o-Y revenue growth to ₹359.2 crores, driven by robust order book execution. Despite a decline in EBITDA margin to 21.07% due to rising input and employee costs, the company maintained profitability and expanded its presence in renewable energy. Management expressed confidence in achieving its FY27 revenue guidance of ₹2,000 crores and is actively managing working capital challenges.

Highlights

  • Revenue from operations grew 49% Y-o-Y to ₹359.2 crores, driven by continued execution across the order book.

  • EBITDA grew 17.87% Y-o-Y to ₹75.7 crores, with EBITDA margin at 21.07%.

  • PAT grew 6.47% Y-o-Y to ₹45.2 crores, maintaining a PAT margin of 12.38%.

  • Strong total order book of ₹6,721 crores, comprising ₹3,694 crores in water/wastewater and ₹3,027 crores in renewable energy/BESS.

  • Diversification into renewable energy and BESS segments gaining momentum, contributing 29% to consolidated revenue.

  • Secured new HAM projects worth ₹256.9 crores, strengthening long-term revenue visibility.

Concerns

  • EBITDA margin declined to 21.07% in Q1 FY27 from 26.65% in Q1 FY26, primarily due to increased input costs and employee costs.

  • Working capital cycle remains 'bloated' due to slow fund release from government clients, though expected to improve by September.

  • Management acknowledged a slight slowdown in cash flow receiving from government clients.

Key financials

  1. Revenue from Operations ₹359.2 Cr +49%YoY
  2. EBITDA ₹75.7 Cr +17.9%YoY
  3. EBITDA Margin 21.1%
  4. PAT ₹45.2 Cr +6.5%YoY
  5. PAT Margin 12.4%

What they filed

Q1 FY27: revenue up 49.0%, net profit up 7.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue213 247 393 241 227 +7%250 +1%427 +9%359 +49%
EBITDA56 54 99 64 65 +16%68 +26%80 −19%76 +19%
Net profit36 37 74 42 50 +39%42 +14%54 −27%45 +7%
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 Contribution
₹439 Cr Total
  • Water and Wastewater Treatment ₹255 Cr 58.1%
  • Renewable Energy ₹104 Cr 23.7%
  • Wind Segment (within Renewables) ₹80 Cr 18.2%

Order book

high confidence

Total value

₹6,721 Cr

as of 2026-06-30 quantified

Inflow this quarter

₹577.4 Cr

Execution

Water and wastewater EPC order book (INR2,700 crores) executable over 18-24 months. Renewable order book (INR2,000 crores) executable over 12-18 months. Water/wastewater O&M contracts span 5-15 years (average 10 years). Renewable O&M (EPC) 5-12 years, (IPP) 25 years.

Composition

Mix 2 segments
  • Water and Wastewater Treatment 55%
  • Renewable Energy and BESS 45%

Share of order book by segment

Pipeline

L1 awaiting loa

Bids submitted/evaluation ongoing for projects worth ₹3,000 crores. Robust pipeline for bids invited/to be submitted worth ₹6,000-7,000 crores. Good projects in wind EPC segment worth ₹600-800 crores.

The diversified order book provides strong execution pipeline and allows participation across multiple environmental infrastructure and clean energy segments. Focus remains on converting the strong order book into revenue through disciplined execution.

Source: Prepared remarks

Capital allocation

medium confidence
  • Debt Debt disclosed Cost 4%
    And then the finance cost as well which right now reflects at around 4% but at a blended level during this entire financial year when the topline is expected to be in the range of INR2,000 crores, so we can expect this financial cost to be also to be in the range of 3% to 3.5%.
  • M&A Suyog Urja Limited Acquisition · Integrated · Consideration ₹[object Object] (mixed)

    Strengthens capabilities in renewable energy value chain and provides additional execution opportunities.

    Total acquisition value was ₹311 crores. First tranche of ₹111 crores paid. Second tranche of ₹100 crores to be paid after FY27 (July). Third tranche after FY28. Expected to generate ₹400-450 crores revenue for FY27 with 15-16% EBITDA margin and 12%+ PAT margin.

    The total acquisition which we did in Suyog Urja Limited, the total acquisition value was INR311 crores. The first tranche of INR111 crores has already been paid. The second tranche of INR100 crores will be paid after FY27, sometime July. ... Our expectation is in the range of INR400 crores to INR450 crores what we will do as revenue from Suyog Urja Limited.
  • Liquidity Liquidity disclosed Cash flow position is stable, company is able to meet liabilities well in time. Significant unencumbered funds available.
    Still, what I will say is the cash flow position in the company is stable. We are able to meet all our liabilities well in time, there is no slippage at all with respect to any of our liabilities.

Guidance & targets

Revenue

  • FY27 Revenue from Operations Revenue · FY27 · High confidence ₹2,000 crores
    For the current financial year, we have lowered our guidance a bit in the range of 21% to 22%. ... Our EBITDA margins right now are 21% at the standalone level and we are happy to confirm that our EBITDA margins have remained at the same level of 21% even at the console level where it is getting consolidated with the business of renewables.

    — Manish Jain

  • Suyog Urja Limited Revenue Revenue · FY27 · High confidence ₹400-450 crores
    Our expectation is in the range of INR400 crores to INR450 crores what we will do as revenue from Suyog Urja Limited.

    — Manish Jain

Profitability

  • FY27 EBITDA Margin (Blended) Profitability · FY27 · High confidence 19-20%

    Previously 22-24% → 19-20%

    Earlier we used to give a margin guidance in the range of 22% to 24%. For the current financial year, we have lowered our guidance a bit in the range of 21% to 22%. ... So that says that the EBITDA margin which we expected somewhere in the range of 19% to 20% with a blend of renewables, so we have been in a position to achieve margin slightly better than what was the expectation earlier from our side.

    — Manish Jain

  • FY27 EBITDA Margin (Water/Wastewater) Profitability · FY27 · High confidence 21-22%
    water and wastewater treatment segment we expect EBITDA margin somewhere in the range of 21% to 22%.

    — Manish Jain

  • FY27 EBITDA Margin (Renewable) Profitability · FY27 · High confidence 15-18%
    And in the renewable segment which spans over solar, wind and BESS, the EBITDA margin shall be in the range of 15% to 18%.

    — Manish Jain

  • FY27 PAT Profitability · FY27 · High confidence ₹260-270 crores
    we are in a position to achieve that topline of INR2000 crores and we stick to our guidance of INR260 crores to INR270 crores PAT levels.

    — Manish Jain

  • Suyog Urja Limited EBITDA Margin Profitability · FY27 · High confidence 15-16%
    If I talk about EBITDA margin that these are in the range of 15% to 16%.

    — Manish Jain

  • Suyog Urja Limited PAT Margin Profitability · FY27 · High confidence 12%+
    At PAT level I will say it is 12% plus which we can do.

    — Manish Jain

Costs

  • Employee Cost as % of Revenue Costs · FY27 · Medium confidence 5-5.5%

    Previously 7% → 5-5.5%

    Our employee cost, if you will see, it has gone to an extent of somewhere around 7% in Q1 which earlier used to be in the range of around 3% to 3.5%. So, we expect a prudent level of somewhere around 5% to 5.5% of the employee cost when we will move ahead in this financial year.

    — Manish Jain

  • Finance Cost as % of Revenue Costs · FY27 · Medium confidence 3-3.5%

    Previously 4% → 3-3.5%

    And then the finance cost as well which right now reflects at around 4% but at a blended level during this entire financial year when the topline is expected to be in the range of INR2,000 crores, so we can expect this financial cost to be also to be in the range of 3% to 3.5%.

    — Manish Jain

Order Inflow

  • FY27 Order Inflow Order Inflow · FY27 · High confidence ₹2,500 crores
    So, we can expect an order inflow of somewhere around INR2500 crores to be there in the current financial year.

    — Manish Jain

Growth

  • Long-term Growth Rate Growth · Long-term · Medium confidence 25-30%
    We look forward to a continuous growth of somewhere around 25% - 30%which should be bare minimum at which the company should keep on growing and with maintaining the healthy margin levels.

    — Manish Jain

What to watch in Q2 FY27

Working Capital Cycle Improvement

by September
Current Bloated, slow fund release from government clients
Target Healthy cash flow level, improved cycle

Why it matters

Improvement in working capital is crucial for operational efficiency and liquidity, directly impacting cash flow.

I don't have the exact numbers or I cannot say the numbers which are there, but it is there but by September when we will come out with our cash flow position, I am quite sure that we will be sitting at a healthy cash flow level.

Find out whether EIEL delivers this. Inve re-checks your case every morning.

Risks & concerns

  • Increased input costs (raw material)

    medium

    Input costs have increased, leading to a slight reduction in EBITDA margin guidance for FY27. Price variation clauses in tenders partially mitigate this, but some costs are absorbed.

    Management acknowledged

  • Increased employee costs

    medium

    Employee costs increased to ~7% in Q1 FY27 (from 3-3.5% previously) due to team expansion for new projects. Expected to normalize to 5-5.5% for the full year.

    Management acknowledged

  • Bloated working capital cycle / slow receivables from government clients

    medium

    Working capital cycle remains bloated due to slow fund releases from government clients, though management expects improvement by September and stable cash flow.

    Management acknowledged

Q&A highlights

7 direct
Reasons for gross margin decline Direct
If you would have seen our earnings guidance for the current financial year, since the start of this what the input cost, it has gone for an increase. So, there is a slight reduction in our guidance in the EBITDA margins. Earlier we used to give a margin guidance in the range of 22% to 24%. For the current financial year, we have lowered our guidance a bit in the range of 21% to 22%.

Analyst sought clarification on margin compression; management attributed it to increased input costs and revised guidance.

Asked by Raman KV

Order book execution timelines and O&M duration Direct
with respect to the execution order book that we do have in our hands, so INR2,700 crores is the order book which is available in the water and wastewater treatment segment. The timeline of execution here is 18 to 24 months. ... Coming to the renewable side, this total order book of INR2,000 crores it is to be executed over a period of 12 to 18 months' time.

Clarified the execution timelines for different segments of the order book, crucial for revenue visibility.

Asked by Raman KV

Raw material cost pass-through mechanism Partial
There is a price variation clause in the tender as well, which is linked to WPI and CPI index. There is some price which gets covered with this price variation and some part which we are required to absorb.

Addressed how the company manages raw material price volatility, indicating partial absorption of costs.

Asked by Vidhi Shah

Status of unbilled revenue and working capital cycle Direct
The position still I will say is bloated. But we are hoping since the funds are already allocated, even in the last quarter we had confirmed the movement of funds should be there, but it remained slow. It remained slow the working capital cycle still remains bloated.

Highlighted an ongoing concern regarding working capital management and receivables from government clients.

Asked by Dhananjay Mishra

Confidence in achieving FY27 topline guidance despite Q1 performance Direct
So, we are well on target of achieving these INR2000 crores. We don't find any slippages wherever we have given our guidance whether it is renewable, a combination of that solar, IPP or BESS IPP, BESS EPC, so we are well on target, we are in a position to achieve that topline of INR2000 crores and we stick to our guidance of INR260 crores to INR270 crores PAT levels.

Management reaffirmed confidence in FY27 guidance, citing upcoming BESS projects and existing order book.

Asked by Ankur Shah

JJM receivables and cash flow positivity Direct
At present that trial and commissioning part is going on for which INR15 crores to 20 odd crores is what we bill and then the payments get released. ... But even as per the audits what we do, we do expect that cash flow, operational cash flow should turn positive.

Provided an update on government project receivables and reiterated expectation for positive operational cash flow.

Asked by Manish

Water/wastewater project pull and payment issues Direct
In the EPC is the project condition improving from where it was or is it still a little slow from the government departments as far as the new ordering as well as payments are concerned?

Addressed the pace of government project awards and payments, a critical factor for the sector.

Asked by Daksh Malhotra

Long-term vision and growth trajectory (beyond FY27) Direct
We look forward to a continuous growth of somewhere around 25% - 30%which should be bare minimum at which the company should keep on growing and with maintaining the healthy margin levels.

Provided insight into the company's long-term growth aspirations and commitment to margin maintenance.

Asked by Daksh Malhotra

3 min read 6 chapters

Detailed narrative

Q1 FY27 Performance Overview

Enviro Infra Engineers Limited reported a robust Q1 FY27, with revenue from operations growing 49% year-on-year to ₹359.2 crores. EBITDA increased by 17.87% to ₹75.7 crores, resulting in an EBITDA margin of 21.07%. Profit after tax (PAT) also saw a 6.47% year-on-year growth, reaching ₹45.2 crores, with a PAT margin of 12.38%. This performance reflects continued strong execution across the company's diverse order book.

Order Book and Execution Pipeline

The company's total order book stands at approximately ₹6,721 crores, providing significant revenue visibility. This includes ₹3,694 crores from the water and wastewater segment and ₹3,027 crores from renewable energy and BESS. In Q1 FY27, new orders worth ₹577.4 crores were secured, including a ₹113 crore EPC and O&M contract from Sardar Sarovar Narmada Nigam Limited, ₹207.5 crores for renewable energy works via Suyog Urja Limited, and two HAM projects totaling ₹256.9 crores in Varanasi. The water/wastewater EPC projects have an execution timeline of 18-24 months, while renewable projects are 12-18 months.

Margin Dynamics and Cost Management

EBITDA margin for Q1 FY27 was 21.07%, a decline from 26.65% in Q1 FY26, primarily due to increased input costs and higher employee expenses. Management noted that employee costs rose to about 7% in Q1 (from 3-3.5% previously) due to team expansion, but are expected to normalize to 5-5.5% for the full year. Finance costs are currently 4% and are projected to reduce to 3-3.5% for FY27. The company has revised its blended EBITDA margin guidance for FY27 to 19-20% (from 22-24% previously) to reflect these cost pressures.

Strategic Diversification and Renewable Energy Growth

Enviro Infra Engineers is transforming its business by strengthening its core water and wastewater infrastructure while expanding into renewable energy and battery energy storage systems (BESS). The renewable segment contributed ₹104 crores (29%) to Q1 FY27 consolidated revenue, with the wind segment alone contributing ₹80 crores. The acquisition of Suyog Urja Limited (total value ₹311 crores) is a key part of this strategy, expected to generate ₹400-450 crores in revenue for FY27 with 15-16% EBITDA margins. The company anticipates a significant revenue jump from Q3 FY27 with the commencement of procurement for a 930 MW BESS project from NTPC.

Working Capital and Receivables Management

The working capital cycle remains 'bloated' due to slower fund releases from government clients, impacting unbilled revenue. However, management stated that the company's cash flow position is stable, and it can meet all liabilities on time. They expressed confidence that the working capital cycle will improve by September as allocated funds are expected to be released. The company has historically maintained a strong track record with no bad debts and possesses significant unencumbered funds.

Outlook and Long-Term Vision

The company reaffirmed its FY27 revenue guidance of ₹2,000 crores and PAT guidance of ₹260-270 crores, expressing confidence in achieving these targets based on the existing order book and upcoming projects. They anticipate an order inflow of ₹2,500 crores for FY27. Long-term, Enviro Infra Engineers aims for a continuous growth rate of 25-30%, driven by geographical expansion, higher value projects, and diversification into areas like desalination and overseas markets. The company is also exploring opportunities in water reuse and ZLD projects.

Summary of a publicly available earnings call transcript. Not investment advice.