Skip to content

    Enviro Infra Engineers Q1 FY27 earnings call

    EIEL
    Utilities·12 Aug 2026
    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

    6

    • 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

    3

    • 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

    Single quarter

    05 metrics
    1. 01Revenue from Operations₹359.2 Cr+49%YoY
    2. 02EBITDA₹75.7 Cr+17.9%YoY
    3. 03EBITDA Margin21.1%
    4. 04PAT₹45.2 Cr+6.5%YoY
    5. 05PAT Margin12.4%

    Segment breakdown

    • Water and Wastewater Treatment₹255 Cr58.1%
    • Renewable Energy₹104 Cr23.7%
    • Wind Segment (within Renewables)₹80 Cr18.2%
    Donut· Share of Revenue Contribution

    Order Book

    high confidence

    Total Value

    ₹ 6,721 crores

    as of 2026-06-30

    quantified

    Inflow this qtr

    ₹ 577.4 crores

    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

    Mix2 segments
    • Water and Wastewater Treatment55.0%
    • Renewable Energy and BESS45.0%

    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

    3
    medium confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Cost 4.0%

    M&A

    Suyog Urja Limited

    acquisition · integrated · Consideration ₹NaN (mixed)

    Liquidity

    Liquidity disclosed

    Cash flow position is stable, company is able to meet liabilities well in time. Significant unencumbered funds available.

    Guidance & targets

    12
    CategoryTargetPriority
    Revenue
    FY27 Revenue from Operations
    ₹2,000 crores
    		High
    Revenue
    Suyog Urja Limited Revenue
    ₹400-450 crores
    		High
    Profitability
    FY27 EBITDA Margin (Blended)
    19-20%
    		High
    Profitability
    FY27 EBITDA Margin (Water/Wastewater)
    21-22%
    		High
    Profitability
    FY27 EBITDA Margin (Renewable)
    15-18%
    		High
    Profitability
    FY27 PAT
    ₹260-270 crores
    		High
    Profitability
    Suyog Urja Limited EBITDA Margin
    15-16%
    		High
    Profitability
    Suyog Urja Limited PAT Margin
    12%+
    		High
    Costs
    Employee Cost as % of Revenue
    5-5.5%
    		Medium
    Costs
    Finance Cost as % of Revenue
    3-3.5%
    		Medium
    Order Inflow
    FY27 Order Inflow
    ₹2,500 crores
    		High
    Growth
    Long-term Growth Rate
    25-30%
    		Medium

    What to watch in Q2 FY27

    5

    Working Capital Cycle Improvement

    by September
    CurrentBloated, slow fund release from government clients
    TargetHealthy 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.

    Risks & concerns

    3
    RiskSeverity

    Increased input costs (raw material)

    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

    medium

    Increased employee costs

    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

    medium

    Bloated working capital cycle / slow receivables from government clients

    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

    medium

    Q&A highlights

    8

    “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

    3 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript.