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    Enviro Infra

    EIEL
    Utilities·5 Nov 2025
    Management Summary

    Enviro Infra reported a strong Q2 and H1 FY26, demonstrating resilient performance with significant growth in profitability and robust order inflows. The company's execution order book has surpassed INR 2,000 crores, bolstered by new project wins and a substantial O&M portfolio. Strategic expansion into zero-liquid discharge and renewable energy is progressing well, with clear revenue targets set for these segments. Management is focused on improving operating cash flow and maintaining healthy margins through its in-house execution model.

    Highlights

    8

    • Q2 FY26 Revenue from operations stood at INR 227 crores, reflecting a 6.7% YoY growth.

    • Q2 FY26 EBITDA was INR 65 crores, up 16.8% YoY, with healthy margins of 28.56%.

    • Q2 FY26 Profit After Tax (PAT) rose by 36% YoY to INR 50 crores, achieving a PAT margin of 20.5%.

    • H1 FY26 Revenues reached INR 468 crores (12% YoY growth) and EBITDA was INR 129 crores (20.8% YoY growth) with a 27.6% margin.

    • The total execution order book now exceeds INR 2,000 crores, including a new INR 248 crores order from Bhopal Municipal Corporation.

    • Bids have been submitted for projects worth over INR 8,000 crores, with management confident of exceeding FY26 fresh order book guidance of INR 2,500 crores.

    • The renewable energy segment is targeted to generate INR 200 crores in revenue for FY26, with a target of INR 500 crores for FY27.

    • Debtor cycle improved from 70 days (March 2025) to 49 days, and the company aims for positive operating cash flow (OCF) for FY26.

    Key financials

    Metrics

    11

    Periods

    2

    Q2 FY26

    6
    • Revenue
      ₹227 Cr
      YoY+6.7%
    • EBITDA
      ₹65 Cr
      YoY+16.8%
    • EBITDA Margin
      28.6%
    • PAT
      ₹50 Cr
      YoY+36%
    • PAT Margin
      20.5%

    H1 FY26

    5
    • Revenue
      ₹468 Cr
      YoY+12%
    • EBITDA
      ₹129 Cr
      YoY+20.8%
    • EBITDA Margin
      27.6%
    • PAT
      ₹92 Cr
      YoY+38.6%
    • PAT Margin
      18.7%

    Order Book

    high confidence

    Total Value

    ₹ 2,000 crores

    as of 2025-09-30

    quantified

    Inflow this qtr

    ₹ 248 crores

    Pipeline

    L1 awaiting loa

    Bids submitted for projects with results awaited

    "Our momentum has been broad-based across both municipal and industrial sectors, reinforcing our position as one of the most trusted players in India's water and wastewater management space."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Cost 7.5%

    Liquidity

    Liquidity disclosed

    H1 FY26 saw negative cash flow of approximately INR 100 crores, but management expects to achieve positive operating cash flow for the full FY26.

    Guidance & targets

    7
    CategoryTargetPriority
    Order Book
    Fresh Order Book
    exceed INR 2,500 crores
    		High
    Revenue Growth
    Overall Revenue Growth (Water & Wastewater)
    35% to 40% odd percentage
    		High
    Revenue Growth
    Renewable Sector Revenue Growth
    40% to 50%
    		Medium
    Profitability
    EBITDA Margins
    22% to 24%
    		High
    Revenue
    Renewable Sector Revenue
    ~INR 200 crores
    		High
    Revenue
    Renewable Sector Revenue
    ~INR 500 crores
    		Medium
    Liquidity
    Operating Cash Flow (OCF)
    positive
    		High

    Conversion of Unbilled Revenue to Billed

    Q3 FY26
    CurrentSignificant unbilled revenue due to monsoon and project stages, contributing to H1 negative OCF.
    TargetSignificant reduction in unbilled revenue.

    Why it matters

    This conversion is crucial for improving cash flow and revenue recognition, directly impacting the company's goal of achieving positive operating cash flow for the full fiscal year.

    There has been some increase in the unbilled revenue. So, basically that unbilled revenue getting recognized in terms of the final number into revenues and the realization. So, that will happen and basically in this Q3 itself, we look forward to this number going down significantly.

    How to verify

    capital_allocation.liquidity.notes

    Risks & concerns

    1
    RiskSeverity

    Exceptional Loss due to Fraud

    An exceptional loss of approximately INR 8.5 crores was incurred due to a fraud, with INR 2.68 crores recovered from an INR 11.15 crores outflow. — Management acknowledged

    medium

    Q&A highlights

    8

    “As far as when we are committing any of the margins, the guidance, first of all, the guidance has to remain intact. So that guidance always remain in that segment. However, expecting better margin profile and improved margins, we definitely look forward to achieving better margins, but as a guidance perspective, definitely we will restrict ourselves to that level of 22% to 24% EBITDA margins.”

    Analyst questioned why official EBITDA margin guidance was lower than current H1 performance, and management maintained a conservative stance while acknowledging potential for better.

    asked by Deepak Poddar

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 & H1 FY26 Financial Performance

    Enviro Infra reported robust financial results for Q2 FY26, with revenue from operations reaching INR 227 crores, a 6.7% year-on-year increase. EBITDA grew by 16.8% to INR 65 crores, achieving a healthy margin of 28.56%. Profit after tax surged by 36% to INR 50 crores, reflecting a PAT margin of 20.5%. For the first half of FY26, revenues stood at INR 468 crores (12% growth), EBITDA at INR 129 crores (20.8% growth) with a 27.6% margin, and PAT at INR 92 crores (38.6% growth) with an 18.7% margin.

    02

    Robust Order Book and Pipeline

    The company's total execution order book stands at over INR 2,000 crores as of September 30, 2025, including a new INR 248 crores order from Bhopal Municipal Corporation for an STP and seaway network. This is complemented by a strong operation and maintenance portfolio of INR 932 crores. Enviro Infra has also submitted bids for projects worth over INR 8,000 crores, with management expressing confidence in exceeding the FY26 fresh order book guidance of INR 2,500 crores.

    03

    Strategic Expansion in Renewables and ZLD

    Enviro Infra is actively diversifying its portfolio, with significant progress in the renewable energy sector. The company is developing a 40 MW solar asset in Balangir, Odisha (24 MW already operational, 16 MW by April 2026) and a 29 MW solar asset in Maharashtra (expected by June 2026). These projects are projected to generate INR 200 crores in revenue for the current fiscal year, with a target of INR 500 crores for FY27. The company is also expanding its footprint in zero-liquid discharge and tertiary treatment segments, leveraging advanced technologies.

    04

    Working Capital Management and Cash Flow Outlook

    Despite a seasonally moderated pace of process billing in H1 due to monsoon, the company improved its debtor cycle from 70 days (March 2025) to 49 days. H1 FY26 saw a negative cash flow of INR 100 crores, primarily due to working capital blockages in collaterals and margins, which have now reduced from 35% to 15%. Management expects a significant reduction in unbilled revenue in Q3 and aims to achieve positive operating cash flow for the full FY26.

    05

    In-house Execution as a Margin Driver

    Management highlighted its in-house execution model as a key factor for maintaining healthy EBITDA margins. This approach allows the company to retain margins that would otherwise go to subcontractors, ensures better control over project execution and quality, and leverages design prudence to deliver viable solutions. This strategy contributes to operational efficiencies and helps achieve better profitability compared to industry averages.

    06

    Geographical Diversification and Sector Focus

    Enviro Infra is expanding its geographical presence, particularly in Maharashtra and Odisha, while maintaining a pan-India bidding strategy across states like Delhi, UP, Bihar, and Gujarat. The company is focusing on the industrial segment, specifically Common Effluent Treatment Plants (CETPs) invited by industrial development corporations, and is also targeting larger PSU projects (e.g., IOC, DTCL, IOCL) for ETPs and water treatment plants in thermal power plants.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.