Detailed Narrative
Q3 & 9M FY26 Financial Performance Overview
Enviro Infra Engineers Limited reported a 1% year-on-year revenue growth to INR250 crores in Q3 FY26. Despite this modest top-line growth, profitability significantly improved, with EBITDA increasing by 25.6% to INR67.7 crores and margins expanding by 530 basis points to 27.1%. PAT for the quarter rose 14.7% to INR42.1 crores, achieving a margin of 16.3%. For the nine months of FY26, revenue grew 7.9% to INR718.3 crores, while PAT saw a robust 30.1% increase to INR134.1 crores, with margins at 17.9%.
Order Book and Inflow Dynamics
As of December 31, 2025, the company's total order book stood at INR3,092 crores, comprising INR1,903 crores for water and wastewater execution, INR933 crores for O&M services, and INR256 crores from the renewable energy segment. Year-to-date FY26 order inflows reached INR1,756 crores. However, Q3 FY26 saw only one new order win, a 60 MLD STP project in Bhopal valued at INR248 crores, due to delays in project evaluations and re-tendering of bids in Delhi, Bihar, and Rajasthan.
Q4 FY26 Outlook and Revenue Guidance
Management anticipates a strong Q4 FY26, guiding for consolidated revenue in the range of INR600-650 crores. This is expected to be driven by INR400-450 crores from water and wastewater projects and INR200 crores from the renewable segment. The company expects a significant acceleration in execution during Q4 due to equipment supplies and civil works, aiming for a full-year FY26 PAT of INR230-250 crores and an 18-19% Return on Equity.
Renewable Energy Segment Expansion
Enviro Infra has strategically entered the renewable energy segment, securing an order book of INR256 crores. The segment contributed INR9.8 crores to Q3 FY26 revenue and is targeted to reach INR200 crores for the full FY26. The company plans to invest INR75 crores from its own funds into the renewable business, with an additional INR40 crores from promoters, totaling INR115 crores. Future capex for FY27, including renewables, is projected at INR100 crores.
Working Capital and Receivables Management
The company reported pending receivables, including unbilled revenues, of approximately INR225 crores as of Q3 FY26. This is partly attributed to a government circular requiring TDS pairing for invoice generation. Management is focused on maintaining working capital days between 90-100 and aims to achieve a positive Operating Cash Flow (OCF) for the full financial year, expecting a substantial reduction in unbilled revenues and higher cash inflows in Q4.
Government Project Landscape and Bidding Strategy
Management highlighted challenges in government project evaluations, with bids worth INR3,000 crores in Bihar delayed and Delhi projects recalled for re-bidding. The Jal Jeevan Mission (JJM) scheme saw its FY26 budget significantly cut from INR67,000 crores to INR17,000 crores. Consequently, Enviro Infra will refrain from bidding on JJM projects until systemic issues are fully resolved, instead focusing on AMRUT projects, which have a robust pipeline of INR26,000 crores and smoother fund movement.
Long-term Growth and Profitability Outlook
Enviro Infra maintains a long-term growth guidance of 35-40% CAGR for FY27, with renewable segment revenue targeted at INR400-500 crores. The company is committed to sustaining EBITDA margins in the 22-24% range, emphasizing high-margin projects and operational efficiencies. Management expressed confidence in its strong bid pipeline, including INR5,000 crores under evaluation and INR26,000 crores under AMRUT, to drive future growth and profitability.