Enviro Infra Engineers Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Enviro Infra Engineers Limited reported a quarter of steady execution and strong profitability in Q3 FY26, despite a slowdown in new order inflows. Revenue grew modestly, but EBITDA and PAT saw significant year-on-year increases driven by operational efficiencies and disciplined cost control. The company maintains a robust order book and a substantial bid pipeline, particularly in the wastewater treatment and renewable energy segments, and remains confident in achieving its full-year financial targets.

Highlights

  • Q3 FY26 Revenue from operations grew 1% YoY to INR250 crores.

  • Q3 FY26 EBITDA grew 25.6% YoY to INR67.7 crores, with margins expanding 530 bps to 27.1%.

  • Q3 FY26 PAT increased 14.7% YoY to INR42.1 crores, with margins expanding 180 bps to 16.3%.

  • 9M FY26 Revenue stood at INR718.3 crores, up 7.9% YoY, and PAT grew 30.1% to INR134.1 crores.

  • Total order book as of December 31, 2025, was INR3,092 crores, including INR256 crores from the renewable segment.

  • Secured order inflows of INR1,756 crores in FY26 YTD, with a Q3 inflow of INR248 crores (Bhopal project).

  • Bid pipeline is robust at approximately INR5,000 crores, with an additional INR26,000 crores under AMRUT in coming months.

  • Management guided for Q4 FY26 revenue of INR600-650 crores and full-year FY26 PAT of INR230-250 crores.

Concerns

  • Government Project Funding & Execution Issues (JJM)

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹250 Cr
    YoY +1%
  • EBITDA
    ₹67.7 Cr
    YoY +25.6%
  • EBITDA Margin
    27.1%
  • PAT
    ₹42.1 Cr
    YoY +14.7%
  • PAT Margin
    16.3%
  • Renewable Revenue
    ₹9.8 Cr
  • ECL Provision
    ₹6 Cr

9M FY26

  • Revenue
    ₹718.3 Cr
    YoY +7.9%
  • EBITDA
    ₹196.9 Cr
    YoY +22.4%
  • EBITDA Margin
    27.4%
  • PAT
    ₹134.1 Cr
    YoY +30.1%
  • PAT Margin
    17.9%
  • Renewable Revenue
    ₹12.5 Cr
  • Total ECL Provision
    ₹15 Cr

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.

Order book

high confidence

Total value

₹3,092 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹248 Cr

Execution

Orders have a timeline of 18 to 24 months for execution. 75% of the remaining INR1,450 crores from the water/wastewater segment is expected to be executed in the next financial year.

Composition

Mix 3 segments
  • Water and Wastewater Execution 61.5%
  • O&M 30.2%
  • Renewable 8.3%

Share of order book by segment

Pipeline

other

Total bid pipeline under evaluation, expected bid submissions in February, and AMRUT pipeline.

Cancellations & deferrals

  • rebidding: Delhi projects bids recalled and re-bidding due to technical glitches.
  • delayed: Bihar bids worth INR3,000 crores delayed in evaluation.
  • retendered: Rajasthan project retendered due to technical glitch.
Management acknowledges a slowdown in order wins in Q3 due to evaluation delays and project recalls, but maintains confidence in a strong bid pipeline and achieving full-year order inflow targets.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex ₹100 Cr
    • Renewable segment investment from Enviro ₹75 Cr
    • Total renewable segment investment (Enviro + promoters) ₹115 Cr
    from Enviro, there will be an investment of INR75 crores only and there will not be any further investment. ... total funds which got accrued in renewable segment, it was INR75-odd crores from Enviro along with another INR40-odd crores which was infused by myself, Sanjayji, and some of the shareholders further. ... there is hardly another INR100-odd crores which I can foresee which can be the capex expenditure from our side.
  • Debt Debt disclosed
    • New borrowing Expected increase in term loans in FY27 from HAM projects (INR150 crores) and renewable segment (INR100 crores). ₹250 Cr
    if I can just conclude FY '27, we can expect another INR150 crores, INR150-odd crores getting accrued from this HAM project and around INR10 crores plus INR80 crores so another INR100 crores in the renewable segment which is visible at present. So maybe around another INR250 crores can be an increase in the term loans in the next financial year from the projects which we are in hand.
  • Liquidity Liquidity disclosed Separate working capital lines will be made available for the renewables and water/wastewater businesses.
    There will be a separate working capital lines made available for the renewables, separate funding lines, working capital lines for the main water and wastewater business.

Guidance & targets

Order Inflow

  • Full-year FY26 Order Inflow Order Inflow · FY26 · High confidence INR2,500 crores
    We remain confident of achieving our full-year Financial Year 2026 order inflow target of INR2,500 crores, supported by strong visibility and healthy conversion rates.

    — Sanjay Jain

Revenue

  • Full-year FY26 Renewable Segment Revenue Revenue · FY26 · High confidence INR200 crores
    We expect our top line in the renewable segment to be somewhere around INR200 crores.

    — Manish Jain

  • Full-year FY26 Consolidated Revenue Revenue · FY26 · High confidence INR1,350 crores
    our total top line expected is INR1,350-odd crores.

    — Manish Jain

  • Q4 FY26 Consolidated Revenue Revenue · Q4 FY26 · High confidence INR600-650 crores
    The revenue expectation for Q4 is in the range of INR600 crores to INR650-odd crores.

    — Manish Jain

  • Q4 FY26 Water and Wastewater Revenue Revenue · Q4 FY26 · High confidence INR400-450 crores
    we'll be in a position to have a top-line number of somewhere around INR450 crores from our water and wastewater treatment projects... Around INR450 crores. INR400 to INR450 crores is what we do expect to do in this particular quarter.

    — Manish Jain

  • Q4 FY26 Renewable Segment Revenue Revenue · Q4 FY26 · High confidence INR200 crores
    we'll be in a position to have a top-line number of somewhere around INR450 crores from our water and wastewater treatment projects and INR200 crores from the renewable segment.

    — Manish Jain

  • FY27 Renewable Segment Revenue Revenue · FY27 · High confidence INR400-500 crores
    FY '27, we are expecting somewhere around INR500 crores, INR400 crores to INR500 crores it should happen in the renewable.

    — Manish Jain

Net Profit

  • Full-year FY26 PAT Net Profit · FY26 · High confidence INR230-250 crores
    INR230 crores to INR250 crores is the profit growth is the profit PAT number which we are expecting for the entire financial year.

    — Manish Jain

Margin

  • EBITDA Margin Margin · Any point of time · High confidence 22-24%
    At any point of time, we will stick to the margin guidance of EBITDA in the range of 22% to 24%.

    — Manish Jain

  • Q4 FY26 Consolidated PAT Margin Margin · Q4 FY26 · High confidence 15%
    The overall profitability, if I talk about both combined, so I think we should be somewhere around 15 percentage PAT margin. ... at a consol level, I can say the margins can be at somewhere 15%.

    — Manish Jain

Working Capital

  • Working Capital Days Working Capital · High confidence 90-100 days
    I have given a guidance of a working capital somewhere in the range of 90 days to 100 days. So we will try our level best to maintain that working capital days

    — Manish Jain

Return on Equity

  • Full-year FY26 ROE Return on Equity · FY26 · High confidence 18-19%
    if that can be the PAT number, so we can expect return on equity to be somewhere around 18% to 19%.

    — Manish Jain

Growth Rate

  • FY27 Consolidated Growth Rate Growth Rate · FY27 · High confidence 35-40%
    we want to maintain a growth rate pairing to that 35-40 percentage and that will look to be fine once the order book is in hand with us.

    — Manish Jain

Market context

  • Full-year FY26 Operating Cash Flow Cash Flow · FY26 · High confidence Positive
    we are hoping that by March when we go out and we declare our results for the entire financial year, we turn OCF positive.

    — Manish Jain

What to watch in Q4 FY26

Q4 FY26 Consolidated Revenue Achievement

next quarter
Current INR250 crores (Q3 FY26)
Target INR600-650 crores

Why it matters

Q4 revenue is crucial for meeting full-year guidance and demonstrating execution acceleration.

The revenue expectation for Q4 is in the range of INR600 crores to INR650-odd crores.

Risks & concerns

  • Government Project Funding & Execution Issues (JJM)

    high

    JJM scheme faced significant budget cuts for FY26 (from INR67,000 crores to INR17,000 crores) and has systemic problems, leading the company to avoid bidding for these projects until issues are fully resolved.

    Management acknowledged

  • Order Booking Delays

    medium

    Delhi projects bids recalled/rebidding, Bihar bids delayed in evaluation, and Rajasthan project retendered due to technical glitches/evaluation delays, leading to a slowdown in order inflows.

    Management acknowledged

  • High Receivables and Unbilled Revenue

    medium

    Pending receivables (debtor + unbilled revenue) are around INR225 crores, partly due to a government circular requiring TDS pairing for invoice generation, impacting cash conversion.

    Management acknowledged

  • Achievability of Ambitious Q4 Targets

    medium

    Analysts expressed skepticism about achieving the high Q4 revenue (INR600-650 crores) and PAT (INR90-100 crores) targets, given the Q3 performance and current order inflow status.

    Analyst acknowledged

Q&A highlights

6 direct
Q4 Revenue Achievability Partial
Because what happens is since there are supplies which have just got geared up, so this will—the supplies will be done maybe by 15th of March and then we will proceed for its invoicing and receiving the payments. So the process is already on and the inspection.

Analyst questioned the feasibility of achieving the ambitious Q4 revenue target given the low January run rate and lack of new orders, highlighting execution dependency on future events.

Asked by Sahil Garg

Order Booking Delays and Reasons Direct
Some of the projects for which we had submitted our bids, these were some Delhi projects. The bids have been recalled and we are again submitting our bids for the projects. Further, there were bids to the tune of somewhere around INR3,000 crores in Bihar, the process of evaluation is a bit delayed, because of which the financial bids are yet to be opened.

Management clarified that order booking slowdown was due to technical glitches and evaluation delays in government projects (Delhi, Bihar, Rajasthan), not competitive losses.

Asked by Diwakar Rana

JJM Project Bidding Strategy Direct
Right now, we don't have any intent to bid for the JJM projects until and unless the scheme gets fine 100%... I'm not quite hopeful of getting any of the project in JJM, rather in AMRUT itself, yes, there are number of water projects which will come up.

Management stated a clear strategy to avoid bidding for JJM projects until systemic issues are resolved, shifting focus to AMRUT projects due to their better execution and funding.

Asked by Daksh Malhotra

EPS vs. PAT Discrepancy Direct
Last year, our IPO was there in November 2024. So, there can be a change in the share capital from INR136-odd crores to INR175 crores. So, that can be an average weighted capital at that point of time.

Analyst questioned why EPS decreased despite PAT growth; management attributed it to changes in weighted average share capital post-IPO.

Asked by Vidhi Shah

High Receivables and Unbilled Revenue Direct
The pending receivables, if I say debtor along with unbilled revenues, will be somewhere in the range of INR225 crores. ... circular from government that all the invoices that we do, it—these are to be exactly paired with the income tax TDS and the GST TDS.

Analyst raised concern over high receivables and unbilled revenue; management explained it's partly due to a government circular on TDS pairing and expects reduction in Q4.

Asked by Prateek Bhandari

Q3 Margin Fluctuation Direct
There is a guidance; it all is a product mix. There may be a project where we are having higher margins, there can be a project where the margins are slightly lower. ... Further, there is an ECL provision which is created in the books. In Q3 itself, a provision of INR6 crores has been created.

Analyst inquired about lower Q3 margins; management cited product mix variations and a one-time ECL provision of INR6 crores.

Asked by Sahil Garg

FY26 PAT Target Achievability Partial
If I say, let us divide it into two parts: one is a renewable component which is INR200 crores and which is moving smoothly one way, and the second part is INR450 crores. So last year we have done INR400 crores, so against INR400 crores I am giving a guidance of INR450 crores. So that looks quite achievable in itself as well...

Analyst challenged the ambitious FY26 PAT target given the 9M performance, implying a very high Q4 PAT is required. Management reiterated confidence based on Q4 revenue and margin guidance.

Asked by Daksh Malhotra

Monthly Order Execution Updates Direct
I will match the top line which happened in the past years with the current financial -- with the pairing it with the current financial year. So definitely we will do. No issues in it. ... Yes, yes. Definitely we can do it.

Analyst requested more frequent (monthly) updates on order book execution to improve investor tracking; management agreed to provide them.

Asked by Anmol Mittal

3 min read 7 chapters

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.

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