Enviro Infra Engineers Limited — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

Enviro Infra Engineers Limited reported strong financial performance for Q4 and FY25, driven by robust execution and improved operational efficiency. The company achieved significant revenue and profit growth, maintained healthy margins, and saw a positive turnaround in cash flow. Strategically, Enviro Infra is expanding into the renewable energy sector through new subsidiaries and aims to increase project scale in water and wastewater treatment, while actively bidding for new projects to sustain its growth trajectory.

Highlights

  • Q4 FY25 revenue from operations grew 31% year-on-year to INR 393 crores.

  • Q4 FY25 EBITDA was nearly INR 100 crores, registering a 16% growth year-on-year, with a margin of 25%.

  • Q4 FY25 PAT grew 30% to INR 74 crores, achieving an 18% margin.

  • FY25 consolidated revenue from operations reached INR 1,066 crores, a robust 46% growth from INR 729 crores in FY24.

  • FY25 EBITDA increased by 61% year-on-year to INR 268 crores, with a margin of 25%.

  • FY25 PAT rose sharply by 66% to INR 177 crores, with a margin of 16%.

  • The order book stood at INR 1,185 crores as of March 31, 2025, complemented by an INR 806 crores O&M order book.

  • Cash flow from operations before tax turned positive at INR 26 crores in FY25, from a negative INR 78 crores in FY24.

Key financials

2 periods

Q4

  • Revenue from Operations
    ₹393 Cr
    YoY +31%
  • EBITDA
    ₹100 Cr
    YoY +16%
  • EBITDA Margin
    25%
  • PAT
    ₹74 Cr
    YoY +30%
  • PAT Margin
    18%

FY25

  • Revenue from Operations
    ₹1,066 Cr
    YoY +46%
  • EBITDA
    ₹268 Cr
    YoY +61%
  • EBITDA Margin
    25%
  • PAT
    ₹177 Cr
    YoY +66%
  • PAT Margin
    16%
  • Cash Flow from Operations before tax
    ₹26 Cr
  • Debt-to-Equity Ratio
    0.24
  • Return on Equity
    18%
  • Return on Capital Employed
    23%

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

₹1,185 Cr

as of 2025-03-31 quantified

-30.9% QoQ

Execution

The time period in general is in the range of 18 months to 24 months, apart from some water supply schemes, which we are having wherein the order, this timeline is around 28 months. So, in general, a timeline of around 24 months can be taken to be an average timeline for the execution of the projects.

Composition

  • O&M (contract type) ₹806 Cr
  • WSSP (project type) ₹170 Cr

Pipeline

L1 awaiting loa

Bids submitted for projects in excess of INR 5,000 crores, with an expected inflow of INR 1,000 to INR 1,250 crores.

The order book saw a slight degrowth from the previous quarter due to execution, but a robust bidding pipeline of over INR 5,000 crores is expected to convert into INR 1,000-1,250 crores of new orders.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹75 Cr from our GCP, from the IPO funds
    • Investment in EIE Renewables ₹50 Cr
    Right now, from our GCP, from the IPO funds, we have proposed an investment of INR 50 crores in EIE Renewables. Through our discussions, we have kept that overall investment from Enviro Infra to EIE Renewables at a maximum of INR 75 crores.
  • Debt Debt disclosed
    our debt-to-equity ratio remains conservative at 0.24, highlighting our strong balance sheet. Return on equity stood at 18% and return on capital employed at nearly 23%. Both are healthy indicators in terms of value creation.
  • M&A EIE Renewables Acquisition · Closed · Consideration ₹[object Object] (cash)

    To clearly demarcate business lines, with water and wastewater in parent company and renewables in the subsidiary.

    One is EIE Renewables and the other is Sunaxis for 10 lakhs and 1 lakh each. And these are related party transactions. So, I know that we are trying to enter into solar, hydro and green hydrogen, but what is the need of creating a separate entity and then acquiring it? What is the thought process behind this? Both these companies were formed just recently with both Sanjay ji and myself being the directors in the company. We have stated quite clearly that these companies will remain to be 100% subsidiaries of Enviro Infra only.
  • M&A Sunaxis Renewable Acquisition · Closed · Consideration ₹[object Object] (cash)

    To act as a step-down subsidiary of EIE Renewables for taking up solar or renewable assets.

    One is EIE Renewables and the other is Sunaxis for 10 lakhs and 1 lakh each. And these are related party transactions. So, I know that we are trying to enter into solar, hydro and green hydrogen, but what is the need of creating a separate entity and then acquiring it? What is the thought process behind this? ... Sunaxis Renewable that has again been on the directorship was with Sanjay ji and myself. So, it will be acting as a step down subsidiary of EIE Renewables.
  • Liquidity Liquidity disclosed Cash flow from operations before tax improved from a negative INR 78 crores in FY24 to a positive INR 26 crores in FY25, demonstrating strong cash generating ability.
    Cash flow from operations before tax improved from a negative INR 78 crores in FY24 to a positive INR 26 crores in FY25, demonstrating the strong cash generating ability of our business and soundness of our financial strategy.

Guidance & targets

Revenue

  • Annual Growth Rate Revenue · future · Medium confidence 35% to 40%
    Looking ahead, we aim to sustain our growth trajectory with an expected annual growth rate of 35% to 40%, while maintaining healthy EBITDA margins in the range of 22% to 24%.

    — Manish Jain

Profitability

  • EBITDA Margin Profitability · future · Medium confidence 22% to 24%
    Looking ahead, we aim to sustain our growth trajectory with an expected annual growth rate of 35% to 40%, while maintaining healthy EBITDA margins in the range of 22% to 24%.

    — Manish Jain

  • Renewable Sector EBITDA Margin Profitability · future · Medium confidence 18-20%
    22%, 24% of EBITDA margins in the renewable sector, to my understanding, might not be possible, but yes, to an extent of around 18-20% is the margin what we are looking for. We will not go down beyond that.

    — Manish Jain

Order Book

  • Order Inflow from Bids Order Book · near future · Medium confidence INR 1,000 to INR 1,250 crores
    Even if we go by a conservative number of somewhere around 20% to 25%, even at that level, we can expect that an order inflow of INR 1,000 to INR 1,250 crores that should accrue to the Company from the bids that we have already submitted.

    — Manish Jain

  • Total Order Book Order Book · current financial year · Medium confidence INR 2,500 crores to 3,000 crores
    if we can build up that order book of around INR 2,500 crores to 3,000 crores in this current financial year.

    — Manish Jain

Project Scale

  • Sewage Treatment Plant Capacity Project Scale · future · Medium confidence 50 to 200 MLD
    Notably, we aim to increase the scale of our projects from 50 to 200 MLD for sewage treatment plants and from 20 to 50 MLD for common effluent treatment plants.

    — Manish Jain

  • Common Effluent Treatment Plant Capacity Project Scale · future · Medium confidence 20 to 50 MLD

    — Manish Jain

O&M Revenue

  • O&M Revenue Increase O&M Revenue · current financial year · Medium confidence INR 10 crores to INR 15 crores
    if the O&M revenues have almost got stagnated for FY 24 and 25, we expect that in the current financial year there should be an increase in that O&M revenue to the tune of maybe another INR 10 crores to INR 15 crores.

    — Manish Jain

  • O&M Revenue Target O&M Revenue · 2 years down the line · Medium confidence INR 70 crores to INR 75 crores
    If I talk 2 years down the line, we foresee that O&M revenue can shoot up to an extent of somewhere around INR 70 crores to INR 75 crores.

    — Manish Jain

What to watch in Q1 FY26

JJM fund release and impact on receivables

next quarter
Current Receivable days at ~70, with INR 70 crores received post-quarter end
Target Receivable days normalizing to ~45

Why it matters

Resolution of JJM payment delays is crucial for improving working capital and cash flow, which was a key concern in FY25.

However, if you just work out the payments which we received on 3rd or 4th of April. So, it was somewhere around INR 70 crores which we received from the JJM project itself. So, if we just take it into the account, then the receivable days goes back to around 45 days.

Risks & concerns

  • Payment delays from Jal Jeevan Mission (JJM) projects

    medium

    The payment cycle for JJM projects was elongated in FY25, with almost nil payments released from the center for a period, impacting cash flow and increasing trade receivable days. Management believes the worst is over and funds are on the verge of release.

    Management acknowledged

  • Regional concentration of revenue (Madhya Pradesh)

    low

    Approximately 48% of revenues came from Madhya Pradesh. Management expects this concentration to slightly decrease in the current year with better revenues from other states as the WSSP order book (which had MP projects) reduces its share.

    Analyst acknowledged

  • Order book degrowth

    low

    The order book decreased from INR 1,687 crores to INR 1,185 crores. Management attributed this to project execution and highlighted a strong bidding pipeline expected to convert into new orders.

    Analyst downplayed

Q&A highlights

6 direct
Order book degrowth and future inflow Direct
in the last financial year at the start of 1st of January 2025, our order book was at INR 1,687 crores. So, the amount of execution, the revenues for the last quarter has been to the tune of INR 393 crores. So, our order book presently stands at around INR 1,185 crores. ... Even if we go by a conservative number of somewhere around 20% to 25%, even at that level, we can expect that an order inflow of INR 1,000 to INR 1,250 crores that should accrue to the Company from the bids that we have already submitted.

Analyst questioned the decline in order book from INR 1,700 crores to INR 1,185 crores, and management clarified it was due to execution and provided guidance on expected new order inflows from the current bidding pipeline.

Asked by Dheeraj Ram

Rationale for new renewable energy subsidiaries and their structure Direct
Basically, we want to have a clear demarcation in the business lines. The water and wastewater business that will directly be in the parent company only and the renewable business that we are trying to develop, that entire business that will be taken up in EIE Renewables. Sunaxis Renewable that has again been on the directorship was with Sanjay ji and myself. So, it will be acting as a step down subsidiary of EIE Renewables.

Analyst questioned the need for separate entities (EIE Renewables and Sunaxis) for the new solar/hydro/green hydrogen ventures, and management explained the strategic intent for clear business demarcation and subsidiary structure.

Asked by Dheeraj Ram

Revenue visibility and market size for the new renewable business Partial
Let me clarify that we are quite new to this sector. Right now, giving the revenue visibility, as far as the size of the sector is concerned, we understand there is huge potential and huge opportunity which is available. Now, for us, how we can grow and how we can bring more color to our Company in this particular renewable sector. Basically, we are moving forward. We are going slow. We are studying.

Analyst sought details on the market size, target clients, project ticket size, and revenue visibility for the new standalone solar installation projects. Management indicated it's too early for specific numbers as they are still studying the market, but confirmed huge potential.

Asked by Peter

Margin profile of the new renewable business compared to water/wastewater Direct
I will again emphasize that in this renewable sector, because it is one of the main very interesting sectors and it is a huge opportunity which is available in India. Right now, we are definitely studying into it and how we can build up a good company and we can go for some good projects. We are visualizing some of the projects, we have definitely submitted some bids, wherein we have in those stands, 22%, 24% of EBITDA margins in the renewable sector, to my understanding, might not be possible, but yes, to an extent of around 18-20% is the margin what we are looking for. We will not go down beyond that.

Analyst inquired about the expected margin profile for the new renewable business. Management stated that while water/wastewater margins are 22-24%, renewable sector margins are targeted at 18-20%, indicating a slightly lower but still healthy margin expectation.

Asked by Peter

Impact of payment delays from JJM projects on cash flow and receivables Direct
For the entire last financial year, the payment cycle that got elongated in JJM, there was a delay or I will say almost nil payments which were released from the centre. ... This problem, this is one of the one problem which anybody has faced in the last 10 years and to our understanding the worst is over and the funds are there on the verge of being released in JJM.

Analyst raised concerns about payment delays in water projects, specifically JJM. Management acknowledged significant delays in FY25 for JJM but stated that the situation has improved, and funds are expected to be released soon, with other projects (AMRUT, Namami Gange) having smooth payment flows.

Asked by Balasubramanian

Increase in trade receivable days and normalization Direct
Basically, the trade receivable days, you are 100% right. These have increased to somewhere around 70 days. The challenge this time was basically the receivables from the JJM projects itself. ... However, if you just work out the payments which we received on 3rd or 4th of April. So, it was somewhere around INR 70 crores which we received from the JJM project itself. So, if we just take it into the account, then the receivable days goes back to around 45 days. And 45 days is what exactly means the right timeline for receivables.

Analyst noted an increase in trade receivable days from 57 to 74. Management attributed this to JJM delays and clarified that post-quarter-end payments would bring the days back to a normalized 45 days.

Asked by Aniket Jain

Strategy for entering international markets Partial
So, it would be that student exercise that we study that market carefully and then we enter. We will take our own time with the study, but one thing that is for sure is we will definitely be inclined to enter into the international market even when the opportunity is available. ... Basically, this is what we have to study and we have to infer whether it will be prudent for us to go there and do the civil construction work from our side itself or should we hire the local contractor and give that civil construction work to the local contractor and then we look on for the equipment supplies and then performance guarantees.

Analyst asked about plans for international market entry (Middle East, Southeast Asia). Management confirmed interest but emphasized a cautious, studied approach to determine the best execution model (EPC vs. local partnerships).

Asked by Aniket Jain

O&M business growth and margins Direct
O&M revenues and the profitability from O&M. Profitability is definitely higher and it is significantly higher. However, we foresee the O&M revenues to be always in the range of 3% to 5%. In the last financial year because all the projects were in the execution stages. So, there were not much of the projects which had entered into O&M. ... If I talk 2 years down the line, we foresee that O&M revenue can shoot up to an extent of somewhere around INR 70 crores to INR 75 crores.

Analyst questioned the O&M order book and its contribution. Management clarified that O&M profitability is higher, and while revenues were stagnant due to projects being in execution, they expect INR 10-15 crores increase in current FY and INR 70-75 crores in 2 years.

Asked by Ankur Kumar

3 min read 6 chapters

Detailed narrative

Q4 & FY25 Financial Performance Overview

Enviro Infra Engineers Limited delivered a strong financial performance for Q4 and the full fiscal year 2025. Q4 FY25 revenue from operations grew 31% year-on-year to INR 393 crores, with EBITDA reaching nearly INR 100 crores (16% YoY growth) and a 25% margin. PAT for the quarter was INR 74 crores, up 30% YoY, at an 18% margin. For the full FY25, consolidated revenue surged 46% to INR 1,066 crores from INR 729 crores in FY24. EBITDA for FY25 increased by an impressive 61% to INR 268 crores, maintaining a 25% margin, while PAT rose 66% to INR 177 crores, with a 16% margin.

Order Book and Bidding Pipeline

As of March 31, 2025, the company's order book stood at INR 1,185 crores, a decrease from INR 1,687 crores at the start of January 2025 due to project execution. This order book comprises 22 diverse projects, with an additional INR 806 crores in operation and maintenance (O&M) contracts. Enviro Infra has submitted bids for projects exceeding INR 5,000 crores and anticipates converting INR 1,000 to INR 1,250 crores of these into new orders, aiming for a total order book of INR 2,500 to INR 3,000 crores in the current financial year. The average project execution timeline is 18-24 months.

Strategic Entry into Renewable Energy

Enviro Infra is diversifying into the clean energy sector by establishing a new subsidiary, EIE Renewables, and a step-down subsidiary, Sunaxis Renewable. These entities, acquired for INR 10 lakhs and INR 1 lakh respectively, will focus on solar, hydro-power, green hydrogen, and 24x7 renewable solutions. The company plans an initial investment of INR 50-75 crores in EIE Renewables from IPO funds. While new to this sector, management expects to generate some revenue from renewables in FY26 and targets EBITDA margins of 18-20% for these projects, slightly lower than their core water business but still healthy.

Water & Wastewater Business Outlook and Project Scale

The core water and wastewater business continues to be a key focus, with management expecting to sustain a 35-40% revenue growth rate and EBITDA margins of 22-24%. The company aims to increase the scale of its sewage treatment plant projects from 50 MLD to 200 MLD and common effluent treatment plants from 20 MLD to 50 MLD. Enviro Infra is also integrating CBG (Compressed Biogas) plants into existing wastewater treatment projects, such as an 80 MLD plant in Jaipur and two 50 MLD plants in Jodhpur, with an upcoming 135 MLD plant in Saharanpur, exploring future opportunities in agricultural waste and MSW projects.

Cash Flow and Receivables Management

The company achieved a significant turnaround in cash flow from operations before tax, moving from a negative INR 78 crores in FY24 to a positive INR 26 crores in FY25. Trade receivable days increased to around 70 days, primarily due to payment delays from Jal Jeevan Mission (JJM) projects in FY25. However, management noted that approximately INR 70 crores in payments were received in early April 2025, which would bring receivable days back to a normalized 45 days. They expressed confidence that the worst of the JJM payment issues are over and funds are expected to be released by June 2025.

Operational Efficiency and Margins

Enviro Infra's EBITDA margin improved to 25% in FY25, reflecting a strong focus on operational efficiency and financial discipline. Management attributes its higher success ratio in bidding (40-60% historically, guiding 20-25% conservatively) to in-house design and execution capabilities, which allow for better cost control and competitive solutions. The company aims to maintain an EPC to HAM project mix of around 75:25, as HAM projects drive better margins. O&M revenues, which offer significantly higher profitability, are expected to increase by INR 10-15 crores in the current financial year and reach INR 70-75 crores in two years as more projects transition to the O&M phase.

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