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Enviro Infra Engineers Q4 FY26 results (Jan–Mar 2026) and concall

Utilities ·Concall AI· Call held 4 Jun 2026

Company page: Enviro Infra Engineers share price, financials & guidance record

Source transcript

Management summary

Enviro Infra Engineers reported a 7.5% YoY revenue growth for FY26, reaching ₹1,145.6 crores, with a healthy EBITDA margin of 24.2%. The company significantly expanded its order book to ₹6,814 crores, driven by strong wins in both water/wastewater and a new strategic pivot into renewable energy, including large BESS projects. However, Q4 margins were compressed, and FY26 revenue guidance was missed due to project delays and working capital challenges stemming from delayed government payments. Management provided conservative FY27 guidance, anticipating ₹2,000 crores in revenue with a PAT margin of 13.5-14%.

Highlights

  • FY26 Revenue reached ₹1,145.6 crores, a growth of 7.5% year-on-year.

  • FY26 EBITDA improved by 3.4% to ₹276.8 crores with a margin of 24.2%.

  • Total order book surged to ₹6,814 crores, providing robust revenue visibility over the next 24 months.

  • Acquisition of Suyog Urja Limited strengthened execution capabilities in renewable energy.

  • Secured 4 BESS projects from NTPC (930 MWh, approx. ₹1,070 crores), positioning as a first mover in India's battery storage pipeline.

Concerns

  • Q4 FY26 PAT margin was 12.4%, impacted by higher execution and operational costs.

  • Revenue guidance for FY26 was missed due to elongated bid evaluation processes and projects remaining in the design stage.

  • Working capital cycle stretched to 166 days (from a target of 95-100 days) due to delayed fund releases from AMRUT projects.

  • EBITDA guidance for FY27 reduced to 21-22% (from 22-24%) due to potential impact of global crisis on commodity prices.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹427.3 Cr
    YoY +8.8%
  • EBITDA
    ₹79.9 Cr
  • EBITDA Margin
    18.7%
  • PAT
    ₹54.3 Cr
  • PAT Margin
    12.4%

FY26

  • Revenue
    ₹1,145.6 Cr
    YoY +7.5%
  • EBITDA
    ₹276.8 Cr
    YoY +3.4%
  • EBITDA Margin
    24.2%
  • PAT
    ₹188.4 Cr
  • PAT Margin
    15.9%

What they filed

Q4 FY26: revenue up 8.7%, net profit down 27.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26
Revenue213 247 393 241 227 +7%250 +1%427 +9%
EBITDA56 54 99 64 65 +16%68 +26%80 −19%
Net profit36 37 74 42 50 +39%42 +14%54 −27%
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.

Segment breakdown

Share of Execution Order Book
₹4,784 Cr Total
  • Water and Wastewater ₹2,733 Cr 57.1%
  • Renewable Energy ₹2,051 Cr 42.9%

Order book

high confidence

Total value

₹6,814 Cr

as of 2026-05-29 quantified

Inflow this quarter

₹1,172 Cr

Execution

robust revenue visibility over the next 24 months

Composition

Mix 4 segments
  • Water and Wastewater Execution 40.1%
  • Water and Wastewater O&M 13.9%
  • Renewable Execution 30.1%
  • Renewable O&M and IPP 15.8%

Share of order book by segment

Pipeline

deal pipeline tcv

Submitted bids of INR 1,200 crores and interested in bidding for projects worth INR 5,000 crores.

Cancellations & deferrals

  • renegotiated: Some projects L1 in Nov-Dec went into re-bidding, causing delays.
  • deferred: MIDC, CETP, ZLD project and two Bangalore projects had designing/approval delays, preventing execution.
The order book is exciting and provides clear visibility for the next two financial years, with a conservative conversion rate projected.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹30 Cr (FY27) planned
    So we don't see any major capex going on. Apart from the capex which we have done in the last financial year, but I think it can be to the tune of INR20 crores, INR30-odd crores, not more than that.
  • Debt Gross ₹422 Cr · 0.3× EBITDA
    The total debt in the books right now is to the tune of INR422 crores, out of which the long-term debt which is paired to the assets or term loans HAM project, it is INR250 crores and short-term loan is somewhere around INR175 crores, and which is also a part of CC which is utilized at some point of time and the touch limit. So the ultimate finance cost has come down. The present debt level is 0.34. We do understand that maximum, and if I talk about all the extremes, a 1:1 debt level is we would not like to cross at any point of time.
  • M&A Suyog Urja Limited Acquisition · Closed

    Strengthens execution capabilities in renewable energy segment and provides access to an experienced team.

    A significant milestone during the year was the acquisition of Suyog Urja Limited, a wind EPC company. This acquisition strengthens our execution capabilities in the renewable energy segment and provides access to an experienced team with a strong track record in project delivery.
  • M&A 150 MWh BESS project in Bihar Acquisition · Closed

    Positions the company as a first mover in India's 90 gigawatt battery storage pipeline.

    along with our recent acquisition of a 150 megawatt-hour BESS project in Bihar. This positions us as a first mover in India's 90 gigawatt battery storage pipeline.
  • Liquidity Liquidity disclosed Cash position is comfortable, allowing projects to continue despite delayed fund releases.
    And apart from this, still the cash position in the company is at a comfortable level. That is why we have not slowed down any of the projects.

Guidance & targets

Revenue

  • Topline Revenue · FY27 · Medium confidence INR 2,000 crores
    So we are just projecting a topline of INR2,000-odd crores, which will replicate into a conversion of somewhere around 42%.

    — Manish Jain

PAT

  • PAT Number PAT · FY27 · Medium confidence INR 270-280 crores
    so INR270 crores to INR280 crores can be the PAT number, which we will look forward to on a topline of INR2,000-odd crores.

    — Manish Jain

PAT Margin

  • PAT Margin PAT Margin · FY27 · Medium confidence 13.5% to 14%
    around INR2,000 crores with PAT number somewhere around 13.5% to 14% what we can look forward for FY27.

    — Manish Jain

  • BESS Business PAT Margin (EPC) PAT Margin · Current · Medium confidence 10%
    Okay. In the BESS business, which is EPC, we will expect PAT margin somewhere in the range of 10%.

    — Manish Jain

  • Renewables Blended PAT Margin PAT Margin · Current · Medium confidence 10% to 12%
    Likewise, I confirmed in the BESS segment, at present the margin range seems to be somewhere around 10%, and we look forward to achieving PAT margins in the range of 10% to 12%, a blended one from the renewables.

    — Manish Jain

EBITDA Margin

  • EBITDA Margin EBITDA Margin · FY27 · Medium confidence 21% to 22%

    Previously 22% to 24% → 21% to 22%

    global crisis, I am reducing my EBITDA guidance to somewhere around 21% to 22%, which was earlier 22% to 24%.

    — Manish Jain

Order Inflow

  • New Order Book Order Inflow · FY27 · Medium confidence at least INR 2,500 crores
    For FY27, we would look forward to at least INR2,500 crores further order book.

    — Manish Jain

Working Capital

  • Working Capital Cycle Working Capital · FY27 · Medium confidence around 90 days

    From 166 days today

    Definitely. For me, as we understand, the working capital cycle should come down to somewhere around 90 days, which is a prudent working capital cycle.

    — Manish Jain

What to watch in Q1 FY27

Working Capital Cycle

next quarter / FY27
Current 166 days
Target around 90 days

Why it matters

Normalization of working capital is crucial for operational efficiency and cash flow improvement, directly impacted by government payment releases.

Definitely. For me, as we understand, the working capital cycle should come down to somewhere around 90 days, which is a prudent working capital cycle. So I need to reduce these number of working capital days, and for this, the conversion of this UBR is required.

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Risks & concerns

  • Delayed fund release from government projects (AMRUT)

    high

    Delayed fund releases from AMRUT projects in multiple states (Chhattisgarh, MP, Rajasthan, Haryana, Punjab) stretched working capital to 166 days and increased UBR days to 195.

    Management acknowledged

  • Elongated bid evaluation and project design/approval processes

    medium

    Caused missed FY26 revenue guidance and execution delays for specific projects (MIDC, Bangalore).

    Management acknowledged

  • Geopolitical global crisis impacting commodity/raw material prices

    medium

    May lead to a 1-2% dip in profitability, especially for BESS projects where lithium-ion battery prices have increased.

    Management acknowledged

  • Re-bidding of L1 projects

    low

    Some projects where the company was L1 went into re-bidding due to technical glitches, causing timeline loss.

    Management acknowledged

Q&A highlights

7 direct
Project cost per MLD for different treatment plants Direct
In general, the per MLD costing for a sewage treatment plant comes in the range of INR1 crores to INR1.5 crores, depending upon the specification and the characteristics. In case of a water treatment plant, generally, the values are in the range of INR30 lakh to INR50 lakh per MLD.

Provides key industry benchmarks for project valuation in the core business segments.

Asked by Jainam Jain

Reasons for missing FY26 topline guidance and Q4 margin compression Direct
So the delay, a partial delay in the evaluation process, this is one of the factors. And some of the projects that we bagged, it was around August when we bagged some projects which remained in the designing stage. So the revenue could not be generated from these projects. ... there was a component of around INR100 crores, INR120 crores which has come from the renewable side, and since these were IPP, so there was practically no margin in that particular execution, because of which it looks that there is some gap in the margin.

Addresses the core reasons for underperformance against prior guidance and explains the Q4 margin dynamics, including the impact of IPP projects.

Asked by Manish Choraghe

Margin profile for BESS segment and future outlook for the company Direct
Okay. In the BESS business, which is EPC, we will expect PAT margin somewhere in the range of 10%. Because of this issue, since we will be importing the lithium-ion battery cells, so the prices have increased. ... On the whole, if I say INR2,000 crores is the visibility, somewhere around INR1,350 crores is what we are expecting from the water and wastewater treatment sector and INR650 crores is what we look forward to as the topline from the Renewable segment.

Clarifies the profitability expectations for the new BESS segment and provides a segmental revenue outlook for FY27, indicating the strategic shift.

Asked by Manish Choraghe

Impact of cost escalation on contracts and project execution strategy Direct
In maximum of the contracts, it is a price variation clause which is applicable. So a part of the cost increase will definitely get offset with the price variation clause. However, it does not take into account the entire price increase in the market. ... No, we are not going slow at all in the execution of any of the projects. It is just a matter of time that we can defer buying of some of the equipment, just waiting like I confirmed for BESS.

Explains how the company manages rising input costs and confirms that execution will not be slowed down, only procurement timing adjusted.

Asked by Vidhi Shah

Working capital stretch and UBR days Direct
You are 100% right. This time around, the working capital has got stretched to 166 days. The main reason this time has been during the - during any of the financial years, we expected if there is any fund which is not released, get released by March. We are doing AMRUT projects across 5-6 states. The problem remained that this time around, the funds didn't get released from the AMRUT projects. ... Currently, the unbilled UBR days are 195 days.

Highlights a significant operational challenge (working capital) and its root cause (government payment delays), providing specific metrics.

Asked by Prateek Bhandari

Operating Cash Flow (OCF) status and impact of service concessionaire agreements Direct
Our adjusted OCF has been positive even in the current financial year as well. Our OCF pre-tax in the current financial year is almost balanced around INR4 lakh positive. And post-tax, it is INR63 crores negative. However, there is a portion of the service concessionaire agreement receivables, which is by its very nature is a 15-year long-term receivables, but as per the audit policies, definitely we are required to take it to the OCF portion. That is why it seems to be negative.

Clarifies the reported negative OCF, explaining it's largely due to accounting treatment of long-term receivables from service concessionaire agreements, while adjusted OCF is positive.

Asked by Anboli

Strategic direction: from Wastewater Treatment to BESS and potential for Desalination Direct
So basically, there is a pre-qualification requirement of this UF and RO. With this and this is one of the biggest plants in India. So with this, we will earn a decent qualification in terms of entering into Desalination projects as well. We are actively looking into the projects. And if we will get any of the joint venture opportunities, definitely we would like to enter into the Desalination projects as well.

Outlines the company's strategic evolution beyond traditional wastewater, leveraging current projects for future entry into desalination and emphasizing the separate renewable segment.

Asked by Anboli

Plans for transmission and distribution (T&D) in the power sector Partial
In the current projects in BESS segment which we have got from NTPC, we are executing EHV transformers and transmission lines, the HT lines as well. So that ways, definitely we will be having the pre-qualifications available with us. At present, since our order book is decent enough, we don't look forward to entering into the T&D segment very soon, but it can be one of the segments in future wherein we can enter since some of the works that we will execute will give the pre-qualifications to us.

Indicates potential future diversification into T&D, leveraging current BESS project experience, but not in the immediate term due to current order book.

Asked by Atul Kumar

3 min read 6 chapters

Detailed narrative

Strong Order Book Growth and Revenue Visibility

Enviro Infra Engineers reported a robust total order book of ₹6,814 crores as of May 29, 2026, providing revenue visibility for the next 24 months. This includes ₹2,733 crores for water and wastewater execution, ₹951 crores for O&M in the same segment, ₹2,051 crores for renewable execution, and ₹1,079 crores for renewable O&M and IPP. Recent Q4 additions include a ₹348 crore project from BUIDCO and two sanitation projects worth ₹824 crores, alongside four BESS projects from NTPC totaling 930 MWh and valued at approximately ₹1,070 crores.

Strategic Diversification into Renewable Energy

The company has successfully diversified into the renewable energy sector, establishing a presence in solar, wind, and Battery Energy Storage Systems (BESS). A key milestone was the acquisition of Suyog Urja Limited, a wind EPC company, enhancing execution capabilities. The company secured multiple BESS projects, including a 150 MWh project in Bihar, positioning itself as a first mover in India's battery storage market. This diversification aligns with a long-term strategy to build a broader environmental infrastructure platform.

FY26 Financial Performance and Q4 Challenges

For the full year FY26, Enviro Infra achieved a revenue of ₹1,145.6 crores, marking a 7.5% year-on-year growth, with an EBITDA of ₹276.8 crores and a margin of 24.2%. However, Q4 FY26 saw revenue of ₹427.3 crores (8.8% YoY growth) but a lower PAT margin of 12.4%. This was attributed to higher execution and operational costs, including increased employee costs (6% of revenues), other expenses (3.5% of revenues), an ECL provision of ₹10 crores, and higher depreciation of ₹25 crores.

Working Capital Strain from Government Payment Delays

The company's working capital cycle stretched to 166 days, significantly higher than the target of 95-100 days, primarily due to delayed fund releases from AMRUT projects across several states. Unbilled revenue (UBR) days increased to 195. Management noted that while the cash position remains comfortable, these delays impacted revenue conversion and profitability. They anticipate an easing of the situation as funds from Chhattisgarh have been released, and confirmations for other states are in place.

Conservative FY27 Guidance with Margin Adjustments

For FY27, Enviro Infra projects a conservative topline of ₹2,000 crores, with an expected PAT of ₹270-280 crores, translating to a PAT margin of 13.5% to 14%. The EBITDA margin guidance has been revised downwards to 21-22% from the previous 22-24%, reflecting potential impacts from the global crisis on commodity prices. The renewable segment is expected to contribute ₹650 crores to the FY27 topline, with the BESS EPC business anticipating a PAT margin of around 10%.

Future Growth and Capital Allocation Strategy

The company aims for at least ₹2,500 crores in new order inflows for FY27, with a current bid pipeline of ₹1,200 crores and an additional ₹5,000 crores in projects of interest. Total debt stands at ₹422 crores, with a net debt level of 0.34, well below the comfortable maximum of 1:1. Capex for FY27 is projected to be modest at ₹20-30 crores, with a focus on asset monetization if debt levels become heavy. The company is also exploring joint venture opportunities for desalination projects, leveraging its pre-qualification capabilities.

Summary of a publicly available earnings call transcript. Not investment advice.