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    EMS Q1 FY27 earnings call

    EMSLIMITED
    Utilities·13 Aug 2026
    Management Summary

    EMS Limited reported a strong Q1 FY27 with consolidated operating income growing 30% QoQ to ₹157.24 crores and EBITDA up 31.62% QoQ to ₹28.14 crores. The company secured ₹317 crores in new orders during the quarter, bringing the total order book to ₹2329 crores. Despite margin pressures from fixed costs and project delays, management is confident in achieving full-year FY27 revenue of ₹900-950 crores, representing a 50% YoY growth, with significant ramp-up expected in Q3 and Q4.

    Highlights

    5

    • Consolidated Operating Income for Q1 FY27 was ₹157.24 crores, marking a 30% increase over the last quarter.

    • Consolidated EBITDA for Q1 FY27 stood at ₹28.14 crores, an increase of 31.62% QoQ.

    • The company secured new work orders worth ₹317 crores in Q1 FY27, with an additional ₹158 crores received in Q2 FY27 to date.

    • The total order book is robust at ₹2329 crores as of July 2026.

    • Standalone PAT margin improved significantly to 11.95% in Q1 FY27 from 6.3% in Q4 FY26.

    Concerns

    3

    • Consolidated PAT growth was modest at 1.28% QoQ, reaching ₹15.49 crores.

    • Margins were impacted by fixed establishment costs during periods of hampered work due to external factors like elections, heavy rains, and restrictions.

    • The working capital cycle has stretched, with average working capital days at 120, partly due to delayed payments from government clients.

    Key financials

    Single quarter

    06 metrics
    1. 01Consolidated Operating Income₹157.24 Cr+30%QoQ
    2. 02Consolidated EBITDA₹28.14 Cr+31.6%QoQ
    3. 03Consolidated PAT₹15.49 Cr+1.3%QoQ
    4. 04Standalone Operating Income₹125.72 Cr+50%QoQ
    5. 05Standalone PAT₹15.03 Cr+1.8%QoQ

    Order Book

    high confidence

    Total Value

    ₹ 2,329 crores

    as of 2026-07-31

    quantified

    Inflow this qtr

    ₹ 317 crores

    Execution

    Revenue starts coming after six, seven months of work order issuance, with typical project execution taking 18-24 months.

    Composition

    Mix2 geographys
    • Uttar Pradesh42.0%
    • Uttarakhand61.0%

    Share of order book by geography

    Pipeline

    L1 awaiting loa

    L1 for a project in Banaras

    "Management is hopeful of converting a large number of projects into work orders in the coming time and expects Q3 and Q4 execution to be much better."

    Source:
    Prepared remarks

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Full Year Revenue
    ₹900-950 crores
    		High
    Revenue
    Q3 & Q4 Revenue Run Rate
    ₹300 crores each
    		High
    Revenue Growth
    Full Year Revenue Growth
    50%
    		High
    Revenue Growth
    Q2 Revenue Growth
    30-35% higher than Q1
    		Medium
    Revenue Growth
    Q3 & Q4 Revenue Growth
    >50% quarter-to-quarter
    		Medium
    Profitability
    EBITDA and PAT
    at par with 2024-2025 numbers
    		High

    What to watch in Q2 FY27

    4

    Q2 FY27 Revenue Growth

    next quarter
    CurrentQ1 FY27 Consolidated Operating Income: ₹157.24 crores
    Target30-35% higher than Q1 FY27

    Why it matters

    To assess if the company is on track to meet its full-year revenue guidance, as Q2 is projected to be 30-35% higher than Q1.

    So, as far as your first question is concerned the coming next three quarters would not be equal in numbers. So as far as the coming three quarters are concerned the strongest would be Q4 and the weakest would be Q2. If in percentage terms we were to explain Q2 would be about 30% to 35% higher than Q1 and thereafter you will see a growth of more than 50% quarter-to-quarter.

    Risks & concerns

    4
    RiskSeverity

    Margin compression due to fixed costs and work hindrances

    Fixed establishment, labor, and machinery costs lead to margin shrinkage when revenue generation is hampered by external factors like heavy rains, election-related restrictions, or other disruptions. — Management acknowledged

    medium

    Stretched working capital cycle

    Work stoppages and delays in government payments lead to a stretched working capital cycle, currently at 120 days, impacting cash flows. — Management acknowledged

    medium

    Seasonality impacting project execution

    The rainy season (Q2) inherently impacts civil engineering projects, making it difficult to achieve full execution potential during this period. — Management acknowledged

    medium

    Increasing competition

    Management noted that increasing competition might lead to slightly lower margins compared to 2023-2024 levels, though still aiming for par. — Management acknowledged

    low

    Q&A highlights

    8

    “Yes. So, now the restrictions have already been lifted. And the rate at which you are asking for the execution, I think that will only be achieved from Quarter 3. Because it is a sewerage network project. So, in Quarter 2 also, that revenue cannot be achieved in sewer line projects. But Q3 and Q4 numbers with regard to the Kolkata project would be much better than what you are anticipating.”

    Analyst questioned the recovery of a key project impacted by elections, and management provided a timeline for its ramp-up, indicating Q3 FY27 for full execution.

    asked by Daksh Prashar

    2 min read7 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    EMS Limited reported a consolidated operating income of ₹157.24 crores for Q1 FY27, representing a 30% increase quarter-on-quarter. Consolidated EBITDA grew by 31.62% QoQ to ₹28.14 crores. However, consolidated PAT saw a modest increase of 1.28% QoQ, reaching ₹15.49 crores. On a standalone basis, operating income was ₹125.72 crores (up 50% QoQ) and PAT was ₹15.03 crores (up 184.65% QoQ), with standalone PAT margin improving to 11.95% from 6.3% in Q4 FY26.

    02

    Order Book and Pipeline

    The company secured new work orders worth ₹317 crores in Q1 FY27 and an additional ₹158 crores in Q2 FY27 to date. The total order book stands at ₹2329 crores as of July 2026. EMS is also L1 for a project in Banaras exceeding ₹100 crores. Management indicated that revenue from new orders typically starts flowing 6-9 months after the work order is issued, with project timelines ranging from 18 to 24 months for execution.

    03

    Geographical Expansion and Revenue Mix

    EMS is actively bidding for projects in new states such as Bihar, Madhya Pradesh, Maharashtra, and Karnataka, in addition to its existing operations. Currently, approximately 42% of the company's revenue is derived from Uttar Pradesh and 61% from Uttarakhand, highlighting a significant concentration in these regions. The expansion strategy aims to diversify the revenue base.

    04

    Margin Dynamics and Recovery Strategy

    The company's margins were impacted in previous quarters due to fixed costs (establishment, labor, machinery) during periods when work was hampered by heavy rains or election-related restrictions. Management explained that as revenue scales up, margins are expected to recover. They are confident that by the end of FY27, EBITDA and PAT margins will return to levels seen in FY25, despite some increase in competition.

    05

    Project Execution and Seasonality

    The West Bengal project, which was impacted by election-related restrictions, is expected to achieve its full execution rate from Q3 FY27, as Q2 is still a rainy season. Management noted that Q2 FY27 revenue is projected to be 30-35% higher than Q1, with Q3 and Q4 expected to see quarter-on-quarter growth exceeding 50%. This phased ramp-up is crucial for achieving full-year targets.

    06

    Working Capital Management

    The working capital cycle has stretched, with average working capital days currently around 120. This is primarily attributed to delays in payments from government clients when project work is slowed or stopped due to external factors. Management acknowledged this as a cyclical issue in civil engineering projects, impacting cash flows.

    07

    FY27 Outlook and Targets

    EMS targets a full-year FY27 revenue between ₹900-950 crores, which would be at par with FY25 levels and represent a 50% year-on-year growth. To achieve this, Q3 and Q4 FY27 would need to contribute approximately ₹300 crores each in revenue. Management also expects EBITDA and PAT to align with FY25 numbers by the end of the current fiscal year, driven by increased execution velocity.

    This is an AI-generated summary of a publicly available earnings call transcript.