ENVIRO

Envirotech Systems Limited, a leading manufacturer of acoustics and noise control products, highlighted the rapid transition of noise control from a comfort aspect to an essential requirement impacting human health and safety. The company emphasized strong, sustained growth in the industrial segment, serving large-scale industries, government entities, PSUs, and MNCs, driven by increasing awareness and stringent domestic/international standards for HSE compliance. This market shift underpins the demand for their acoustic and noise control products.

The company's expanded facility is currently in a progressing mode, with partial utilization already commissioned. However, there has been a slight delay in receiving necessary permissions from the UPC authority, which is preventing the facility from becoming fully functional. Management expressed confidence that the facility is expected to become fully operational and utilized within the current financial year (FY27), which is critical for executing large-scale orders and supporting future revenue growth.

Envirotech achieved CBRI certification from the Central Building Research Institute (part of IIT Roorkee) for its fire-rated doors. This certification is mandatory for selling to high-rise builders and commercial establishments, positioning the company to secure high-volume orders. The company also signed an MOU with CSIR-NPL New Delhi for collaborative development of solar noise barriers, which will mitigate sound pollution and generate electricity. Furthermore, Envirotech successfully launched blast-resistant doors, witnessing strong demand from defense and sensitive sectors, with projects executed for BPCL, Horiba, and exports to Bhutan.

The company is actively expanding into architectural interior acoustics, targeting large office spaces, meeting rooms, pods, conference rooms, auditoriums, and mini theatres. Envirotech has also made significant inroads into the rapidly growing data center industry, serving prestigious clients like Equinix, L&T, AdaniConneX, ST Telemedia, and NPCI. Additionally, it successfully entered the emerging semiconductor sector, executing projects for Tata Projects (Micron) and TSAT, indicating a strategic shift towards high-potential new markets.

Envirotech reported a revenue from operations of INR 57.58 crores for FY26, marking a healthy 20.95% year-on-year growth from INR 47.61 crores in FY25. However, the overall Profit After Tax (PAT) decreased to INR 12.11 crores in FY26 compared to INR 14.06 crores in FY25. This decline was primarily attributed to the absence of a one-time^📎 income of INR 3.88 crores from property sale in the previous year. Excluding other income, PAT actually increased from INR 9.41 crores in FY25 to INR 11.29 crores in FY26, underscoring underlying operational strength.

The company faced challenges including revenue delays due to the Iran-US conflict impacting customer sites, and a slight impact on margins from increased raw material prices. Management acknowledged not meeting the previous FY26 top-line target of around INR 100 crores and a stagnant order book consistently at INR 25-30 crores. Despite these, they expressed optimism about future growth, anticipating good volume from high-potential inquiries in the pipeline, full operationalization of the expanded facility, and increasing penetration in new segments like data centers and semiconductors in the upcoming year.