Future Enterprises Limited — Q1 FY26 earnings call

Call held 18 Sep 2025

Management summary

Felix Industries reported exceptionally strong Q1 FY26 results, with consolidated revenue growing 158% YoY to INR 20.62 crores and PAT surging 1000% YoY to INR 3.56 crores. The company provided an optimistic FY26 topline guidance of INR 110-130 crores and an ambitious FY27 target exceeding INR 200 crores, driven by the ramp-up of Oman operations and strategic focus on higher-margin BOOT projects. Management confirmed strong internal accruals, negating the need for external equity in the near term, and plans to migrate to the main board of NSE.

Highlights

  • Consolidated Revenue for Q1 FY26 reached INR 20.62 crores, marking a substantial 158% year-on-year growth.

  • EBITDA for Q1 FY26 improved significantly to INR 5.978 crores, representing a 377% year-on-year increase.

  • PAT for Q1 FY26 surged by an impressive 1000% year-on-year to INR 3.56 crores.

  • The company provided an ambitious FY27 consolidated topline guidance of over INR 200 crores.

  • Oman Phase 2 operations are expected to start by December/January 2025, potentially adding INR 6-8 crores in monthly revenue.

Concerns

  • Receivables from FY25 were noted at around INR 2 crores (more than one year old) and overall 150-160 days, raising questions about working capital management.

  • An analyst inquired about INR 16-20 crores in loans and advances given to corporates/subsidiaries, for which management promised to provide further details.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹20.62 Cr
    YoY +158%
  • EBITDA
    ₹5.978 Cr
    YoY +377%
  • PAT
    ₹3.56 Cr
    YoY +1,000%

FY25

  • Consolidated Revenue
    ₹36.82 Cr

What they filed

Q1 FY27: revenue up 36.9%, net profit up 54.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue8 8 13 21 17 +117%27 +242%37 +188%28 +37%
EBITDA1 4 4 6 8 +1326%7 +107%8 +108%9 +62%
Net profit0 5 4 4 5 +1619%5 +6%4 +14%6 +55%
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

₹115 Cr

as of 2025-06-30 range

Execution

Expected to convert to revenue in FY26.

Composition

Mix 2 contract types
  • Standalone EPC 50.4%
  • Operating Revenue (from plants) 26.1%

Share of order book by contract type· partial disclosure (76.5% of the book)

The current order book, comprising EPC, operating revenue from plants, and subsidiary bookings, is expected to convert into a consolidated topline of INR 110-130 crores for FY26.

Source: Q&A

Capital allocation

high confidence
  • Capex Capex disclosed
    • Investment in two BOT projects (food sector) ₹35 Cr
    I think INR15 crores for one and INR20 crores for the other. So, I think about INR35 crores.
  • Debt Debt disclosed
    Of course, there are a lot of ways or a lot of options on the debt side which is still open with the company.
  • Liquidity Liquidity disclosed Internal accruals are strong, so no further external capital is foreseen for at least the next year.
    Yes. Since we've already started generating good cash, so internal accruals are quite strong and that is why I don't foresee any further capital increasement at least up to next 1-year.

Guidance & targets

Revenue

  • Consolidated Topline Revenue · FY26 · High confidence INR 110-130 crores
    So, overall, on consolidation level, if we speak, I'm expecting to close this year by INR110 to INR130 crores topline.

    — Ritesh Patel

  • Consolidated Topline Revenue · FY27 · High confidence INR 200+ crores
    And then next year, I'm expecting about 200 plus odd numbers, the top line.

    — Ritesh Patel

  • Oman Monthly Revenue (Post Phase 2) Revenue · Post Phase 2 completion · High confidence INR 6-7 crores
    As soon as we complete these Phase 2 operations as part of, it should reach to about INR6 crores to INR7 crores a month.

    — Ritesh Patel

Margin

  • BOT Projects EBITDA Margin Margin · Long-term · High confidence 26-28%
    So, generally what we try to do is we try to touch EBITDA range of about 26% to 28% or somewhere around it.

    — Ritesh Patel

  • BOT Projects PAT Margin Margin · Long-term · High confidence 20-23%
    And because of this EBITDA, the PAT is variably in the range of about, let us assume 20% or something, 21% to maybe 23%.

    — Ritesh Patel

Timeline

  • Oman Phase 2 Start Timeline · This financial year · Medium confidence December/January
    So, I think by December or January, we should be in position to start the Phase 2. I think so. Then depends on a lot of other factors also. But I believe this financial year, we should be completing the Phase 2 part.

    — Ritesh Patel

Revenue Share

  • Oman Revenue Share of Total Topline Revenue Share · FY27 · Medium confidence 40%
    40% of the total number. Maybe if I'm expecting about 200 plus odd numbers, Oman should be around, what, 60 something, I don't know.

    — Ritesh Patel

Profitability

  • Overall PAT Margin Profitability · Current year · Medium confidence 17-21%
    But, of course, I am expecting about 17% to 21% odd numbers on PAT side. I do not know about the depreciation part. Let us assume 20% is a good number.

    — Ritesh Patel

Corporate Action

  • Main Board Migration Corporate Action · After this March · High confidence Shift to main board
    Yes. Maybe, maybe after this March, I mean, this current year March, next year we will be commissioned to, to shift ourselves on the main board.

    — Ritesh Patel

What to watch in Q2 FY26

Oman Phase 2 Commissioning

Next quarter (Q2/Q3 FY26)
Current Expected by Dec/Jan 2025
Target Commercial operations initiated

Why it matters

Successful commissioning will add INR 6-8 crores in monthly revenue, significantly boosting the company's top line.

So, I think by December or January, we should be in position to start the Phase 2. I think so. Then depends on a lot of other factors also. But I believe this financial year, we should be completing the Phase 2 part.

Risks & concerns

  • High receivables from clients

    medium

    Receivables from FY25 were around INR 2 crores (more than one year old), and overall receivables were 150-160 days. Management stated it's normal for large projects but did not provide specific details on provisioning.

    Analyst acknowledged

  • Loans and advances to corporates/subsidiaries

    low

    An analyst noted INR 16-20 crores in loans and advances to corporates/subsidiaries, asking for clarification. Management indicated these might be for initial days of subsidiaries and promised to check.

    Analyst acknowledged

Q&A highlights

7 direct
Order Book & FY26 Topline Guidance Direct
So, about INR56 to INR60 crores on standalone we have the order booking of EPC. About INR30 crores is our operating revenue. About INR18 crores or maybe INR36 crores will be from the subsidiary, that is the order booking. So, overall, on consolidation level, if we speak, I'm expecting to close this year by INR110 to INR130 crores topline.

Provided a detailed breakdown of the current order book components and how they contribute to the FY26 revenue guidance.

Asked by Dixit Doshi

BOT Project Investment and Margins Direct
I think INR15 crores for one and INR20 crores for the other. So, I think about INR35 crores. ... So, generally what we try to do is we try to touch EBITDA range of about 26% to 28% or somewhere around it. And because of this EBITDA, the PAT is variably in the range of about, let us assume 20% or something, 21% to maybe 23%.

Clarified the capital outlay for new BOT projects and the expected profitability metrics for these long-term contracts.

Asked by Dixit Doshi

Oman Subsidiary Business Model and Margins Direct
So, this Felix Industries LLC, which is stationed in Oman, this is spread in an area of about 18,000 square meters. Now, in this facility, we have created an oil processing unit, wherein all the waste crude of the refineries is coming in as a raw material to our plant. ... Overall, as I said, we range to about 26% to 28% on EBITDA.

Provided a detailed overview of the Oman subsidiary's operations, value creation, and its contribution to the overall EBITDA margin.

Asked by Rohit Priyadarshi

Receivables Status (FY25) Partial
Yes, so every money I mean, I exactly don't remember the point that we are discussing, but no doubt every money on our books has to be recoverable. So, I'm sorry, but I cannot go straight to that point because I don't know the reference. But maybe I can get back to you through our IR with the answer.

Analyst flagged significant receivables from FY25, and management acknowledged but deferred a detailed response, indicating a potential area of concern.

Asked by Rohit Priyadarshi

FY27 Growth and Oman Contribution Direct
And then next year, I'm expecting about 200 plus odd numbers, the top line. ... Maybe if I'm expecting about 200 plus odd numbers, Oman should be around, what, 60 something, I don't know.

Management provided a clear FY27 topline target and indicated the significant role Oman is expected to play in achieving it, estimating around 40% contribution.

Asked by Deepak Poddar

Oman Phase 2 Timeline and Capacity Direct
So, I think by December or January, we should be in position to start the Phase 2. I think so. Then depends on a lot of other factors also. But I believe this financial year, we should be completing the Phase 2 part. ... After Phase 2, we are expecting at least about INR6 crores a month.

Clarified the expected commissioning timeline and significant revenue potential of Oman's second phase, which is incremental to current guidance.

Asked by Hiral Nandu

Strategic Focus: EPC vs. BOOT Direct
So, over the period of time, as and when we are growing, my personal opinion would be that we should always go on infrastructure development like BOOT. So, BOOT is for one plant or one process. We should always have our own infrastructure where, you know, you can cater 20-30 clients altogether.

Management articulated a clear strategic shift towards the BOOT model, emphasizing its long-term benefits for higher margins and broader client service.

Asked by Pratham Agarwal

Green Hydrogen Plant Details Direct
But since, since we are a technology company, we, of course, own one Green Hydrogen plant that will be used in our own facility to generate hydrogen and then to generate the energy out of it. So, we do not intend to sell any, any such kind of Green Hydrogen plants to any clients.

Provided clarity on the purpose and operational status of the Green Hydrogen plant, confirming its role in captive consumption rather than commercial sale.

Asked by Charanjeev Singh

2 min read 6 chapters

Detailed narrative

Robust Q1 FY26 Financial Performance

Felix Industries delivered an exceptionally strong financial performance in Q1 FY26. The consolidated revenue from operations reached INR 20.62 crores, marking a significant 158% year-on-year growth. This robust top-line expansion was accompanied by a substantial improvement in profitability, with EBITDA surging 377% year-on-year to INR 5.978 crores. The company's PAT demonstrated remarkable growth, increasing by 1000% year-on-year to INR 3.56 crores, reflecting strong operational leverage and demand in its core segments.

Ambitious Growth Outlook and Strategic Focus

The management provided an optimistic outlook for the coming years, guiding for a consolidated topline of INR 110-130 crores for FY26. Building on this momentum, the company projects an ambitious FY27 consolidated topline exceeding INR 200 crores. This growth is expected to be driven by capacity expansion, diversification into waste-to-energy, advanced material recovery, and strengthening presence in sectors like chemicals, defense, and clean energy. The company is strategically shifting its focus towards infrastructure development under the BOOT model, which offers higher margins (EBITDA 26-28%, PAT 20-23%) and allows catering to multiple clients.

Oman Operations and Phase 2 Expansion

The Oman-based subsidiary, Felix Industries LLC, is fully operational, processing waste crude from refineries into sellable oil, solid waste, and recycled wastewater. Currently, Oman contributes INR 2-2.5 crores in monthly revenue. The company anticipates the commissioning of Oman Phase 2 operations by December/January 2025, which is expected to significantly boost monthly revenue to INR 6-7 crores. Oman is projected to contribute approximately 40% (INR 80 crores) to the total FY27 topline, highlighting its growing strategic importance.

Capital Allocation and Funding Strategy

Felix Industries is undertaking capital expenditure for its strategic projects, including an investment of INR 35 crores for two new BOT projects in the food sector, expected to commission by January/February. Management confirmed that internal accruals are strong, and no external equity funding is foreseen for at least the next year. While specific debt figures were not disclosed, the company noted that debt options remain open for future expansions, indicating a flexible funding approach for its growth initiatives.

Green Hydrogen Initiative for Captive Consumption

In line with its environmental technology focus, Felix Industries has commissioned a Green Hydrogen plant. This plant is designed for captive consumption, utilizing the company's own clean water (zero TDS) and electricity generated from waste. The initiative underscores the company's commitment to sustainability and self-sufficiency in energy, with the hydrogen produced being used internally rather than for commercial sale.

Receivables and Loans & Advances Concerns

Analysts raised questions regarding the company's receivables, noting that approximately INR 2 crores from FY25 were over one year old, and overall receivables stood at 150-160 days. Management explained this as typical for large-scale projects with phased invoicing but deferred specific details on provisioning. Additionally, an inquiry was made about INR 16-20 crores in loans and advances to corporates/subsidiaries, which management indicated might be for initial support to subsidiaries and promised to provide further clarification.

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