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    Felix Industries

    FELIX
    Utilities·20 Feb 2026
    Management Summary

    Felix Industries reported a strong Q3 FY26 with ₹45 crores in revenue, contributing to ₹65 crores for the first nine months. The company is on track to meet its FY26 revenue guidance of ₹110 crores, with a significant EPC contract delivery expected in Q4. Strategic expansions in Oman's waste oil processing and plastic recycling are set to drive substantial revenue growth in FY27, with guidance of ₹180-200 crores. While facing a one-time increase in other expenses and avoiding government projects due to payment recovery challenges, Felix remains focused on technology-driven environmental solutions and maintaining healthy EBITDA margins.

    Highlights

    5

    • Q3 FY26 revenue of ₹45 crores, contributing to 9M FY26 revenue of ₹65 crores.

    • Oman waste oil processing capacity is planned to increase from 30 TPD to 60 TPD in a couple of months, and 100 TPD by FY26 end, indicating significant volume growth.

    • Plastic recycling capacity is set to expand from 300 tons per month to 1,000 tons per month within 3 months, with an expected monthly revenue of ₹6-7 crores.

    • The company secured a 5-year open contract with Oman LNG, valued at ₹45 crores, providing long-term revenue visibility.

    • EBITDA margin is targeted to be maintained at 25-30% in upcoming periods.

    Concerns

    2

    • Other expenses increased by ₹6 crores in Q3 FY26 due to civil expansion for an EPC project, though this is stated as a one-time expense.

    • Management highlighted challenges with government projects, citing typical functioning issues and difficulties in recovering money, leading them to primarily focus on private entities.

    Key financials

    Metrics

    3

    Periods

    2

    Q3 FY26

    2
    • Revenue
      ₹45 Cr
    • Other Expenses Increase
      ₹6 Cr

    9M FY26

    1
    • Revenue
      ₹65 Cr

    Segment breakdown

    Oman Operations
    ₹3 Cr Revenue (Q3 FY26)₹12 Cr Revenue (9M FY26)
    List

    Order Book

    high confidence

    Total Value

    ₹ 45 crores

    as of 2026-02-20

    quantified

    Execution

    contracted for 5 years

    "The 45 Cr Oman LNG contract is an open, 5-year contract, with revenue generation dependent on processing efficiency."

    Source:
    Q&A

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Gross ₹18 crores

    M&A

    Plastic Recycling Company

    acquisition · pending regulatory

    Liquidity

    Liquidity disclosed

    Working capital facilities are in use and renewal/enhancement processes are ongoing with banks.

    Guidance & targets

    15
    CategoryTargetPriority
    Revenue
    FY26 Revenue Guidance
    110 crores
    		High
    Revenue
    Q4 FY26 EPC Contract Delivery
    25 crores
    		High
    Revenue
    FY27 Revenue Guidance
    180-200 crores
    		High
    Revenue
    India O&M Revenue
    50 crores
    		High
    Revenue
    Oman Operations Revenue
    75-80 crores
    		High
    Revenue
    Plastic Recycling Monthly Revenue
    6-7 crores
    		High
    Revenue
    Oman Waste Oil Processing Monthly Revenue (at 100 TPD)
    10-11 crores
    		High
    Revenue
    Metal Processing Revenue
    50 crores
    		Medium
    Revenue
    India O&M Revenue
    85 crores
    		High
    Capacity
    Plastic Recycling Capacity
    1,000 tons per month
    		High
    Capacity
    Oman Waste Oil Processing Capacity
    60 tons per day
    		High
    Capacity
    Oman Waste Oil Processing Capacity
    100 TPD
    		High
    Margin
    EBITDA Margin
    25-30%
    		High
    Margin
    Plastic Recycling Gross Margin
    15-17%
    		Medium
    Margin
    Plastic Recycling PAT Margin
    10-12%
    		Medium

    Completion of Civil Expansion for EPC Project

    March 2026
    CurrentOngoing
    TargetCompleted

    Why it matters

    This is a one-time📎 expense that impacted Q3, and its completion will remove this cost and potentially lead to Q4 revenue recognition.

    Ritesh Patel: This March.

    How to verify

    key_financials.metrics[label='Other Expenses Increase (Q3 FY26)']

    Risks & concerns

    2
    RiskSeverity

    Payment delays and bureaucratic hurdles in government projects

    Management explicitly stated that government projects have a 'typical tendency of functioning in a very different manner' and it 'becomes challenging to recover money', leading them to avoid such contracts. — Management acknowledged

    medium

    Capacity limitations for taking on new EPC projects

    Management mentioned 'there is a limitation to taking the number of projects, so there is a limitation to creating capacity, to taking orders' due to manpower in the core team, which is being addressed through subsidiaries. — Management acknowledged

    low

    Q&A highlights

    8

    “So, other expenses are basically the, the Civil expansion that is going on the EPC project that we are doing, on the civil front. So, civil expansion, I mean, civil contracts. I've been given for the construction of these facilities. And this will, I think, it will be more, this year, because of completion of this civil contract.”

    Clarified a significant increase in expenses as a one-time cost related to a client's EPC civil expansion, not ongoing operational costs.

    asked by Abhay Musale

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance and FY26 Outlook

    Felix Industries reported a Q3 FY26 revenue of ₹45 crores, contributing to a cumulative ₹65 crores for the first nine months of FY26. The company is confident in achieving its FY26 revenue guidance of ₹110 crores, with a significant portion, approximately ₹25 crores, expected from EPC contract deliveries in March 2026. Other expenses in Q3 increased by ₹6 crores, identified as a one-time📎 cost for civil expansion related to an EPC project, which is slated for completion by March 2026.

    02

    Strategic Expansion in Waste Oil Processing (Oman)

    The company's waste oil processing operations in Oman are currently at 30 tons per day (TPD) and are planned to scale up to 60 TPD within a couple of months. By the end of FY26, Felix aims to reach 100 TPD in Oman. This expansion is driven by a significant market opportunity in the Middle East due to a lack of comprehensive recyclers. At 100 TPD, the Oman operations are projected to generate a monthly revenue of ₹10-11 crores, with potential for expansion into UAE and Saudi Arabia in subsequent years.

    03

    Growth in Plastic Recycling Business

    Felix Industries is in the process of acquiring an existing plastic recycling setup, which currently operates at 300 tons per month. The company plans to increase this capacity to 1,000 tons per month within the next three months. This expanded capacity is expected to yield a monthly revenue of ₹6-7 crores. The business model involves selling recycled plastics and leveraging environmental credits, with an anticipated gross margin of 15-17% and a PAT margin of 10-12%.

    04

    FY27 Revenue and O&M Targets

    For FY27, Felix Industries has set a revenue guidance of ₹180-200 crores. This includes an O&M revenue target of ₹50 crores from India and ₹75-80 crores from Oman, largely driven by the 5-year Oman LNG contract. Additionally, the company anticipates generating approximately ₹50 crores from metal processing in FY27. The overall EBITDA margin is expected to be maintained in the 25-30% range.

    05

    Capital Structure and Funding

    The company's current debt stands at ₹18 crores, comprising ₹14 crores in working capital facilities and ₹4 crores from an NBFC. Felix is actively engaged with banks for the renewal and potential enhancement of its working capital limits. Management indicated that BOOT assets currently deployed amount to ₹30-35 crores, representing the company's existing investment in such projects.

    06

    Approach to Government vs. Private Projects

    Felix Industries primarily focuses on private entities for its projects, citing challenges with government projects. Management explained that government projects often involve a 'typical tendency of functioning in a very different manner' and present difficulties in 'recovering money'. This strategic preference for private clients is due to easier decision-making and faster execution, allowing the company to maintain better control and profitability.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.