Future Enterprises Limited — Q3 FY26 earnings call

Call held 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

  • 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

  • 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

2 periods

Q3 FY26

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

9M FY26

  • Revenue
    ₹65 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.

Segment breakdown

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

Order book

high confidence

Total value

₹45 Cr

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

high confidence
  • Debt Gross ₹18 Cr
    • New borrowing Debt from NBFC ₹4 Cr
    Nishant Sharma: So, we have, 14 crores, working capital. And another 4 crores debt from NBFC, on the company as on date.
  • M&A Plastic Recycling Company Acquisition · Pending regulatory

    Acquiring an existing setup with recycling licenses to expand into plastic processing.

    Expected to generate 6-7 crores of monthly revenue from Plastic once capacity reaches 1000 tons/month.

    Plastic is one of the processes where we are coming up and are in process to acquire an existing setup. Not exactly the setup, but the company which contains the licensees of the recycling. So, plastic processing is already, on the verge of completion, of acquisition, and we will be very soon, on our... we will see it on our balance sheets very soon. ... How will the acquisition of plastic waste recycling? Equity, swap, cash? Mostly it would be cash.
  • Liquidity Liquidity disclosed Working capital facilities are in use and renewal/enhancement processes are ongoing with banks.
    Nishant Sharma: Working capital hai, bohot utilization pe chalta rehta hai, CC hai voh toh kam jyada hota rehta hai. ... Nishant Sharma: No, we have already approached banks, so, see, the renewal is due, so we are already submitting documents, and maybe we have asked for further enhancement, so that all those processes are going on simultaneously. The working capital announcement is going on with the banks.

Guidance & targets

Revenue

  • FY26 Revenue Guidance Revenue · FY26 · High confidence 110 crores
    Ankur Gulati: This financial year revenue guidance was 110 crores on the lower side. Now, first 9 months is roughly 65 crores, if I'm not wrong, though, last quarter, 45 crores. Ritesh Patel: Ji, absolutely. It is all planned, and we are on... the expected numbers.

    — Ritesh Patel

  • Q4 FY26 EPC Contract Delivery Revenue · Q4 FY26 (March) · High confidence 25 crores
    Ritesh Patel: So, we are already working on an EPC contract, which will be delivered in March. So, you know, the production and everything is already started, or already in place. So, we'll be... we'll be completing the deliveries, and that will be a bigger lead jump. Rest, all business is on track. So, about 25 crores, so we are expecting straight on the deliveries of these machineries.

    — Ritesh Patel

  • FY27 Revenue Guidance Revenue · FY27 · High confidence 180-200 crores
    Nishant Sharma: Okay. Please tell guidance for FY27, and also what is peak revenue possible from all business lines? Guidance for FY27, we already, like, close to 180-200 crores is what our plan is. Hopefully, we can go beyond that.

    — Nishant Sharma

  • India O&M Revenue Revenue · FY27 · High confidence 50 crores
    Nishant Sharma: O&M, close to 50 is what we are targeting for next financial year.

    — Nishant Sharma

  • Oman Operations Revenue Revenue · FY27 · High confidence 75-80 crores
    Nishant Sharma: So, Oman, next year we would be close to 75 to 80 crores. That's our number, because we already have this Oman LNG contract. And then we are already doing this oil processing. And then there are a few orders in pipeline discussions and all that. So, based on that, we think we'll be close to 75-80 crores.

    — Nishant Sharma

  • Plastic Recycling Monthly Revenue Revenue · monthly (at 1000 tons/month capacity) · High confidence 6-7 crores
    Ritesh Patel: So, the numbers, I will... I will get back to you, Nishant said, update the number, but the point is, okay, today, the plastic recycling is done at 300 tons per month, but over the period of time, in next 3 months, 1,000 tons per month will be our target. So, you know, we'll be in position to achieve about, 6 to 7 crores of monthly revenue from Plastic.

    — Ritesh Patel

  • Oman Waste Oil Processing Monthly Revenue (at 100 TPD) Revenue · monthly (at 100 TPD capacity) · High confidence 10-11 crores
    Nishant Sharma: 100 TPD pe kitna revenue monthly hone lagega? Ritesh Patel: About 10 to 11 crores.

    — Ritesh Patel

  • Metal Processing Revenue Revenue · FY27 (26-27) · Medium confidence 50 crores
    But metal, for metal, if we say, we can, for the first year, 26-27, we can be close to, 50 crores that we can definitely do in 26-27. If the discussions that we are already having, materialize, so that is the top line that we can expect.

    — Nishant Sharma

  • India O&M Revenue Revenue · FY28 · High confidence 85 crores

    From 50 crores (FY27) today

    Ankur Gulati: That's fine. And sir, year 50 of next year, of EPC, how much of that will eventually translate to O&M for you? Ritesh Patel: All. So next year, when we are expecting O&M to 50, Uske next year mein, it should be crossing 85.

    — Ritesh Patel

Capacity

  • Plastic Recycling Capacity Capacity · next 3 months · High confidence 1,000 tons per month

    From 300 tons per month today

    Ritesh Patel: So, the numbers, I will... I will get back to you, Nishant said, update the number, but the point is, okay, today, the plastic recycling is done at 300 tons per month, but over the period of time, in next 3 months, 1,000 tons per month will be our target.

    — Ritesh Patel

  • Oman Waste Oil Processing Capacity Capacity · in a couple of months · High confidence 60 tons per day

    From 30 tons per day today

    Ritesh Patel: Okay. I'll answer your questions, Abhayji. Thank you for the question. So, I start from the plastic first. The plastic is, as of now. Recycling, its granules, and, it has its capacity of 300 tons per month. As of now and as on date, we are planning to move up to 1,000 tons per month. So, as soon as we move 1,000 tons per month. We will have about revenue of about 7 crores a month. And, this, this is what about... it is about plastic. For your second question was oil. Okay, so oil processing is, as of now, in Oman and that is well operated as of now from last few months. And as... and 30 tons per day is what successfully we are achieving as of now, today. We are moving up to 60 tons per day, in a couple of months, and expanding in our own facility, expanding on our processes.

    — Ritesh Patel

  • Oman Waste Oil Processing Capacity Capacity · by the end of the financial year · High confidence 100 TPD

    From 30 tons per day today

    Ritesh Patel: And there are no breaks on it, so I think successfully we'll be doing 60 TPD. And by the end of the financial year, we'll be touching 100 TPD.

    — Ritesh Patel

Margin

  • EBITDA Margin Margin · next periods · High confidence 25-30%
    Nishant Sharma: So, generally, we are, on an average, maintaining 25 to 30% EBITDA margin, so that is going to be, maintained in the next, periods as well.

    — Nishant Sharma

  • Plastic Recycling Gross Margin Margin · future · Medium confidence 15-17%
    Ritesh Patel: About 15% should be our gross, and, about more than 10%, maybe 12% should be our... 15% to 17% you will see in gross, and 10-12%.

    — Ritesh Patel

  • Plastic Recycling PAT Margin Margin · future · Medium confidence 10-12%

    — Ritesh Patel

What to watch in Q4 FY26

Completion of Civil Expansion for EPC Project

March 2026
Current Ongoing
Target Completed

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.

Risks & concerns

  • Payment delays and bureaucratic hurdles in government projects

    medium

    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

  • Capacity limitations for taking on new EPC projects

    low

    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

Q&A highlights

8 direct
Increase in Other Expenses in Q3 FY26 Direct
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

Waste Oil Processing Opportunity in Middle East (Oman) Direct
This is, the opportunity is huge as of now, because there are none such of, official recyclers available in the country, or in the Middle East where, you know, they have the capacity to take care of the entire range of the waste oil that is processed. So, of course, there are a few, but they are restricted to the quality and the quantity that comes to them. But because our plant is a multi-purpose plant, we can expand it to, maybe by next year, we can say, in Oman itself, we will be 100 TPD.

Highlighted the significant market opportunity in the Middle East due to lack of comprehensive recyclers and Felix's multi-purpose plant advantage, with clear expansion plans.

Asked by Abhay Musale

Scale of Plastic Processing Operations Post-Acquisition Direct
So, the numbers, I will... I will get back to you, Nishant said, update the number, but the point is, okay, today, the plastic recycling is done at 300 tons per month, but over the period of time, in next 3 months, 1,000 tons per month will be our target. So, you know, we'll be in position to achieve about, 6 to 7 crores of monthly revenue from Plastic.

Provided specific targets for capacity expansion and expected monthly revenue from the plastic recycling business post-acquisition.

Asked by Abhay Musale

FY26 Revenue Guidance and Q4 Jump Direct
So, we are already working on an EPC contract, which will be delivered in March. So, you know, the production and everything is already started, or already in place. So, we'll be... we'll be completing the deliveries, and that will be a bigger lead jump. Rest, all business is on track. So, about 25 crores, so we are expecting straight on the deliveries of these machineries.

Explained the mechanism for achieving the FY26 revenue guidance, attributing a significant portion to Q4 EPC contract deliveries.

Asked by Ankur Gulati

O&M Revenue Targets for FY27 (India and Oman) Direct
Nishant Sharma: So, Oman, next year we would be close to 75 to 80 crores. That's our number, because we already have this Oman LNG contract. And then we are already doing this oil processing. And then there are a few orders in pipeline discussions and all that. So, based on that, we think we'll be close to 75-80 crores. ... Nishant Sharma: O&M, close to 50 is what we are targeting for next financial year.

Provided clear revenue targets for O&M operations in both India and Oman for the upcoming fiscal year, indicating significant growth.

Asked by Ankur Gulati

Profitability of Plastic Recycling Business Direct
Ritesh Patel: About 15% should be our gross, and, about more than 10%, maybe 12% should be our... 15% to 17% you will see in gross, and 10-12%.

Gave specific gross and PAT margin expectations for the newly acquired plastic recycling business, offering insight into its profitability.

Asked by Ankur Gulati

Total Debt and Working Capital Limits Direct
Nishant Sharma: So, we have, 14 crores, working capital. And another 4 crores debt from NBFC, on the company as on date. ... Nishant Sharma: No, we have already approached banks, so, see, the renewal is due, so we are already submitting documents, and maybe we have asked for further enhancement, so that all those processes are going on simultaneously. The working capital announcement is going on with the banks.

Clarified the current debt structure and ongoing efforts to manage working capital and secure enhanced credit limits for future growth.

Asked by Ankur Gulati

Approach to Government Projects Direct
Nishant Sharma: Are we planning to add more government projects going forward? Because... see, government projects, we are... it's not that we are, averse to taking government projects, but government projects have a very typical tendency of functioning in a very different manner, and it becomes challenging to recover money. That's why we have till now avoided taking government contracts, government orders. Private parties, it is much easier to deal with, decision-making is fast, and that is why we are still focusing on government projects.

Explained the company's cautious stance on government projects due to payment recovery challenges and bureaucratic hurdles, indicating a preference for private clients.

2 min read 6 chapters

Detailed narrative

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.

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.

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%.

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.

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.

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.

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