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    Felix Industries

    FELIX
    Utilities·11 Jun 2026
    Management Summary

    Felix Industries reported a strong FY26 with significant revenue and profit growth, driven by project execution and recurring revenue streams. The company is strategically positioned for future growth in environmental solutions, with plans for expansion in metal recycling and acid reclamation. However, Q4 margins were impacted by expansion costs and liquidity challenges, and the plastic recycling acquisition remains pending.

    Highlights

    5

    • Standalone revenue increased by 144.39% from ₹33.07 crore in Fiscal 2025 to ₹80.82 crore in Fiscal 2026.

    • Consolidated Revenue from Operations increased to approximately ₹102.21 crore in FY26, up 178% from ₹36.82 crore in FY25.

    • Consolidated EBITDA increased to ₹31.88 crore in FY26, up 131% from ₹13.79 crore in the previous year.

    • Consolidated Profit After Tax stood at ₹18.18 crore in FY26, up nearly 100% from ₹9.11 crore in FY25.

    • Metal recycling unit in Mehsana expected to be fully operational soon, targeting ₹100-150 crore revenue in the next financial year.

    Concerns

    4

    • Q4 margins were impacted by considerable expansion, higher manpower costs, and increased interest costs due to liquidity issues.

    • Oman operations experienced a slowdown in Feb-Mar 2026 due to geopolitical events, though now normalizing.

    • Working capital cycles are stretched due to old receivables and delayed payments across the system.

    • Plastic recycling unit acquisition is still under discussion and not yet finalized.

    Key financials

    Metrics

    8

    Periods

    2

    Q4

    3
    • Revenue from Operations
      ₹37.43 Cr
    • EBITDA
      ₹9.32 Cr
    • Profit After Tax
      ₹4.34 Cr

    FY26

    5
    • Consolidated Revenue from Operations
      ₹102.21 Cr
      YoY+1.8%
    • Consolidated EBITDA
      ₹31.88 Cr
      YoY+131%
    • Consolidated Profit After Tax
      ₹18.18 Cr
      YoY+100%
    • Standalone Revenue
      ₹80.82 Cr
      YoY+144.4%
    • Standalone Profit After Tax
      ₹19.81 Cr
      YoY+1.6%

    Order Book

    medium confidence

    Execution

    long-duration agreements extending up to 10 years

    Composition

    Mix3 contract types
    • CETP Project₹ 20 crores40.0%
    • New Order (PO stage)₹ 15 crores30.0%
    • Orders under discussion₹ 15 crores30.0%

    Share of order book by contract type (derived from disclosed amounts)

    Pipeline

    other

    Orders under discussion

    "The company has secured strategic long-duration contracts and has booked certain contracts from Oman government and large refineries, ensuring 100% capacity utilization for the current year. Specific projects and orders are in various stages of execution and discussion."

    Source:
    Prepared remarks

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Gross ₹21 crores

    M&A

    Mehsana metal recycling unit

    acquisition · closed

    M&A

    Plastic recycling unit

    acquisition · pending regulatory

    Liquidity

    Liquidity disclosed

    Liquidity issues led to increased interest costs and delayed payments from customers, though management is confident in overcoming these challenges.

    Guidance & targets

    10
    CategoryTargetPriority
    Revenue
    Consolidated Revenue
    ₹180-200 crores
    		High
    Revenue
    Metal Recycling Revenue
    ₹100-150 crores
    		Medium
    Revenue
    Oil Processing Revenue
    ₹60-70 crores
    		High
    Revenue
    O&M Revenue (excluding Oman)
    ₹35-40 crores
    		High
    Revenue
    Oman Revenue
    ₹50-60 crores
    		Medium
    Revenue
    Acid Reclamation Revenue
    match standalone numbers
    		Low
    Revenue
    Aspirational Revenue
    ₹1000 crores
    		Low
    Margin
    EBITDA Margin
    30-31%
    		High
    Margin
    PAT Margin
    17-20%
    		High
    Capacity
    Oil Processing Capacity
    2X scale
    		Medium

    Metal Recycling Unit Operationalization

    next month or so
    CurrentOn the verge of starting now
    TargetFully operational

    Why it matters

    Commercial operation of this unit is key to realizing the targeted ₹100-150 crore revenue in the next financial year.

    That unit is now on the verge of starting now, with the minor changes that we're supposed to make, we have already done. So maybe in the next month or so, the unit would be fully operational.

    How to verify

    capital_allocation.m_and_a[target='Mehsana metal recycling unit'].status

    Risks & concerns

    5
    RiskSeverity

    Liquidity Issues and Delayed Payments

    Increased interest costs and delayed payments from customers due to a global liquidity challenge and stretched working capital cycles. — Management acknowledged

    medium

    Geopolitical Impact on Oman Operations

    War in the Middle East caused a slowdown in Oman operations in Feb-Mar 2026, though conditions are now normalizing. — Management acknowledged

    medium

    Delay in Plastic Recycling Acquisition

    The acquisition of the plastic recycling unit is still under discussion and not yet finalized, potentially delaying market entry or expansion in this segment. — Management acknowledged

    low

    Commercialization Delays for Acid Reclamation

    The acid reclamation technology, while successful in trials, requires land acquisition and CPCB approvals, which will take time before commercial operations can begin. — Management acknowledged

    low

    Manpower Costs and Skilled Labor Availability

    Manpower costs increased due to expansion, and skilled manpower remains a challenge for the country as a whole, affecting the company. — Management acknowledged

    low

    Q&A highlights

    8

    “So, as of now, as we have already booked certain contracts from Oman government and the large refineries in Oman, our capacity of utilization will be 100% to this year. And I think, once we have 6 months or 8 months of continuous strong operations, we can ramp it up to 2X scale after this financial year.”

    Clarifies the current utilization and future expansion plans for a key operational segment, including revenue expectations.

    asked by Deepak Poddar

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY26

    Felix Industries reported a robust financial performance for FY26. Standalone revenue increased by 144.39% to ₹80.82 crore from ₹33.07 crore in FY25, with standalone Profit After Tax growing by 163.50% to ₹19.81 crore from ₹7.52 crore. On a consolidated basis, Revenue from Operations surged by approximately 178% to ₹102.21 crore from ₹36.82 crore in FY25. Consolidated EBITDA also saw a significant increase of 131% to ₹31.88 crore, and Profit After Tax grew by nearly 100% to ₹18.18 crore. The company attributes this growth to the execution of major projects and expansion of recurring revenue streams.

    02

    Strategic Business Expansion and Diversification

    The company is actively expanding its business through subsidiaries and specialized verticals, including Rivita Solutions, Felix Industries LLC (Oman), Felix WMC, and Felix Prime Metal. A key acquisition was a metal recycling unit in Mehsana, which is expected to be fully operational in the next month, targeting ₹40-50 crore in initial revenue and potentially ₹100-150 crore in the next financial year. Felix is also developing an acid reclamation technology, which has shown promising trial results and is expected to contribute significantly once commercialized, pending land acquisition and CPCB approvals.

    03

    Oman Operations and International Growth

    Felix's Oman operations continue to be a significant growth driver, focusing on waste management and oil processing, refining, and recycling. While the region experienced a slowdown in Feb-Mar 2026 due to geopolitical events, operations are now normalizing, with existing contracts ensuring 100% capacity utilization for the current year. The company is exploring opportunities with Saudi and UAE refineries and aims to secure ₹50-60 crore in revenue from Oman in FY27. Efforts are underway to secure ₹20-25 crore in working capital limits from Oman banks to support further expansion.

    04

    Capital Allocation and Liquidity Management

    Felix Industries plans to increase its working capital debt in India by ₹10-15 crore, bringing the total to ₹35-40 crore for the current financial year. Additionally, ₹20-25 crore in working capital limits are being sought in Oman. The company faced liquidity issues in Q4, leading to increased interest costs and delayed payments from customers, which impacted margins. Management acknowledges a global liquidity challenge but is confident in managing its working capital cycles, expecting optimization once all subsidiaries are fully on track.

    05

    Future Outlook and FY27 Guidance

    For FY27, Felix Industries has provided a consolidated revenue guidance of ₹180-200 crore, with an EBITDA margin expected to be maintained at 30-31% and a PAT margin of 17-20%. The company anticipates its oil processing segment to generate ₹60-70 crore in FY27 revenue, with O&M services (excluding Oman) contributing ₹35-40 crore. The proposed migration to the Main Board of NSE is expected to enhance visibility, improve liquidity, and broaden institutional participation, supporting long-term growth aspirations.

    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.