Summary
Antony Waste Handling Cell Limited - Q3 FY 2026 Earnings Call Summary Monday, February 02, 2026 2:00 pm IST
Event Participants
Executives 3 Jose Jacob (Chairman and Managing Director), Mahendra Ananthula (Group President - Operations, Business Development and Diversification), N. G. Subramanian (Group Chief Financial Officer)
Analysts 6 Amit Agicha, Hemkesh Khattar, Neerav Dalal, Nitesh Kavanthkar, Rohan Mehta, Ronak Shah
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Operating Revenue | ₹240 crores | +9% YoY; growth supported by volume increases and tariff escalations, partially offset by lower power sales. |
| 9M FY26 Revenue | ₹696 crores | +12% YoY; consistent growth across segments. |
| EBITDA | ₹50 crores | 18.4% margin; impacted by annual appraisals, incentive cycles, and manpower additions at C&T sites. |
| 9M FY26 EBITDA | ₹169 crores | 21.4% margin; remains within management’s stated guidance range. |
| Net Profit (PAT) | ₹15 crores | Q3 performance; 9M FY26 PAT stands at ₹55 crores. |
| Total Tonnage | 1.42 million tons | +19% YoY for Q3; 9M tonnage reached 4.01 million tons (+12% YoY). |
| Net Debt | ₹350 crores | Gross debt of ₹425 crores less ₹75 crores cash; Net Debt/Equity remains low at 0.4x. |
| Days Sales Outstanding | 96 days | Improved from 114-115 days through focused collection efforts subsequent to the quarter-end. |
Geographic & Segment Commentary
- Collection and Transportation (C&T): Segment revenue grew 7% YoY to ₹175 crores, contributing 65% of total revenue. Performance was driven by higher volumes and the deployment of 335 new vehicles for the NMMC project and Nagpur sites.
- Waste Processing: Revenue reached ₹66 crores, marking a 12% YoY growth. The segment contributed 24% to the total revenue mix, supported by increased RDF sales and recycling initiatives.
- Waste-to-Energy (PCMC): Generated 2 million green units in Q3, significantly lower than the 9.25 million unit capacity. The decline was due to an 82-day technical shutdown; the plant resumed full operations on December 18, 2025.
Company-Specific & Strategic Commentary
- Corporate Restructuring: Completed the merger of AG Enviro Infrastructure Projects with the parent company effective December 31, 2025. This move streamlines operations, optimizes cash flows, and strengthens the balance sheet for future capital allocation.
- Project Wins: Secured two large BMC C&T contracts through a 51% consortium stake, covering 7 wards with a total revenue potential of ₹1,330 crores over 7 years. Additionally, won a 10-year DBOT project from Thane Municipal Corporation for a 600-800 TPD facility with a ₹67 crore reimbursable capex.
- Diversification: The Board is exploring non-municipal B2C opportunities, including “Click-to-clean” services and the Extended Producer Responsibility (EPR) market to reduce municipal counterparty risk.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 20% CAGR | Driven by new project wins in Mumbai (BMC), Andhra Pradesh, and Atkoli. |
| EBITDA Margin | 20% - 23% | Anticipated improvement as higher-value processing contracts gain traction and operational leverage kicks in. |
| FY 2027 Revenue | 15% - 18% growth | Based on existing contract run rates and planned capex rollouts. |
| AP WTE Revenue | ₹130 - ₹140 crores | Expected annual revenue contribution from the two Andhra Pradesh projects starting FY 2029. |
Risks & Constraints
| Risk | Context |
|---|---|
| Counterparty Risk | Municipalities are “tough pay masters,” leading to historically elevated DSO levels (114+ days) and administrative delays. |
| Operational Shutdowns | Technical modifications at the PCMC WTE plant caused an 82-day shutdown, impacting Q3 power sales and EBITDA margins. |
| Leverage Outlook | Net Debt/Equity is expected to rise from 0.4x to 1.0x-1.2x over the next two years to fund the ₹600-₹650 crore AP projects. |
Q&A Highlights
Escalations and Receivables
- Question: What is the status of pending tariff escalations in Nagpur and Noida? (Ronak Shah)
- Answer: Issues are resolved; clients have paid most arrears. PCMC WTE tipping fees also escalated from ₹505 to ₹656 per ton, which will now see a 3-5% annual increase (Mahendra Ananthula).
Andhra Pradesh WTE Projects
- Question: What is the timeline and capex for the new AP projects? (Hemkesh Khattar)
- Answer: Total capex is ₹600-₹650 crores with a 75:25 debt-equity ratio. Construction will take 24 months, with revenue generation starting in FY 2029 at 40%+ EBITDA margins (Mahendra Ananthula).
Financial Impact of New Projects
- Question: Will the Ind AS accounting for construction impact reported margins? (Ronak Shah)
- Answer: Yes, Ind AS construction revenue will likely lower reported margins during the build phase; management will report core vs. reported EBITDA separately (N. G. Subramanian).
Dividend Policy
- Question: Can shareholders expect dividends post-merger? (Shivam Parakh)
- Answer: The merger improves cash flow flexibility; the Board is currently evaluating a dividend strategy for FY 2027 (N. G. Subramanian).
Key Takeaway
Antony Waste delivered steady Q3 FY26 results with 9% revenue growth, though margins were temporarily squeezed to 18.4% by annual labor cost cycles and a technical shutdown at the PCMC Waste-to-Energy plant. Strategically, the company hit a major milestone by completing the AG Enviro merger and securing high-visibility contracts in Mumbai and Thane, which provide long-term “annuity-like” cash flows. Total tonnage increased a robust 19% YoY, reflecting strong operational execution. Management maintains a confident 20% CAGR revenue growth target and 22-23% EBITDA margin guidance, underpinned by upcoming ₹600-₹650 crore waste-to-energy projects in Andhra Pradesh and expansion into B2C segments. While municipal payment cycles remain a watchpoint, the reduction of DSO to 96 days post-quarter and the successful resolution of long-standing price escalations at three sites strengthen the near-term financial outlook.
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