Summary
Enviro Infra Engineers Limited - Q3 FY 2026 Earnings Call Summary Tuesday, February 10, 2026 11:00 AM
Event Participants
Executives 2 Manish Jain (Managing Director), Sanjay Jain (Chairman and Whole-time Director)
Analysts 9 Anmol Mittal, Daksh Malhotra, Deepak Poddar, Dinesh Kulkarni, Diwakar Rana, Kishore Jasotani, Madhu, Meet Shah, Prateek Bhandari
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹250.0 crores | +1.0% YoY; Execution slowed by prolonged monsoons and festive season in October. |
| EBITDA | ₹67.7 crores | +25.6% YoY; Driven by shift toward high-margin wastewater segments and operational efficiency. |
| EBITDA Margin | 27.1% | +530 bps YoY; Reflects structural cost control despite sluggish top-line growth. |
| Profit After Tax (PAT) | ₹42.1 crores | +14.7% YoY; Impacted by ₹6 crore ECL provision in Q3; cumulative 9M PAT up 30.1%. |
| PAT Margin | 16.3% | +180 bps YoY; Robust profitability maintained through project mix discipline. |
| Executable Order Book | ₹1,903 crores | Excludes O&M; strengthened by ₹248 crore Bhopal Municipal Corporation win. |
| O&M Order Book | ₹933 crores | Annuity-style revenue stream providing long-term visibility. |
| Renewables Order Book | ₹256 crores | New segment entry; includes IPP and EPC models for solar and biogas. |
| 9M Revenue | ₹718.3 crores | +7.9% YoY; Reflects steady conversion of existing order book post-monsoon. |
Geographic & Segment Commentary
- Wastewater & Sewerage: Remained the primary driver with new ₹248 crore Bhopal EPC+O&M project win. Major projects in Varanasi (55 MLD), Jaipur (80 MLD), and Sarigam (25 MLD) are nearing completion. Management highlighted a transition toward the “reuse” segment, providing treated water to industries as a new revenue model.
- Renewable Energy: Contributes ₹256 crore to the order book in its first year of operation. Segment revenue was ₹9.8 crores in Q3, with management targeting ₹200 crores in Q4 through equipment supplies and IPP assets. Focus areas include solar, biogas-to-electricity (as seen in Jodhpur), and recent bids for wind and Battery Energy Storage Systems (BESS).
- Piped Water (JJM): Focus remains on MP with ₹225 crores in total receivables/unbilled revenue. Management is currently avoiding new JJM bids due to funding uncertainties in the national scheme, focusing instead on completing and commissioning the 1,000-village connectivity project.
Company-Specific & Strategic Commentary
- Circular Economy Integration: The company is successfully integrating biogas and solar power into STPs (e.g., 100 MLD Jodhpur plant) to enable on-site electricity generation and reduce O&M costs.
- Bidding Pipeline: Current bid pipeline stands at ₹5,000 crores, primarily in wastewater and CETPs. Management expects to submit an additional ₹2,000 crores in bids during February and notes a ₹26,000 crore upcoming pipeline under the AMRUT 2.0 mission.
- Working Capital & OCF: Management is prioritizing cash conversion, targeting 90-100 working capital days and aiming to turn Operating Cash Flow (OCF) positive by the end of FY26.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 Revenue | ₹1,350 crores | Revised from 35% growth due to delayed order inflows in Q2/Q3; includes ₹200cr from Renewables. |
| FY26 PAT | ₹230 - ₹250 crores | Guidance maintained (35%+ growth) despite lower revenue, supported by strong margins. |
| FY26 Order Inflow | ₹2,500 crores | Confidence based on ₹5,000cr evaluation pipeline and expected ₹1,000cr wins in Q4. |
| FY27 Renewable Rev | ₹400 - ₹500 crores | Expected growth from scaling the new sustainability-led segment. |
| EBITDA Margin | 22% - 24% | Long-term target remains conservative despite current 27% performance to account for project mix. |
Risks & Constraints
| Risk | Context |
|---|---|
| Order Inflow Delays | Technical glitches and re-tendering (e.g., Delhi projects, Rajasthan) have delayed LOA issuance, impacting near-term revenue visibility. |
| Execution Seasonality | 40% of annual revenue is skewed toward Q4; achieving ₹600cr+ in one quarter requires aggressive equipment supply and billing cycles. |
| JJM Funding | While EIEL notes no issues in MP, the national JJM revised budget estimate was cut from ₹67k cr to ₹17k cr, indicating broader sector stress. |
| Expected Credit Loss | A ₹6 crore ECL provision was booked in Q3; cumulative provisions of ₹15 crore reflect Ind AS compliance on aging receivables. |
Q&A Highlights
Execution Slowdown & Guidance
- Question: What led to the execution slowdown in Q3? (Diwakar Rana)
- Answer: Some expected orders in Delhi and Bihar were delayed due to re-tendering and evaluation lags. However, Q4 revenue is expected at ₹600-650cr based on equipment supplies and post-monsoon site gearing (Manish Jain).
Renewables Strategy
- Question: How will you manage the capex for the new renewable segment? (Meet Shah)
- Answer: Investment from EIEL is capped at ₹75cr; additional funds come from promoters and project-specific debt. The segment will move toward an EPC+IPP mix (Manish Jain).
Order Pipeline & Success Rates
- Question: Are we losing orders to competitors? (Daksh Malhotra)
- Answer: No, the delays are systemic at the government evaluation level (Delhi/Bihar). Management expects a 20-25% win rate on the ₹5,000cr pipeline to meet year-end targets (Manish Jain).
Receivables & Working Capital
- Question: What is the status of JJM receivables? (Prateek Bhandari)
- Answer: Currently ₹225 crores (debtors + unbilled) in MP. Payments from the state government are stable, and commissioning is expected by June (Manish Jain).
Key Takeaway
Enviro Infra Engineers delivered a quarter characterized by moderate revenue growth of 1% YoY but exceptional margin expansion, with EBITDA margins reaching 27.1%. While technical delays in government tendering—particularly in Delhi and Bihar—and prolonged monsoons muted Q3 execution, the company maintains its FY26 PAT guidance of ₹230-250 crores, representing over 35% growth. Strategic diversification into renewables is gaining traction, with a ₹256 crore order book and a targeted ₹200 crore revenue contribution in Q4. Management is shifting focus toward the high-tech water “reuse” segment and urban sewerage under AMRUT 2.0, while simultaneously de-prioritizing the troubled JJM rural sector. The outlook remains contingent on the aggressive execution of ₹600-650 crores in Q4 and the successful conversion of the ₹5,000 crore bid pipeline to replenish the order book for FY27.
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