Ladies and gentlemen, good day and welcome to the Antony Waste Handling Cell Limited Q2 FY 2026 conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star, then Zero on your touch-tone phone. I now hand the conference over to Mr. Jose Jacob Kallarakal, Chairman and Managing Director from Antony Waste Handling Cell Limited. Thank you, and over to you, sir.
Good afternoon, everyone, and thank you for joining us for our Q2 FY 2026 earning conference call. With me, I have Mr. N.G. Subramanian, our Group CFO, and SGA, our Investor Relation Advisor. Our Investor Presentation for Q2 FY 2026 is now available on the stock exchanges and on our company websites. I am pleased to share that, building on the momentum established over recent quarters, we once again delivered a strong and consistent performance in the second quarter of FY 2026. This performance reflects our disciplined execution, operational agility, and our continued focus on innovation and sustainability. We have been proactive in leveraging our experience and technical expertise to strengthen project execution, enhance efficiency, and expand our capabilities in waste-to-energy while maintaining high service standards across our portfolio.
We are pleased to report that we closed the second quarter of FY 2026 with a strong year-on-year growth of 16% in operating revenue, reaching INR 233 crore. This growth was driven by a higher tipping fee, steady contribution from fixed shifts, trips, and household collection fees, along with continued improvement in operational efficiency. These factors collectively demonstrate the strength of our business model and our ability to deliver consistent performance across the projects. From a segmental perspective, our collection and transportation business delivered healthy growth, with revenue rising 14% year-on-year to INR 161 crore. The processing segment also performed robustly, recording 22% year-on-year growth, with revenue reaching INR 72 crore. This balanced growth across both verticals underscores the effectiveness of our integrated waste management strategy, combining operational excellence with strategic infrastructure investments that are yielding sustainable returns.
Our EBITDA for the quarter stood at INR 57 crore, reflecting a solid 18% year-on-year growth, with a margin at 22%. This performance underscores our ability to drive efficiency improvements while pursuing revenue growth initiatives. Overall, these results reaffirm our commitment to executing our long-term growth strategy and maintaining high standards of operational excellence. Furthermore, we are delighted to share that we have secured two new waste-to-energy projects in Andhra Pradesh, with a combined value of around INR 3,200 crore. This achievement stands as a strong reaffirmation of our leadership in the sector. These wins not only demonstrate our proven capability to deliver large-scale sustainable infrastructure but also reinforce our ability to consistently expand our presence in this high-growth segment. We take pride in setting new benchmarks in waste-to-energy solutions and remain committed to driving the next phase of sustainable growth across the country.
As India takes the lead in the ICC World Cup 2025, our pride extends beyond cricket. Alongside the on-field victories, our team has ensured every match reflects India's growing environmental commitment. From the match between Sri Lanka and Bangladesh on 20 October to the Grand Final against South Africa on 2 November, dedicated teams and special vehicles worked tirelessly across venues, collecting and lifting over 60 metric tons of single-use plastic waste. Each match demonstrated that sporting spirit and sustainability can go hand in hand, whether it was 8 metric tons collected during the early rounds or 16 metric tons at the final. Every effort shows India's resolve to keep its venues clean and responsible. As our champions race the World Cup, we celebrate another trip, India leading not only in cricket but also in creating a cleaner, greener legacy for the world to follow.
Looking ahead, our focus remains on expanding processing infrastructure, enhancing profitability, and strengthening our presence in high-growth emerging sectors. Backed by a strong operational and financial foundation, we are well-positioned to meet the evolving needs of urban India. As the nation accelerates its transitions towards sustainability and circular economic principles, we are fully prepared to deliver solutions that are practical, scalable, and outcome-oriented, driving long-term value for our stakeholders. Thank you, and I'm now turning to the financial and other operational aspects. Let me get Angie in. N.G., over to you. Thank you.
Thank you, Josh. I would like to provide a brief update on the operational performance of Antony Waste Handling Cell Limited and its group companies. During the quarter, our collection and transportation operations efficiently handled approximately 0.54 million tons of waste, while our processing facilities managed around 0.73 million tons of municipal solid waste, reflecting year-on-year growth of 3% and 10%, respectively. Overall, total tonnage for Q2 FY 2026 reached about 1.27 million tons, marking a 6% increase compared to the previous year. For the first half of the fiscal year, the total tonnage stood at 2.6 million tons, representing a strong growth of approximately 9% on a year-over-year basis.
Our operations continue to demonstrate resilience, consistency, and excellence across various sections. The waste-to-energy plant at PCMC sustained a strong performance momentum, generating over 41 million green units in the second quarter and more than 66 million units during the first half of 2026. This performance not only reaffirms our technological capability and operational efficiency but also our commitment to clean, green energy generation. Through these efforts, we avoided approximately 2,347 tons of carbon dioxide emissions in the second quarter and around 5,780 tons of CO2 emissions in H1 FY 2026, making a tangible contribution to India's renewable energy goals and reducing our carbon footprint. The consistent performance of our WTE facility serves as a benchmark for similar projects under development in Andhra Pradesh, further reinforcing our leadership in sustainable energy from waste. Our construction and demolition waste recycling facility also continued to operate efficiently, achieving an industry-leading recycling rate of 96%.
This achievement reflects our ability to convert waste into valuable resources and reinforces our commitment to advancing circular economic practices. Such consistent performance across facilities highlights our operational excellence and focus on building scalable, sustainable infrastructure solutions. Our resource recovery segment delivered an exceptional performance in H1 FY 2026, recording its highest-ever sales. Refuse-derived fuel sales surged by an impressive 48% year-over-year to approximately 95,600 tons, while compost sales remained healthy at around 9,800 tons for the first half year. For the quarter, RDF and compost sales stood at 40,000 tons and 3,200 tons, respectively. This significant improvement underscores our steady progress in advancing circularity. On the ESG front, we continue to make tangible strides in line with our sustainability roadmap.
The Scope 1 and Scope 2 emissions for the half-year stood at 13,300 tons and 1,450 tons of carbon dioxide emissions, respectively, while awarded emissions were estimated at 5,800 tons, reflecting our efforts in resource efficiency and carbon reduction. Our on-ground workforce strength expanded to 10,550, demonstrating our continued investment in building a skilled and committed team to drive operational excellence. Now, let me take you through the consolidated financial performance for Q2 and H1 FY 2026. In Q2 FY 2026, our total operating revenue witnessed an excellent growth of 16%, reaching INR 2.33 billion compared to the same period last year. For the half-year, our total operating revenue stood at INR 4.56 billion, marking a strong growth of 15%. In the second quarter of FY 2026, MSW collection and transportation contributed 61% of the total revenue, while processing accounted for 27%, and contracts and others comprised the remaining 12%.
This is almost similar to what were the ratios in the last year period, where the respective contributions were 62%, 26%, and 12%, respectively. For the quarter, the group reported an EBITDA of INR 57 crore, representing a strong 18% year-on-year growth, while EBITDA margins stood at 22%. For the first half, EBITDA stood at INR 119 crore, reflecting a 15% year-over-year growth, with EBITDA margin at 23%, as per stated guidance. These results underscore the group's operational efficiency and financial discipline. We could have done better, but due to the softer processing volumes, which reflected in under-absorption of certain fixed costs and due to the extended monsoon period, were the main reasons why the margin could have been better. The profit after taxes for the quarter was INR 17 crore, reflecting a notable growth of 13% as compared to Q2 FY 2025.
For the first half, PAT was INR 40 crore, which is a growth of 10% over the same period last year. This is despite an increase of 21% in depreciation costs and a 23% increase in interest expense due to operationalization of the WTE and C&D projects and the rollout of new NMMC C&D contracts. As of September 2025, the group's gross debt stood at approximately INR 438 crore, and cash and cash balances of around INR 95 crore reflected in a net debt of approximately INR 343 crore. This indicates a net debt-to-equity of 0.4x. The group's weighted average cost of debt is approximately 9.4%, and their DSOs remained stable during the quarter at 114. I would also like to highlight an important corporate update regarding the ongoing restructuring initiative.
As stated before, as part of our strategic plan to optimize both operational efficiency and financial strength, the company had earlier proposed the merger of AG Enviro Infra Projects Pvt. Ltd., our largest wholly-owned subsidiary with Antony Waste Handling Cell Limited, our listed holding company. I'm pleased to share that this merger is now in its final stage as the Honorable NCLT Mumbai Bench has admitted the joint company scheme petition. This development marks a significant step forward in our efforts to streamline our corporate structure, unlock operational synergies, and enhance long-term shareholder value. This concludes our remarks. We would now like to open the floor for Q&A.
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rohan Mehta from Nexus Capital. Please go ahead.
Yes. Thank you for the opportunity. Am I audible?
Yes.
Yes. Firstly, you mentioned earlier that your company aims to reduce the dependency on the corporation. Could you share any updates or progress that you have made towards diversifying into the other business segments?
Yeah. We have been looking at diversifying our revenue sources. With the start of the waste-to-energy projects, our revenue stream shifts from corporations to state electricity boards. With the bagging of the two new Andhra Pradesh WTE projects, we are able to kind of de-risk that project significantly. Additionally, with the construction and demolition waste project, our revenue from sale of byproducts is a significant shift in our revenue dynamics from that particular segment. These two initiatives have tried to increase our revenue footprint from a non-municipal corporation level.
Sure, sure. Thank you for that, sir. Secondly, for H1 this year, if we see EBITDA margin is around 23%. Do we expect margins to sustain at this level, or is there potential for further improvement in the coming quarters? How do you see the EBITDA margin going forward?
We normally expect the margin to be in the range of 22.5%-23%. I mean, that's what we have seen historically. Now, with the monsoon period slightly extending beyond the September period, we are seeing these margins to be sustainable because going forward, we expect that upsides from higher process volumes to kick in. So 23% is our stated goal to achieve these margins.
Sure, sure. Very much, sir. Thank you. That's all from my side, sir. Thank you so much.
Thank you. Before we take the next question, a reminder to all, you may press star and one to ask a question. The next question is from the line of Keethan Chera, an individual investor. Please go ahead.
Yeah, hi. Thank you for the opportunity. My questions, I've got two questions. One question is on our receivables. Now, with passing time, we are getting more and more projects, but at the same time, our receivables are increasing significantly. What can we do about the receivables which are outstanding? I understand there are some receivables with municipalities, and there are litigations going on. The ones which are not under litigation, how can we improve the receivables situation? The other question is on the return metrics like our ROCE and ROE. Even though our margins are pretty good, our return ratios are pretty low. In fact, for the past couple of years, they have fallen significantly. How can our return ratios also improve going forward?
Yeah. So on the receivables part, if you look at our DSOs, we have been pretty steady over the last seven to eight quarters. I mean, given the nature of our business, which is with municipal clients, though we have diversified. A list of clientele, we have kind of spread ourselves across very stable municipal corporations. If you look at our tables that we have provided over the last 14 quarters, our receivables have been steady in the range of around 90-114 days. Whether we like these to come down, the answer is definitely yes. We are working in a way where we can increase the non-municipal corporation part over the next couple of years, wherein the revenue from sale of power to waste-to-energy, from the waste-to-energy project, and from EPR credits, and also from sale of byproducts keep increasing.
Once the revenue pie from that segment increases, we expect our DSOs to also be addressed. Your next question on the ROCE and the ROE front, I would like to draw attention to slide number 34 in our presentation. One of the main factors why we are seeing the ROCE and the ROE numbers being softer is mainly because of the capital employed phase over the last three years. From FY 2021 onwards, our capital employed stage has gone up from INR 591 crore to around INR 1,300 crore. That is mainly because of our scale-up of operations in various C&D projects and the WTE projects and our construction and demolition entities. As and when we do our capital phase, the denominator increases, but the stable EBITDA nature also provides us a revenue stream and a profitability stream which kind of extends over a period of time.
That is one of the main reasons why you are seeing a softer trend in ROCE, ROE, because the capital initiation phase was what drove most of this for now. Going forward, assuming that we do not bag any new contracts, we will start seeing a significant growth in our margins and the ROCE and ROE metrics.
Okay. So does it mean that because of the capital-intensive nature, our return ratios would always be depressed going forward?
There are two phases to it, Keethan. What happens is, if I bag a new WTE project, for example, I need to incur the CapEx on day one, right? Only after the CapEx has been done do I start the operations of that front. You will see a denominator spike up, but the revenue and EBITDA will be a smaller amount. These are 20-year projects. As and when the assets get depreciated, the denominator falls off, but your EBITDA margin remains the same, right? That expands your ROCE and ROE numbers. Now, if the company is continuing to bag new contracts, your denominator will keep increasing, but that will also give you a significant revenue growth pipeline. Currently, we are exiting September 2025 with a total order book position of around INR 12,500 crore.
That is the kind of orders that we already have based on the CapEx that we have invested. Any new CapEx that we do will also increase the order book and the revenue visibility.
Yeah. No, of course. I mean, I appreciate that. And it's also visible in the numbers that three or four years ago, our revenues were at a different level, and the revenues are at a different level currently. Fair enough. One more question I have is, we've got some intangible assets and intangible assets under development. Could you throw some light? What are these?
Okay. These are actually capital expenditures done under D-Board projects. These are under Accounting Standard 115, since we do a lot of waste processing contracts, any capital expenditure that I do sits as intangible assets or as financial assets and not as plant and machinery or land and building. These are the assets that we have created for our Khanjur project and our PCMC WTE projects. Those are what is getting reflected in the books of account as intangibles. They get amortized over the project life.
Okay, okay. Sure. I was observing the balance sheet, so in the balance sheet, we've got the receivables, and then we also have the other financial assets, which also include receivables under service concession agreement. In a way, I felt that the receivables were coming under two different headings. Any specific reason why we have receivables and also receivables under the other financial assets?
This is as per the Accounting Standard 115, where we need to split the receivables that are accrued to the project over the project life of 20 years or 21 years. That is receivable over a project life. That gets amortized as a line item against my revenue. The other receivables in my current assets are my current receivables.
Okay, okay.
We have a detailed note on our website which explains Accounting Standard 115, which works with the project costing and the project accounting methodologies here.
Sure, sure. Okay, I'll do that. This last question, if I may. Our cash position also has dropped. Is the money blocked in some EMDs, etc., for some new projects that we may have debted?
Partly, yes. Partly has been spent on EMDs and bank guarantees that we have provided for projects and the pipeline. Also, because during the first quarter and the second quarter, we have seen a spike in our working capital deployment. That is one of the main reasons why we have seen a fall in our cash and bank balances on a YOY basis. We expect these things to improve in the second half of the financial year.
Okay, all right. Thank you. Thank you so much, and wish you all the best.
Thank you. I would request management to please close the doors and windows because I can hear some disturbance from your side. The next question is from the line of Amit Agicha from HG Hawa & Company. Please go ahead.
Yeah, good afternoon. I'm audible.
Yes.
Yeah, thank you for the opportunity. So my question is, given the finance cost increase, what is the average cost of debt now versus earlier, and what is the scope to optimize by refinancing or rating upgrade?
Currently, our cost of debt as of September 2025 is around 9.4%. We are currently A-rated at a large subsidiary and BBB+ rated by CRISIL and CARE. I mean, any improvement thereon will always see a benefit coming into the company.
Sir, about the Andhra projects which you said, you said INR 3,200 crore is the CapEx, right?
No, INR 3,200 crore is the total revenue. Over 20 years.
This is for which year?
This is INR 3,200 crore to be earned over 20 years.
20 years?
Yeah.
Okay. The data is also increased to 114. Can you just outline a plan to reduce this?
Sorry, your audio was not clear. Can you please repeat the question?
The question is connected to the data days. The data days have risen to 114 days, no?
Right. The DSOs are 114.
Yeah. Is the company comfortable with this client-file milestone also?
Normally, we have seen an improvement from third quarter onwards. If you look at the first quarter numbers and the second quarter numbers, we have seen a slight stability in our receivable cycles, and that has been reflected in our payable cycles also. Yes, I mean, our working capital cycle has been slightly stretched now, but we see things improving going forward.
As far as Khanjur Mark is concerned, what is the current throughput and residual life of the bioreactor landfill cells and plan CapEx and scope for higher gas-to-energy recovery?
Okay. Currently, the total waste that has been accepted at Khanjur Mark is around 6,300 tons a day. The capacity can go all the way up to 7,500 tons over the next couple of years. The project has a life till 2036. That is the project balance life that we still have at the site. Currently, we are generating around 0.97 megawatts of power completely for internal consumption. We are currently thinking of doubling up the capacity and even looking at solar power installation. Given the feedback from the meteorological department, we need to revisit that given the extended monsoon period in this part of the country.
Thank you for answering. All the best for the future, sir.
Thank you. The next question is from the line of Saaksha, from Old Bridge Capital. Please go ahead.
Hi team, hi N.G. Are you all audible?
Yes.
Hi. A couple of questions from me. Firstly, if you could just share what is the revenue this quarter from the new C&T contract. Secondly, could you just help us understand any progress on the new waste-to-energy projects? Where are we in that project? Has the construction already started?
The incremental revenue from new C&T projects has been similar to what we have done in the last quarter, which was around INR 140 million. That is the kind of revenue that we have had from the new C&T part, which is by Mumbai Corporation. On the AP WTE projects, I mean, the concession agreements have been signed with all the clusters, which basically means 18 various municipal corporations have executed a contract, and the concession agreement is signed. We are in the process of executing the PPA agreement with the APSDCL. We expect that to be completed by the end of this current month, and the financial closure to also be achieved by the end of the current calendar year. Once that is done, we will start with the construction phase by the last quarter of the current financial year.
Once that starts, we have 24 months of construction phase to start, and that will start from Q4 2026 onwards.
Got it. If I could just follow up, two more here. Firstly, on your working capital, going back there, two things that I've noticed. One is that this is a question probably that there are some inventories on your books. Is it related to the C&D contract that you have? Is it that? Secondly, if you could just share some more information on what has really led to this spike in receivables, is it any particular contract, or is it just a broader shift from C&T to waste-to-energy? What is really driving this increase? If I compare your H1 this year versus H1 of last year, there is a stark difference in days, in DSOs, right? If you could just share some more details here.
Yeah. To answer your first question. There has been a change in the accounting policy internally. We have started having a robust inventory account because we have started investing in a central stores system wherein we have started negotiating with OEM suppliers for bulk purchases and inventory being kept at stock holds across the system, which was not a practice in the past. In the past, we had a very decentralized procurement policy. Now we have gone in for a centralized storage management system. That is why you are seeing inventory as a line item over here. On the working capital and the spike, this has been something to do with the cash collection front from various municipal corporations, not limited to only one. Multiple municipal corporations have faced the same issues. Subsequently, we have realized a significant collection coming in. That has been the change.
You have seen a spike in our receivables during the September quarter. The same has got rectified in the months of October. Adjusted for the subsequent collection, our DSOs are around 86.
Oh, lovely. That's good to know. Yeah. Those are my questions. Thank you for asking, Indy. Thank you.
Sure. Thanks.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touchstone telephone. The next question is from the line of Neerav Dalal from MIB Securities India. Please go ahead.
Yeah, hi. Thank you for the opportunity. A few questions. One is on the couple of contracts that we won, the INR 3,200 crore contract that we won. What is the NVSART's CapEx of the contracts? Is it similar to what we had done for the Pune project? I guess in these contracts, there is no subsidy that we are going to get. If you could just give some details on that.
Yeah. Hi, Neerav. The CapEx will be similar to what we have incurred in the PCMC WTE project. These are two WTE projects very similar to the construct that we have done of 15 MW MSW-based power plants. These are 21-year projects. There is a viability gap funding to the tune of INR 650,000,000 each from the state and from the municipal corporations.
If I were to just clarify, the PCMC was about INR 150 crore, and we had INR 50 crore of viability gap funding. Even in this, would that be similar?
The CapEx over here would be slightly higher because of the time. The PCMC one was done almost five years back, right? There has been an increase in the cost of machines and materials and everything. We are seeing the CapEx to be around INR 300 crore-INR 325 crore. You are right. In PCMC's case, there was a INR 50 crore VGF. In this case, it is INR 65 crore VGF.
Okay. Okay. The other thing was regarding the—so for the PCMC project, I have two questions. One is, last quarter, we had spoken about EPR, and we said that we've used 20% for the first-year allocation. That number was about 94,400 metric tons. If you could just very quickly give a brief in terms of—so would this 94,000 or 95,000 metric tons accrue to us every year? I believe the price, because it is—I don't know, I'm just guessing—because it is plastic, it would be about INR 1 or INR 1.25 or something for the EPR. If you could just give a broad clarification in terms of what would be the realization or what would be the amount that we would get every year on this EPR, that was one question. The other was, what would be currently the outstanding debt for the PCMC project, just for the CapEx-related.
On the EPR aspect, I think we would be slightly conservative here because the numbers are still going on. Because the waste characterization is not very— It's a heterogeneous waste that we collect. Each month, each quarter, the quality of plastic, the quality of waste that gets burned needs to be ascertained for the EPR number to be quantified. Maybe by the next two quarters, we will be in a much better position to quantify the total EPR that we can actually look at. The numbers are likely to be of an annual number. It will only improve going forward because of significant segregation that's happening in the PCMC city. On the debt position of PCMC, I think we have come down to around INR 142 crore of debt at the project level.
Okay. Okay. Just lastly, in terms of Khanjur Mark project, if we were to look at the waste that we're getting in, is that number become stagnant or has it declined slightly over the years? Because the expectation was that, obviously, at some point in time, we would be reaching 7,500-8,000 tons a day, but we are stuck at about 6,000-6,300 tons a day. Is there something—is it that this is what we are getting and the increase would only happen, say, eventually, in the next five years, 10 years? I don't know. If you could just comment.
On the waste generation in the city of Bombay, I mean, the total tonnage that has increased, the bulk of the waste has been transferred to the Kanjur site. The other two sites, which are Deonar, and there's a waste-to-energy plant which is under construction, still going on. The biomining is yet to happen. We do not see a spike from the current levels. We can, at the most, see a 3%-7% increase going forward over the next three to six quarters. That's the sense that we are getting today. Also, there is a higher level of segregation that's happening. The bulk of the construction and demolition waste, which was also bundled along with the MSW, that is not getting transferred to the Kanjur site. Today, when we are talking about 6,300 tons, it's pure MSW waste as compared to the earlier quality of waste.
The quality of waste has changed drastically. We are seeing higher organic materials being transported and inorganic fractions. We do not see inerts being shipped to the Kanjur site now.
Okay. Okay. Just on the EPR, just lastly, when you say we are monetizing 20% of the first-year allocation of—so the first-year allocation is about 94,000 metric tons, and of that, we would have monetized 20%. Would that be the right way?
Yeah. That is a safe assumption because that was based on the first quarter waste characterization that we got. Now, with the second quarter and till November waste characterization samples being done, the numbers are slightly stretching on the upper side. Once the entire cycle is completed, we would be in a much better position to quantify the EPR generation from PCMC WTE for FY 2026.
Okay. Okay. Even at a rupee or a rupee and a half, it would come to anywhere between INR 250 million to about INR 400 million. Would that be right?
I would not like to estimate at this point of time because it's not just the quality of plastic, right? There's a lot of things that goes into the waste. So it's not pure STP or end-of-life plastic that gets consumed or converted into the EPR methodology. There has to be—each batch has a different metrics over here.
Okay. Okay. Okay. There is no—because if—there is no direct correlation.
Yes. Yes. We are also kind of being very conservative because the methodologies used by other industries may not fit ours because we get mixed waste.
Okay. Got that. Thanks a lot. Thank you for the opportunity.
Thank you. The next question is from the line of Shivam Parak from ValueWise Wealth Management. Please go ahead.
Hello, sir. Thanks for the opportunity. My first question was, I needed an update on the dividend policy since we have a stable business and we are profitable from quite many years. Any update on when the management thinks of passing on dividend to the shareholders? My second question, I needed some light on the progress in construction and demolition business and whether any updates on vehicle scrapping business, whether any MOUs or any land that we have gotten from the government that we were considering in the last few con calls. My third was, any update on the WTE project that was being considered for the Khanjur project?
Yeah. On the dividend policy, the board is considering the proposals over here. One of the main reasons for merging the subsidiary into the holding company was to make the listed company much stronger operationally and have a very good balance sheet and income statement. The board is evaluating that proposal. On the construction and demolition project, I think we are seeing a slight uptick in the volumes that we are handling at the Daiser C&D project. We expect in the dry season, the volumes to increase. There is a very concentrated effort by the BMC to kind of increase the construction demolition waste that is handed over for waste processing because there is also an EPR mandate to be given for the developer community over here. Your third point was with respect to the auto scrapping business and the tire reselling business.
We are currently in touch with MIDC for sourcing out a non-red zone for the land parcel. Once we get an understanding with the MIDC, we will be able to brief you on the thing.
Okay. Sir, what tonnes are we handling in the construction and demolition business currently per day?
Currently, we are handling around 225 tons per day. This was also the wettest period that we have seen. It has been swinging from 80 tons per day to around 225 tons per day. Once the monsoon period is over, we should be back to around 350 + tons a day.
Okay. Sir, in the last around two to three con calls that we were considering around 600 tons per day, that was our ambition. In what years or in how many quarters are we expected to achieve that?
Currently, the BMC is working on a proposal where this tonnage can be transported over in the next two to three quarters. We expect the tonnage ramp-up to happen maybe by second quarter of FY 2027 itself.
Okay. Got it, sir. Sir, another question, any update on the waste-to-energy project that was being considered for the Khanjur project?
The corporation has kind of put a hold on the project for now. There is basically waiting for clarification from the Supreme Court of the country wherein the usage of the land is being cleared for that aspect. Once we get a clarification on the same, the waste-to-energy project will be back on the table.
Okay. Sir, like around a few months back in the Maharashtra budget, there was a proposal to increase the solid waste collection fee from the users. Any update? Like, have you started increasing from the consumer point of view, or is the BMC only paying you currently?
The gazette clearly mentioned that the BMC will collect user collection charges directly from the generators. Unlike other cities like in Noida, Varanasi, Jhansi, the operator of the collection transportation is not authorized to collect these charges. BMC will be collecting this money directly from the various residential buildings and commercial establishments. The last we heard is the BMC is yet to get into the system. What they have done is they have stopped private collectors of waste from bulk generators, and local operators like the collection transportation companies like Antony have been authorized to collect the waste. The payment continues to be paid by the municipal corporations today.
Okay. Got it, sir. That was very helpful. That was from my side. Thank you.
Thank you. The next question is from the line of Keshav Bharadia from Wallfort Financial . Please go ahead.
Hi, sir. Congratulations on a good set of numbers. Sir, just had a couple of questions. The first one being, sir, as of today, our construction and transport C&T waste management business is restricted to Delhi and Bombay. Are there any plans in the pipeline to diversify into other states? Secondly, sir, I think a few quarters ago, we had given a guidance of around 25% CAGR on revenue over the next three to four years, whereas the last two, three years have been muted. Any indication on that with the new projects coming up? Can we see that momentum sustained, or is there any revision in that guidance?
Yeah. Hi. For the first question on the 25% CAGR growth, I mean, that's over four to five years. That guidance still is on track because, I mean, we are not in a very linear kind of a growth. The moment we bag a contract, it takes us anywhere between 6-24 months for the mobilization of the assets and the revenue to start kicking in. If you look at our revenue chart over the last five years from FY 2020 to FY 2025, you will see a jump of around 26% CAGR growth with the revenues jumping from, say, around INR 465 crore to INR 950 crore. With the two new WTE projects coming in, over the next couple of years, we will see these kinds of revenues also coming into the system. The guidance for a 25% CAGR growth over four to five years still holds growth.
The 17%-18% growth that we are showcasing today is based on contracts that are already there in the system. This is organic growth, both led by tonnage and tipping fee increase. That is very much in the play for us for now.
Understood, sir. Sir, do we have any plans in the pipeline to diversify into other states for collection and transportation of waste? Because currently, we are only in Delhi and Bombay, I think.
I think, I mean, we are present in a lot more other places. We are in MMR and MCR region. We are in Navi Mumbai, Panvel, Nashik, Nagpur, Jhansi, Varanasi, Greater Noida, and Noida.
Sorry, I meant other states apart from Maharashtra.
Yeah. We are definitely looking at various states in southern India and eastern part of the country. I mean, once, and I mean, we are also very conscious of the kind of clients that we work with. So we are definitely working with a few large cities in southern India and eastern part of the country.
Got it, sir. Just a last follow-up question in terms of the vehicle scrapping and tire recycling venture. I know you said that we're in the process of acquiring a land parcel and in the process of gaining all the approvals from MIDC. What would the timeline be broadly once we get all those permissions in place? How long would it take for us to construct the facility? What kind of turnovers can we expect over here? Let's say if we invest INR 1,000,000,000, what kind of asset turnovers can we do over here?
See, I mean, the cost of construction and putting a plant in place would not be more than six to nine months is what we estimate because it's all bolt-on acquisitions that you do from the plants. It's not something that, except for the civil work of putting a shed and everything, otherwise, everything is you just procure the machines, and it's a plug-and-play model. On the scalability of the project of auto scrapping, I mean, based on large companies like Mahindra Sero or Ross Mertha, I mean, we have seen that anywhere between 20-80 vehicles per day is a required threshold limit to kind of scale it up. We would be looking anywhere between 40 vehicles to start with as a basic idea to kind of get the juices in. Revenue realizations would be on a gross asset turn.
We don't expect it to be as high as C&T operations. We see that to be around 0.2x-0.25x. If INR 1,000,000,000 is your CapEx that you are pumping in, till the time the assets and the market improve, we would see around an INR 150,000,000-INR 250,000,000 of an annual revenue there.
Got it. Sir, the margins will definitely be higher on that.
I hope so. I mean, otherwise. It's like I'm happy doing my MSW business. I mean, giving me a 23% EBITDA, it's giving me a 9% PAT. And I know this business very well. For the last 25 years, we have been doing this business. So the auto scrapping business should at least give me a better run for my money.
Got it, sir. We can expect those approvals and broadly the construction to start in this year, so we can see some contribution from those businesses in FY 2027, hopefully?
We are definitely working on with these timelines. I mean, we are also working with a few large players to help us take this forward. We will keep you updated on this front.
Got it, sir. Thank you. That's all from my side. Thank you so much.
Thank you. Ladies and gentlemen, a reminder to all, you may press star and one to ask a question. The next question is from the line of [Harseth] from [Vadodara]. Please go ahead.
Hi. Good evening.
Hi. Good evening, sir. First of all, I think my question was answered, but I just wanted to understand more about the, I think, the INR 12,000 crore pipeline that we have. I get it the pipeline is a long process. When do we expect the orders to be executed?
When we talk about orders, we are basically say when we bag a C&T contract, it's a seven-year or a ten-year contract, right? The CapEx is already done. An annual revenue is, say, INR 1 billion. For example, we are in year three today. I have seven more years to go in a ten-year contract, and INR 7 billion is my order pipeline. That is what we mean when we say INR 12 billion is my order pipeline. These are basically contracts that the company has signed, CapEx has been done, and execution is ongoing for us.
In the INR 12,000 crore orders that we currently have, we have the capacity for that. Whatever new orders we might get, we might have to incur CapEx on the new orders.
Yes.
Okay. Got it.
If the CapEx, I mean, if you're looking at a collection and transportation contract, there are two natures of contracts. On one hand, sometimes the corporation provides the CapEx, like what we have seen in projects like Panvel, Jhansi, Varanasi, wherein the corporations themselves buy the assets and give it to you. So those are CapEx-like models. The order pipeline jumps just by bagging those contracts. In other contracts, you need to incur the CapEx.
Okay. Thank you.
Thank you. The next question is from the line of Shivam Parak from ValueWise Wealth Management. Please go ahead.
Yes, sir. Thanks for the opportunity again. Sir, just a follow-up question. Any update on further prospective orders that we have applied for, and we can expect to come through for us in this or the next financial year?
We have bid for a few C&T contracts and two other waste processing contracts. It's too early. They are still in the letter of intent stage. I think we don't expect any further update till February now. Maybe in the last quarter, we'll be in a better position to give you color on that front.
Okay, sir. And sir, the new two waste-to-energy projects that we have applied for, if it is possible from your side, we have applied it in which region of India?
This is in Andhra Pradesh.
Okay. In Andhra Pradesh. Okay, sir. If we bag that, we'll have four waste-to-energy projects, correct?
Sorry, my mistake. No, no. The other two projects are in the western part of the country. It's not in Andhra Pradesh. It's in the western part of the country. Those are still under wraps yet.
Okay, sir. Okay. Thank you so much.
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one. The next question is from the line of Amit Aghicha from HG Hawa & Company. Please go ahead.
Yeah. Thank you for the follow-up. Sir, what are the key risks to margins in the next 12 months, like fuel, wages, equipment maintenance, interest? I mean, how are these mitigated contractually?
The fuel part and labor component for us is around 60% of the operating cost and is completely passed through in all our contracts. Except for the timing mismatch, we are pretty much hedged on that front. We have also initiated this centralized stores purchase and everything, which has helped us get some bulk discounts and also leverage on our tie-up with the OEM. We are seeing a slight bit of advantage coming into these ranges. On the material part, spares, labor, and fuel, I mean, these are kind of pretty much hedged for us in that situation. What we have seen is a slight spike in wage bill. In order to attract good talent into the system, we have tried to be slightly aggressive in the market, and that is reflected in a slight increase in our wage bill over the last couple of quarters.
If you look at our numbers, you can see a 14% increase in our wage bill on a year-on-year basis. As a percentage of total revenue, it has been constant at 31% of the total revenue.
Sir, are there any delays in collections with any municipalities? What is the current aging profile?
Currently, our total DSOs on a weighted average is around 114, and we have not seen any spike or significant delays happening over and above what has been seen over the last couple of quarters for us. I mean, we have not seen any particular corporation delaying over and above what has been the normal course of business for us.
That's it from my side. Thank you. That was helpful.
Thank you. Ladies and gentlemen, this was the last question for today. I now hand the conference over to Mr. Jose Jacob Kallarakal for closing comments. Thank you. Over to you, sir.
Before we conclude, I want to take a moment to express my heartfelt appreciation to our entire team for their unwavering commitment and exceptional contributions. Your dedication and hard work have been instrumental in driving our success and sustaining our growth momentum. As we look forward, our focus remains firmly on delivering consistent performance, enhancing shareholder value, and strengthening our leadership in sustainable waste management. We will continue to invest in innovation, technology, and operational excellence to further consolidate our position in the industry. I am truly excited about the journey ahead as we continue to build a cleaner, greener, and more sustainable future for our communities and stakeholders. Thank you once again for your continued trust and support, and I wish everyone a happy New Year and a pleasant evening.
Thank you very much, sir. On behalf of Antony Waste Handling Cell Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.