Ladies and gentlemen, good day and welcome to the Enviro Infra Engineers Limited Q1 FY 2027 Earnings Conference call. Before we begin the conference, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and may 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 at the end of today's presentation. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.
I would now like to hand the conference over to Mr. Manish Jain, Managing Director of Enviro Infra Engineers Limited. Thank you, and over to you, sir.
Thank you, Mano. Good morning, everyone. I would like to welcome you all to our Q1 FY 2027 earnings call. On call today with me is our investor relation team from Adfactors PR. We have shared our earnings presentation and press release, and I hope you have had the opportunity to go through it. On behalf of the entire team, I am pleased to share our operational and strategic progress for the first quarter of FY 2027. Q1 FY 2027 continued to reflect the transformation that Enviro Infra Engineers has been building over the past year. As we strengthen our core position in water and wastewater infrastructure while expanding our presence across renewable energy and Battery Energy Storage Systems and wind EPC segment. Our water and wastewater treatment business, along with our operations and maintenance portfolio, remained the foundation of our execution during the quarter.
At the same time, our renewable energy platform continued to gain momentum with increasing capabilities across solar, wind, and battery storage. Our focus remains firmly on disciplined execution across all our businesses. In water and wastewater, we continue to strengthen our technical capabilities, expand our geographical presence, and pursue larger and more complex projects. In renewable energy and BESS, we are focused on building a scalable platform supported by our capabilities across solar, wind, and energy storage. We believe the convergence of water infrastructure, renewable energy, and energy storage presents a meaningful long-term opportunity for Enviro Infra Engineers. As an engineering and technology-driven infrastructure company, we are focused on leveraging technology, engineering capabilities, and execution expertise to address evolving infrastructure requirements. Our priority is to convert these opportunities into sustainable growth while maintaining execution discipline, healthy margins, and prudent capital allocation.
Now turning to our order book and execution pipeline. Our total order book stands at approximately INR 6,721 crore, providing strong revenue visibility for the coming periods. The order book comprises INR 3,694 crore in water and wastewater treatment segment and INR 3,027 crore across renewable energy and BESS. Within the water and wastewater segment, we have INR 2,696 crore of execution orders and around INR 998 crore O&M orders. While in the renewable portfolio, we have execution orders worth INR 1,948 crore, while IPP and O&M comprises projects worth INR 1,079 crore. This diversified order book provides us with a strong execution pipeline and allows us to participate across multiple segments of environmental infrastructure and clean energy value chain. During the quarter, we have secured a new EPC and O&M contract worth INR 113 crore from Sardar Sarovar Narmada Nigam Ltd in Gujarat, further extending our water infrastructure portfolio.
To our step-down subsidiary, which is Suyog Urja Limited, we have secured a renewable energy contract worth INR 207.5 crore for land aggregation and balance of plant works for a hybrid wind and solar project. This further strengthens our capabilities in the renewable energy value chain and provides additional execution opportunities through the Suyog platform. During the quarter, we also secured two hybrid annuity model projects in Varanasi, Uttar Pradesh, under Namami Gange Programme with a combined value of INR 256.9 crore. These include a 60 MLD Sewage Treatment Plant at Lohta, valued at INR 130 crore, and a 45 MLD Sewage Treatment Plant at [DDU] Nagar, valued at INR 126.8 crore. Both projects have an 18-month construction period followed by a 15-year O&M period. With these additions, our HAM portfolio has now increased to five projects, further extending our long-term revenue visibility and the quality of our order book.
Now, on the execution and business outlook side, our focus remains on converting the strong order book into revenue through disciplined project execution. Our water and wastewater business continues to remain the core of our operations, with execution spread across multiple states and project categories, including WWTPs, WSSPs, and ZLD projects. The core water and wastewater treatment segment contributes approximately INR 255 crore, representing 71% of the consolidated revenue, underscoring its significance to the overall business. At the same time, our renewable energy platform is also gaining meaningful scale. During Q1 FY 2027, renewable segment revenue contributed approximately INR 104 crore, which is around 29% of the consolidated revenue, reflecting the increasing contribution of this business to overall operations. As mentioned, our renewable capabilities now span solar, wind, and BESS, with both EPC and IPP opportunities.
We believe the combination of these capabilities provide us with a broader platform to participate in India’s ongoing transition towards cleaner and more flexible energy infrastructure. Going forward, our priority remains to maintain execution momentum across existing order book, pursue quality opportunities, and ensure disciplined bidding and capital allocation. On the financial performance side, for Q1 FY 2027, revenue from operations stood at INR 359.2 crore, registering a growth of 49% year-on-year, driven by a continued execution across our order book. EBITDA stood at INR 75.7 crore, registering a 17.87% year-on-year growth. EBITDA margin stood at 21.07%, compared with 26.65% in Q1 FY 2026, and 18.7% in Q4 FY 2026. The movement in EBITDA margin reflects the current project and execution mix, along with the impact of input cost. Profit after tax stood at .
INR 45.2 crores, registering a 6.47% year-on-year growth, while PAT margin stood at 12.38%, broadly stable sequentially compared with 12.37% in Q4 FY 2026. Overall, the quarter reflects strong revenue growth, continued execution momentum, and an increasing contribution from our renewable energy platform. Looking ahead, we see Enviro evolving into an integrated engineering services specialist across various industry verticals, wherein we can leverage our technological and project expertise on a wide range of projects. We remain confident in our ability to execute the existing order book and continue to build a quality pipeline of opportunities across water infrastructure, renewable energy, and desal. Our focus for the remainder of FY 2027 will remain on strong execution, working capital discipline, maintaining healthy margins, and creating sustainable long-term value for our stakeholders. With that, I would like to open the floor for questions.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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. We have our first question from the line of Raman KV from Sequent Investments. Please go ahead.
Hello sir, can you hear me?
Yeah, you are audible.
Yes, my first question is with respect to the margin side. Our gross margin was declining significantly year-on-year. Can you explain what was the main reason between the decline of gross margin?
If you would have seen our earning guidance for current financial year, since the start of this quarter, input cost, it has gone for an increase. There is a slight reduction in our guidance in the EBITDA margins. Earlier, we used to give margin guidance in the range of 22%-24%. For the current financial year, we have lowered our guidance a bit in the range of 21%-22%. The results reflect that the guidance which we have given is in line with the actuals. Our EBITDA margins right now are 21% at the standalone level, and we are happy to confirm that our EBITDA margins have remained at the same level of 21%, even at the console level, where it is getting consolidated with the business of renewables.
That says that the EBITDA margin, which we expected somewhere in the range of 19%-20% with the blend of renewables. We have been in a position to achieve margin slightly better than what was the expectation earlier from our side.
Understood, sir. Basically the decline in margin is primarily because of raw material and not because of the excess competition in the industry.
No.
Is my understanding correct?
Because of the increase in the raw material cost, it is one. It is a blend of renewables, second. And third, a lot of development work which was going on in the last financial year. We were increasing our team size since we were getting new projects with a very healthy order book that we do have for the water and wastewater treatment sector itself as well in our company.
Our employee cost, if you will see, it has gone to an extent of somewhere around 7% in Q1, which earlier used to be in the range of around 3%-3.5%. So we expect a prudent level somewhere around 5% of the employee cost when we move ahead in this financial year.
Then the finance cost as well, which right now reflects at around 4%, but at a blended level during this entire financial year when the top line is expected to be in the range of INR 2,000 crores. So we can expect this financial cost also to be in the range of 3%-3.5%. So with this, definitely our margins, PAT margins, which right now looks at 12.5%. So a delta of somewhere around 1.5%-2% is always visible. So that says the movement in the company is in the right earnest, and we are going good.
Understood, sir. My second question is with respect to the order book. You gave a rough split between the water and wastewater EPC business as well as the renewable EPC business. I just want to understand what will be your timeline to execute these projects. And on the O&M side, for how long are we supposed to do on an average? Are we supposed to provide O&M to the end user?
First of all, with respect to the execution order book that we do have in our hands. So INR 2,700 crores is the order book which is available in the water and wastewater treatment segment. The timeline of execution here is 18- 24 months. Practically, if I say this entire order book of INR 2,700 crores is to be executed over a period of next two years.
Understood.
Coming to the renewable side, this total order book of INR 2,000 crores, it is to be executed over a period of 12- 18 months' time. Coming to operation and maintenance. When we talk about the water and wastewater treatment segment, all the turnkey projects, whether it is EPC, whether it is HAM, all are blended with an operation and maintenance. So this order book do come along with the execution order book at the start itself, which span the period of 5- 15 years. So at an average level of 10 years, we can say roughly around INR 100 crores can be the top line from the operation and maintenance.
The operation and maintenance in itself gives a better EBITDA margin, but the quantum or the value of this operation and maintenance in comparison to execution, that will remain to be in the range of 3%-5%. Regarding the O&M order book for our renewable segment, it spans out either from the EPC, which is for a period of 5- 12 years, and then the IPP projects, where the IPP income will come over a period of 25 years. So this is how the entire order book will move.
Understood, sir. I'll join back in the queue. Thank you, sir.
Thanks a lot.
Thank you. We have our next question from the line of Vidhi Shah from C.R. Kothari and Sons. Please go ahead.
Hello, sir. Can you quantify the impact of raw material cost increase that led to the margin decline versus what you said the project mix? Also, if you can give a split between the segments, the EBITDA margins for solar, wind, and water increases.
First of all, if I talk about this profitability in the different segment. Water and wastewater treatment segment, we expect EBITDA margin somewhere in the range of 21%-22%. In the renewable segment, which spans over solar, wind, and BESS, the EBITDA margins shall be in the range of 15%-18%. At a blended level, we can expect the EBITDA margins to be somewhere in the range of 19%-20%. There can be a different split in the wastewater and water segment as well, which spans over EPC, HAM, and then the type of water or EPC of sewage treatment plants or EPC of common effluent treatment plants. This is the blend or the product mix across that quarter which will drive the right EBITDA margins.
So at a blended level, we can say around 20% is the EBITDA level which we can achieve in the entire financial year.
[audio distortion]
Sorry to interrupt you, Vidhi. Your voice is breaking.
I don't know why.
No, it's still breaking. Can you please move to a better reception area?
Is it better now?
Yes.
In the new order that we won, is there an increase in raw material cost part too?
The raw material price impact is somewhere in the range of 1%-2% of the overall top line of the company. This is what we have accounted for in terms of our guidance of EBITDA margin, which we have lowered to an extent 21%-22% right now in place of 22%-24%, which were predominantly available in the previous years.
Okay, the cost will be borne by the company in the new orders as well?
There is a price variation clause in the tender as well, which is linked to WPI and CPI index. There is some price which gets covered with this price variation and some part which we are required to absorb. There was one point of time when we were seeing the war has just ended and things will settle down, and then definitely the margin again could have improved. But we will have to just wait for it. Some of the price increase, definitely we may have to absorb in our EPC price itself.
Understood. Lastly, what was the contribution of revenue from wind segment and in renewables, can you give a split O&M and EPC?
Yeah. Wind segment in Q1 has contributed INR 80 crore out of INR 359 crore. The revenue, this order book is basically INR 2,000 crore execution order book in renewables and around INR 1,000 crore O&M and IPP revenues order book in the renewables segment.
That is it from my end. Thank you and all the best.
Thank you.
Thank you. We have our next question from the line of Sudeep Anand from Systematix. Please go ahead.
Yeah. Good morning, sir, and congratulations for a good set of numbers. Just a few questions. One, sir, we have seen that our overall profitability got impacted because of the higher interest cost. I know this is largely because of the IPP, but what could be the peak date we are looking at based on the current order book that we have to execute?
Good morning, Sudeep Ji. Basically, profitability has got impacted because of, one is, as I explained, it is the cost impact since the prices have gone for an increase. There is a blend with renewables, but fortunately, at least for this quarter, there is no downside which we see from the renewable order book which we have executed in the current quarter. The profitability as we will go further in this financial year, the revenue right now is somewhere around 20%.
As we see in the guidance in the first three quarters, it remains to be somewhere in the range of 20%-22%, and the last quarter accounts for around 40% of the overall revenues in the financial year. As we will move ahead, the indirect cost, which is employee cost or finance cost, which gets reduced as a percentage of sales.
The profitability is expected to improve slightly.
Right. Okay. Can you just give some more color on the bidding pipeline in both the water segment and the renewable and what could be the FY 2027 exit order book that you are looking at?
Presently, the projects for which the bids are already submitted and for which the evaluation is going on, it is somewhere in the range of INR 3,000 crore. Apart from this, there is a robust pipeline which is available in form of bidding. We are looking for projects somewhere in the range of INR 6,000 crore- INR 7,000 crore for which bids have already been invited and we will be submitting our bids. This way, the order book pipeline in the water and wastewater treatment segment remains to be very bullish. In the renewable segment, since the order book is already at a very decent level for the current financial and we see the next financial year as well. We are not going big at all in the renewable segment.
Rather, our focus will be first to go for execution in solar, wind, BESS, all three segments, and then we can look forward to a further increase in the order book. Nevertheless, we expect some good orders in the wind EPC segment wherein we are looking for some good projects of around INR 600 crore- INR 800 crore further getting accumulated in the company.
Okay. Thank you so much, sir. Thank you and all the best.
Thanks a lot.
Thank you. A reminder to all participants. If you wish to ask any questions, you may press star and one. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. Next question is from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.
Yeah, thanks for the opportunity. Sir, in terms of balance sheet, what is the status of this payable or unbilled revenue at present?
Dhananjay, I will say the position is not improved right now. The position still, I will say is bloated, but we are hoping since the funds are already allocated. Even in the last quarter, we had confirmed the movement of funds should be there, but it remains low. The working capital cycle still remains bloated. I do not have the exact numbers, or I cannot say the numbers which are there.
But it is there. But by September when we will come out with our cash flow position, I am quite sure that we will be sitting at a healthy cash flow level. Still, what I will say is the cash flow position in the company is stable. We are able to meet all our liabilities well in time. There is no slippage at all with respect to any of our liabilities.
There is a slight slowdown in the cash flow receiving from the government clients, but we do hope the cash flow cycle will improve.
Okay. Sir, with respect to this Suyog Urja, the second tranche investment for the remaining 25%. So when do you expect it will complete, and what is the target revenue for this year, and what kind of pipeline you are looking in terms of order book?
The total acquisition which we did in Suyog Urja Limited, the total acquisition value was INR 311 crores. The first tranche of INR 111 crore has already been paid. The second tranche of INR 100 crores will be paid after FY 2027, sometime July. So it will be based on the KPIs which we have reached in terms of the revenue, the bottom line, and the order book which will be available. So there can be a slight increase or decrease in the amount of payments that will be paid at that point of time. It will be paid through a mix of internal accruals and some debt, which we will take as the acquisition funding. At least at present, INR 80 crore is what Suyog has done in the first quarter.
Our expectation is in the range of INR 400 crores-INR 450 crores what we will do as revenue from Suyog Urja Limited. In terms of order pipeline, the present order pipeline in Suyog Urja in wind EPC is somewhere in the range of INR 800 crores, and we do expect another INR 500 crores-INR 600 crore projects, which will come in wind EPC segment for this financial year.
And margins in this segment is close to 14%-15%?
If I talk about EBITDA margin, these are in the range of 15%-16%. At PAT level, I will say it is 12%+ , which we can do.
Okay. So, this year, FY 2027, we will consolidate in terms of profitability about 51% only, and the 75% impact in terms of profitability will come in FY 2028, right? When we complete the second tranche, subject to achieving the revenue target of FY 2026 order book target. That is the right assumption?
After FY 2028, it will be third tranche. So there were three tranches. First tranche already paid, second tranche after FY 2027, third tranche after FY 2028.
Okay. Q1 number, we are on track to achieve whatever target we have set.
Yeah. We are well on target in this.
Okay. That is all from my side. Thank you.
Thank you.
Thank you. A reminder to all participants. If you wish to ask any questions, you may press star and one. Next question is from the line of Ashwin Patil from Intelligent Prosperity Solutions. Please go ahead.
Hi, good afternoon.
Yes, sir.
Thank you for the opportunity. I want to ask you, sir, looking ahead to FY 2028, do you see any possibility of margin moving to a structural higher levels from the current 20%-22% range?
There is always a possibility of improvement. When we give any of the guidance, it is based on a surety level that the minimum margins which will be achieved. At a blended level, where we talk about water and wastewater segment and then the renewable segment as well, we look forward to EBITDA margin in the range of 19%-20%. The individual EBITDA margins I have already explained. In the water and wastewater treatment segment, we expect it to be in the range of 21%-22%, and the renewable segment, 15%-18%.
Okay. Thank you. Explanation was paramount.
Thank you.
We have our next question from the line of Ankur Shah, an individual investor. Please go ahead.
Hi. I hope I'm audible. Sir, I have a quick question for you. As an individual investor, last year, there was a massive delta between what the management committed and what was achieved. I think we gave over about 7% year-on-year target. How confident are we this year in terms of execution and achieving the top-line guidance of what you have been providing? My other question is that, are we chasing growth at the cost of margins, or is it the genuine case where you mentioned the raw materials and the employee costs have gone up, which has significantly impacted your bottom line? I just want some clarity over there.
Let me explain how the last year had panned out. At the start of the last year, we were going ahead with an order book in hand, which was approximately INR 1,200 crores. If I would have given any guidance based on that number, 50%-60% conversion, the total revenue guidance could have been in the range of around INR 600 crores. However, a lot of projects were there for which the bids were submitted, and we were expecting the results. The result started coming, but the order book accumulation, the process remained a bit slow. So during the entire financial year, we expected the order book to swell and then the revenue from the respective order book, that will also increase. However, that was not the case, and that didn't come through.
Our total revenue guidance now, if I say at a percentage of the starting order book, it is more than 90%-95%. So that means I will say company has not done bad at all. In terms of the EBITDA margins, our guidance has never been higher than 22%-24%.
We are one of the companies where we are in a position to maintain that level of EBITDA margins. Expecting margins even more than that, at least I have never given that level of guidance. What we could foresee is that the margin could increase as a measure of efficiency levels that we never rule out or as a measure of the product mix. Now, coming to the current financial year. Based on the bids pipeline which was available with us, we are sitting on a very healthy order book, at least at present.
Our water and wastewater treatment order book in itself is more than INR 2,700 crores, and then the renewable segment guidance. When we look forward to the achievement of the top line and the bottom line, there is an investment of INR 75 crores, which we have done in the renewable segment. If we see the profitability which will be coming out of it, and we understand the ROE levels. ROE levels, if you see our guidance of around INR 700 crore, and if we are able to achieve a profitability from the renewable in the range of around INR 60 crores-INR 70 crores, you can just imagine the type of ROE that we can get from that segment. Now, coming to water and wastewater again.
Basically, at this healthy order book, we have maintained a conservative conversion rate of 50%, and we are expecting INR 1,300 crore to be our top line. We look forward to maintaining our guidance. There has been a slight increase in the input costs. The development which happened in the last year, if you could just see to our presentations at the time when we had gone public, our total team size was around 900, which has now increased to 2,300. It is just because we were getting the orders and we wanted our team to be there so that we can execute the projects as we are doing very efficiently and in a time-bound manner. That way, at one point of time, our costing has increased slightly in terms of the employee cost.
We do understand when we will go ahead, we will complete this financial year. As a percentage, definitely these costs will come down. It will reflect on the improved profitability. However, our guidance will remain in the range what we are projecting, and we do hope that this year, the guidance is based on the available order book, and we will be able to maintain the guidance.
Thank you, sir. Best wishes.
Thanks a lot.
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one. Anyone who wishes to ask a question may press star and one on the touchtone telephone. We have our next question from the line of Manish from Keynote Capitals Limited. Please go ahead.
Hi, sir. I just have two questions. One question is on JJM. What are the receivables we have from JJM mission and any update on JJM 2.0? The second question is on our cash flow. Are we going to be a CFO positive in H1 valuation?
Right. First of all, talking about the JJM. As we have already mentioned in all our previous interactions, JJM constitutes very small percentage in our order book or the receivable segment right now. There was only one portion of the order book which we took in MP, and then we continued our execution. At present, that trial and commissioning part is going on, for which INR 15 crore-INR 20 crore is what we bill, and then the payments get released. If we talk about the JJM side as a whole, as we understand JJM and JJM 2.0 right now, these are now streamlined and the funds are releasing. Fortunately for us, we were working in MP and the funds didn't get stalled even in the last financial year, and we were moving smoothly under JJM projects as well.
The total component of JJM, either as unbilled receivables or as order book, to my understanding, will not be more than INR 150 crore-INR 160 crore in our total balance sheet. Coming to this operational cash flows. Operational cash flow definitely looks to be on a positive side. Even in the last two financial years, if we take into account the service concessionaire receivables, which is a part which is receivable over a period of 15 years, and it is taken up in the operational cash flow activities itself, and it goes negative by somewhere around INR 85 crore. But even as per the audits what we do, we do expect that operational cash flows should turn positive. We do hope, but we cannot give any guarantees on this. We are hoping a lot of funds, which are going to be released shortly, based on that, OCF should turn positive.
Okay. We stick to our guidance of EBITDA margins and PAT margins that was given in last quarter. That is around 21% or 21%-22% in EBITDA, and PAT was somewhat around 13.5%-14% for this year. Do we stick to that guidance?
This guidance is for the revenues from water and wastewater treatment segment. On a stand-alone basis, these will maintain our guidance. At a blended level, the EBITDA margins could be in the range of 19%-20%, with profitability in the range of somewhere around 13%-14%.
All right. That is it from my side. Thank you.
Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one. We have our next question from the line of Raman from Sequent Investments. Please go ahead.
Hello, sir. Can you hear me?
Yes.
Yes.
You are audible.
My question is with respect to wastewater treatment HAM project. We have around INR 400 crores of order. On an EPC basis, you said order execution in wastewater segment lies between 18- 24 months. Can you specify how much time will it take for our HAM project to be executed? One is that. Second, on the water supply project, we have a very small order book from that side, INR 100 crores. Will that be executed in this year or I just want to understand the execution cycle for this water supply project. Is it like a quarterly basis execution cycle or is it like again, one or two years execution cycle for this?
Okay. First of all, with respect to the HAM projects. In case of a HAM project, there is a process prior to defining or declaring the effective date. Effective date specifies the start of physical execution of the project, prior to which there are certain conditions precedent, which are required to be fulfilled on all parts. All part means it is concessionaire. In our case, the funding agency is NMCG and the department with whom we are executing this project is UP Jal Nigam. All are required to have their condition precedent satisfied. The general timeline, once a project is awarded, it is five and a half months. One and a half months for the creation of SPV, and then another four months for completing the design and drawing, and in that particular time to achieve the financial closure.
After that, the execution period ranges between 18- 24 months as the projects have been awarded to us across these five HAM projects. The timeline will move like this, and after the construction completion, there is a three months timeline for the stabilization of plant and to achieve COD. COD is the commercial operation start date by which we achieve the performance guarantees based on which that plant has designed. And once the COD is achieved, the 15-year operation and maintenance start, during which the operation and maintenance payments, along with the annuity, along with interest, that is released on a quarterly basis. Now coming to the water treatment order book under JJM, which is somewhere around INR 100 crore in our book. We expect that this entire, it's a small portion of this INR 1,200 crore order book which we were executing.
We are expecting that this particular order book will be completed within this financial year. And once this gets completed, the operation and maintenance of 10 years, that will commence. There are total five projects. The five projects will get commissioned one by one, out of which, first of the project is where we do expect that by October, the commissioning will be recorded and the operation and maintenance will commence. So this is how this water side, this order book will move further.
Thank you, sir. A reminder to all participants, if you wish to ask any question, you may press star and one. We have our next question from the line of Sheetal Shah, an individual investor. Please go ahead.
Am I audible, sir?
Yes.
Yeah. Audible.
Very good afternoon, sir. If I remember correctly, sir, in the last con call, you had guided for a revenue of consolidated revenue of INR 2,000 crore in FY 2027 and a net profit of around INR 260 crore to INR 270 crore in FY 2027. Am I right, sir?
100% right.
Sir, as per our history of execution, sir, Q1 constitutes around 21% of our total turnover. If we follow this, our turnover should be in the range of around INR 420 crore or INR 425 crore, sir. This quarter, we delivered around INR 360 crore.
So my question is, sir, what was the reason of this lower than expected execution? Do you still stick to your guidance of around INR 2,000 crore turnover in FY 2027, sir? Yes, you can continue, sir.
Yes. Sheetal, first of all, as our guidance, when we say 20% should be the top line, there is a data of 1%-2% on either side, which is possible. So if I say, if we have achieved INR 360 crore as the top line during this quarter, then we are well on target. Let me tell you the reason for this. We do have some BESS projects from NTPC, which is a 930 MWh project. This procurement of the materials against this particular order, that will commence in Q3. So there will be a significant jump Q3 and onwards when the top line, it is likely to swell. So we are well on target of achieving this INR 2,000 crore. We don't find any slippages.
Wherever we have given our guidance, whether it is renewable or combination of that solar IPP or BESS IPP, BESS EPC. So we are well on target. We are in a position to achieve that top line of INR 2,000 crore, and we stick to our guidance of INR 260 crore-INR 270 crore at levels.
Very nice to hear from you, sir. Sir, my second question is regarding the order intake, sir. Can you please tell how much order you have bidded in this quarter, sir? What is your strike rate, sir? Or I may even say, how much order info you expect in FY 2027, remaining part of FY 2027?
Right. First of all, our present bid pipeline for which the evaluations are already undergoing, these are somewhere in the range of INR 3,000 crore. Another INR 6,000-INR 7,000 crore projects are available for which bidding is going to happen in a short time, which are already invited, and the bids are being submitted. The strike rate of company in the last financial year has been in the range of somewhere around 20%. We can expect an order book, an order inflow of somewhere around INR 2,500 crore to be there in the current financial year. This was our guidance as well. Now if I say out of this INR 2,500 crore, INR 256 crore is what we have got in the current financial year till now. There are two HAM projects at Varanasi totaling INR 256 crore.
We do expect that INR 2,250 crore that we expect to get in the current financial year. We are well on target, and we look forward to achieving this guidance again.
Okay. Very nice to hear from you, sir. Sir, other question is, sir, regarding receivable. You highlighted that there is no problem, but your receivables working days are bloated, if I heard properly, sir. Do you think by September it will be clear, sir? Or there will be no bad debts or anything you foresee?
First of all, there will be a prudent working capital cycle. We want ourselves to get shifted to the prudent working capital cycle. We are definitely hoping that the funds will flow from the government side and the working capital cycle will get eased out. This is one part. Second part is with respect to the cash flows which are available with the company. Even at present, even with the bloated working capital cycle, the company is having a significant unencumbered funds available. So that way we are comfortable. We are completing our projects. We are making the payments well on time. So there is no hindrance or any slowdown anywhere. In the history of the company, there has never been any bad debts, and we continue to maintain that level in future as well.
Okay, sir. Last question from my side.
Sorry to interrupt you.
Sheetal, you may please be requested to rejoin the queue.
Only one question, sir. If I pause. Only last question.
Okay.
Thank you very much, sir. Sir, last year we had a problem in execution as we could not get the order in time, so we were not able to meet our target. This year we have order in hand, so I just want to reiterate, sir, do you foresee any other headwinds which may not allow us to achieve this target? Do you foresee any headwinds, sir?
In case of an EPC company, the top line is a derivative of the available order book. We were going a bit aggressive, and we looked forward to that the order book would increase significantly in the initial months, and then we will be in a position to execute against that order book.
Right.
This is not the normal industrial norm. However, if you look into the revenue in comparison to the order book available at the start of the financial year, then the conversion.
Right
Rate is in the range of around 90%-95%.
Right.
That never says there is any slowdown at all with respect to the execution. Execution has always been the key forte of the company, and where entire controls are available, we don't foresee any slippages. Current financial year, the order book is already available. We are well on it, so we can keep on moving, and even if no new order comes, then this top line of INR 2,000 crore is what we can easily achieve from the present order book available with us.
Very nice of you, sir. On behalf of all our small shareholders, I wish you all the best to achieve your target this time, sir. Thank you very much, sir.
Thanks a lot.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we request you to rejoin the queue. I repeat, please restrict yourself to only two questions per participant. Next question is from the line of Vidhi Shah from C.R. Kothari and Sons. Please go ahead.
Hello. Any revenue guidance for this year?
The revenue guidance is INR 2,000 crore for this financial year.
Thank you.
Thank you. We have our next question from the line of Saurabh Bhagat, an individual investor. Please go ahead.
Hi. This is Saurabh Bhagat. I am invested in this company since last two years. Last time, actually, we used to get the orders in the same year, and we try to execute some of the order in the same year so that actually the revenue visibility was there. Now, this INR 2,000 crore revenue guidance, we already have the orders in hand. What is the best strategy we can have or that we can execute much more or get the revenue of around, let us say, INR 2,500 crore or INR 3,000 crore? What do we need to do it? Because previously, we used to do it, let us say we get the orders this year and we try to execute and get some portion in the revenue side. Is it the same case or the story got changed?
Now we are so conservative in guiding our revenue because last year we missed it. Or still we can achieve a north star guidance like INR 2,500 crore or INR 3,000 crore revenue this year itself, even like we used to do it two years back or one year back.
Saurabh ji, whenever we give any of the guidance, we do expect that we will meet at least this threshold level. So for this financial year, that threshold level is INR 2,000 crore based on the availability of orders that we had at the start of the financial year. Out of the INR 2,700 crore order pipeline with the execution period of two years, 50% is the conversion which can be expected out of that order book. So INR 1,300 crore, INR 1,350 crore is what we do expect on a straight line basis. What happens is, whenever we move on for the execution of the projects, there are certain projects which are just on the verge of a start. There are some projects which are in a growth phase. There are some projects which are under execution.
So there are different stages of the project wherein we cannot predict how the project can move. As a ratio, since the size of the company at one point of time, we used to be INR 500 crore or INR 700 crore. That movement seemed to be quite fast. But now at a blended level, when we say, so blended level, first we look forward to the guidance which we give, so that guidance should meet, and then we would like to outdo that guidance as well. You rightly said, what we can do to increase our top line to INR 2,500 crore or INR 2,700 crore. I just explained during the last financial year, though our top line was flattish, however, a lot of development work was going on in the company.
It was in terms of team building, it was in terms of getting the new orders from the water and wastewater treatment segment. We were integrating into renewables. We acquired some assets of solar. We vied for this BESS project. Then we won projects from NTPC, BESS EPC projects. Then we acquired this IPP project. Then we acquired this wind EPC company, which is Suyog Urja. So a lot of development has happened in the last financial year, the results of which will accrue in the current financial year. INR 2,000 crore is the guidance which we understand we will achieve at any cost. We look forward to outdoing that number as well. But as a guidance, I will maintain that level at INR 2,000 crore right now.
Second question is like a desalination plant and the export opportunities, overseas opportunity. Are you looking at these two opportunities because your competitors are going in those two opportunities?
In the previous concalls, if you would have heard, we were maintaining that we will go for the geographical expansions. We will go for the higher value projects, higher capacity projects. Then we confirmed we will wait for some of the CBG projects or biogas to electricity projects which we were executing as a part of our STP projects. And then ZLD.
So now if I talk about basically geographical expansion, now we are available in 17 states. ZLD, yes, last year we got one of the ZLD projects which we are executing in Maharashtra for a textile area, Ichalkaranji, Lakshmi and Parvati near Kolhapur. Our projects of biogas to electricity and CBG projects, two projects have been completed and commissioned. Now we have entered into one CBG project from the agricultural waste, which we are doing as a part of developing a cattle feed shelter, cattle shelter in M.P.
There we have got a vast land of around 275 acres, where we will be developing the cattle shelter. Their feedstock will be there, agricultural residue in form of napier grass will be there, and we will develop a solar farm as well. This is how we have integrated ourselves over the period. Going forward, we have already submitted bids overseas. We are waiting for the outcomes, and we are again looking forward to some desal projects as well. So if we see by the end of this financial year, the overseas projects and the desalination project should also be there in the company scope.
Perfect. Thank you.
Thank you. We have our next question from the line of Daksh Malhotra from Advi Global. Please go ahead.
Yeah, good afternoon, sir. How are you?
Good afternoon. How are you, Daksh?
Very well. Thank you.
Yes, sir.
Sir, FY 2026 was a tough year for EPC. No doubt, we will have to appreciate while we were not getting enough tenders and orders in the water, wastewater, we did quite well in diversifying our business and getting into the renewable and different parts of renewable decently well. Now, sir, just two principal questions. One is on the water, wastewater, how is the pull? The projects that we are bidding for, especially the government projects, AMRUT and all, we are not getting payments on time. How is the pull? Is the EPC, the project condition improving from where it was, or is it still a little slow from the government departments as far as the new ordering as well as payments are concerned?
On the same question, in the next two-three years, we have opened up our horizon to add these renewable and other things.
And of course, we are doing ZLD biogas. We are talking about overseas desalination projects. There might be some business available in the Middle East once this war ends, and if we are placed well, we can actually get some projects there. But we are doing multiple things at once, and naturally to do it, we have expanded our team, added employee cost and all that also. So just with a two, three -year horizon, sir, if you can shed some light on how things are looking and what are your beyond FY 2027 targets, maybe 2028, 2029, 2030. That would be helpful.
Right. First of all, outlook with respect to water and wastewater treatment segment.
Yes.
I would say there is a lot of traction which is happening in this particular segment itself in terms of projects coming under AMRUT 2.0, or the projects from Namami Gange and the projects from state government tying up for loans from World Bank or ADB or JICA. So there is a lot of traction, and as I confirmed, almost around INR 7,000 crore worth of projects are available where we do have our keen interest, and we are bidding for these projects. The bidding pipeline may be much larger than that. I am talking about the bid pipeline where we do have our interest. So that.
Sorry, sir. This INR 7,000 crore is purely water?
Not when you say water. Basically, I am not predominantly available in the water segment. Rather, I will say wastewater. It will be sewage treatment plants or common effluent treatment plants along with infra. I am not talking about renewables right now.
Okay. This INR 7,000 crore pipeline is wastewater, not renewables.
Not renewable.
Okay.
Yeah.
Yeah.
Right.
Okay.
That said, we can have a very healthy order book going forward as well, and a lot of work is happening in this segment. Going further, since diversification remains one of the key factors if we have to maintain the level of growth. The diversification in the water and wastewater treatment sector, how we did it was through the geographical expansion, first in India. Now we are looking forward to the opportunities in the overseas market as well. The next segment which we entered into was desal. There is a lot of opportunity which is coming up in India in terms of reuse of water from the sewage treatment plants. That will be one of the biggest opportunities which will get opened up.
ZLD, then this reuse of water and some desalination projects where we do have our keen interest, and we are looking forward to bidding some of the projects with some joint ventures. This is how the diversification in the water segment will continue, and we will move forward. Now, coming to the renewables. Again, the diversification, that is the need of the hour. That is why we entered into renewables. We invested a small chunk of fund into that renewable. Within first year, we have built it up to a sizable company. Now, the acquisition of Wind EPC company, which we did, it has integrated us across the entire chain of renewable, which is solar, wind, and then batteries.
Once this execution till this point of level, the order book which is available with us, that completes, we can move forward as a developer as well.
We can look forward to the hybrid opportunities in this segment. That opportunity and the availability of opportunities, that will be very high, at least for Enviro. And that is how we look forward to, we'll keep on growing. CBG was also one of the segments, basically, which is getting derived from the wastewater treatment segment itself. We are also concentrating on it because it can create a good value chain. This is how we are trying to integrate across different segments.
Right. So sir, combining all these three, just to.
Sorry to interrupt you, Daksh. May I please request you to rejoin, please?
No, this was a part of the original question. I think we are just continuing that part. Now, just two, three years. Where do we see ourselves combining these three? What is the envision in the next two, three years? Where do we see the top-line trajectory, margin trajectory? Just how do we see the picture painting, the canvas painting?
We look forward to a continuous growth of somewhere around 25%-30%, which should be bare minimum at which the company should keep on growing and with maintaining the healthy margin levels. I think our EBITDA margins and PAT margins, even with the renewables entry, have been at a very decent level. And we expect and we will continue to foresee that our margins remains good. We are not inclined to go for the projects where the margin profile goes low, and that will be our key area where we will see that the margin profile should get maintained.
Thank you. Daksh, we request you to thank you for any further queries. We have our next question from the line of Raman from Sequent Investments. Please go ahead.
Hello. Thank you for allowing me to ask a follow-up. Again, on the hybrid HAM project with respect to wastewater treatment, I just want to understand that you mentioned that you will float a SPV and then it will be executed over the next five months post the SPV. So you also mentioned in the opening remarks that you want to focus more on HAM projects going forward. So can you also give a bit pipeline with respect to only HAM projects where you are bidding?
At least at present, we have submitted our bid for two more HAM projects. We are expecting some HAM projects which will be available for bidding in next three to four months time since the DPRs are just on the move. So at least at present, we do have two projects for which the bid evaluations are underway.
This INR 400 crores of project, is this one project or is it like a multiple project?
There are total of five projects under HAM, which we have got. One project is completed. Second project is just on the verge of completion, which is at Mathura. Third project is at Saharanpur, for which three milestones have been completed out of eight, and it is moving ahead of time. These two projects are new ones, and for which the work shall come in sometime in the month of October and November, at least at present as we expect.
Understood, sir. Thank you.
Thank you. Ladies and gentlemen, due to time constraint, that would be the last question of the day, and I now hand the conference over to Mr. Manish Jain, Managing Director, for closing comments. Over to you, sir.
Thank you for your continued trust and interest in Enviro Infra Engineers. We remain focused on disciplined execution, extending our core water and wastewater business, and scaling our renewable energy and BESS platforms. With a healthy order book and expanding capabilities, we remain committed to delivering sustainable growth and creating long-term value for our stakeholders. Thank you once again for joining us today. Thank you.
Thank you. On behalf of Enviro Infra Engineers Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your.