Ladies and gentlemen, good day and welcome to the Enviro Infra Engineers Limited Q4 and FY 2026 earnings 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 on the date of this call. These statements are not the guarantees 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Jain, Chairman and Whole-time Director. Thank you and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us today. I would like to welcome you all to our Q4 and full year FY 2026 earning call. Joining me today are Mr. Manish Jain, our Managing Director, and Adfactors, our investor relations team. We have shared our earning presentation and I hope you have had the opportunity to review it. On behalf of the entire team, I am pleased to share our progress and key development during FY 2026.
FY 2026 has been an important year for Enviro Infra as we continue to strengthen our position in water and wastewater infrastructure sector while diversification in renewable energy platform. Our core business remain focused on delivering high quality water and wastewater treatment infrastructure across the country. During the year, we completed several key projects and continued to enhance our capabilities in advanced wastewater treatment technologies and sustainable infrastructure solutions.
We also maintained our focus on integrating waste to energy initiatives where feasible, reinforcing our commitment to environmental sustainability. The year also witnessed a meaningful improvement in our order book position, while order finalization timelines across the sector remained longer than anticipated due to extended bid evaluation process. We continued to secure quality projects and expand our presence across key geographies.
Alongside our core business, we took measured steps toward diversification into the renewable energy sector. Through our renewable energy platform, we have established a presence across solar, wind, and Battery Energy Storage System (BESS), reflecting our long-term strategy of building a broader environmental infrastructure platform. A significant milestone during the year was the acquisition of Suyog Urja Limited, a wind EPC company. This acquisition strengthens our execution capabilities in the renewable energy segment and provides access to an experienced team with a strong track record in project delivery.
In addition, we secured multiple BESS projects and expanded our participation in emerging opportunities with the energy storage ecosystem. Importantly, our approach towards diversification remains disciplined and complementary to our existing strength. We believe the convergence of water infrastructure, renewable energy efficiency, and environmental sustainability will create significant opportunities over the coming years, and we are positioning ourselves to participate meaningfully in that transition.
Additionally, the company has strengthened its leadership structure by appointing dedicated business heads for each division and has a renewable energy team of over 250 professionals led by experienced industry veterans with expertise across the renewable energy value chain. Looking ahead, we remain focused on disciplined execution, prudent capital allocation and sustainable value creation.
With a healthy order book and growing opportunities across both water infrastructure and renewable energy, we believe Enviro Infra Engineers is well-positioned to deliver long-term growth while maintaining operational excellence. With that, I would now like to hand over the call to Mr. Manish Jain, who will take you through the key operational development and financial performance for the year. Over to you, Mr. Manish.
Thank you, Sanjay, sir. On the order book and execution front, our total order book has surged to over INR 6,814 crore, providing robust revenue visibility over next 24 months. This comprises of water and wastewater execution order book of over INR 2,733 crore. Operation and maintenance order book of over INR 951 crore from these water and wastewater projects.
In the renewable segment, the execution order book is over INR 2,051 crore, and the O&M and IPP under the renewable segment is INR 1,079 crore. Some of the most recent additions in our order book include, in Q4 we have secured a major INR 348 crore projects from BUIDCO, Bihar Urban Infrastructure Development Corporation, and two sanitation projects in Pune and Nashik, which are worth INR 824 crore. It is Swachh Bharat Mission project. We secured four BESS projects from NTPC.
These are EPC projects having a combined capacity of 930 megawatt hour, and the value is approximately INR 1,070 crore. These projects are in Uttar Pradesh, Assam, Karnataka and Telangana. Along with our recent acquisition of a 150 MWh BESS project in Bihar. This positions us as a first mover in the India's 90-GW battery storage pipeline.
As we look ahead, the opportunity before us is of consistent execution, disciplined growth and long-term value creation. Backed by sectoral tailwinds and our execution readiness, strengthened further by our strategic pivot into energy storage and renewable integration, we remain confident in our ability to translate these opportunities into a robust order book, stable margin, and sustainable returns for all stakeholders.
With the strategic transformation that the company is undergoing, we believe Enviro Infra Engineers is uniquely positioned to benefit from the convergence of urban infrastructure, wastewater treatment, and the transition towards a flexible green grid. With an all-time high order book of over INR 6,814 crore and improving execution momentum across our diverse segments, we remain focused on delivering long-term value and operational excellence throughout FY 2027 and beyond.
Now, coming to our financial performance. In Q4 FY 2026, our revenue from operations stood at INR 4,273 million, representing a growth of 8.8% YoY. EBITDA stood at INR 799 million, while the EBITDA margin came in at 18.7%. PAT for the quarter was INR 543 million, with PAT margin at 12.4%, bearing the impact of higher execution and operational costs during the year.
For the full year, our revenue reached INR 11,456 million, a growth of 7.5% YoY, backed by consistent momentum in the project conversion and our strategic foray into renewables segments. EBITDA for the full year improved by 3.4% to INR 2,768 million, with a margin of 24.2%. Consequently, PAT for FY 2026 was reported at INR 1,884 million with a margin of 15.9%. These results underscore our ability to scale profitably while maintaining a healthy balance sheet. This is all from our side. We can now open the floor for questions.
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 touchtone 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 Jainam Jain from DAM Capital. Please go ahead.
Thank you for the opportunity. My first question is, what is the total project cost per MLD in general within the industry for sewage treatment plant, effluent treatment plant, and wastewater treatment plant and water treatment plant?
In general, the per MLD costing for a sewage treatment plant comes in the range of INR 1 crore -INR 1.5 crore, depending upon the specification and the characteristics. In case of common effluent treatment plant, it is very difficult to generalize because it all depends upon the type of industry for which that particular common effluent treatment plant is to be put up.
So the value may vary even from INR 2, INR 2.5 crore per MLD to maybe somewhere around INR 10 crore, INR 15 crore per MLD as well. So it cannot be a generalization at all. In case of a water treatment plant, generally the values are in the range of INR 30 lakh -INR 50 lakh per MLD.
Okay. In common effluent treatment plants, are these an industry in which there is a lower end on the per crore side or any specific industry in which the project cost comes to around INR 10 crores?
Can you repeat the question, please?
You said that it is very difficult to give a range specifically for CETP plants. Is there any specific industries in which the cost comes on the lower end, and for the specific industries, the cost comes on the higher end?
Basically, if a common effluent treatment plant is coming for a dry type of industry where there is no, it is just a generalized process, then definitely the cost will come down. If it is more of a sewage treatment plant, just like a system which is to be operated. If you are talking about textile, if you are talking about the ZLD systems, if you are talking about the food industry.
If you are talking about metal processing or a petrochemical industry, everyone is having a different characteristics. Based on that inlet characteristic, then the entire plant is designed. Then we work out the financial cost, what exactly the costing and the margins that we built up, and then exactly we come around what exactly can be the cost like.
Okay.
Just for a very crude generalization, I can just say INR 3 crore to INR 5 crore can be per MLD cost. But it is just a generalization, will not hold good in case of common effluent treatment plant.
Okay. Out of the total project cost, what is the percentage of the EPC component and the tech component, and how does it changes for the different type of plants?
You are asking about the CETP only?
Sorry. No, for all the three plants.
Presently, the way the bidding is being done in India, in general, water treatment plants and common effluent treatment plants are generally coming in EPC mode. There are some projects in sewage treatment plants which are coming under HAM mode. It is either EPC or HAM mode. Going forward, we can look forward to the opportunities since this water from a sewage treatment plant or if it is a ZLD system, then the treated water from a CETP is required to be recirculated to the industry. So it can definitely become a revenue stream. The models are at a preliminary stage, but the models are coming. So a revenue generation model can come up. The project can either be EPC or can go for a BOT as well.
Okay. So you gave me the range of the project cost per MLD for STP, CETP. So the majority cost is on the EPC side or is there any major cost incurred on the tech side as well? Because as far as what I understand, in desalination plants, the tech percentage quite increased significantly. So how is it that in all these three type of treatment plants?
There is always a tech component in all type of plants. In case of STPs, it is the technology, the biological reactor on which we are designing the system, and then the choice of equipments as well. There are different type of equipments which are available, and based on their efficiency, the cost, the CapEx can go for a change.
So it is definitely a tech side where we say a right mix of different type of technologies and the equipments. That plays a major role in case of a sewage treatment plant and a common effluent treatment plant. That is definitely one of the most complex of all the systems. So that designing in itself is typical, and the tech side definitely takes a lot of effort in designing and the completion of a common effluent treatment plant.
Okay. In the water treatment plants, the tech percentage is lower?
Comparatively lower. It is more of the civil work. It is not that tech-savvy or too tech-heavy, what I can say. In that case, it is more on the management side or constructing of a bigger water treatment plant. Basically, on the water side, it is a general conventional type of water treatment plant. Definitely, that will not be very tech-heavy. If we are going for desalination plants or some these type of plants, definitely at that point of time, that tech component comes into picture.
Okay. Would you give any percentage of the total project cost which would go on the tech side for all these three type of treatment plants?
In general, if I say any of the project on turnkey basis, the designing in itself constitutes 2%-5% of the total turnkey project values, and then it is the civil, mechanical, electrical, instrumentation works which are carried out. So designing component can be 2%-5%. If we are going for desalination plant, definitely the turnkey project size will increase, and it will again be the designing component will be to that extent.
Okay. I will come back in the queue for the further questions. Thank you so much.
Right.
Thank you. Next question is from the line of Manish Choraghe from Keynote Capitals. Please go ahead.
Hello, Manish. Last year, we had given a guidance of 35% growth in top line that we did not meet. If you look at the Q4 margins, that are the weakest margin. Are you facing any execution delays in the business?
First of all, with respect to the projects which have come into the physical execution, definitely there are no delays at all. The projects are moving smoothly, and we are executing on the projects on the fastest possible mode. In the last financial year, as on April 1st 2025, we were having an order book of around INR 1,200 crore.
However, we were having a strong bid pipeline. We were expecting a faster evaluation and conversion into orders. We got some orders, but the entire order book that we were analyzing, we were expecting that we will be in a position to grab the projects quite fast. However, the process got elongated. Furthermore, there was some project in the month of November, December, where we were L1. We were expecting the project. However, it had gone into a re-bidding.
The partial delay in the evaluation process, this is one of the factors. Some of the projects that we bagged, it was around August when we bagged some projects which remained in the designing stage. The revenue could not be generated from these projects. There are two specific projects, let me tell you.
One is an MIDC CETP ZLD project, and then there were two Bangalore projects where the designing process had gone slow or the approval process did take time, so the execution could not happen in these projects. This is a reason where the projects remained on the designing stage and it could not come into the execution pipe. That is why we have missed the revenue guidance which we projected.
One more point I would like to emphasize is, since at the start it was only INR 1,200 crore order book which was available with us. Right now, the conversion we have done is INR 1,145 odd crores. If we see, the conversion rate seems to be somewhere around 95%. However, the replication of the orders and that conversion into revenues, that has taken time.
Because of this, we have partially missed our revenue guideline for the year. If I talk about the present, since our order book even now has become quite exciting, it is at INR 4,800 crores for the entire execution order book. The further split is INR 2,700 odd crores from water and wastewater segment and INR 2,050 odd crores from the renewables. We are just projecting a top line of INR 2,000 odd crores, which will replicate into a conversion of somewhere around 42%.
We are trying ourselves to be just too conservative this time so that there is no fallback at all. One more point that you asked with respect to the margins which have gone down. As I have time and again mentioned, it is the mix of the projects which we are executing. There was a component of around INR 100 crore, INR 120 crore, which has come from the renewable side.
Since these were IPP, so there was practically no margin in that particular execution, because of which it looks that there is some gap in the margin. Furthermore, if you can just go through the details we have shared, the cost of manufacturing has gone down. It has not gone up, it has gone down. It has gone down by around one percentage point.
There is a slight increase in the employee cost, which has increased to somewhere around 6% for this financial year. Then other expenses which have increased to 3.5% of the revenues. There is a provision of expected credit loss, which is as per Ind AS, which we have to book. If we see into all these factors, I can say the margin compression exactly is not there, but definitely as per the audited balance sheet and P&L, it looks like there is margin compression.
Overall year, if you will look into the EBITDA margins are again 24% and above. From margin side, I will not say there is any compression at all, but revenue side, definitely there is some, I will say, execution part which we could not do and the guidance could not be adhered.
Okay. My second question is, if we look at the current order book, if I'm not wrong, around 35%-40% order book is coming from energy, I mean, renewable segment. Till last year we have been a pure play water treatment company. How do we look at the company going forward and what is the margin profile in this BESS segment?
If we look into the future, we are strengthening our position in the water and wastewater treatment segment. If you will see the earning media release, there are four projects which we have completed which have given a lot of strength to the company. Out of which one of the project is 100 MLD STP at Jodhpur. The entire process has been upgraded on IFAS system, which is one of the biological reactors.
Along with this, we have gone for the power generation from biogas and then for disinfection, we have gone for ultra-filtration systems. The second project is a 55 MLD STP at Varanasi, where a substantial portion of the electricity requirement has been offset by an innovative way of placing the solar cells on the top of the reactor.
This has been done for the first time in India, and it has been well acknowledged by NMCG as well. The other project is a 25 MLD CETP at Sarigam, then a 30 MLD STP at Bhiwadi. Basically, when I say all this, what I want to project is that we are increasing our prequalification capabilities for the complex wastewater treatment plants, and we are getting eligible for higher and higher capacities.
This is how we are expanding ourselves in the wastewater treatment segment, and we are increasing our geographical presence as well. Now, the second segment, which is renewable, which we started in the last year. Sustainability was the key motto of the company. As I said, this waste to energy and solar integration, we were doing as a part of our project. Based on our previous experience in the sector, we entered into it.
We do have some solar assets with us, which we acquired. Then we got a prestigious project. It is a combination of four projects, 930 MWh from NTPC, for which the work has started. We have gone for the acquisition of one of the BESS projects of 150 megawatt hour, and then the acquisition of Suyog for wind EPC projects.
Within a year's time, we started this renewable company, and at the same time, we have built up the order book to the extent of INR 2,050 odd crore . Whenever we will try to present ourselves, we will give the segmental revenues separately, so the segmental profitability that would be clearly visible to everyone.
On the whole, if I say INR 2,000 crore is the visibility, somewhere around INR 1,350 crore is what we are expecting from the water and wastewater treatment sector, and INR 650 crore is what we look forward to as the top line from the renewable segment. For this combined, I do understand that the profitability can be at a level of somewhere around 14%. So INR 270 crore - INR 280 crore can be the PAT number, which we will look forward to on a top line of INR 2,000 odd crore.
There is one geopolitical, this global crisis which has happened, due to which some costs have also gone for a rise. So there will be a pressure maybe to an extent of 1 percentage points to 2 percentage points. Taking into account all these factors, we have come up with this version that a top line of around INR 2,000 crore with PAT number somewhere around 13.5% - 14%, what we can look for FY 2027.
Okay. Would you be able to give a specific margin profile for BESS business?
Okay. In the BESS business, which is EPC, we will expect PAT margin somewhere in the range of 10%. Because of this issue, since we will be importing the lithium ion battery cells, so the prices have increased. At present, we are going ahead for doing the BOS, which says the civil works, the transformer, all the electrical HT lines.
This is the work where we have already started. The design work has started, the mobilization has started. We will delay the procurement of lithium ion battery to a certain extent, so the prices get settled down, and at that point of time, we will go for the procurement. But at least at this point of time, we can say with the present cost as well, the margin seems to be somewhere in the range of 10%.
All right. Thank you, sir. That's it from my side.
Thanks a lot.
Thank you. Next question is from the line of Darshil Jhaveri from Crown Capital.
Sir, good evening. Am I audible?
Yeah, you are audible. Please.
Yeah. Hi, sir. Thank you so much for taking my take a question. Sir, I did not get the margin that you were saying that INR 100 crores was from IPP, which led to a lower margin, because even in Q3, you were very confident of being able to do INR 230 crores of PAT, right? That call would have been happening in January and February.
Then what changed? Because that just sometimes when because that is a significant difference that you are planning in February and right now. Right, sir? Could you explain the margin compression that happened? Is this the rate of margin should we expect going forward, sir? In water and renewable, what should be the margin that we should assume, sir?
If you will see our media release, the employee cost has gone up to an extent of 6%. There is an increase of around 1.5% in respect of the revenues. When the employee cost has increased, the conversion of the projects, the projects were under mobilization, but they remained in the design stage. So the cost got built up in that year.
However, the projects have now got started. So the revenue recognition and the profitability, that will get accrued in the current financial year. If the cost of manufacturing-- on the positive side is the cost of manufacturing has not gone high; rather, it has dipped. The other factors are basically the other expenses, as I mentioned right now, ECL provision of INR 10 crore has been booked.
There has been a substantial increase in the depreciation since we have gone for the procurement of various equipment for the construction. So the depreciation cost has also gone high. These factors, if you combine this, the depreciation amount is, I think, INR 25 crore, and the ECL provision is INR 10 crore. What I mean to say is basically, if we can just reconcile these factors, the margin profile has not gone down. I will admit the point that the revenue guidance has gone down.
We could not match the guidance which we had projected. But on the profitability front, definitely the compression seems to be there in Q4 since the expenses have gone high, and we were on the verge of we had mobilized the projects, but these did not transpire into revenues. As such, I can confirm with respect to the execution, the delay was not there.
Now the project has come into execution and the margin profile definitely will remain to be in the same range. However, for this global crisis, I am reducing my EBITDA guidance to somewhere around 21%-22%, which was earlier 22%-24%.
Okay. So now the EBITDA is around 21%, 22%. Would it be like in Q1, Q2, it would be a lower EBITDA, in Q3, Q4, it will be a bit normalized EBITDA, so then the blended comes? Or how do you see it, sir, going forward? I would not want a granular detail, but just like some color, H1 would be a bit lower margins and H2 could be higher, or how would you explain, sir?
It all depends upon how the situation pans out. At least at present, the pricing of the commodities or the raw materials which we are procuring, that has gone high to an extent. So it may impact certain profitability if the situation gets stabilized, as we are listening time and again that some agreement is happening between the two sides. If it happens and the things get stabilized, definitely the prices will also get settled down, and then it can replicate into the profitability. As of now, what I can foresee is a 1%-2% dip can be possible, but I don't foresee that it will be a bigger hit at all from this number.
Okay. Fair enough, sir. And sir, with regards to our debt, what is the level of debts that we are comfortable with going forward, sir? As our interest cost is also inching up a bit higher. So what do you feel, sir, going forward, what can be our peak debt? And what is the average cost of debt, sir, for us?
Right now, I am pleased to confirm that the finance cost has not gone high; rather, it has dipped from the last financial year. The total debt in the books right now is to the tune of INR 422 crore, out of which the long-term debt, which is paid to the assets or term loans and projects, it is INR 250 crore, and short-term loan is somewhere around INR 175 crore, and which is also a part of CC, which is utilized at some point of time, and the debt limit. The ultimate finance cost has come down. The present debt level is 0.34. We do understand that maximum, and if I talk about all that schemes, a one-to-one debt level we would not like to cross at any point of time.
At this juncture, we also look forward to, since we do have a number of assets available with us. So at a certain stage, if we see that we are going a bit heavy, we will be offloading and we will be going for the monetization of the assets. So at this juncture, at this point of time, we can just confirm that one is to one is the maximum possible level beyond which we would not like to go as a consolidated books as well. So that we will keep a check on the development projects in the renewable segment as well.
Okay. I have more questions, but I will get back in the line. Thank you so much, sir.
Thank you.
Thank you. Next question is from the line of Prateek Bhandari from AART Ventures. Please go ahead.
Hello.
Yes, you are audible.
Yeah. Hi, sir. Thanks for the opportunity. A couple of questions from my side. First, if you could give the split of this INR 1,146 crores. How much of it was from the renewable side during the year and during the quarter in particular?
I think it is around INR 120 crore from the renewable side.
During fourth quarter it was?
Just a minute. In the fourth quarter it is INR 117 crore. In the fourth quarter, INR 117 crore, and for the entire financial year it is INR 129 crore.
INR 117 for the fourth quarter and INR 129 for the fourth quarter.
For the entire financial year. There was hardly INR 12 crore which we had done till December, and INR 117 crore is what we had done in Q4 from the renewables.
Okay. When you are talking about INR 2,000 crore of top line, that suggests a 75% growth on FY 2026 top line number.
Boss, you cannot see it from that angle, that since the renewables segment has been started only one year ago, and the first project has come in August, which we acquired. The number pairing right now will not look right, rather the level at which the order book is available and then the conversion of that order book into revenues, I think that will make more sense.
Okay. What would be the order inflow guidance for FY 2027?
For FY 2027, we would look forward to at least INR 2,500 crore further order book.
Okay. What is the current bid pipeline like?
Current bid pipeline as of now is somewhere around. Bid pipeline where we have submitted a bid is somewhere around INR 1,200 crore. The projects for which bidding is to happen where we are interested, it is somewhere around INR 5,000 crore further.
INR 5,000?
Yeah.
Just if you can throw some light on the working capital because it has stretched a bit, we targeted it around 95-100 odd days. If you can throw some light.
Yes.
on the working capital.
You are 100% right. This time around, the working capital has got stretched to 166 days. The main reason this time has been during any of the financial years, we expected if there is any fund which is not released, get released by March. We are doing AMRUT projects across five, six states. The problem remained that this time around, the funds didn't get released from the AMRUT projects.
I was executing the projects in Chhattisgarh, then MP, Rajasthan, Haryana and Punjab. Predominantly from these states, I was having the various AMRUT projects. We didn't stop our projects or we had gone slow. We kept the momentum going and our projects are still moving at the same level itself. This has led to an increase in the UBR days. Basically, I cannot go for raising the invoices or the GST invoice cannot be raised.
If you will see, the receivable days have come down to 53. However, the UBR days have increased substantially to 195 days. Net working capital cycle is 166 days. The positive side is the funds from Chhattisgarh have got released. We have got the confirmation that the funds are now coming in Rajasthan, Haryana, MP as well. I look forward to that the situation should get eased out very soon.
All right. Just one last question. On this EBITDA margins that you have lowered the guidance to 20%, 21% from-
21%, 22%. 21%-22%. In the range of 21%-22%.
21%, 22%.
Yeah.
Okay. Do we see that normalization of working capital days happening in FY 2027? If yes, up to what levels?
Definitely. For me, as we understand, the working capital cycle should come down to somewhere around 90 days, which is a prudent working capital cycle. I need to reduce these number of working capital days, and for this, the conversion of this UBR is required. We are on it, and we understand that the moment these funds are released, we will be a lot more relieved. Apart from this, still the cash position in the company is at a comfortable level.
That is why we have not slowed down any of the projects. There are instances where the project is for two years. We are expecting the completion within 13, 14 months time itself. The project is complete to an extent of 70%, and the funds that we have got is hardly 10%-15%. There is a huge gap in three to four projects like this. We are on it, and we are completing the project, and at the same time, we are chasing the departments for the release of the fund itself.
You mentioned about the unbilled revenue which has faced-
Yeah.
It is currently at what levels?
Currently, the unbilled UBR days are 195 days. Let me give you the split. Inventory days are 11, receivable days are 53, UBR days are 195, creditor days are 92, so the net working capital cycle is 166.
156 or 166?
166.
All right. Okay. Thanks.
Thank you.
Thank you. Next question is from the line of Vidhi Shah from C.R. KOTHARI AND SONS . Please go ahead.
Good afternoon, sir. Sir, firstly, I would like to understand, for contracts, are they fixed price contracts or we can pass on the cost increase to the customer?
In maximum of the contracts, it is a price variation clause which is applicable. A part of the cost increase will definitely get offset with the price variation clause. However, it does not take into account the entire price increase in the market. To that extent, we are required to lower our guidance. This is how the thing goes.
Okay, understood. Sir, given the cost escalation that you are facing currently, are we willing to forego or postpone any project execution for the same? How much of the current order book are we looking to execute in FY 2027?
No, we are not going slow at all in the execution of any of the projects. It is just a matter of time that we can defer buying of some of the equipments, just waiting. Like I confirmed for BESS, we will defer purchase of the lithium-ion battery. Rather, we will go for rest of all the equipments and the execution. We are not slowing down at all. We will just defer the supply to certain months where we can just see the prices get stable, and then we can procure it. However, during the financial year, we will not go slow down. Rather, we will move ahead.
Understood, sir. How much order book execution are we looking for FY 2027?
We are looking forward to a top line of around INR 2,000 crores.
All right. That was my question. Thank you and all the best to you.
Welcome.
Thank you. Next question is from the line of Aditya from [inaudible] . Please go ahead.
Good evening, sir. Am I audible?
Yeah, audible.
Yeah. Apologies if the question has already been addressed. I just wanted to request you to throw some light on the re-bidding of orders that took place in the-
Sorry, Mr. Aditya. Your voice is muffled. Can you use a handset mode, please?
Am I audible now?
Still your voice is muffled.
Aditya, you can go on. There is some ringing message coming, but you can just complete your question.
Sir, we have lost the connection for Aditya, so we will take-
Okay.
The next question from the line of Darshil Jhaveri from Crown Capital. Please go ahead.
Hello. Thank you so much for letting me ask a question, sir. Sir, just wanted to understand, like, sir, you are planning to convert nearly half of the orders this year. Going forward, sir, what do you feel, sir, the year-on-year growth, how will it be? Because this year we will have massive growth. Next year, how do you feel, sir, it will go on? Also with regards to, we have a decent size O&M and book of maintenance. What is the margin looking like in that segment, sir? Will it start contributing more going forward? How will that help us, sir?
Right. You asked a very right question. Basically, if you see the total order book right now stands at INR 4,800 crores. Even if we go by the present number only, it covers at least two financial years, that is FY 2027 and then FY 2028, along with the decent growth in the company. This entire order book is required to be executed over a period of two years.
So INR 4,800 crores gives a visibility clearly for two financial years. The operation and maintenance order book for wastewater treatment projects is INR 950 odd crores, and then for that IPP income or renewable projects O&M, that is INR 1,000 crores. Right now, as the executions are continuing in the wastewater treatment segment as well, on a year-on-year basis, the O&M values, these are increasing, and the margins are comparatively higher in comparison to execution.
However, the O&M values, if I talk about only the water wastewater treatment, then it forms 3%-5% of the total revenues. Now, in absolute terms, definitely the amount of O&M revenues that will increase on year-on-year basis, apart from just the IPP income, that will also generate very decent IRR in future. With this increase, the absolute returns in terms from the O&M for both water wastewater treatment segment as well as the IPP income and O&M of renewable, definitely the profitability on absolute terms will get higher from the O&M business as well.
Okay. Got it. And sir, we wanted to understand any CapEx addition that we have to do for the next year or something because our order book also increasing. Any kind of plans for the extra CapEx, sir?
The CapEx plans for execution of our projects. As we start any new project, there can be an equipment requirement of INR 4 crores-INR 5 crores in general. First of all, if there can be any repetition, then we will go for the repetition and if it is at all required to further buy if the equipments are not free and these are engaged in some other project, then we will go for purchase.
We do not see any major CapEx going on. A part of the CapEx which we have done in the last financial year, but I think it can be to the tune of INR 20 crores- INR 30 odd crores, not more than that. I do not think that it will be a bigger amount, in terms of CapEx.
Okay, great. Sir, yeah. That is it from my side. Thank you so much, sir.
Thank you.
Thank you. A reminder to all the participants, anyone who wishes to ask a question may press star then one. We will take our next question from the line of Atul Kumar, an individual investor. Please go ahead.
Hello, sir. Congratulations on the diversification efforts that you guys have done throughout the year, to get our presence in renewable sector. That is definitely good for the long term. Most of my questions are answered, but few things that I wanted to understand. I think you mentioned that total INR 4,800 crore probably needs to be executed in the coming two years and you have given a guidance for FY 2027. But I would like to understand what sort of top and bottom line we should be expecting in FY 2028. If you can give some color on that.
We have always projected a top-line growth in the range of 35%-40%. If I can project FY 2028 order book which will come from the balance of the current order book which will be INR 2,800 crore. That can be a revenue guidance or I can be a bit selective further that instead of INR 2,800 crore it can be somewhere around INR 2,500 crore -INR 2,600 crore on a conservative basis.
This is how we can look forward to growing at that rate even in FY 2028 as well. Based on the current order book positions, we are sitting at a comfortable level, so FY 2027 and 2028 visibility is quite clear on the current order book position itself.
Okay, that is good. And FY 2027 also, you mentioned that you have set conservative guidance that you have given for INR 2,000 crores. So chances could be for upward revision but mostly not for downward revision.
The downward revision what could have happened that I have mentioned because of the global crisis which can happen. So a 1%-2% EBITDA downwards which can happen and it will all depend upon the entire financial year how the situation goes. If the things get settled down and the prices get easier definitely then there will not be any compression which we can see.
Okay, cool. Also, sir, I want to understand since we are already two months into Q1, can you give us some light on how are we moving ahead in Q1 with just one month left, what sort of top and bottom line we should be heading towards?
Last year we did somewhere around INR 250 crore in Q1. The present position will be much better even despite the global crisis which is ongoing. Our numbers seem to be much better in comparison to Q1 of the last financial year.
Okay.
I would not like to put any number right now. It will be much better to conclude the quarter. However, the movement in the project is smooth and we are expecting because there are three companies now. One is the parent Enviro Infra Engineers Limited, second one is EIE Renewable and third one is Suyog where the wind EPC project are being undertaken. So a combined top line we understand it will be good enough.
Okay. And sir you said the current-
I am sorry to interrupt you, Atul. You may please rejoin the queue for follow-up questions. Thank you.
Okay, sure. Thank you.
We will take our next question from the line of Yogesh Shah from YBS Capital. Please go ahead. We have lost the connection for the current participant, so we will go ahead and take the next question from the line of Amboli, an individual investor. Please go ahead.
Hello, good evening.
Hello, good evening.
Sir, when can we see our OCF to be positive? Operating cash flow.
I would again mention the investor presentation. If you will see, our adjusted OCF has been positive even in the current financial year as well. Our OCF pre-tax in the current financial year is almost balanced around INR 4 lakh+ , and post-tax it is -INR 63 crore . However, there is a portion of the service concession agreement receivables, which by its very nature is a 15-year long-term receivables. But as per the audit policies, definitely we are required to take it to the OCF portion.
That is why it seems to be negative. Despite the UBR going so high, we have been OCF positive pre-tax. We look forward to that the situation will get eased out in the next financial year. We are heading towards the completion of various water supply projects in MP. The projects under AMRUT which are ongoing, we are expecting release of funds very soon. We do expect that the UBR level will also go down and this OCF pre-tax, post-tax, and then this adjusted, definitely this will also seem to be positive further.
Sir, also my another question is, going forward, how can an investor should look at this company? At starting it was a wastewater treatment company. Now we are getting to this. Going forward, what are the plans? Are we into desalination kind of things?
One of the projects I had talked about was in-
The person you are speaking with has put your call on hold. Please stay on the line. Sir, you may please continue.
I was talking about one of the projects at MIDC, which is a common effluent treatment plant, and it is a ZLD project. A ZLD project in itself, it is for a textile complex, so UF and RO is a part of this common effluent treatment plant. Basically, there is a prequalification requirement of this UF and RO with this, and this is one of the biggest plants in India. With this, we will earn a decent qualification in terms of entering into desalination projects as well.
We are actively looking into the projects, and if we will get any of the joint venture opportunities, definitely we would like to enter into the desalination projects as well. Our focus on water and wastewater treatment projects will continue as it is. The renewable segment, it is a separate segment, and we'll always show the revenues which will get generated along with the order book in the renewable segment as a separate company.
Mm-hmm. Sir, one follow-up. Are we looking only into India or just into-
I'm sorry to interrupt, Amboli. You may please rejoin the queue for more questions. Thank you. Ladies and gentlemen, kindly restrict your questions to one only. We will take our next question from the line of Sheetal Shah, an individual investor. Please go ahead.
Good evening, sir. Am I audible?
Yeah, audible.
Sir, correct me if I'm wrong. You have given a guidance of around INR 2,000 crore in FY 2027 and a PAT of INR 280 crore. Am I correct, sir?
Right. INR 270 crore - INR 280 crore.
Okay, sir. My only question is, sir, what are the factors that you are banking on which will help us to achieve this? The reason I am asking, sir, last year we gave a guidance of around 35% growth, but somehow some project got reviewed, some project got postponed. We were not able to meet our goal. I just want to know, we can face such situation this year also, or we are banking only on our order book to achieve this target? And what factors which can go against, which may hamper us in not achieving this goal? These are only my questions, sir.
Right. The order book at the start of last financial year was INR 1,200 crore.
Right.
The replication into revenues is INR 1,145 crore. So a conversion rate, if I go by that thought process, is somewhere around 95% +.
Right.
Right now, I do have the order book in hand. I am not talking about the order book during the current financial year, what we will get further. This is the order book, which is already in hand. If I say a conversion of INR 2,000 crore on an order book of INR 4,800 crore. I am talking about a conversion of 42%. I am also concerned the guidance which we had given, and we could not achieve it.
We want to be doubly sure whatever guidance we are giving, that could be possible under any eventuality. We had been very careful while working it out. We have done our best of efforts and our thought process while we are announcing this. We are fairly confirmed and committed that this will be the level which we can achieve.
Okay. This means that from the order book which we have, we are going to execute it and can give such type of result, right? The problem which we got last year, we will not face this year, right, sir?
That is true.
Okay, sir. I think your suggestion, sir-
I am sorry to interrupt.
No, I do not have any questions. I just wanted to give a suggestion to sir, to give a realistic projection henceforth, sir. That is only our request as an investor to you, sir. Only achievable targets and realistic targets, sir. Okay. Thank you, sir.
Thank you.
Thank you, Mr. Shah. We will take the next question from the line of Aditya from [inaudible]. Please go ahead.
Good evening, sir. Am I audible clearly this time?
Yeah, you are audible.
Yeah. Apologies if the question has already been addressed. I just wanted to request you to throw some light on the rebidding of orders that took place in Q3. Did the rebidding go in the company's favor, or could you please throw some color to it?
The rebidding is neither in the favor of the company nor it is against. It is just a timeline which has got lost because of the rebidding. There was some technical glitch because of which the department was forced to cancel all the bids that they had invited, and they have gone for a re-invitation. It is a cumbersome process for them as well, and we have lost some timeline. We would have expected some further orders from those projects which we had bidded, but it is a matter of time that we have lost.
Okay. This execution slowdown was more on renewables or wastewater?
I would say it is a mix of both. There is some partial. My guidance was around INR 200 crore in renewables, against which we have achieved somewhere around INR 120 odd crore. INR 120 crore or INR 130 odd crore, and a partial slowdown in the wastewater treatment segment as well. Around INR 100 crore from each segment is what has gone down in terms of revenue.
Okay. Thank you, sir. That answers all my questions. Thank you and best of luck.
Thank you.
Thank you. Next question is from the line of Saurabh Chawla, an individual investor. Please go ahead.
Hello, sir. My question is regarding the orders, sir. I believe last time we had an issue where payment didn't get released from Jal Jeevan scheme, and now we are facing an issue where payment didn't get released from AMRUT scheme. Are we exploring any options to deal with private clients over government? Is that market not big? Can you just share something on that?
If you will see our order book in the renewables, basically we have entered into B2B segment in a big way. We have got major orders from NTPC. We will not face at least any challenges with respect to the receivables there. Our wind EPC projects, this company, Suyog, they are executing the wind EPC projects for various private companies which are A to AA A rated.
That way, we are trying to de-risk ourselves. Apart from this, the projects that we are executing, definitely these are centrally funded or centrally sponsored projects. It has been some delays in the government from the center side this time. Other way around, we had seen for a longer period that the funds from the center used to come.
However, during the last two financial years, yes, there has been a challenge with respect to the release of funds on time from the center. We look forward to the position getting eased out. As we have come to know, the funds have been earmarked for release for various projects undergoing under AMRUT schemes as well. I look forward to things getting eased out.
Okay. Thank you.
Thank you. Next question is from the line of Atul Kumar, an individual investor. Please go ahead.
Hello, sir. Thanks for the opportunity again. Just have one question. At current time, our order book is looking around 30%-40% of renewables. We are getting into BESS, wind projects, et cetera. Do we also have plans to get into the projects for transmission and distribution in power sector? Because I think that's booming for all the right reasons, due to AI and other power projects. The whole value in power is increasing and expected to be at that rate for few years. Is there any plan to get into the bidding for EPC for T&D sectors?
In the current projects in BESS segment, which we have got from NTPC, we are executing EHV transformers and transmission lines, HT lines as well. That way, definitely we will be having the pre-qualifications available with us.
At present, since our order book is decent enough, we don't look forward to entering into the T&D segment very soon. But it can be one of the segments in future wherein we can enter since some of the works that we will execute will give the pre-qualifications to us. The diversification, that will definitely, it can happen, and we would look forward to the right opportunities and we can do.
Okay. Thank you, sir. That helps. Thanks for answering the question and we look forward to the execution and guidance. Thanks a lot.
Thank you. Thanks a lot.
Thank you. Next question is from the line of Prateek Bhandari from AART Ventures. Please go ahead.
Sir, you mentioned that you are looking for INR 650 odd crores of revenue from renewable.
Right? Currently, we are having an order book of almost INR 2,000 crores, right?
Right.
What would be the execution timeline of this INR 2,000 crores?
Execution timeline is 18-24 months for these projects.
Okay. You are expecting almost 30% of it to be executed in FY 2027?
We want to be conservative. That is why I will not give a higher number. Rather, first of all, this number should be achievable under any other circumstances. That is why we are not projecting any higher revenue numbers at all.
What typically margins do we seek in renewables?
Likewise, I confirmed in the BESS segment at present, the margins range seems to be somewhere around 10%. We look forward to achieving PAT margins in the range of 10%-12%, a blended one, from the renewables. It will vary from project to project.
Are you talking about EBITDA or PAT?
I'm talking about PAT numbers.
10%-12% PAT?
Yeah.
Okay. Thanks a lot.
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Sanjay Jain for closing comments.
Thank you for your continued trust and interest. We are excited about the opportunities in India's green transition and remain committed to disciplined, profitable growth. Thanks again for taking the time to join us today, and we look forward to interacting with you again. Thank you. Thank you, everyone.
Thank you. On behalf of Enviro Infra Engineers Limited, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines.