Ladies and gentlemen, good day and welcome to the Enviro Infra Engineers Limited Q3 and nine months FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen- only mode, and there will be an opportunity for you to ask questions once the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. This conference may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Sanjay Jain, Chairman and Whole Time Director. Thank you, and over to you, sir.
Thank you. Good morning, everyone. I would like to extend a warm welcome to all of you for joining us on our Q3 and nine-month FY 2026 earning call. On call with us today is Adfactors PR, our investor relation team. On behalf of the entire team, I am pleased to share our operational and strategic progress for the quarter and our outlook for the remainder of the year. We have shared our earning presentation. I hope you had the opportunity to go through it. During the quarter, we continue to see steady execution across our core segments, water and wastewater treatment and operations and maintaining services. Our focus remained on timely project execution, disciplined cost control, and improving cash conversion. Our water and wastewater execution order book as on December 31st, 2025 stands at INR 1,903 crores, complemented by an O&M order book of INR 933 crores.
A key highlight during this period was the receipt of a letter of acceptance from Bhopal Municipal Corporation for an EPC and O&M sewerage infrastructure project valued at around INR 250 crores, covering sewer network, a 60 MLD sewage treatment plant, pumping stations, and allied infrastructure. This project further strengthens our urban sewerage portfolio. In addition, we continue to progress on previously announced large projects, including the INR 390 crore pollution control project in Maharashtra awarded earlier in the year and contracts aggregating INR 306 crores in Chhattisgarh. Collectively, these reinforce our execution capabilities across the states and project categories. As of date, we have secured order inflows of approximately INR 1,500 crores in financial year 2026. The bid pipeline presently is approximately INR 5,000 crores, for which evaluation is underway. Expected bid submission during the month of February is around INR 2,000 crores.
Immediately expected bid pipeline under AMRUT is INR 26,000 crores in coming months, based on the position of approved DPR. We remain confident of achieving our full year, financial year 2026 order inflow target of INR 2,500 crores, supported by strong visibility and healthy conversion rates. The quantum of projects available for bidding ensures a healthy order book in the next financial year as well. Our portfolio remains well-balanced and diversified across municipal and industrial sectors. Moreover, our investment in technologies such as ultrafiltration, reverse osmosis, and MBR systems position us well for gradually entering tertiary treatment avenues. There is an increasing trend visible in the reuse segment in which the treated water from STP/CETP after suitable tertiary treatment is to be reused in the process industries or thermal power plants, which gives a revenue generation model to this segment also.
The technological advantage with the company positions the company for such projects. This can become a new revenue segment for the company. With that, I would now like to hand over the call to Mr. Manish Jain to share further developments during the quarter. Over to you, Mr. Manish.
Thank you, Sanjay, sir. Our execution activity picked up meaningfully post-monsoon, and we expect a steady conversion of unbilled revenues into billings and collections during the last quarter of the financial year. Our working capital discipline remains strong, and we continue to prioritize projects with strong cash flows. Moreover, our growing share of O&M and annuity-type revenues, combined with the scale benefits from larger projects, provides confidence in sustaining overall performance. On the execution front, we continue to make strong progress across key projects. We have successfully completed 100 MLD STP based on IFAS technology integrated with biogas and solar power generation. We have also completed the sewage treatment, Jodhpur, ahead of schedule, reflecting our focus on timely execution.
Am sorry, to interrupt, sir, your voice has got a little muffled now. I would request you to come a little closer to the microphone. Thank you.
It is.
Okay. Much better. Yeah.
Additionally, projects at an advanced stage of completion include the 55 MLD STP at Varanasi, the 80 MLD STP at Jaipur, and the 25 MLD CETP at Sarigam, all of which are nearing completion. Our emphasis on circular economy continues to deepen across projects. We are increasingly integrating wastewater infrastructure with solar power and compressed biogas solutions, enabling on-site electricity generation for plant operations and meaningfully reducing operating costs. A recent example is our Jodhpur plant, where we have successfully implemented a biogas to electricity as part of overall project design. Beyond water infrastructure, we have also entered the renewable energy segment, where we are expecting and executing projects under both IPP and EPC models. This diversification has already translated into a renewable energy order book of approximately INR 256 crores, strengthening our long-term growth visibility while aligning our portfolio with sustainability-led opportunities.
As we look ahead, the opportunity before us is one of the consistent execution, disciplined growth, and long-term value creation. Backed by sectoral tailwinds and our execution readiness, we remain confident in our ability to translate these opportunities into robust order book, stable margins, and sustainable returns for all the stakeholders. Looking ahead, we believe Enviro Infra Engineers is well-positioned to benefit from the sustained investments in the urban infrastructure sector, wastewater treatment, and environmental compliances. With a strong order book, a healthy bid pipeline, and improving execution momentum, we remain confident about delivering long-term value to our stakeholders. Now, coming to our financial performance for the period. In Q3 FY 2026, our revenue from operation grew 1% to INR 2,500 million, driven by continued execution of our order book.
EBITDA grew at 25.6% year-on-year to INR 677 million, while EBITDA margins increased by 30 basis points to 27.1%, reflecting operational efficiency. PAT for the quarter came in at INR 421 million, up by 14.7%, while PAT margin expanded 180 basis points to 16.3%. For nine months, FY 2026 revenues stood at INR 7,183 million, representing a growth of 7.9% year-on-year, reflecting continued momentum in order book conversion. EBITDA for nine months improved 22.4% to INR 1,969 million with a margin of 27.4%, which is 320 basis points improvement. PAT was reported at INR 1,341 million, up 30.1%, with the margin growing to 80 basis points to 17.9%. We also proposed an employee stock option scheme during this period, subject to requisite approvals. That is all from our side. We can now open for the floor for questions.
Thank you. 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. Our first question comes from the line of Diwakar Rana from Prudent Equity. Please go ahead.
Good morning, sir. My question is on the execution part. What led to the execution slowdown in this quarter?
Pardon me.
Execution slowdown.
Okay. First of all, I would like to emphasize the growth in EBITDA and PAT. Basically, we are having a decent growth in our EBITDA and PAT numbers, which is getting transpired from the shift in the wastewater treatment segment, which was the primary segment of the company, along with the operational efficiencies. Regarding the revenue guidance, basically, we were expecting certain orders to flow in Q3. Some of the projects for which we had submitted our bids, these are some Delhi projects. The bids have been recalled and we are again submitting our bids for the projects. Further, there were bids to the tune of somewhere around INR 3,000 crores in Bihar. The process of evaluation is a bit delayed because of which the financial bids are yet to be opened. Basically, the order book which we were expecting in Q3, that didn't come to the company.
We are right now expecting that our order book will get decently accrued. In Q4, based on this improved order book position, in future, we look forward to maintaining our revenue guidance as well.
Okay. Sir, to achieve a 30%-35% growth, you have to report over INR 700 crore of revenue in Q4, which is around 70%-75% growth over March 2025. Are you confident to achieve this number, INR 700 crore revenue for Q4?
The revenue expectation for Q4 is in the range of INR 600-INR 650 odd crores. We expect our top line to be in the range of INR 1,350 crores. We are in line to achieve this number.
Okay. Sir, earlier this 30%-35% revenue growth guidance you gave, it was excluding the solar part you did, and you have executed over INR 98 crore of solar this quarter. This INR 1,350 you are saying revenue, this is excluding the solar part or including the solar part?
I think you have taken it wrongly. It is 98 million, so it is INR 9.8 crore top line, which we have in Q3.
Oh, sorry.
The total top line which is expected from the renewable segment for this financial year is somewhere around INR 200 crore. Presently, when I say INR 1,350 crore, basically it will be at the consolidated financial level, so our total top line expected is INR 1,350 odd crore. However, if we look into the PAT margins, that growth of 35%-40%, what we projected, that remains in line. INR 230 crore-INR 250 crore is the profit PAT number which we are expecting for the entire financial year. And we will 100% do this number. The PAT number is all aligned.
Okay. One last question, sir, on the order book. We had guided for, I think, around INR 2,500 crore orders inflow in FY 2025. We have received, I think, over INR 2,000 crore. Inflow.
The total order inflow till now has been INR 1,500 crore in the water and wastewater treatment segment.
It is an order book of around INR 256 crore, which is from the renewable segment. Basically, the guidance which we gave, INR 2,500 crore, it was for the water and wastewater treatment segment only. Our bidding pipeline, as Mr. Sanjay Jain mentioned, it is INR 500 crore, which is already under evaluation. There are some L1 projects as well. We will not give any guidance on the L1 getting converted to LOA because we have faced some challenges in the past with respect to one to two projects where L1 could not get transpired to LOA. Basically, at this point of time, I can only say that we remain confident another INR 1,000 crore order book that we require to fulfill our guidance of INR 2,500 crore looks 100% aligned and based on even the L1 position itself, we look forward to getting the LOAs very soon.
I will also be very happy the moment I will be in a position to announce the LOAs.
Okay. Thank you, sir.
Thank you. We take the next question from the line of Vidhi Shah from C.R. Kothari and Sons. Please go ahead.
Hello, sir. I have a bookkeeping question. So in the consolidated financials, the PAT has increased, but the EPS has decreased. Can you please explain that?
To my understanding, there should not be any concern with respect to the lowering of the EPS. Let me just go through with my financial team. I will revert back on this because there is no change in equity at all, so the EPS will grow proportionately. I think for Q3, the PAT number is INR 42 crore. For Q2, it was INR 49 crore. So maybe there might be a slight reduction in the EPS Q-on-Q basis. This is what I can say.
No, sir, I am talking about YOY. Last December it was INR 36 crore. Right now it is INR 42 crore, but the EPS has decreased from 2.59 to 2.3, whereas your share capital remains the same. That was my concern.
Last year, our IPO was there in November 2024. There can be a change in the share capital from INR 136 odd crore to INR 175 crore, so that can be an average weighted capital at that point of time.
All right. Thank you, sir. Also on the revenue part, sir, earlier you had guided 35 to 40 on the water segment alone, but now you are guiding 1350 for the full consolidated level, water plus renewables. Is there any reason for the slowdown? Also on the renewables part, you had guided INR 200 crore -INR 250 crore revenue.
Yes.
You have done INR 10 crore as of now. Can you please explain that?
The revenue guidance for renewable remains intact. We expect our revenue top line in renewable segment to be somewhere around INR 200 crores. Our revenue guidance for water and wastewater treatment segment was on the basis that we will be winning some projects on a continuous basis in this financial year. Till July, there was a number of projects where we won and the LOIs were issued. However, it got slowed down a bit and we could win only one project in the month of November. There was a bit of slowdown in the order receiving rates. However, we have not reduced our profit margins at all, or rather, I can say because of our guidance for a good profitability.
The competition is slightly higher, so we could not win the bids at that point of time, and because of this, our revenue guidance may go a bit lower for the current financial year. Still, we are maintaining good profit margins, and we are hoping that by March, when we go out and we declare our results for the entire financial year, we turn OCF positive. Right now, two major guidance that our PAT will be in line with our commitments and OCF turning positive, we are working on it along with our order book getting improved so that our revenue guidance along with the profitability for future, that also improves substantially.
Does that answer your question, Vidhi?
All right. Yeah. Thank you, sir.
Thank you. The next question comes from the line of Prateek Bhandari from AART Ventures . Please go ahead.
Yeah. Hi, sir. Thanks for the opportunity. What was our order inflow during the quarter? Did we receive any order?
There was one order which we received. It was a 60 MLD STP along with associated infra. It was an AMRUT 2.0 project at Bhopal. We have commenced our operations in that project as well. That was the only project which we won in Q3.
What was the value of the order?
INR 248 crores.
INR 248 crore. Also, sir, if you could touch upon what has been the progress on the receivable side from the JJM projects which were pending. Has there been any recovery?
As I say, even in the past, we are doing the JJM projects in MP only. Because of the funding of JJM projects from the state government for this financial year, we didn't face the challenges with respect to the receivables. Now, the next point which comes is the trials and commissioning. Basically, it is a connectivity of almost 1,000 villages, and on a continuous basis, we are doing the trials, testing, and making all the test connections functional. So this activity, this is a process which will remain slow, and there will be a continuous steady progress which will continue. On a monthly basis, our revenues are getting accrued to a level of somewhere around INR 15 crore -INR 20 crore.
This process is expected to continue over a period of next six to eight months' time when we expect that all the projects will be commissioned and the O&M will start. There are total five projects, out of which there is one project wherein we are expecting the entire completion along with commissioning maximum by June. So that particular project will go into O&M. If I say about the receivables, we are not facing challenges from MP at all in the JJM.
But what has been the pending receivables as on date, quantum of the same?
The pending receivables, if I say, debtor along with unbilled revenues, will be somewhere in the range of INR 225 crores.
Okay, INR 225 crores.
Right.
Sir, you mentioned that for the solar, for the renewable side, you have guided for INR 200 crores odd revenue for the full year.
What has been the revenue run rate up till now for the full year, nine months?
Basically, this is first financial year itself for the renewable business. We found this company in current financial year only. Then we got some solar asset which we purchased or acquired. The initial guidance, basically we were just either it was the sale of electricity from the IPP project that we acquired. We were aligning ourselves to those activities. A turnover of INR 10 crore is what we have done in Q3. We expect a jump of this turnover getting from INR 10 crore -INR 200 crore in this Q4.
No, but what has been the turnover during the nine months or the quarter?
During nine months, it was hardly INR 2 crore-INR 3 crore in Q2. If I say the total turnover from renewal will not be more than INR 12 crore-INR 13 crore.
Okay. And sir, since we have been able to, due to the operational efficiencies, we have been able to clock better margins.
Is there any change in the guidance for the margins going forward, or do you still stick to a 22%-24% range, which you earlier alluded to?
At any point of time, we will stick to the margin guidance of EBITDA in the range of 22%-24%. As the product mix, because there are different type of projects and different complexities, so the margin profile remains different. As a guidance measure, it will never be more than 22%-24%, but we look forward to having better operational efficiencies in the system itself.
Okay. Just one last question from my end. If you can touch upon the bid pipeline of INR 5,000 crore. If you can share some split across the segments from where it is coming.
This entire INR 5,000 crore bid pipeline is from wastewater treatment projects only, which constitutes STPs or its sewerage infrastructure, both under EPC and some parts of HAM. Along with this, there are some projects of CETP as well. There is no water project right now with us for which we have submitted our bids. This pipeline will primarily be either the AMRUT projects or Namami Gange projects or the projects which are funded by multilateral agencies or the CETP projects from the industrial development corporations.
Okay. Thanks, sir, for answering my questions.
Thank you. The next participant is Meet Shah from Finance360. Please go ahead.
Thank you for the opportunity. Sir, I had a couple of questions. Firstly, you did mention because you didn't get the expected orders in this quarter, which led to the slow execution. But till the end of the quarter two, we had an order book above INR 2,200 crores, which you received before three, six, nine months, right? So we should have executed that numbers in this quarter, right? Because all the new orders get in execution phase after three, six, nine months. So anyways, if we have received the orders in this quarter, it could not have made to the top line of the income statement, right? So, is my understanding correct?
First of all, any of the order which we get is having a timeline of 18 - 24 months. So if I say the total order book was to the tune of around INR 2,000 odd crores. So if that is to be executed over a period of 24 months, so the getting transpired into revenues is to the tune of INR 250 odd crores. This is same what we could do in Q3. All three quarters, basically, almost all the quarters are in line, maybe with a difference of maybe INR 10, 20 odd crores, not more than that. Basically, in my last earning call, when I reported one of the projects at Rajasthan, which will get transpired into LOA. Unfortunately, that project we could not bag and that entered into a retendering.
There was some technical glitch, and that is why the tender has been recalled. That particular project was where we could have started it immediately. There were some packaged projects which we were required to fabricate in the workshops, and then we were required to supply. We could have expected some turnovers from that particular project as well. One more thing which I would like to emphasize, at the start, we were there with somewhere around INR 1,200 crore order book. We were quite hopeful that the turnover will get on increasing with an increasing order inflow into the company. If we just forecast the revenues based on the order book that we got and the execution, the way the company is executing. Basically, we are well in time, or we are ahead of time, as we have reported two projects of Jodhpur.
One is a sewerage project, which we executed ahead of time. Then Jodhpur 100 MLD project, wherein we are well in time. Then there are three more projects which we have reported in our earning speech right now. Varanasi, Jaipur and Sarigam. Basically, if we just conclude it in a fashion that the execution of the projects is timely. How is the conversion of this order book to top line? Basically, we were more hopeful of getting a higher number of new projects, which we could not. That has not get replicated into a higher revenues. However, our PAT guidance is positive and we are again achieving the numbers which we have given as a guidance.
Okay, sir. Got it. But sir, you did mention about INR 2,000 crore order book will be getting executed in next 24 months. Right? Each quarter gets a INR 250 crore kind of a number volume up. But if you see Q1 and Q2, we have a lower execution because of a rainy season and other reasons. Q3 and Q4 are heavy on execution, right? 60% kind of revenue we get from Q3 and Q4 because of the heavy execution. We didn't had any rain or any other issues in Q3 and Q4. That was our understanding that we might get a good execution in both of this quarter, not the linear INR 250 crore every quarter, but yeah, it gets a bit skewed in Q3 and Q4.
You are 100% right. In Q3, out of the three months, the month of October, since the rains were prolonged and it was a festive season, so the main construction activity has started from the month of November. The revenue is of INR 250 crore, primarily comes out of the functionality way of two months. If you see our guidance, so first three quarters are almost on a similar revenue path of around 20% each, with a 40% guidance for Q4. The number will definitely be a far better. We expect a good top-line number to be executed in Q4. The guidance among that movement of the revenue with respect to order book remains exactly the same. There is no change in it. It is more of the order book which we expected, which we could not get in Q2 or Q3.
Basically, a certain slowdown in getting the order book. However, the bidding pipeline still is very strong, along with the projects which are available for bidding in the month of February itself. Some INR 2,000 crore projects are there in this STP or CETP segment, wherein we are submitting our bids. We do expect that we will be having a very decent order book very soon, and based on that, we will forecast a better revenues for our next financial year, that is FY 2027.
Sir, for Q4 till now, what fresh orders have you received?
In Q3, we have received one order of INR 248 crore.
No, in this quarter four.
In Q4, we do not have any LOAs at least till date when we are into this earning call.
Basically, sir, in like, say, next 15, 20 days you receive the order, right? But you are confident that in one month that will have some kind of execution and it will reflect to the top line. Because if it does not, still we have the INR 250, INR 300 crores only in revenue, right?
Because till now we have not received any fresh orders, so it will not convert into revenue.
There is a change which happens in Q4. Basically, a lot of equipment supplies also happen in this particular quarter along with the civil executions which go on. So there is a sudden increase in the top-line numbers for Q4, and it is well guided in our presentation as well from the past year's performance, and we look hopeful that we will be in a position to have a top-line number of somewhere around INR 450 crore from our water and wastewater treatment projects and INR 200 crore from the renewable segment. So along with this is based on the order book which we have right now. I am not saying that any addition of the order book can impact our top line in next 45, 50 days, which we have in this current financial year.
This order book will sustain our revenue visibility and profitability for the next financial year. As I am saying this word, the moment we are having a good order book, as on April 1st, we will have a good order book available for execution for the entire financial year on with the basis of which we will be in a position to better project our guidance for FY 2027.
Sure, sir. And sir, what number you gave for water treatment for Q4?
As I said it is-
INR 400 crores.
Around INR 450 crores. INR 400 crore - INR 450 crore is what we do expect to do in this particular quarter.
Sir, INR 400 crore - INR 450 crore would translate to just a 10% YoY growth for Q4, right? Because last year we did around INR 400 crores. That would be only a 10% increase. For the whole year, we have guided 30%-35%. I think that would be a very great difference between both.
If I am not wrong, we should be more concerned with the profitability in the project. Suppose I do INR 1,500 crore and my bottom line is very weak. That will not give any strength to the company. As we understand, we should go with high-margin projects. I do understand and accept there is a reduction in the revenue numbers, which we guided. However, the profitability remains intact. There is no impact at all on the profitability in the company, and we expect profitability along with OCF positive numbers to be replicated in the current financial year, that is FY 2026.
Sir, got it. Sir, last question-
I am sorry to interrupt. I would request you to rejoin the queue. Thank you. The next question comes from the line of Sahil Garg from CCV Emerging Opportunities Fund. Please go ahead.
Good morning, sir. Sir, when you say that we will do INR 600 crore of top line in Q4, may I know what was the run rate for the month of January?
The run rate for the month of January is somewhere around INR 120 crore, which we have executed.
INR 120 crore. So that means we have to execute INR 480 crore of order book in the next two months.
What happens is, since there are supplies which have just got geared up, the supplies will be done maybe by March 15th, then we will proceed for its invoicing and receiving the payments. The process is already on and the inspections, basically in all the mechanical electrical equipment that we procure, there is a clear-cut procedure wherein the approval and manufacturing clearance is given. Then six to eight weeks, 10 weeks is the timeline for its manufacturing. Then an inspection call is given, and then the dispatch clearance is given. Basically, all these activities are done at a certain level, and these supplies are going on, we can expect this top-line number to be maintained.
That means everything is dependent on, sir, future events we are talking about from the last 40, 45 minutes on this call. Still, it looks difficult. Anyways, and what would be the number of receivables by then?
If you want to check
If we are doing INR 480 crore of top line in Feberuary and March, I am assuming that the entire revenue would be convertible into receivables, I believe.
Entire revenue will be convertible. I cannot say on this basis. There is some unbilled revenues in our books. There is some inventory which will definitely get converted into cash flows. There will be the top-line numbers, which we will do in the current quarter, and certain amount of this will go into unbilled revenues, and there will be some parts which will get converted to cash flows as well. Ultimately, if you see any of the financial year in the past, the unbilled revenue is a bit high till Q3. However, it gets reduced substantially in Q4 when this top-line number also increases and the cash inflows get substantially higher.
For Q1, Q2, Q3, my being that you will get the payment. I am specifically asking for the Q4 because 60% of the revenue is coming in Q4. That is why I am asking that what the receivables figures will look like. Just a ballpark figure maybe from your side.
I have given guidance of working capital somewhere in the range of 90 days to 100 days. We will try our level best to maintain that working capital days and then converting the entire OCF to positive along with taxes as well.
Okay. And sir, what is the reason for unbilled revenue?
Unbilled revenue, there was a circular from government that all the invoices that we do, these are to be exactly paired with the income tax TDS and the GST TDS. This circular had come sometime in September. There was a revenue recognition mechanism which was outlined in the GST circular as well. Based on certain activities which get fulfilled, then we could generate the invoices. Now the invoices are not done at least till the time the confirmation, a clear pass order, and the availability of funds with the government, wherein they are depositing the TDS amount at least. All other amount always remains in the unbilled revenue. If you see the combined value of unbilled revenues as well as the receivables, I think that will give a fair picture in comparison to the last financial year.
Okay. Sir, just last question. May I know what is the reason for margins to come down in Q3 as compared to Q2 and Q1, specifically the PAT margins?
There is a guidance. It all is a project mix. There may be a project where we are having higher margins. There can be a project where the margins are slightly lower. So a change of maybe 1-2 percentage points. That never says that the operational efficiencies are lower. Further, there is an ECL provision which is created in the books. In Q3 itself, a provision of INR 6 crore has been created. ECL is expected credit loss. So basically, there is an Ind AS provision according to which ECL provision is booked. The total ECL which has been booked in our books till now stands at INR 15 crore, out of which INR 6 crore has been booked just in the last quarter itself. So INR 42 crore was our profitability.
If you just club it, I think we are well-aligned, at least if we talk about the profitability in the company.
Okay. That is it from my side, sir. Thank you.
Welcome.
Thank you. The next question comes from the line of Anmol Mittal from SMC Private Wealth. Please go ahead.
Good morning, sir. Sir, can you share the margin outlook for Q4, INR 600 crore-INR 650 crore top line guidance?
Top line guidance is just INR 450 crore for water wastewater and around INR 200 crore for renewable. The overall profitability, if I talk about both combined, I think we should be somewhere around 15% PAT margin.
15% PAT. Thank you, sir. My second question is, given the importance of execution momentum, would it be possible for management to provide periodic, perhaps monthly update on order book execution to press release disclosure to help investors better track progress and visibility?
I will match the top line which happened in the past years pairing it with the current financial year. Definitely, we will do. No issues in it.
Okay. It means by the next month we will receive on monthly basis press release regarding the order executed, right?
Yeah. Definitely we can do it.
Okay, sir. Thank you.
Thank you. The next question comes from the line of Daksh Malhotra from Aadriv Global. Please go ahead.
Yeah. Good morning, Manish ji, and congratulations on a good set of numbers. In this challenging and where the infrastructure on the whole has been a little slow, a good execution as far as the bottom line is concerned, at least. A lot of answers have been given, just wanted to understand what troubles are we facing in terms of order booking, per se? Is it competition? Is it state governments, their budget constraints? Why didn't we get the orders we anticipated? While you've explained that Rajasthan project went into re-bidding. But the flow of orders has just been very slow. How is this going to change going into Q4 and the next financial year? What do you foresee for the time to come, sir?
As far as the availability of projects is concerned, it is extremely robust and a number of projects are available for bidding also, and we have submitted our bids as well. There is some L1 pipeline, but definitely, as I said, Rajasthan was one of the projects wherein we faced some challenges. I am not in a position, or I never want to declare the L1 status. Rather, I am more comfortable putting it in our bidding pipeline itself till it gets transferred into LOA. When we are submitting our bids for government, there are challenges with respect to the evaluation. The evaluation timelines are not in our hand. We can only predict the possibility of getting any of the orders.
As I said, in Delhi, we have submitted bids for almost five, six projects, but due to some technical glitch, the entire process was stopped at one point of time and all the projects have again been called for a re-bidding. There is not any control in our hands. These projects are again available for bidding. We are definitely bidding for these projects and look forward to having some good order book position from Delhi. We have submitted our bid for a number of projects in Bihar. The total estimated value for which we have submitted our bids is somewhere in the range of INR 3,000 odd crores. Again, the evaluation process got a bit delayed. Again, not in our hands. We are just expecting that ultimately, the financial bids get opened. The technical bids have been evaluated.
We are just waiting for the final outcome and then it getting transferred into LOAs. Basically, these are just challenges with respect to the evaluation and finalization of bids. I think there can be any of the gaps which I can mention here. We are just waiting that the evaluation process gets completed and that gets transferred to LOAs.
It is not as if we are losing these orders to competitors.
No. There is a success ratio. Yes, success ratio, but it is not a particular
Okay.
Yeah.
The state governments, Bihar, Delhi, all these governments have not placed the order to anybody. Not only to us, it is the
No.
whether our success ratio is 25%-40%, but the order they haven't given it to anyone till now. They've just gone into reevaluation and whatever is going on internally.
Yes. Bihar, it is under evaluation. In Delhi, it is under re-bidding.
Okay. And historically, sir, when such a situation happens within the when there's a dearth of government orders, then once it starts, does it get lumpy? Like all of a sudden you get lot of orders? It must have-
If you see.
Yeah.
When we started
Historically, even when we were not listed, when such a thing used to happen and when the ball started rolling, do we get like a lumpy order bookings, giving us good visibility into the future? Or how does it work?
If you just see the last financial year itself, or I will say the last calendar year from January when the projects could be available for bidding. There was
a number of projects which were available. We submitted our bids from April to July. Almost INR 1,200 crore projects were there, which we won and for which we got the LOAs. Basically, if the AMRUT project or I say any of the mission or any of the government mission is moving, the projects are invited. There is no lumpiness which we foresee. But there can be a cluster of projects which we can expect to accrue at certain point of time, and then there can be a lull season as well, which has happened. That is not predictable.
Okay. Sir, secondly, on the budget estimates, you have given a slide also on JJM, Namami Gange, AMRUT, and the SBM- Grameen and urban. Has the budget increased? Because I think you've given a column indicating the approximate spend by the government in the last financial year, which seems to be much below what they had budgeted initially, in this 2025, 2026. So how do we see this in the coming years or couple of years ahead? Is there enough focus of the government in this space?
Whatever I can foresee is there has been a sloppiness, what I can say from the government side or if there were any challenges because of which they were not releasing the funds. It was mainly the JJM scheme which was facing all the challenges. From a budgeted estimate of INR 67,000 odd crores, now the final revised estimate is pegged at INR 17,000 crores.
Right.
financial year, that is FY 2027, they have given a budgetary estimate of INR 67,670. If we just look into the intent, what we can understand is, the fund should start moving even in the JJM since the revised estimate is on February 1st, when this budget has been announced. So in the next two months, that is February and March, this INR 17,000 odd crore, this fund should be allocated to the projects. Then we can foresee this number of INR 67,670 which has been projected for the next financial year, FY 2027. So this fund is going to be released. This is how we can foresee and the project should move further now. In case of Namami Gange,-
Right.
-as the projects are moving, there is no slowdown at all. The funds are getting moved comfortably. The budgetary estimate was INR 3,400 crores, but the revised estimate is INR 2,687 crores. So that is primarily based on the expenditure which has happened. So against this, they have again given a budgeted estimate of INR 3,100 crore, which in itself again looks okay, no issues in it.
AMRUT from INR 10,000 budgeted to INR 7,500 crores, and now the budgetary estimate for FY 2027 is INR 8,000 crore. So we look forward to that. First of all, this budgetary estimate of INR 8,000 crore, it should get crossed. So the funds were getting released in AMRUT schemes in the entire financial year. Then we again see that this number will continue to move. So there is no challenge which we have foreseen, at least in Namami Gange or AMRUT. SBM- Grameen and urban,
Okay.
This. Yeah.
Please. No, go ahead, sir. Please complete.
SBM- Grameen and urban, basically there are some missions which is for the population below one lakh. There are some sewerage projects which are coming up. In the SBM-Grameen project as well, the fund movement has been smooth and the movement is okay. As far as we see, apart from JJM, all other schemes are moving. It is stable and moving favorably. This is what we can foresee.
Right. We are primarily present in Namami Gange and AMRUT. Given the visible government intent of JJM revival, we will start bidding there as well if things are smooth again and if all these JJM related issues are resolved.
Right now we do not have any intent to bid for the JJM projects until and unless the schemes get fine 100%. Almost projects are there where the bids have already been done. I do not think there is much of a bidding available in JJM apart from some states which were going slow. I am not quite hopeful of getting any of the project in JJM rather in AMRUT itself. Yes, there are number of water projects which will come up. We will be fairly comfortable doing the projects under AMRUT. There is a city mission, so we will be focusing on the urban mission primarily.
Understood, ji. Sir, one last question, even though you have explained it. We are currently at in the nine months at about INR 135 crore PAT. We are talking that we can still reach 230-250. Given 15% PAT at INR 600 crore-650 crore that we are targeting for Q4, we can do anywhere in the ballpark of about INR 90 crore-100 crore.
Right.
Very tall target, 2x of what we have done in the previous quarters. Is it genuinely achievable?
If I say, let us divide it into two parts. One is a renewable component which is INR 200 crore and which is moving smoothly one way.
Right.
The second part is INR 450 crores. Last year we have done INR 400 crores. Against INR 400 crore, I am giving a guidance of INR 450 crores. That looks quite achievable in itself as well.
Achievable and the water we are doing about 18.5% PAT margin, nine months consolidated.
Right.
Water we can consider approximately the same margin?
As a guidance measure I will never say because in guidance note I will say the margins may be for the consol ones it can be at 15%. There can be minor tweak, it can be 16% or 17% for wastewater segment and maybe some margin. At a console level I can say the margins can be at somewhere 15%.
Okay. But it is achievable in Q4. Yes.
Boss, already
Okay, sir. Thank you. Wish you all the very best.
Thank you.
Thank you. Participants are requested to restrict themselves to two questions in the interest of time. If you have any more questions, kindly rejoin the queue. The next question comes from the line of Tejas Shigwan from Magadh Capital. Please go ahead.
Thank you. Good morning. I missed only some parts. I just wanted to know, are we still sticking to our target, our guidance of achieving around 30%-35%? Sir, you achieve around 8% in the nine month. Hello?
Yes, please. Please go on.
Hello.
Am I audible?
Are we still sticking to your target of achieving 30%-35% for the fiscal financial year? We are actually just 8% in nine months, so you have to achieve around 64%-65% in the last quarter. Can it give us some
Our PAT growth is in the range of 30% in first nine months. If I look at a consolidated financial level, our top line can be somewhere in the range of 25 odd percentage plus and the profitability guidance wise, yes, it can be 30% + further.
Earlier from 35% you are coming down to around 35% for the last quarter.
I have given a guidance even now in the range of INR 230 crore-INR 250 crore. If I maintain a guidance of 35%, that figure comes out to INR 238 crore. There is no change at least in the profitability guidance. I am giving the ballpark figures, but we can look once we complete this financial year.
Okay. Got it. Thank you so much.
Welcome.
Okay.
Thank you. The next question comes from the line of Deepak Poddar from Sapphire Capital. Please go ahead.
Yeah. Am I audible, sir?
Yeah. Please. You are audible.
Yeah. Thank you very much, sir, for this opportunity. Sir, a lot we have discussed on FY 2026. Something on FY 2027, how should one look at FY 2027 in terms of execution now?
Boss, I don't want to reduce any of my guidance for FY 2027 as well. However, I look forward to the order book which we get in the current financial year in the next two months. Based on that, giving any guidance or maintaining of my guidance that will make some sense. I would just request to wait for another two months time wherein I am quite hopeful and will be in a position to declare the LOAs as and when we receive, and that will give a clear guidance. I will not be reducing the guidance at all. We want to maintain a growth rate pairing to that 35%, 40%, and that will look to be fine once the order book is in hand with us.
Mm-hmm. And this 35%, 40% includes renewables also, right?
Since we will be having the top-line numbers in our books in the current financial year, now onwards, we can say on a consolidated basis also.
How much execution you are targeting renewables in this 35%-40% growth?
In FY 2027? You are talking about 2027 or 2026?
2027. FY 2027.
FY 2027, we are expecting somewhere around INR 400 crore - INR 500 crore. It should happen in the renewables.
INR 400 crore- INR 500 crore. Is this included in that 35%-40% growth that you are talking about?
Right now, I will definitely say it is included in that, yeah.
Okay. Fair point. Okay, that would be it from my side. All the very best to you. Thank you so much.
Thank you.
Thank you. The next question comes from the line of Dinesh Kulkarni from Finsight Ventures. Please go ahead.
Hello, sir. Am I audible?
Yeah. You are.
Hello. Okay.
Yes.
Thanks for giving me the opportunity. I have just two quick questions, sir. Sir, what we have seen is government projected, forecasted, or budgeted for this year, financial year 2026, of somewhere around INR 60,000 crore-70,000 crore in the previous budget. What we have is somewhere around INR 17,000 crore-20,000 crore, right? Again, for the next financial year, the budget is around INR 65,000 crore, INR 67,000 crore, INR70,000 crore. But again, there is a question mark, right? With the kind of execution the government itself is having. My question is, are there not enough projects that government is coming up with? Or what's happening in this water infrastructure that are there any financial constraints from the ministry itself that we are not getting these projects? For any players, I'm just saying. That's my first question.
First of all, I would request you to kindly see each of the government scheme on its own. There are different schemes. First of all, JJM. JJM is basically a rural mission. The entire problem in the water sector has happened because of JJM, which has not performed well in the past maybe one and a half year and more than that. Since March 2024, some problems got accrued in this particular JJM scheme. Apart from this, if we talk about Namami Gange, if we talk about AMRUT, if we talk about the projects that we are getting, like CETPs from the Industrial Development Corporation or the projects which are funded by multilateral agencies, there are no challenges at all, and the projects are moving smoothly and the execution is being done. If we talk about AMRUT scheme itself, there has been a flurry of projects since January 2025.
Number of projects are available for bidding. Even if you see our speech, Sanjay Jain mentioned that around INR 26,000 crore projects are just on the verge, which are being invited, and that is based on the guidelines issued by AMRUT 2 itself. It is a progress, as mentioned in its own circular on February 3rd. So there are around INR 26,000 crore projects for which bids are available for which DPR have been approved, and the projects are on the move. So basically, if we say the projects are coming even from the different government schemes, projects are moving, funds are being made available. So I don't foresee any challenges apart from the JJM.
Okay. That sounds some hope is there, I believe. Okay. Now the next question is, sir, what kind of a CapEx we expect in terms of maybe this year or next two years? Will it be because we are doing some renewables as well, right? If you could just split that across our business segments, the total capital expenditures.
First of all, if I talk about the HAM projects. HAM projects in our water wastewater segment, I do have two HAM projects. One is at Mathura and one is Saharanpur. Basically, these are two projects for which definitely the execution is going on, and there will be some term loans which will get accrued in the books. The total quantum of loan that can get accrued is somewhere around INR 120 crore from Saharanpur and another INR 40 odd crore, INR 45 odd crore from Mathura. Basically, if I can just conclude FY 2027, we can expect another INR 150 odd crore getting accrued from this HAM project and around INR 10 + INR 80. Another INR 100 crore in the renewable segment, which is visible at present.
Maybe around another INR 250 crore can be an increase in the term loans in the next financial year from the projects which we are in hand.
Okay, that's great, sir. I'm specifically asking about the capital expenditure. That is the INR 250 crore is equivalent to the capital expenditure, which company will incur?
Basically-
CapEx.
If I say about the CapEx, but I told, I'm sorry. It is more of the term loan, which I told you.
Yeah.
If I talk about the capital expenditure, the part of capital expenditure which I am required to do is, even Saharanpur and Mathura, we have already done. There is hardly another INR 100 odd crore which I can foresee, which can be the CapEx expenditure from our side.
Okay. That includes renewable as well, right?
Yeah.
Including renewable.
That includes renewable. Based on the project to our present order book position, this could be the CapEx expenditure which can happen.
Okay. That sounds great, sir. All the best. Thank you very much.
Thank you.
Thank you. The next question comes from the line of Rahul Ranka from Kushal Investments. Please go ahead.
Good morning, sir. Am I audible?
Yeah, audible.
Sir, what could be the return on equity which we can expect maybe this year ending and maybe the next year? If you can give some guidance on that.
Just because that INR 230 odd crores, if that can be the PAT number. So we can expect our return on equity to be somewhere around 18%-19%.
Okay, sir. Thank you so much. Most of my questions are already answered.
Thank you.
Thank you. The next question comes from the line of Vidhi Shah from C.R. Kothari and Sons. Please go ahead.
Hello. Am I audible, sir?
Yes.
You are audible.
This is colleague Prateek. Firstly, I want to congratulate you on a good set of margins that we've showcased. It's really pleasing. I understand the difficult time on the top-line front. I think a lot of the questions got answered earlier. Just some basic questions that I had. On the presentation, we've seen that our order book ex of O&M stands at INR 1,900 crores. On the water side, I'm talking about. Assuming INR 450 crore gets executed.
We are left with something like INR 1,450 crore available to us in hand. So INR 1,450 crore is a base number plus about INR 400 crore that you mentioned earlier. So INR 1,800 crore kind of a top line looks doable for next year, sir? What is your sense on that?
Sir, I will again repeat. It will depend upon the order book that gets accrued in the next two months, and going further as well. We are more particular with respect to the order book, which we get in the next two months. Based on that number, giving that guidance, if I say that I will grow at 35%-40% odd CAGR. So that will make some sense if that order book is in hand. Other way around, it will just look to be a number. That is why I just requested, let the order book be there in our hands, and then going for a guidance and maintaining our guidance will make a sense. Right now, just giving a number means that figure, definitely, if I say on our part, we want to maintain those numbers.
But for maintaining the number, I require the order book that should flow to the company, and quite hopeful that that number will be there.
I was just talking from our present order book only, that we have shown in the presentation. I was just talking from there. This INR 1, 450 crore, that will maybe remain with us.
Can we expect to get executed next year?
Entire INR 1, 450 cannot get executed. I can expect.
Okay. Understood.
75% of that to get executed in the next financial year.
Understood. That is very helpful, sir. Last time, in the last call we had mentioned, we had bid for close to INR 8,000 odd crore worth of projects.
Plus this time, I think another 3,000 odd in Bihar, et cetera, that we had mentioned. Sir, what is the total number of bids that has happened, and how many of them have opened so far?
I do not have the numbers there with me now with respect to the number of bids. Basically, that number of 3,000 odd crore, which I told you regarding Bihar, that is the figure which gets included in the 8,000 crore order book.
Understood.
There were some bids which got opened. Either we are L1 in that, or there are some bids where we have been higher. The current figure which is available with us, wherein the evaluation is going or we are having L1, it is a ballpark figure of somewhere around INR 5,000 crores.
So INR 5,000 crore worth of bids we have submitted. This includes the INR 3,000 of Bihar. Is that understanding correct?
Yeah, that is correct.
Okay, sir. Traditionally, I think even-
Sorry to interrupt, Vidhi. I would request you to rejoin the queue. Thank you. Participants are requested to restrict themselves to one question. For any more questions, please rejoin the queue. Thank you. The next question comes from the line of Meet Shah from Finance360. Please go ahead.
Thanks for the follow-up opportunity. Sir, my question was on the capital allocation front. If you look our water treatment business, particularly B2B business, which is working capital intensive, and we have many a times faced problems with the releasing of funds from government end. So it is working capital intensive. But now in the renewable, we are also doing the CapEx. We are entering into business which is, in a way, CapEx heavy. I think we have undertaken two plants and we are going to do INR 100 crore plus of CapEx, I think you mentioned few minutes ago. So on one hand, one of our most important business is working capital intensive, and second is CapEx heavy business. I mean, we are going to manage the cash crunch which we are going to have.
First of all, in our water and wastewater treatment business, as our guidance says, and we are working on it as well. So we are targeting an OCF positive scenario. So that will give positive cash flows to the company. Now, if I look forward to the CapEx that we expect to do in the renewable segment, we had made it quite clear that from Enviro, there will be an investment of INR 75 crore only and there will not be any further investment. If you will see, no further investment has happened, and we stick to our guidance as well, and there will not be any further investment, at least going forward from Enviro to the renewable business.
Now, the total funds which got accrued in renewable segment, it was INR 75 odd crore from Enviro, along with another INR 40 odd crore, which was infused by myself, Sanjay Jain, and some of the shareholders further. This fund, along with the debt which we are taking for executing those projects, basically based on those, we are quite comfortable and that CapEx will be done. And we expect good, healthy margins in those projects, and based on that, we will look forward to any further IPP if we would take. We have submitted our bids for some of the EPC projects in the renewable segment which includes wind and BESS as well. So definitely, there will always be a mix of IPP and EPC in the renewable segment also. And we look forward to healthy profitability, healthy top line in the renewable segment.
Both the segments will move independently. There will be separate working capital lines made available for the renewable, separate funding lines, working capital lines for the main water and wastewater business.
Thank you. The next question comes from the line of Kishore Jaisawani, an individual investor. Please go ahead.
Hello, sir. Sir, if we look at the last three years budget of the government or last five years budget of the government in all these water sector schemes, there is hardly any growth in the budget if we look at it from the three years viewpoint. Sir, is the sector moderating in terms of growth? How are we targeting 30%, 35% CAGR if the sector is itself not growing that fast?
If you see, there was a sharp increase in the government expenditure in various schemes. As we see, the expenditure is of a continuous nature, which is happening in all these different schemes. Based on this, the projects are getting executed and new projects are coming up. To our understanding, healthy projects are available for bidding, and there is a sudden jump in the AMRUT projects visibility. We can look forward to the expenditures getting increased in the further years. Because at present, the projects are being invited, there will be a point of time when almost all the projects will be moving for execution. At that point of time, a higher budgetary expenditure will be required and to our understanding, we also look forward to that expenditure getting increased in that particular scheme.
Thank you. The next question comes from the line of Vidhi from C.R. Kothari and Sons. Please go ahead.
Sir, Prateek again, Vidhi's colleague. Just earlier to my just a follow-up question, sir. So we continue to maintain a similar EBITDA margin guideline for the next year, right, 22%-24%? Or do you think that will also again be in line with what we've done this quarter, last quarter, so in the 26-27 kind of a range. Any outlook on that?
We will never change our guidance. At least the guidance will always be in that range itself.
Understood, sir. And just, I think you would have answered this earlier also, but any timeline on when this order win will be announced?
That is why I am telling you.
Or any percentage of the INR 5,000 crores that we bid, sir, are confident as to what kind of orders we can win. Because I think traditionally we had mentioned somewhere in previous calls, about 30% was our win rate earlier.
Can we expect a similar win rate? Or what is your sense?
We have lowered our win rate as our guidance, and even if we expect 20%-25% to be our win rate, we will well cross that guidance of INR 1,000 crore.
Right.
New projects are always available. We look forward to good margins. We can just lower the margins, and we can increase our win rate. It is not our requirement or mandated at all. We want to maintain our margins as well. If I have to maintain a cutoff level where my margins should remain secure, there can be a reduction, and that is why we will also expect a lower success rate. Definitely the margin profile, that should remain maintained.
Thank you. The next question comes from the line of Madhu from MD Advisors. Please go ahead.
Okay. Hi, sir. Am I audible?
Yeah. Please go on.
I just have a normal basic two questions. My first question is, sir, the stock has been almost fallen, like almost 50% from the all-time high side. Do you have any plans to increase the stake further? This is my first question. Second thing, sir, for the top-line guidance regarding revenue, you have given more than 30%, right? How confident are you to achieve this in Q4?
Regarding the stock performance, basically, I can control the business, and I can control the profitability business going forward. The stock performance is really dependent on to all my investors, so this is what I can say. Our stake in the company is more than 70%. At least as of now, we don't look forward to increasing our stake in the company. Your next question regarding the top line, I have already given all the guidance, how the movement should go, and we remain quite confident because when I am stating the numbers, I need to be quite confident and comfortable that this will be achievable. Based on this, I have given that guidance on how the numbers will pan out in the current financial year and look forward to maintaining these numbers.
We can assume Q4 numbers would be much better than street expectations, right?
I don't know the street expectations at all. I am giving the numbers which is achievable on behalf of the company.
Thank you. Ladies and gentlemen, in the interest of time, we would take that as the last question. For further queries, please contact the investor relations team. I would now like to hand the conference over to Mr. Manish Jain for the closing remarks.
Thank you all once again for taking the time to join us on call today. We are well-positioned to capitalize on the upcoming opportunities and remain cautiously optimistic for the near and midterm. Our aim remains to grow and generate sustainable values to all our stakeholders. I am thankful to all of you for joining this earning call.
Thank you, sir. Ladies and gentlemen, on behalf of Enviro Infra Engineers, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.