Key Financial & Operational Performance (FY26 and Q4 FY26)

The company reported strong operational and financial performance for the fiscal year and quarter ended March 31, 2026.

Full Year FY26 (April 2025 - March 2026):

  • Operating Revenue: ₹920 crore, an increase of 9% year-on-year (YoY).
  • Core Operational Revenue (including project revenue) crossed ₹1,000 crore for the first time.
  • EBITDA Margin: Held steady at approximately 22%.
  • Reported Profit After Tax (PAT): ₹92 crore.
  • Adjusted PAT Growth: Up 20% YoY when adjusted for a one-time income of ₹24 crore recognized in FY25.
  • Collection & Transportation (C&T) Revenue: ₹646 crore, up 11% YoY.
  • Processing Revenue: ₹274 crore, up 5% YoY.
  • Total MSW Managed: 5.69 million tons, a 15% volume increase YoY.
  • C&T Volumes: 2.12 million tons, up 9% YoY.
  • Processing Volumes: 3.6 million tons, up 19% YoY.
  • RDF Sales: 177,000 tons, a record high and up 20% YoY.

Q4 FY26 (January - March 2026):

  • Operating Revenue: ₹254 crore, an increase of 14% YoY.
  • EBITDA Margin: Approximately 22%.
  • Profit After Tax (PAT): ₹37 crore.
  • Adjusted PAT Growth: Up approximately 67% YoY when adjusted for the one-time item in Q4 FY25.
  • C&T Revenue: ₹160 crore, up 14% YoY.
  • Processing Revenue: ₹94 crore, up 15% YoY.
  • Total MSW Managed: 1.67 million tons, a 23% volume increase YoY.
  • Processing Volumes: 1.15 million tons, up 32% YoY, driven by improved utilization at biomining and MRF facilities.

Strategic Updates and Business Highlights

  • 25th Anniversary & Dividend: FY26 marked the company's 25th year of operations. The Board recommended a maiden dividend of ₹0.50 per equity share (10% of the face value of ₹5).
  • Order Book: The order book as of March 31, 2026, stands at a record ₹18,000 crore, providing strong revenue visibility. The split is approximately 60% from processing and 40% from C&T businesses.
  • New Projects & Expansion: The company made strategic additions, including entering the EPR business, securing 2 waste-to-energy (WTE) projects in Andhra Pradesh (in partnership with JFE Engineering), 2 new C&T contracts in Mumbai, and a preprocessing solid waste facility in Thane.
  • PCMC WTE Plant: The Pimpri-Chinchwad WTE facility generated 69.3 million units of green power in FY26 and helped avoid approximately 10,000 tons of CO2e emissions. The plant had a planned maintenance shutdown (90 days), resulting in a Plant Load Factor (PLF) of 56% for the year. Post-maintenance, it has been operating consistently at ~86% PLF.
  • EPR Business: The company monetized nearly 20% of its allotted EPR credits in the first year, recognizing ₹2.2 crore in revenue. It is estimated that EPR could eventually contribute ~10% to the PCMC WTE plant's revenue.
  • Merger: The successful merger of AG Enviro Infra Projects into the company was completed, strengthening operational integration.
  • C&D Business: The Construction & Demolition recycling facility achieved a 96% recycling rate. Revenue for FY26 was ₹9 crore. Volumes have recently increased to 480-520 tons per day (from 280-300 tons), with an expected revenue of ₹18-20 crore in FY27.
  • New Business Lines: The company is developing non-municipal revenue streams, including RDF sales, compost, recyclables, EPR, and a B2B service called Click2Clean (under Antony Recycling), which has clients like P.N. Gadgil and Asian Paints.

Balance Sheet and Capital Structure

  • Gross Debt: Approximately ₹426 crore as of March 31, 2026.
  • Cash & Bank Balances: Approximately ₹123 crore.
  • Net Debt: Approximately ₹302 crore.
  • Net Debt to Equity: 0.3x.
  • Weighted Average Cost of Debt: ~9.9%.
  • Days Sales Outstanding (DSO): ~108 days for the quarter.
  • Capex Guidance: An incremental capital expenditure of ~₹750 crore is planned, primarily to fund new processing contracts, including the Andhra Pradesh WTE projects. This will be spread over two financial years (approx. 40% in FY28 and 60% in FY29).
  • Tax Rate: The company's stated assumption for its effective tax rate is 25%.

Legal & Regulatory Matter

  • Bhiwandi Arbitration: The Hon'ble Supreme Court dismissed the Bhiwandi Nizampur City Municipal Corporation's Special Leave Petition. The corporation has been directed to disburse the settlement amount of ₹15 crore within 3 months, with an interest of 9% per annum on any delay.

Forward-Looking Guidance & Commentary

Management provided the following explicit guidance and commentary:

  • Revenue CAGR: The company is confident of delivering a 15% to 20% revenue Compound Annual Growth Rate (CAGR) over the next 5 years.
  • EBITDA Margin: The long-term aspiration is to maintain an EBITDA margin between 20% to 22%.
  • Project Timelines: Revenue contribution from the two large Andhra Pradesh WTE projects is expected to start post-FY29.

Q&A Session Key Takeaways

  • Margin Pressure: Management does not expect significant near-term margin pressure from rising fuel costs or wage hikes, citing contractual escalation clauses and the resolution of previous procedural delays in municipal corporations.
  • Mumbai WTE: The matter is under serious consideration by the Bombay High Court, which is seeking a long-term sustainable solution. The municipal corporation may propose setting up a WTE plant in the near future.
  • Volume-Revenue Mismatch: The significant volume growth in Q4 (23%) not being fully reflected in revenue growth (14%) was attributed to the CIDCO Biomining project, which is a fixed-term contract. CIDCO contributed ~22% to total volumes in Q4. Underlying non-CIDCO revenue growth was ~8%.
  • Debt Reduction: The reduction in debt was primarily funded by strong operational cash flows (₹220+ crore cash flow from operations before working capital).
  • PAT Growth Lag: The flat PAT growth over recent years despite revenue and EBITDA growth was explained by higher interest and depreciation costs from newly capitalized assets (WTE plants, large C&T contracts). This trend is expected to continue until new WTE projects contribute post-FY29.