Concord Enviro Systems Limited – Investor Presentation Summary

Key Operational Highlights

  • Order book stands at ₹7,164 Mn as of 30th September 2026, with growth primarily due to an increase in Systems & Plants orders.
  • H-Xtreme Heat Exchanger and compressed biogas (CBG) platform achieved their first order milestones during the period.
  • Dehumidification initiative is now operational, expanding addressable market across pharmaceuticals, food and beverages, batteries, solar manufacturing and semiconductors.
  • Key drivers include strong domestic demand, improving execution post Q1 supply-chain disruptions, and commercial scale-up of new initiatives.

Segment-wise Performance

Revenue Breakup by Product/Service (H1FY27):

  • Systems & Plants: ₹1,471.35 Mn
  • Sale of consumables and spare parts: ₹104.32 Mn
  • O&M services: ₹622.36 Mn

Revenue by Geography (H1FY27):

  • Within India: ₹1,769.73 Mn (80.5% of total)
  • Outside India: ₹428.29 Mn (19.5% of total)

Industry-wise Revenue Breakup (Q2FY27):

  • Not specified in percentage terms but served industries include steel, solar manufacturing, chemicals, pharmaceuticals, textiles, F&B, O&G, pulp & paper, semiconductors, and green hydrogen.

Financial Highlights

Q2 FY27 Financial Performance:

  • Revenue from operations: ₹1,344.55 Mn (7.7% YoY growth from ₹1,248.45 Mn in Q2FY26)
  • EBITDA: ₹77.79 Mn (1.6% YoY growth from ₹76.57 Mn)
  • EBITDA margin: 5.8%
  • Profit before Tax: -₹22.31 Mn (-146.0% YoY change)
  • Profit after Tax: -₹36.35 Mn (-168.5% YoY change)
  • Net Profit/Loss after Tax for the Period: -₹41.04 Mn (-191.4% YoY change)

H1 FY27 Financial Performance:

  • Revenue from operations: ₹2,198.02 Mn
  • Comparison to H1FY26: ₹2,277.79 Mn (-3.5% YoY)

Drivers of financial performance: Strong domestic demand and execution improved revenue despite supply-chain disruptions in Q1. Increased employee benefits expenses (16.0% YoY) and other expenses (55.8% YoY) impacted profitability.

Key Risks: Raw material price fluctuations, regulatory changes, competition (both domestic and international), time and cost overruns on contracts.

Geographical Revenue Split

H1FY27:

  • Domestic: ₹1,769.73 Mn (80.5% of total revenue)
  • Export/International: ₹428.29 Mn (19.5% of total revenue)

Regional Breakdown: Global presence across five continents with manufacturing facilities in India (Vasai, Maharashtra) and UAE (Sharjah). Recently entered European market.

Balance Sheet Snapshot

H1FY27 Position:

  • Total Equity: ₹5,537.55 Mn (FY26: ₹5,715.68 Mn)
  • Equity share capital: ₹103.48 Mn
  • Other equity: ₹5,434.07 Mn
  • Total Non-current liabilities: ₹479.87 Mn
  • Total Current Liabilities: ₹4,028.59 Mn
  • Total Assets: ₹10,046.01 Mn
  • Non-current assets: ₹2,704.64 Mn
  • Current assets: ₹7,341.37 Mn
  • Inventories: ₹2,525.44 Mn
  • Trade receivables: ₹2,478.33 Mn
  • Cash and cash equivalents: ₹261.65 Mn
  • Bank balances other than cash: ₹397.50 Mn

Financial Health Insights: Company maintains significant inventory and trade receivables balance. Cash position decreased from FY26 (₹532.36 Mn to ₹261.65 Mn).

Capex & Cash Flow Health

Capital Expenditure: Capital work in progress increased to ₹127.87 Mn in H1FY27 from ₹26.37 Mn in FY26.

Investment Rationale: Focus on capacity expansion, technology upgrades, and commercial scale-up of new initiatives including H-Xtreme, CBG, and dehumidification technologies.

Strategic & R&D Initiatives

Investments in Innovation:

  • 31-member in-house R&D team as of September 30, 2026
  • 9 patents granted in India; 21 additional applications filed
  • New product launched "H-Xtreme" corrosion-resistant heat exchanger
  • Acquired stake in a Membrane Technology Company
  • Licensed technology from Waha Inc. (U.S.-based clean-technology company) for atmospheric water generation and energy-efficient cooling solutions
  • Developed high-pressure & ultra high membrane system for distillery clients

Expected impact on growth: New initiatives are progressing towards commercial scale-up and expected to contribute to future revenue streams.

Strategic Rationale: Expanding into high-growth markets including industrial drying, humidity control, atmospheric water generation, and compressed biogas solutions while maintaining focus on core ZLD and water treatment technologies.

Industry Trends & Business Environment

Macro/Industry Trends:

  • Rising water scarcity in India (projected to decrease from 1,486 m³ per capita in 2021 to 1,367 m³ by 2031)
  • Tighter environmental compliance and ZLD requirements
  • Increasing adoption of water recycling solutions
  • India's naval modernization creating multi-year opportunity for onboard desalination systems
  • Government implementing Liquid Waste Management Rules focusing on mandatory recycling for large water consumers
  • GHG emission targets set for industries with non-compliance penalties

Impact on Company: Water scarcity and regulatory changes are turning recycling and closed-loop systems into operating-continuity priorities, driving demand for Concord's ZLD and high-recovery systems. Defence sector expansion creates new market opportunities for compact seawater-desalination solutions.

Management Commentary & Growth Outlook

Strategic Outlook: "With a healthy order book and improving execution, we remain focused on converting our India-led opportunity pipeline and gradually normalising international deliveries." - Leadership team

Growth Drivers: Underlying demand environment remains healthy across steel, solar manufacturing, chemicals and pharmaceuticals. Emerging initiatives including H-Xtreme, industrial CBG, membrane technologies and dehumidification continue to progress towards commercial scale-up.

Market Position: Company positions itself as a leading ZLD solution provider in India with end-to-end expertise from design and commissioning to plant optimisation, O&M and consumables.

Risks and Opportunities: Risks include fluctuations in earnings, ability to manage growth, competition, economic growth fluctuations, ability to attract and retain professionals, time and cost overruns. Opportunities include India's water scarcity, regulatory changes, and expansion into new technologies and markets.

ESG Updates

Sustainability Impact: CBG plants transform waste into energy, lowering the system's overall energy footprint and reducing energy procurement costs. ZLD technology eliminates liquid waste by recovering and reusing all wastewater, preventing environmental discharge.

Completed Projects:

  • Biogas recovery from tequila vinasse at Diageo Mexico's distillery in Jalisco, Mexico
  • Biogas plant for fermentation-based pharmaceutical industry in Tamil Nadu, India