Financial Performance Highlights

Full Year FY26 Performance:

  • Revenue from operations: ₹2,503.8 million (23% growth YoY)
  • EBITDA: ₹834.9 million
  • Profit After Tax: ₹609 million

Q4 FY26 Performance:

  • Revenue from operations: ₹553.12 million (up ₹12 crores from previous year)
  • Total revenue: ₹572.18 million

Order Book and Project Portfolio

  • Outstanding order book as of March 31, 2026: ₹7,277.76 million (₹727.78 crores)
  • 38 ongoing projects across water infrastructure segment
  • 40 projects successfully completed to date
  • Order book provides strong revenue visibility for coming years

Business Operations and Focus Areas

Core business expertise in:

  • Groundwater recharging
  • Drinking water supply
  • Irrigation projects
  • Waste water management
  • Sewage treatment plants (STPs)

Recent Project Awards:

  • 3-4 major STP establishment projects covering 15-16 cities across Karnataka
  • 1 order under Amrut-2 scheme: ₹232 crore water supply project to Kuknuru and Yelburga in Koppal district
  • 4 projects under Jal Jivan Mission across Karnataka

Technology Adoption:

  • Implementing NEBR and CAMUS-based technologies for STP plants
  • Achieving 95-98% purity in sewage water treatment
  • Some work entrusted on subcontract basis for patented technologies

Management Guidance and Outlook

FY27 Projections:

  • Revenue growth guidance: 20% minimum
  • EBITDA margin target: 25-30% (aiming to maintain previous levels)
  • Focus on maintaining profit volume growth in absolute terms

Order Pipeline:

  • Bidding for 5-6 tenders valued at approximately ₹600 crores
  • Expecting new order announcements in coming quarters
  • Aggressive participation in new government tenders

Risk Factors and Mitigation

Key Business Risks:

  • Raw material price inflation (UPVC and HDP pipes, 20-30% of raw materials)
  • Petroleum product price increases affecting material costs
  • Government payment delays (expected to improve from July/August 2026)
  • Monsoon variability affecting project execution

Risk Mitigation:

  • Long-term supply orders placed in advance
  • Hard negotiation with suppliers
  • Mixed project portfolio (large projects with sustained margins + smaller quick-execution projects)
  • Price escalation clauses in projects above ₹100 crores

Government and Policy Environment

  • New Karnataka government formed in May/June 2026
  • Expected aggressive push for infrastructure projects
  • Jal Jivan Mission and Amrut 2 scheme receiving renewed focus
  • Swachh Bharat funds allocated for STP projects
  • Expected faster payment processing from July/August 2026

Working Capital and Collections

  • Collection period: 45-60 days from government projects
  • Significant investments in inventory (₹190 crores) and other assets (₹126 crores)
  • Expect to liquidate 60% of inventory/assets by December 2026/January 2027
  • Payment structure: 55% upon material supply, 35% upon laying, 100% upon project completion

Expansion Plans

  • Exploring expansion beyond Karnataka (Madhya Pradesh, Orissa, Maharashtra, Gujarat, UP)
  • Identified projects under National Water Management Program
  • Considering entry into industrial water segment (data centers, green hydrogen, zero liquid discharge)
  • Exploring biogas projects with partners having contracts with GAIL and BPCL

Capital Structure and Financial Position

  • Maintains zero-debt profile except for minimal NBFC borrowing for day-to-day operations
  • Healthy cash results and profit margins
  • Strong execution track record with timely project completion