Financial Performance Summary

Q1 FY27 Financial Highlights:

  • Revenue from Operations: ₹359.2 crores, representing 49% Year-over-Year (YoY) growth
  • EBITDA: ₹75.7 crores, with 17.87% YoY growth
  • EBITDA Margin: 21.07% (compared to 26.65% in Q1 FY26 and 18.7% in Q4 FY26)
  • Profit After Tax (PAT): ₹45.2 crores, with 6.47% YoY growth
  • PAT Margin: 12.38% (broadly stable sequentially compared to 12.37% in Q4 FY26)

Segment-wise Revenue Contribution:

  • Water & Wastewater Treatment: ₹255 crores (71% of consolidated revenue)
  • Renewable Energy: ₹104 crores (29% of consolidated revenue)
  • Within renewables, wind segment contributed ₹80 crores

Order Book Position

Total Order Book: ₹6,721 crores

Segment-wise Breakdown:

Water & Wastewater Treatment (₹3,694 crores):

  • Execution orders: ₹2,696 crores
  • O&M orders: ₹998 crores

Renewable Energy & BESS (₹3,027 crores):

  • Execution orders: ₹1,948 crores
  • IPP & O&M: ₹1,079 crores

Execution Timelines:

  • Water & wastewater execution orders (₹2,700 crores): 18-24 months
  • Renewable execution orders (₹2,000 crores): 12-18 months
  • O&M contracts typically span 5-15 years for water/wastewater and 5-25 years for renewables

New Order Wins in Q1 FY27

1. EPC and O&M contract from Sardar Sarovar Narmada Nigam Limited, Gujarat: ₹113 crores

2. Renewable energy contract through Suyog Urja Limited: ₹207.5 crores for land aggregation and balance of plant works for hybrid wind and solar project

3. Two Hybrid Annuity Model (HAM) projects in Varanasi, Uttar Pradesh under Namami Gange program:

  • 60 MLD sewage treatment plant at Lohta: ₹130 crores
  • 45 MLD sewage treatment plant at DDU Nagar: ₹126.8 crores
  • Both projects have 18-month construction period followed by 15-year O&M period

Margin Analysis and Guidance

Margin Pressure Factors:

  • Raw material cost increase impacting margins by 1-2% of topline
  • Employee cost increased to ~7% in Q1 (from historical 3-3.5% range)
  • Finance cost currently at ~4%, expected to reduce to 3-3.5% for full year
  • Blend of lower-margin renewable business (15-18% EBITDA margin) with higher-margin water business (21-22% EBITDA margin)

Revised Margin Guidance:

  • EBITDA Margin: 21-22% (down from previous guidance of 22-24%)
  • PAT Margin: Expected to be in range of 13-14% for full year
  • Standalone EBITDA margin: Maintained at 21% despite renewable consolidation

Suyog Urja Limited Acquisition Update

Acquisition Details:

  • Total acquisition value: ₹311 crores
  • First tranche of ₹111 crores already paid
  • Second tranche of ₹100 crores to be paid after FY27 (July) based on KPIs
  • Third tranche after FY28

Performance Expectations:

  • Q1 FY27 revenue: ₹80 crores
  • FY27 revenue guidance: ₹400-450 crores
  • EBITDA margin: 15-16%
  • PAT margin: 12%+
  • Current wind EPC order pipeline: ₹800 crores
  • Expected additional orders: ₹500-600 crores in wind EPC segment

Business Outlook and Guidance

FY27 Guidance:

  • Revenue: ₹2,000 crores
  • PAT: ₹260-270 crores
  • Order inflow target: ₹2,500 crores (with historical strike rate of ~20%)

Bid Pipeline:

  • Projects under evaluation: ₹3,000 crores
  • Projects with bids invited: ₹6,000-7,000 crores
  • Strong focus on water/wastewater segment with robust pipeline

Growth Strategy:

  • Geographical expansion (currently present in 17 states)
  • Diversification into ZLD (Zero Liquid Discharge), desalination, CBG (Compressed Biogas)
  • Overseas project bids submitted
  • Focus on maintaining discipline in bidding and capital allocation

Working Capital and Cash Flow

Current Status:

  • Working capital cycle described as "bloated"
  • Slowdown in cash flow receiving from government clients
  • Company meeting all liabilities well in time
  • Significant unencumbered funds available
  • Expectation of improved cash flow by September 2026

JJM (Jal Jeevan Mission) Exposure:

  • JJM constitutes small percentage of order book/receivables
  • Estimated exposure not more than ₹150-160 crores
  • Funds releasing smoothly in MP projects

Operational Highlights

HAM Project Portfolio:

  • Now increased to five projects
  • Mathura project nearing completion
  • Saharanpur project ahead of schedule (3 of 8 milestones completed)
  • New Varanasi projects expected to commence in October-November 2026

Project Execution:

  • BESS projects from NTPC (930-megawatt hour) procurement to commence in Q3
  • Expected significant revenue jump in Q3 and onwards
  • Water supply projects under JJM (₹100 crores) expected to complete within FY27

Team Expansion

  • Team size increased from ~900 at IPO to 2,300 currently
  • Expansion driven by order book growth and capability building
  • Employee cost expected to normalize to 5-5.5% for full year

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