Antony Waste han Q1 FY27 Earnings Call — Analysis (NSE: AWHCL)
Q1FY27 revenue inched up 6% YoY to ₹269 Cr, but EBITDA plunged 27% YoY to ₹45 Cr (margin 16.8%) and PAT collapsed to ₹0.7 Cr, as one-off CIDCO closure costs, a refinancing prepayment charge and a deadly landslide at the PCMC WtE plant obscured underlying volume growth.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q1FY27 Revenue ₹269 Cr ( +6% YoY ) . New guidance — FY27 greater noida mechanical sweepi… ₹46 Cr . New story: One-off cost headwinds obscuring underlying gro… .
Results
Revenue ₹269 Cr +6% YoY; EBITDA ₹45 Cr -27% YoY, margin 16.8% (vs 24.4%); PAT ₹0.7 Cr (vs ₹23 Cr); one-off costs of ~₹10 Cr (CIDCO inert disposal) and ₹7 Cr (loan prepayment).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹269 Cr | +6% | yoy · Q1FY27 |
| EBITDA | ₹45 Cr | −27% | yoy · Q1FY27 |
| EBITDA Margin | 16.8% | -7.6ppt | yoy · Q1FY27 · 24.4% in Q1FY26 |
| PAT | ₹0.7 Cr | −97% | yoy · Q1FY27 · ₹23 Cr in Q1FY26 |
| C&T Revenue | ₹156 Cr | +10% | yoy · Q1FY27 |
| MSW Processing Revenue | ₹75 Cr | +3% | yoy · Q1FY27 |
| Total Volume | 1.4 million tons | +5% | yoy · Q1FY27 |
| Gross Debt | ₹435 Cr | point_in_time · Jun-26 · As of Jun-26 | |
| Net Debt | ₹324 Cr | point_in_time · Jun-26 · As of Jun-26 | |
| Net Debt/Equity | 0.4x | point_in_time · Jun-26 · As of Jun-26 |
Guidance
Management expects WtE plant restart by mid-October 2026, an impairment charge of ₹22–24 Cr to be booked in Q2FY27, and a return to historical EBITDA margin trend of 22–24% over FY27 as one-off costs fade and new BMC/Atkoli contracts ramp up.
What management committed to
- [The PCMC WtE plant] will resume full operations by the second week of October 2026. — Q3FY27
- An impairment charge of ₹22–24 Cr from the [PCMC] landslide damage will be booked as an exceptional item in Q2FY27, before any insurance recovery. — ₹22–24 Cr, Q2FY27
- The [Greater Noida] mechanical sweeping contract will commence in Q3FY27 and contribute approximately ₹46 Cr in revenue in its first year. — ₹46 Cr, FY27
- Consolidated EBITDA margin will return to the historical trend of 22–24% during FY27, though quarter-to-quarter variation may occur. — 22–24%, FY27
- The [BMC C&T] contract will reach full 7-ward operation and contribute approximately 1,500 tons per day by Q4FY27. — 1,500 tons per day, Q4FY27
- The [Atkoli] waste processing project in Thane will start operations and process 600–800 tons per day by Q4FY27. — 600–800 TPD, Q4FY27
- The [Kadapa and Kurnool] WtE projects in Andhra Pradesh are progressing as per schedule and will be completed on time.
Key themes
One-off shocks obscure steady volume growth
How the narrative shifted
- One-off cost headwinds obscuring underlying growth: Management characterizes Q1 profitability as transitional, not structural, driven by non-recurring items (CIDCO closure, refinancing charge, WtE shutdown), while underscoring continued top-line momentum.
- Portfolio rebalancing toward processing/WtE: Management explicitly targets a 50:50 C&T-to-processing/WtE mix, shifting from the historical 70:30, to capture higher-margin, capex-intensive projects.
- BMC contract ramp-up as near-term volume catalyst: The newly bagged BMC C&T contract began contributing in Q1, with full run-rate expected by Q4FY27, adding ~1,500 TPD and a slightly better margin profile.
- WtE plant disruption and recovery path: A tragic landslide at the PCMC WtE site caused suspension, emotional impact, and an estimated impairment; management outlines a restart by mid-October, fixed shutdown costs, and eventual insurance recovery.
- Margin normalization via cost pass-through and renegotiation: Near-term margin pressure from labour code restatement and transport costs is expected to ease through annual price escalation clauses and renegotiation of transport terms.
- Regulatory tailwinds for Kanjurmarg project: Supreme Court proceedings and the High Court-appointed monitoring committee are perceived as supportive, making it unlikely the project is relocated and potentially paving the way for technology upgrades to CBG/WtE.
Operational commentary
- PCMC WtE plant suspended after landslide on July 8; MRF/composting resumed July 28, WtE restart expected by second week of October 2026; fixed cost during shutdown ₹2.5–3 Cr/month
- New Greater Noida mechanical sweeping contract won: ₹243 Cr over 5 years, 16 electric sweepers, revenue ~₹46 Cr in first year starting Q3FY27
- CIDCO bio-mining contract completed; one-time inert disposal cost ~₹10 Cr incurred in Q1FY27, not to recur
- ₹140 Cr term loan of Antony Lara Renewable Energy refinanced from 10.25% to 8.25%, saving ~₹14 Cr net of ₹7 Cr prepayment charge
- Volumes: C&T 0.55 Mt +6% YoY, processing 0.85 Mt +5% YoY; new BMC contract started with one ward, full 7 wards to ramp by Q4
- Andhra WtE projects (Kadapa, Kurnool): land possessed, EPC contractor mobilized, financial closure near final stage; on schedule
- Atkoli waste processing project (Thane) expected to commission in Q4FY27, adding 600–800 TPD
- C&D recycling facility at BMC running near full capacity (600–650 TPD) after policy mandating builder waste processing; recycling rate 96%
- Employee cost spike (+18% YoY, now 34% of revenue) driven by new Labour Code restatement and project ramp-ups; DA revision in Maharashtra to flow through escalation clauses over time
Analyst Q&A
Q. What are the EBITDA margins for the Collection & Transportation business?
We never comment on each division's performance, and it's very difficult because it's a B2G market, commercially sensitive points to discuss.
Q. Could you quantify the recurring portion of the additional costs this quarter, especially the ₹10 Cr?
On the recurring cost of ₹10 crores of bio-mining, we don't see any of it getting repeated in the current quarter because that was related to the CIDCO bio-mining and we have completed the contract.
Q. What is the trajectory for near-term profitability given current high crude and wage hikes?
Margin profile to slightly improve... We'll see some respite coming in because of re-negotiation on the terms with the transport entities... on labour front, bulk of projects have escalations linked in, we see some respite maybe in the second half of the current financial year.
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