Enviro Infra Q1 FY27 Earnings Call — Analysis (NSE: EIEL)
Revenue grows 49% YoY to ₹359.2 Cr but EBITDA margin contracts 558bps to 21.07% on input cost and renewable mix; order book at ₹6,721 Cr supports FY27 guidance of ₹2,000 Cr topline and ₹260–270 Cr PAT.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q1FY27 Revenue from operations ₹359.2 Cr ( +49% YoY ) . New guidance — FY27 consolidated revenue ₹2,000 Cr .
Results
Revenue ₹359.2 Cr +49% YoY; EBITDA margin 21.07% vs 26.65% YoY; PAT ₹45.2 Cr +6.47% YoY; order book ₹6,721 Cr (Water ₹3,694 Cr, Renewable ₹3,027 Cr).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from operations | ₹359.2 Cr | +49% | yoy · Q1FY27 |
| EBITDA | ₹75.7 Cr | +17.87% | yoy · Q1FY27 |
| EBITDA margin | 21.07% | yoy · Q1FY27 · Q1FY26: 26.65% | |
| Profit after tax | ₹45.2 Cr | +6.47% | yoy · Q1FY27 |
| PAT margin | 12.38% | sequential · Q1FY27 · Q4FY26: 12.37% | |
| Order book | ₹6,721 Cr | point_in_time · Q1FY27 · as of Jun-26 | |
| Water & wastewater order book | ₹3,694 Cr | point_in_time · Q1FY27 · as of Jun-26 | |
| Renewable energy & BESS order book | ₹3,027 Cr | point_in_time · Q1FY27 · as of Jun-26 | |
| Standalone EBITDA margin | 21% | point_in_time · Q1FY27 | |
| Wind segment revenue (Suyog Urja) | ₹80 Cr | point_in_time · Q1FY27 · contribution within consolidated Q1 revenue |
Guidance
FY27 consolidated revenue guided ₹2,000 Cr with PAT ₹260–270 Cr; blended EBITDA margin 19–20% (standalone water 21–22% lowered from 22–24%); renewable EBITDA margin 15–18%; order inflow target ₹2,500 Cr.
What management committed to
- Standalone water & wastewater EBITDA margin guidance for FY27 lowered to 21–22% (from 22–24%). — 21% to 22%, FY27
- Consolidated EBITDA margin for FY27 expected in the range of 19–20%. — 19% to 20%, FY27
- FY27 consolidated revenue guidance of ₹2,000 Cr. — ₹2,000 Cr, FY27
- FY27 consolidated PAT guidance of ₹260–270 Cr. — ₹260–270 Cr, FY27
- Water and wastewater segment revenue in FY27 expected at ~₹1,300 Cr based on 50% conversion of order book. — ₹1,300 Cr, FY27
- FY27 order inflow target of ₹2,500 Cr across segments. — ₹2,500 Cr, FY27
- Employee cost as percentage of sales will normalise to 5–5.5% in FY27. — 5% to 5.5%, FY27
- Finance cost as percentage of sales will be 3–3.5% in FY27. — 3% to 3.5%, FY27
- Renewable segment EBITDA margin expected at 15–18%. — 15% to 18%, FY27
- Suyog Urja Limited (wind EPC) will achieve revenue of ₹400–450 Cr in FY27. — ₹400 Cr to ₹450 Cr, FY27
- Work on two new Varanasi HAM projects will commence by October–November 2026. — Q3FY27
- By the end of FY27, [Enviro Infra] will have overseas or desalination project(s) in its scope/order book. — FY27
Key themes
Execution and diversification, margin normalization
Operational commentary
- Secured two HAM projects in Varanasi under Namami Gange (combined ₹256.9 Cr) for 60 MLD and 45 MLD STPs with 18-month construction and 15-year O&M, taking HAM portfolio to five projects.
- Order book at ₹6,721 Cr: water segment ₹3,694 Cr (₹2,696 Cr execution, ₹998 Cr O&M); renewable ₹3,027 Cr (₹1,948 Cr execution, ₹1,079 Cr IPP/O&M).
- Water & wastewater contributed ₹255 Cr (71% of Q1 revenue), with renewable at ₹104 Cr (29%), including ₹80 Cr from wind EPC (Suyog Urja).
- Water execution order book of ₹2,696 Cr to be executed in 18–24 months; renewable execution order book of ₹1,948 Cr in 12–18 months. O&M spans 5–15 years, average 10 years, expected annual O&M topline ~₹100 Cr from water.
- Employee base increased to 2,300 from 900 at IPO to support execution capacity; employee cost expected to normalise to 5–5.5% of sales.
- Suyog Urja acquisition (wind EPC) contributed ₹80 Cr in Q1; second tranche of ₹100 Cr payable after FY27 linked to KPIs; FY27 target ₹400–450 Cr revenue from Suyog.
- Bidding pipeline: ~₹3,000 Cr under evaluation, additional ₹6,000–7,000 Cr invited; strike rate ~20%, FY27 order inflow target ₹2,500 Cr.
- New orders: ₹113 Cr EPC+O&M from Sardar Sarovar Narmada Nigam, ₹207.5 Cr hybrid wind-solar land aggregation and BoP via Suyog, plus the Varanasi HAM projects.
- Overseas bids submitted, targeting desalination projects by end of FY27; ZLD project under execution in Maharashtra; CBG from agri-waste project in MP with cattle shelter and solar farm.
Analyst Q&A
Q. What is the current status of unbilled revenue?
Position not improved right now, still bloated; we hope by September cash flow position will be healthy, but I cannot say the exact numbers at this moment.
Q. Can you quantify the impact of raw material cost increase versus project mix on margin decline, and give segment-wise EBITDA margins?
Raw material price impact is ~1–2% of topline; water EBITDA margin 21–22%, renewable 15–18%; at blended level ~19–20% for FY27.
Q. Last year there was a big delta between commitment and achievement; how confident are you of meeting the topline guidance this year?
Last year guidance was based on expected order book build which lagged; this year we have starting order book and are on track for ₹2,000 Cr topline.
Q. What is the peak debt we are looking at given the IPP and higher interest cost?
Profitability impacted by cost increase and mix, but expect indirect costs (employee, finance) to reduce as a percentage of sales through the year.
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