Enviro Infra Q2 FY27 Results (NSE: EIEL)
Signal: Margin pressure
The read
Q2FY27 marks a third consecutive quarter of EBITDA-margin contraction: revenue accelerated to ₹3,638 million, up 60.01% YoY, but EBITDA rose only 15.27% to ₹749 million and PAT fell 20.22% to ₹395 million. The key trajectory issue is whether renewable-energy growth and project-mix diversification can scale without extending the margin slide; the order book of ₹67,782 million provides execution visibility but not yet margin visibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹363.8 Cr | +60.01% | N/A |
| Net profit | ₹39.5 Cr | -20.22% | |
| EBIT margin | 20.58% |
P&L walk
Q2 revenue increased 60.01% YoY to ₹3,638 million on continued execution, but EBITDA grew only 15.27% to ₹749 million as project mix and elevated costs compressed EBITDA margin to 20.58%, while PAT fell 20.22% to ₹395 million.
Segments
The filing does not provide a segment-results table, but renewable energy is materially increasing its contribution to 29% of H1 revenue from 11% in FY26, while water and wastewater remains the larger contributor at approximately 71%.
Key positives
- Revenue from operations rose 60.01% YoY to ₹3,638 million in Q2FY27, supported by continued execution across water, wastewater and renewable-energy infrastructure.
- The consolidated order book stood at ₹67,782 million, including ₹34,387 million in water and wastewater and ₹33,395 million in renewable energy, providing execution visibility.
- Renewable energy contributed approximately 29% of H1FY27 revenue versus 11% in FY26, indicating meaningful diversification beyond the core water business.
- H1FY27 revenue grew 54.39% YoY to ₹7,230 million and H1 EBITDA grew 16.56% to ₹1,505 million despite the margin pressure.
Key concerns
- EBITDA grew only 15.27% YoY to ₹749 million against 60.01% revenue growth, with EBITDA margin contracting 798bps to 20.58%.
- PAT fell 20.22% YoY to ₹395 million and PAT margin declined to 10.62%, showing that rapid revenue growth is not translating into bottom-line growth.
- Management attributed profitability pressure to changes in project mix and elevated costs; renewable energy's revenue mix rose to approximately 29% of H1 revenue from 11% in FY26, increasing the importance of mix-driven margin recovery.
- The filing does not disclose EPS, cash flow, debt, working-capital metrics or asset-base data, limiting earnings-quality and capital-intensity assessment.
Research and educational content only. Not investment advice.