Enviro Infra Q4 FY26 Results (NSE: EIEL)
Signal: Margin pressure
The read
Q4 margin compression masks a year of strong order book expansion (+242% to ₹68,136 Mn) and diversification into renewable energy; the near-term execution slowdown flagged by management appears transient, while the order backlog provides multi-year revenue visibility.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹427.3 Cr | 8.8% | 70.9% |
| Net profit | ₹54.3 Cr | -26.7% | |
| EBIT margin | 18.7% |
P&L walk
Q4 revenue grew 8.8% YoY to 4,273 Mn, but EBITDA margin slumped 800bps to 18.7% due to cost absorption on delayed project starts; PAT dropped 26.7% to 543 Mn. Full-year performance showed steady revenue growth of 7.5% to 11,456 Mn, with EBITDA margin contracting 96bps to 24.2% and PAT up 6.3% to 1,884 Mn, partly supported by other income.
Key positives
- Consolidated order book surged 242% YoY to ₹68,136 Mn, offering strong revenue visibility
- Revenue grew 8.8% YoY in Q4 and 7.5% in FY26, backed by steady project execution
- Foray into renewable energy (Solar, Wind, BESS) through acquisition and IPPs, diversifying revenue streams
- Large project wins (₹3,484 Mn from Bihar Urban, ₹3,955 Mn from MIDC) indicate higher-value order intake
Key concerns
- Q4 EBITDA margin contracted 800bps YoY to 18.7%, indicating cost absorption on delayed project starts
- Q4 PAT declined 26.7% YoY to 543 Mn, despite higher revenue
- Management cited elongated bid evaluation, design approval delays, and a global crisis in March causing a topline spillover
- Full-year EBITDA margin slipped 96bps to 24.2%, while PAT margin contracted 44bps to 15.86%
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