Enviro Infra Engineers Limited (EIEL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Enviro Infra-Engineers Ltd. Q4 and FY26 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the lesson only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Jain, Chairman and Manji, and Whole Time Director. Thank you and over to you, sir.

Thank you. Good afternoon, everyone, and thank you for joining us today. I would like to welcome you all to our Q4 and full year FY26 earning call. Joining me with today are Mr. Manish Jain, our Managing Director and Ad Factor, our Investor Relations Team. We have shared our earnings presentation, and I hope you have had the opportunity to review it. On behalf of the entire team, I am pleased to share our progress and key development during FY26. FY26 has been an important year for EnviroInfra as we continue to strengthen our position in water and wastewater infrastructure sectors. While diversification in renewable energy platforms, our core business remains focused on delivering high-quality water and wastewater treatment infrastructure across the country. During the year, we completed several key projects and continued to enhance our capabilities in advanced wastewater treatment technologies and sustainable infrastructure solutions. We also maintained our focus on integrating waste-to-energy initiatives where feasible reinforcing our commitment to environmental sustainability. The year also witnessed a meaningful improvement in our order book position, while order finalization timelines across the sector remain longer than anticipated due to extended bid evaluation process. We continue to secure quality projects and expand our presence across key geographies. Alongside our core business, we took measured steps toward diversification into the renewable energy sector. Though our renewable energy platform, we have established a presence across solar, wind, and battery energy storage system beds. Reflecting our long-term strategy of building a broader environmental infrastructure platform. A significant milestone during the year was the acquisition of Siyo Gurja Ltd, a brand ETC company. This acquisition strengthens our execution capabilities in the renewable energy segment and provides access to an experienced team with a strong In addition, we secured multiple best projects and expanded our participation in emerging opportunities with the energy storage ecosystem. Importantly, our approach towards diversification remained disciplined and complementary to our existing strengths. We believe the convergence of water infrastructure, renewable energy, energy efficiency, and environmental sustainability will create significant opportunities over the coming years. And we are positioning ourselves to participate meaningfully in the transition. Additionally, the company has strengthened its leadership structure by appointing Delegated business heads for each division and has a renewable energy team of over 250 professionals, led by experienced industry veterans with expertise across the renewable energy value chain. Looking ahead, we remain focused on discipline, execution, student capital allocation, and sustainable value creation. With a healthy order book and growing opportunity across both water infrastructure and renewable energy, we believe Enviro Infra Engineer is well positioned to deliver long-term growth while maintaining operational excellence. With that, I would now like to hand over the call to Mr. Manish Jain, who will take you through the key operational development. Thank you, Sanjay sir.

On the order book and execution front, our total order book has surged to over 6,814 crores, providing robust revenue visibility over next 24 months. This comprises of water and wastewater execution order book of over 2,733 crores. Operation and maintenance order book of over 951 crores from these water and wastewater projects. In the renewable segment, the execution order book is over 2051 crores and the O&M and IPP under the renewable segment is 1079 crores. Some of the most recent additions in our order book include In Q4, we have secured a major 348 crore project from Budko, Bihar Urban Infrastructure Development Corporation, and two sanitation projects in Pune and Naasik, which are worth 824 crore. It is Swachh Bharat Mission project. We secured four best projects from NTPC. These are EPC projects having a combined capacity of 930 MWh. And the value is approximately 1070 crores. These projects are in Uttar Pradesh, Assam, Karnataka, and Tilangana. Along with our recent acquisition of a 150 MWh best project in Bihar. This position as a first mover in India's 90 GWh battery storage pipeline. As we look ahead, the opportunity before us is of consistent execution, disciplined growth, and long-term value creation. Backed by spectral tailwinds and our execution readiness, strengthened further by our strategic pivot into energy storage and renewable integration, we remain confident in our ability to translate these opportunities into a robust order book. Stable margin and sustainable returns for all stakeholders. With the strategic transformation that the company is undergoing, we believe EnviroInfine Genius is uniquely positioned to benefit from the convergence of urban infrastructure, wastewater treatment, and the transition towards a flexible green grid. With an all-time high-order book of over 6,814 crore and improving execution momentum across our diverse segments. We remain focused on delivering long-term value and operational excellence throughout FY27 and beyond. Now, coming to our financial performance. In Q4 FY26, our revenue from operations is dropped at $4,273 million, representing a growth of 8.8% Y-on-Y. EBITDA stood at 799 million rupees, while the EBITDA margin came in at 18.7%. PED for the quarter was 543 million with PED margin at 12.4%, bearing the impact of higher execution and operational costs during the year. For the full year, our revenue reached 11,456 million, a growth of 7.5% by-on-by. Backed by consistent momentum in the project conversion and our strategy for internal renewable segments, EBITDA for the full year improved by 3.4% to 2,768 million, while a margin of 20, with a margin of 24.2%. Consequently, PAC for FY26 was reported at 1,884 million, with a margin of 15.9%. These results underscored our ability to scale profitability while maintaining a healthy balance sheet. This is all from our side. We can now open the floor for questions.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jainam Jain from Dam Capital. Please go ahead.

Thank you for the opportunity. So my first question is, what is the total basic cost per MLD in general within the industry for sewage treatment plant, effluent treatment plant, and wastewater treatment plant?

In general, the per MLD costing for a sewage treatment plant comes in the range of 1 crore to 1.5 crore, depending upon the specification and the characteristics. In case of common effluent treatment plant, it is very difficult to generalize because it all depends upon the type of industry for which that particular common effluent treatment plant is to be put up. So, the value may vary even from 2, 2.5 crore per mld to maybe somewhere around 10, 10 crore, 15 crore per mld as well. So, it cannot be a generalization at all. In case of a water taking plant, generally the values are in the range of 30 to 50 lakh per mld.

Okay. I mean, common effluent equipment plants, is there an industry in which there is a lower end on the fertilizer side or any fertilizer industry in which the basic cost comes to around 10 crores?

Can you repeat the question, please?

So, you said it's very difficult to give a range specifically for CETP plans. So, is there any specific industries in which the cost comes on the lower end and for the specific industries the cost comes on the higher end?

Basically, if a common effluent treatment plant is coming for a dry type of industry, where there is no space, it is just a generalized process, then definitely the cost will come down. It is more of a serious treatment plant, just like a system which is to be operated. If we are talking about textile, if we are talking about the ZLD systems, if we are talking about the food industry, So, if you are talking about metal processing or a petrochemical industry, so everyone is having a different characteristics. Based on that inlet characteristic, then the entire plant is designed, then we work out the financial cost, what exactly is the costing and the margins that we built up, and then exactly we come around what exactly can be the cost like. Okay. So, just for a very crude generalization, I can just say 3 crore to 5 crore can be per MLT cost, but it is just a generalization will not hold good in case of common affluent drinking plant.

Okay. And so, as of the student with the cost, what is the percentage of the EPC component and the tech component, and how does it change this for the different technology, for the different type of plants?

You are asking about the CETPs only?

Sorry? No, no, for all the CETPs.

Presently, the V, the bidding is being done in India. In general, water treatment plants and common excellent treatment plants are generally coming in EPC mode. There are some projects in CVS treatment plants which are coming under HEM mode. It is either EPC or HEM mode. But going forward, we can look forward to the opportunities since this water from a CVS treatment plant or if it is a ZLD system, then the treated water from a CVTP is required to be recirculated to the industry. So, it can definitely become a revenue stream. The models are, it is at a preliminary stage, but the models are coming. So, a revenue generation model can come up. So, the project can either be PC or can go for a BOT asset.

Okay. Okay. And so, you gave me the range of the project cost per MLD for STPC-ETP. So, like, the majority cost is on the EPC side or is there any major cost incurred on the tech side as well? Because as far as what I understand in these initial plans, the tech percentage is quite increased significantly. So, how is it that in these three types of frequent plans?

But there is always a tech component in all different, all type of plants. In case of STPs, it is the technology, the biological reactor on which we are designing the system. And then the choice of equipments as well. So there are different types of equipments which are available and based on their efficiency, the cost, the capex can go for a change. So it is definitely a tech side where we say a right mix of different type of technologies and the equipments. That plays a major role in case of a serious treatment plant and a common acid treatment plant, that is definitely one of the most complex of all the systems. So, that designing in itself is typical and the tech side definitely takes a lot of effort in designing and the completion of a common acid treatment plant.

Okay, and in the water treatment plants, the tech percentage is lower?

Comparatively lower, it is more of the civil work. It is not that tech-heavy or too tech-heavy, what I can say. In that case, it is more on the management side or constructing of a bigger water treatment plant. So, basically, on the water side, it is a general conventional type of water treatment plant, definitely. That will not be very tech-heavy if we are going for desalination plants or some of these types of plants. So definitely, at that point of time, that tech component comes into picture.

Okay. So would you give any percentage of the total budget cost which would go on the tech side for all these three types of tech and plants?

In general, if I say any of the project on a turnkey basis, so the designing in itself constitutes 2-5% of the project. Total turnkey project values. And then it is the seven mechanical electrical instrumentation works which are carried out. So, designing component can be 2 to 5 percent. If we are going for desalination plan, definitely the turnkey project size will increase and it will again be the designing components will be to that extent.

Okay. Okay. I'll come back in the queue for the questions. Thank you so much.

Thank you. Next question is from the line of Manish Kuragya from Keynote Capital. Please go ahead.

Hello, Manish. So, last year, we had given a guidance of 35% growth in top line that we did not meet. And if we look at the Q4 margins, that are the weakest margins. Are you facing any execution delays in the business?

Give me a little bit of a question.

First of all, with respect to the projects which have come into the physical execution, definitely there are no delays at all. The projects are moving smoothly, and we are executing on the projects from the fastest possible mode. In the last financial year, as on 1st of April 2025, we were having an order book of around 1200 crore rupees. However, we were having a strong bid pipeline. We were expecting a faster evaluation and conversion into order. We got some orders, but the entire order book that we were analyzing, we were expecting that we will be in a position to grab the projects quite fast. However, the process got elongated. Furthermore, there was some project in the month of November, December, where we were L1, we were expecting the project. However, it had gone into a rebidding. So, the delay, a partial delay in the evaluation process, this is one of the factors. And some of the projects that we built, it was around August when we built some projects, which remained in the designing stage. So, the revenue could not be generated from these projects. There are two specific projects, let me tell you, one is an MIDC, CETP, ZLD project, and then there were two Bangalore projects where the designing process had gone slow, or the approval process did take time. So, the execution could not happen in these projects. So, this is a reason where the projects remained on the designing stage and it could not come into the execution pipe. That is why we have missed the revenue guidance which we projected. One more point I would like to emphasize is since at the start it was only 1200 crore order book which was available with us. Right now, the conversion we have done is 1145 Watt-Crores. So, if we see the conversion rate seems to be somewhere around 95%. However, the replication of the orders and that conversion into revenues, that has taken time. So, because of this, we have partially missed our revenue guidelines for the year. If I talk about the present, since our order book even now has become quite exciting, it is at 4,800 crores for the entire execution order book, and the further split is 2,700 odd crores from water and wastewater segment, and 2,050 odd crores from the renewables. So, we are just projecting a top line of 2000 odd crores. Which will replicate into a conversion of somewhere around 42%. So we are trying ourselves to be just too conservative this time so that there is no fallback at all. One more point that you asked with respect to the margins which have gone down. As I have time and again mentioned, it is the mix of the projects which we are executing. So, there was a component of around 100 crore, 120 crore, which has come from the renewable side, and since these were IPP, so there was practically no margin in that particular execution, because of which it looks that there is some gap in the margin. Furthermore, if you can just go through the details we have shared, the cost of manufacturing has gone down. It has not gone up. It has gone down. It has gone down by around 1 percentage point. But there is a slight increase in the employee cost, which has increased to somewhere around 6 percent for this financial year. And then other expenses, which has increased to 3.5% of the revenues. There is a provision of expected credit loss, which is as per NJS, which we have to book. So if we see into all these factors, so I can say the margin compression exactly is not there, but definitely as per the audited balance sheet and payment, it looks like there is margin compression. Overall, here, if you will look into the EBITDA margins are again 24% and above.

So, as a margin side, I will not say there is any compression at all.

But revenue side, definitely there has been, there is some, I will say, execution part, which we could not do, and the guidance could not be adhered.

Okay, and my second question is, if we look at the current order group, if I'm not wrong, around 35 to 40% order group is coming from energy, I mean, the renewable segment. So, till last year, we have been a fuel spray water treatment company. How do we look at the company going forward, and what is the margin profile in this DESS segment?

If we look into the future, we are strengthening our position in the water and wastewater treatment segment. If you will see the running this release, media release, there are four projects which we have completed, which have given a lot of strength to the company, out of which one of the projects is 100 MLT STP at Jodhpur. The entire process has been upgraded on IFA system, which is one of the biological reactors. Along with this, we have gone for the power generation from biogas, and then for disinfection, we have gone for ultrafiltation systems. The second project is a 55 MLD STP at Varanasi, where a substantial portion of the electricity requirement has been offset by an innovative way of placing the solar cells on the top of the reactor.

This has been done for the first time in India, and it has been

well acknowledged by NMCG as well. The event project is... 25 MLD CETP at Sarigam, then a 30 MLD STP at Bhivadi. So basically, when I say all this, what I want to project is that we are increasing our pre-qualification capabilities for the complex wastewater treatment plants, and we are getting eligible for higher and higher capacities. So, this is how we are spending ourselves in the wastewater treatment segment, and we are increasing our geographical presence as well. Now, the second segment, which is renewable, which we started in the last year. Sustainability was the key motto of the company and as I said, this based to energy and solar integration we were doing as a part of our project. So based on our previous experience in the sector, we entered into it. We do have some solar assets with us, which we acquired. Then we got a prestigious project. It is a combination of four projects, 930 megawatt hour from NDPC for which the work has started. We have gone for the acquisition for one of the best projects of 150 megawatt hour and then the acquisition of Suyok for wind EPC projects. So, within a year time, we started this renewable company, and at the same time, we have built up the order book to the extent of 2050-odd crore rupees. Whenever we will try to present ourselves, we will give the segmental revenues separately, so the segmental profitability that would be clearly visible to everyone. On the whole, if I say 2000 crore is the visibility, somewhere around 1350 crore is what we are expecting from the water and wastewater treatment sector. And 650 crore is what we look forward to as the top line from the renewable segment. So, the combined, for this combined, I do understand that the profitability can be at a level of somewhere around 14%. So, 270 to 280 crore can be the best number, which we will look forward to on a top line of 2000 crores. There is one geopolitical on this global crisis which has happened due to which some costs have also gone for a rise. So there will be a pressure maybe to an extent of one to two percentage points. Taking into account all these factors, we have come up with this version that a top line of around 2,000 crore with fact number somewhere around 13.5% to 14% what we can look for for FY27.

Okay. And would you be able to give a specific margin profile for the BESS business? Okay.

In the BESS business, which is ETC, we will expect PEC margin somewhere in the range of 10%. Because of this issue, since we will be importing the lithium-ion battery cells, so the prices have increased. So at present, we are going ahead for doing the BOS, which says the Seville was... The transformer, all the electrical, ST lines. So this is the work where we have already started. The design works has started. The mobilization has started. We will delay the procurement of lithium-ion battery to a certain extent. So the prices get settled down. And at that point of time, we will go for the procurement. But at least at this point of time, we can say with the present cost service, the margin seems to be somewhere in the range of 10%.

All right. Thank you, sir. That's it from my side.

Thanks a lot.

Thank you. Next question is from the line of Darsheel Zaveri from Crown Capital, T-squared.

Hi. Good evening. Am I audible?

Yeah, you are audible, please.

Yeah, yeah. Hi, sir. Thank you so much for taking me to your question. Sir, I didn't get the margin that you were saying that 100 crores was from IPP, which led to a lower margin. Because even in Q3, we were very confident of being able to do 230 crores of patch, right? And that call would have been happening in January and February. So then what changed? Because, sir, that just, you know, sometimes then, because that's a significant difference that we are planning in February. And right now, right, sir. So could you explain the margin compression that happened? Like, what is this a rate that of margin should we expect going forwards or what in water and then what should be the margin that we should assume, sir?

So, if you will see our media release, the employee cost has gone up to an extent of 6%. So, there is an increase of around 1.5% in respect of the revenues. So, the employee, when the employee cost has increased, ah, the... Conversion of the projects, the projects were under mobilization, but they remained in the design stage. So, the cost got built up in that year. However, the projects have now got started. So, the revenue recognition and the profitability that will get accrued in the current financial year. So, if the cost of manufacturing, the positive side is the cost of manufacturing has not gone high, rather it has dipped. The other factors are basically the other expenses as I mentioned right now, a ECL provision of Fanker Road has been booked. There has been a substantial increase in the depreciation. Since we have gone for the procurement of various equipments for the construction, so the depreciation cost has also gone high. These factors, if you combine this, the depreciation amount is, I think, 25 crores, and the ECL provision is 10 crores. So, what I mean to say is, basically, if we can just reconcile these factors, the margin profile has not gone down. I will admit the point that the revenue guidance has gone down. We could not match the guidance which we had projected. But on the profitability front, definitely the compression seems to be there in Q4. Since the expenses have gone high and we were on the verge of, we had mobilized the projects, but this did not transpire into revenues. So as such, I can confirm with respect to the execution. The delay was not there. Now the project has come into execution and the margin profile definitely will remain to be in the same range. However, for this global crisis, I am reducing my EBITDA guidance to somewhere around 21 to 22 percent, which was earlier 22 to 24 percent.

Okay, okay, sir. So now the EBITDA is around 21-22%. So would it be like in Q1, Q2, it would be a lower EBITDA and Q3, Q4, it will be a bit normalized EBITDA. So then the blended comes or how do you see it, sir, going forward? Like if you could, I would not want a granular detail, but just like some color K, you know, H1 would be a bit lower margin than H2 could be higher. Or how would you explain, sir?

It all depends upon how the situation pans out. At least at present, the pricing of the commodities or the raw materials which we are procuring, that has gone high to an extent. So, it may impact certain profitability if the situation gets stabilized as we are listening time and again that. Some agreement is happening between the two sides, and if it happens and the things get stabilized, definitely the prices will also get settled down, and then it can replicate into the profitability. As of now, if what I can foresee is a 1 to 2 percentage, this can be possible, but I don't foresee that it will be a bigger hit at all from this number.

Okay, okay, fair enough, sir. And, sir, with regards to our, you know, debt, what is the level of debts that, you know, we are comfortable with, like, in going forward, sir, as our interest cost is also inching up a bit higher. So, what do you feel, sir, going forward, what can be a peak debt, and what is the average cost of debt, sir, for us?

Right now, I am pleased to confirm that the finance cost has not gone high. Rather, it has dipped from the last financial year. The total debt in the books right now is to the tune of 422 crore, out of which the long-term debt which is fair to the assets or term loans HEMP project, it is 250 crore and short-term loan is somewhere around 175 crore and which is Also, a part of CC, which is utilized at some point of time, and that's the limit. So, the ultimate finance cost has come down. The present debt level is 0.34. We do understand that maximum, and if I talk about all the extremes, a 1 is to 1 debt level is, we would not like to cross at any point of time. At this juncture, we also look forward to since we do have a number of assets available with us. So at a certain stage, if we see that we are going a bit heavy, we will be offloading and we will be going for the monetization of the assets. So, at this juncture, at this point of time, we can just confirm that 1 is to 1 is the maximum possible level beyond which we would not like to go as a consolidated books as well. So, we will keep a check on the development projects in the renewable segment as well.

Okay, okay. Yeah, I have more questions while I get back in the line.

Thank you so much, sir. Thank you.

Thank you. Next question is from the line of Prateek Bhandari from Art Ventures. Please go ahead. Yes, you are audible.

Yeah. Hi, sir. Thanks for the opportunity. A couple of questions from my side. First, if you could give the split of this, you know, 1146 odd crores, how much of it was from the renewable side during the year and during the quarter in particular?

I think it is around 120 crores from the renewable side.

And during fourth quarter it was?

Just a minute. In the fourth quarter, it is 117 crore. In the fourth quarter, 117 crore.

And for the entire financial rate, it is 129 crore.

117 for the 4th quarter and 129 for the 4th quarter.

For the entire financial year. So, there was hardly 12 crore which we had done in December and 117 crore is what we had done in Q4

from the renewables.

Okay. So, when you were talking about a 2000 crore of top line, that suggests a 75% growth on F526 top line number.

You cannot see it from that angle that since the renewable segment has been started only one year ago, and the first project has come in August, which we acquired. So, the number pairing right now will not look right, rather the level at which the order book is available, and then the conversion of that order book into revenues, I think that will make more sense.

Okay, and what would be the order inflow guidance for FY27?

For FY27, we would look forward to at least

2,500 crore further order book.

Okay, and what is the current bid pipeline like? Current bid pipeline as of now is somewhere around the bid pipeline where we have submitted is somewhere around 1200 crore and the projects for which bidding is to happen where we are interested it is somewhere around 5000 crore further.

5000?

Yeah.

And just, if you can throw some light on the working capital, because it has stretched a bit, and we targeted it around 95 to 100 odd days. So if you can throw some light on the working capital.

You are 100% right. This time around the working capital has got stretched to 166 days. The main reason this time has been... During the, during any of the financial years, we expected if there is any fund which is not released, get released by March. We are doing Amrut projects across five, six states. The problem remained that this time round, the funds didn't get released from the Amrut projects. I was executing the projects in Chhattisgarh, then MP. Rajasthan, Haryana, and Punjab predominantly from these states, I was having the various Amrut projects. So we didn't stop our projects or we had gone slow. We kept the momentum going and our projects are still moving at the same level itself. This has led to an increase in the UBR days. Basically, I cannot go for raising the invoices or the GST invoice cannot be raised. So, if you will see the receivable days have come down to 53 hours, the UBR days have increased substantially to 195 days. And networking capital cycle is 166 days. The positive side is the funds from Chhattisgarh have got released. We have got the confirmation that the funds are now coming in Rajasthan, Haryana, MP as well. So, I look forward to that the situation should get eased out very soon.

Alright, and just one last question on this EBITDA margins that you have lowered the guidance to 2021%.

From 21 to 22, 21 to 22.

In the range of 21 to 22.

Yeah.

Okay. And so do we see that normalization of working capital is happening in FY27? And if yes, up to what levels?

Definitely. For me, as we understand, the working capital cycle should come down to somewhere around 90 days, which is a proven working capital cycle. So, I need to reduce this number of working capital days, and for this, the conversion of this UBR is required. We are on it, and we understand that the moment these funds are released, we will be a lot more relieved. And apart from this, still the cash position in the company is at a comfortable level. That is why we have not slowed down any of the projects. There are instances where the project is for two years, we are expecting the completion within 13-14 months time itself. And the project is complete to an extent of 70% and the funds that we have got is hardly 10-15%. So there is a huge huge gap in 3-4 projects like this. So we are on it and we are completing the project and at the same time we are chasing the departments with the release of the funds as well.

And you mentioned about the unbilled revenue, which is treasure. So, it is currently at what levels?

Currently, the unbilled UBR days are 195 days. Let me give you the split. Inventory days are 11. Receivable days are 53. UBR days are 195. Creditor days are 92. So, the net working capital cycle is 166.

166 or 166?

166.

All right.

Thank you.

Thank you.

Next question is from the line of Vidhi Shah from Sayar, Kothari and Tons. Please go ahead.

Sir, firstly, I would like to understand, are these fixed-price contracts, or we can pass on the cost increase to the customer?

In maximum of the contracts, it is a price variation clause which is applicable. So, a part of the cost increase will definitely get offset with the price variation clause. However, it does not take into account the entire price increase in the market. So, to that extent, we are required to lower our guidance. So, this is how the thing goes.

Okay, I'm listening. So, sir, given the cost escalation that we're facing currently, so are we willing to forego or postpone any project execution for the same and how much of the current order book are we looking to execute on F527?

No, we are not going slow at all in the execution of any of the projects. It is just a matter of time that we can defer buying of some of the equipments, just waiting like I confirmed for best, we will defer purchase of the lithium-ion battery. Rather, we will go for rest of all the equipments and the execution. So, we are not slowing down at all. We will just defer the supply to certain months. Where we can just see the prices get stable, and then we can procure it. However, during the financial year, we will not go slow down. Rather, we will move ahead.

Mr. Srinivas, how much order book execution are we looking for FN27?

We are looking forward to a top line of around 2000 crores.

All right. I get my question. Thank you. All the best to you.

Welcome.

Thank you. Next question is from the line of Aditya from Murti Foods and Private Limited. Please go ahead.

Thank you, sir. Now, Aditya? Yeah, Aditya. Yeah, apologies if the question has already been addressed. I just wanted to request you to throw some light on the e-bidding of orders that took place in the...

I'm sorry, Dr. Aditya. Your voice is muffle. Can you use an answer to it, please?

Are you going to be long?

I'm not going to be long. Aditya, you can go on.

There is some zooming mess which is coming, but you can just complete your question.

Sir, we have lost the connection for Aditya. So, we will take the next question from the line of Darshil Saviri from Crown Capital. Please go ahead.

Hello, thank you so much for letting me ask the question and answer. Sir, I just wanted to understand, like, that, you know, we're planning to convert, like, clearly half of the order book this year. So, going forward, sir, what do you feel, sir, year-on-year growth? How will it be? Because this year, we'll have massive growth. Next year, how do you feel, sir, will go on? And sir, also, with regards to, we have a decent side O&M and, you know, book of maintenance. So, what is the margin looking like in that segment, sir? Will it start contributing more, you know, going forward? So, how will that, you know, help us, sir?

Right. You're asked a very right question. Basically, if you see the total order book right now stands at 4,800 crore. So, even if we go by the present number only, so it covers at least two financial years, that is FY27 and then 28, along with the decent growth in the company. This entire order book is required to be executed over a period of two years. So, 4,800 crores gives visibility clearly for two financial years. The operation and maintenance order book for wastewater treatment projects is 950 odd crores, and then for that IPP income or renewable projects O&M, that is 1,000 crores. Right now, as the executions are continuing in the wastewater treatment segment as well, on a year-on-year basis, the O&M values, these are increasing, and the margins are comparatively higher in comparison to execution. However, the O&M values, if I talk about only the water wastewater treatment, then it forms 3 to 5% of the total revenues.

So, now...

If I, in absolute terms, definitely the amount of O&M revenues that will increase on year-on-year basis. Apart from this, the IPP income that will also generate very recent IRR and future. So, with this increase, the absolute returns in terms from the O&M for both water wastewater treatment segment as well as the IPP income and the O&M of renewable, definitely the profitability on absolute terms will get higher from the O&M businesses.

Oh, okay, got it. I just wanted to understand any, you know, KPEX addition that, you know, we have to do for the next year or something because of our order book also increasing.

So any kind of, you know, plans for the extra KPEX, sir?

The capex claim claims for execution of our projects. As we start any new project, there can be a equipment requirement of 4-5 crores in general. So first of all, if there can be any reputation, then we will go for the reputation. And if it is at all required to further buy, if the equipments are not free and these are engaged in some other project, then we go for purchase. So, We don't see any major capex going on. A part of the capex which we have done in the last financial year, but I think it can be to the tune of 20, 30 odd crores, not more than that. So, I don't think that it will be a bigger amount in terms of capex.

Okay, great, great. Thank you so much, sir. Thank you.

Thank you. A reminder to all the participants, anyone who wishes to ask a question, may press star N1. We will take our next question from the line of Atil Kumar, an individual investor. Please go ahead.

Hello, sir. Our question on the diversification efforts that you guys have done throughout the year to get our presence in the renewable sector. So that is definitely good for the long term. So most of my questions are answered, but do you think that I wanted to understand? I think you mentioned that total 4,800 crores probably needs to be executed in the coming few years. And you've given a guidance for FY27, but if I would like to understand what sort of top and bottom line we should be expecting.

We have always projected a top-line growth in the range of 35 to 40%. So, if I can project the FY28 order book which will be which will come from the balance of the current order book which will be 2800 crores. So that can be a revenue guidance or I can be a bit selective further that instead of 2,800, it can be somewhere around 2,500 to 2,600 crore on a conservative basis. So this is how we can look forward to going at that rate even in FY28 as well. Based on the current order book positions, we are sitting at a comfortable level. So, FY27 and 28 visibility is quite clear on the current order book position itself.

Okay, that's good. And in 527, also, you mentioned that you said consummative guidance that came to gain for 2000. So, chances could be for upward revision, but mostly not for downward revision.

So, the downward reason what could have happened that I have mentioned because of the global prices which can happen. So, a 1 to 2 percentage EBITDA downwards which can happen. And it will all depend upon the entire financial year how the situation goes. So, if the things get settled down and the prices get eased out, definitely then there will not be any compression which we can see.

Okay, okay, cool. And also, sir, I want to understand since we are already two months into Q1, so can you give us some light on how are we moving ahead in Q1 with just one month left? What sort of top and bottom line we should be heading towards?

Last year, we did somewhere around 250 crore in Q1. The present position will be much better even despite the global crisis which is ongoing, so our numbers seem to be much better in comparison to Q1 of the last financial year. I would not like to put any number right now. It will be much better to conclude the quarter. However, the movement in the project is smooth. And we are expecting, because there are three companies now, one is the parent Environmental Engineering Limited, second one is Renewable, and third one is Suyog, where the Windy PC project are being undertaken. So a combined top line, we understand it will be good enough.

Okay, okay.

I'm sorry to interrupt, Atul. You may please rejoin the queue for follow-up questions. Thank you.

Okay, sure.

We will take our next question from the line of Yogesh Shah from YBS Capital. Please go ahead. We have lost the connection for the current participants. So, we will go ahead and take the next question. From the lineup, I am Boli, an individual investor. Please go ahead.

Hello. Good evening. Hello. Good evening. Sir, when can we see our OCF to be positive? Operating cash flow?

So, I would again mention the investor presentation, if you will see. Our adjusted OCF has been positive even in the current financial year as well. Our OCF pre-tax rate in the current financial year is almost balanced around 4 lakh positive. And post-test, it is 63 crore negative. However, there is a portion of the service concessionaire agreement receivables, which is by its very nature is a 15-year long-term receivables. But as per the audit policies, definitely we are required to take it to the OCF power portion. That is why it seems to be negative. Despite being the UDR going so high, we have been OCS positively touched. We look forward to that. The situation will get eased out in the next financial year. We are heading towards the completion of various water supply projects in MP. The projects under Amrut which are ongoing, we are expecting release of funds very soon. So we do expect that the UBR level will also go down and this OCF. So, pre-tax, post-tax, and then this adjusted, definitely, this will also seem to be positive further.

So, also, my another question is, going forward, how can an investor should look at this company? As I'm starting, it was like wastewater treatment plant, treatment company, now it is into bills. And going forward, what are the plans? Are we into desalination kind of things?

The person you are speaking with has put your call on hold. Please stay on the line. Sir, you may please continue.

I was talking about one of the projects at MIDC, which is a common excellent treatment plant and it is a ZLD project. ZLD project in itself, it is for a textile complex. So, UF and RO is a part of this common excellent treatment plant. So, basically there is a pre-qualification requirement of this UF and RO with this and this is one of the biggest plants in India. So with this, we will earn a decent qualification in terms of ending into desalination projects as well. We are actively looking into the projects and if we will get any of the joint venture opportunities, definitely we would like to enter into the. Desalination projects as well. So, our focus on water and wastewater treatment projects will continue as it is. And the renewable segment, it is a separate segment and we will always show the revenues which will get generated along with the order book in the renewable segment as a separate company.

Sir, one follow-up. Are we looking only into India or just into...

I'm sorry to interrupt, Tamboli. You may please rejoin the key for more questions. Thank you. Ladies and gentlemen, kindly let's take your questions to one only. We will take our next question from the line of Sheetal Shah, an individual investor. Please go ahead.

What do you mean, sir?

Am I audible? Yeah, audible.

Sir, correct me if I am wrong, you have given a guidance of around 2,000 crore in FI27 and a pet of 280 crore. Am I correct, sir? Right. 270 to 280 crore. Okay, sir. Okay. My only question is, sir, what are the factors that you are banking on which will help us to achieve this? The reason I am asking, sir, last year we gave a guidance of around 35% growth, but somehow some project got reviewed, some project got postponed, we were not able to meet our goal. I just want to know, do we face, we can face such situation this year also, or we are banking only on our order book to achieve this target. And the bot factors which can go against, which may hamper us. In not achieving this goal. These are only my questions, sir.

Right. The order book at the start of last financial year was 1200 crore. Right. The replication into revenues is 1145 crore. So, a conversion rate, if I go by that thought process, is somewhere around 95% plus.

Right.

Right now, I do have the order book in hand. I am not talking about the order book during the current financial year, but we will get further. So, this is the order book which is already in hand.

So, if I say a conversion of 2000 crore on an order book of 4800 crore.

So, I am talking about a conversion of 42%. I'm also concerned the guidance which we had given and we could not achieve it. So, we want to be doubly sure whatever guidance we are giving, that could be possible under any eventuality. We had been very careful while working it out. We have done our best of efforts and our thought process while we are announcing this. We are fairly confirmed and committed that this will be the level which we can achieve.

Okay, so this means that from the order book which we have, we are going to execute it and can give such type of result, right? So the last problem which we got last year will not face this year, right, sir?

That's true.

Okay, so I have a suggestion, sir. I am sorry to interrupt, Mr. Shah. I don't have any questions. I just wanted to give a suggestion to, sir, to give a realistic projection henceforth, sir. That is only our request as an investor to you, sir. Only achievable targets and realistic targets, sir. Okay, thank you, sir.

Thank you. Thank you, Mr. Shah. We will take our next question from the line of Aditya from Murti Foods Private Limited. Please go ahead.

Good evening, sir. Am I audible clearly this time?

Yeah, yeah, you are audible.

Yeah. Apologies if the question has already been addressed. I just wanted to request you to throw some light on the rebidding of orders that took place in Q3. Did the rebidding go in the company's favor, or could you please throw some color through it?

The rebidding is neither in the favor of the company nor it is against. It is just a timeline which has got lost because of the rebidding. There was some technical glitch because of which the department was forced to cancel all the bids that they had invited and they have gone for the invitation. So it is a cumbersome process for them as well. And we have lost some timeline. We would have expected some further orders from those projects which we had bidded, but it is a matter of time that we have lost.

Okay, and the execution slowdown was more on renewables or wastewater?

We say it is a mix of both. There is some partial. My guidance was around 200 crore in renewables against which we have achieved somewhere around 120 odd crores. 120 or 130 odd crores and a partial slowdown in the wastewater treatment segment as well. So, around 100 crore from each segment is what has gone down in terms of revenue.

Okay. Thank you, sir. That answers all my questions. Thank you and best of luck. Thank you.

Thank you. Next question is from the line of Sarab Chablau, an individual investor. Please go ahead.

Hello, sir. My question is regarding the order, sir. Like, I believe last time we had an issue where payment didn't get released from JalG1 scheme. And now we are facing an issue where payment didn't get released from Amrush scheme. So, are we exploring any options to deal with private clients over governments, or is that market not big? Can you just share something on that?

If you will see our order book in the renewables, basically, we have entered into B2B segment in a big way. We have got a lot of major orders from NTPC, so we will not face at least any challenges with respect to the receivables there. or Wind EPC projects, this company Suyok, so they are executing the Wind EPC projects for various private companies, which are A to AAA rated. So that way we are trying to de-risk ourselves. Apart from this, the projects that we are executing, definitely these are centrally funded or centrally sponsored projects. It has been some delays in the government from the center side this time. Other way around, we had seen for a longer period that the funds from the center used to come. However, during the last two financial years, yes, there has been a challenge with respect to the release of funds on time from the center. We look forward to the position getting eased out. As we have come to know, the funds have been earmarked for release for various projects undergoing under AMRUT schemes as well.

I look forward to things getting eased out.

Okay, thank you.

Thank you. Next question is from the line of Atal Kumar, an individual investor. Please go ahead.

Hello, sir. Thanks for the opportunity again. Just have one question. So, at current time rate, our order book is looking around 30-40% of renewables. We're getting into BSSS, wind projects, etc. So, we also have plans to get into the projects for transmission and distribution in power sector because I think that's looming for all the right reasons. So is there any plan to get into the bidding for EPC for T&D sectors?

In the current projects, in the best segment which we have got from NTPC, we are executing EHV transformers and transmission lines, HD lines as well. So that way, definitely, we will be having the pre-qualifications available with us. At present, since our order book is decent enough, we don't look forward to entering into the T&D segment very soon, but it can be one of the segments in future wherein we can enter since. Some of the works that we will execute, we will give the pre-qualifications to us. So, the diversification that will definitely, it can happen and we would look forward to the right opportunities and we can do.

Okay. Okay. Thank you. That helps and thanks for asking the question and we look forward to the education and guidance. Thanks a lot.

Thank you. Thanks a lot.

Thank you. Next question is from the line of Tateek Ghandari from Art Ventures. Please go ahead.

Sir, you mentioned that you're looking for 650 odd crores of revenue from renewable. And currently, we are having an order book of almost 2,000 crores, right? So, what would be the execution timeline of this 2,000 crores?

Execution timeline is 18 to 24 months for these projects.

Okay, so you are expecting almost 30% of it to be executed in FI27.

We want to be conservative. We want to be conservative. That is why I will not give a higher number. Rather, first of all, this number should be achievable under any of the circumstances. So, that is why we are not projecting any higher revenue numbers at all.

Typically, margins do we seek in renewables?

Likewise, I confirm in the best segment, it says in the margins range seems to be somewhere around 10%. And we look forward to achieving PAT margins in the range of 10 to 12%, a blended one from the renewables. It will vary from project to project. I am talking about PAT numbers.

10-12% pet. Yeah. Okay. Thanks a lot.

Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr. Sanjay Jain for closing comments.

Thank you for your continued trust and interest. We are excited about the opportunities in India's green transition and remain committed to disciplined profitable growth. Thanks again for taking the time to join us today and we look forward to interacting with you again. Thank you. Thank you, everyone.

Thank you. On behalf of Enviro Infragenius Ltd, that can be out of Wisconsin. Thank you all for joining us today, and you may now disconnect your line.