💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for H1 FY26 reached INR 32.57 Cr (3,256.98 Lakhs), representing a significant growth of 50.09% YoY compared to H1 FY25. Total revenue for the full year 2023-24 was approximately INR 71 Cr. The growth is driven by accelerated project execution and the ability to take on larger orders following the IPO capital infusion.

Geographic Revenue Split

Not disclosed in available documents, though the company operates from offices in Pune and New Delhi and is planning expansion into select international markets.

Profitability Margins

For F.Y. 2024-25, the Operating Profit Margin stood at 15.58% and the Net Profit Margin was 12.07%. In H1 FY26, the PAT Margin was 7.91%, which is an improvement of 75.92 BPS YoY, reflecting better margin realization in the second half of the fiscal year due to operational scalability.

EBITDA Margin

EBITDA for H1 FY26 was INR 3.00 Cr (299.94 Lakhs), growing 44.27% YoY. This growth in core profitability is attributed to improved resource utilization and the benefits of operating leverage as the company scales its turnkey project execution.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods, but IPO proceeds have been utilized to strengthen the financial position and support operational expansion and working capital requirements.

Credit Rating & Borrowing

The Debt-Equity Ratio improved to 0.00 in F.Y. 2024-25 from 0.03 in F.Y. 2023-24. This was achieved through the repayment of debt using IPO proceeds and the issuance of new equity, effectively eliminating interest-bearing debt costs.

⚙️ Operational Drivers

Raw Materials

Advanced membrane technologies and components for effluent treatment plants; specific material names like steel or chemicals are not individually listed with percentage costs.

Capacity Expansion

The company is currently scaling up rapidly to handle larger turnkey projects. While specific MT/unit capacity is not provided for service-based execution, the company is expanding its domestic and international market reach following the IPO.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company faces challenges related to working capital intensity and the procurement of specialized technology components for water treatment systems.

Manufacturing Efficiency

The company observed that H1 typically accounts for 25-30% of annual business, while H2 is 3x more productive. Efficiency improved in the second half of FY25 due to better resource utilization and accelerated project execution.

📈 Strategic Growth

Expected Growth Rate

50.09%

Growth Strategy

Growth is being achieved through the utilization of IPO proceeds to fund working capital for larger turnkey projects, expanding into new domestic and international markets, and leveraging expertise in Zero Liquid Discharge (ZLD) systems. The company is focusing on high-demand sectors driven by environmental regulations.

Products & Services

Zero liquid discharge (ZLD) systems, advanced membrane technologies, effluent treatment plants, and turnkey water/wastewater project execution.

Brand Portfolio

Apex Ecotech.

New Products/Services

Expansion into intelligent, energy-efficient water management systems and carbon-neutral technologies; specific revenue contribution percentages for new launches are not disclosed.

Market Expansion

Targeting expansion in domestic Indian markets and select international regions to diversify the client base and reduce industry-specific vulnerability.

🌍 External Factors

Industry Trends

The water treatment industry is growing rapidly due to rising demand for water recycling and strict environmental mandates. The industry is shifting toward sustainable, energy-efficient, and carbon-neutral solutions, where the company is positioning itself as a technology-driven leader.

Competitive Landscape

Intense competition exists from both domestic and international wastewater treatment firms, requiring constant innovation to maintain market share.

Competitive Moat

The moat is built on specialized expertise in Zero Liquid Discharge (ZLD) and advanced membrane technologies. This is sustainable due to the high technical barrier to entry and the increasing regulatory necessity for these specific solutions in industrial sectors.

Macro Economic Sensitivity

Highly sensitive to environmental regulations and government policies regarding water recycling and zero liquid discharge norms.

Consumer Behavior

Industrial clients are increasingly adopting sustainable practices and water recycling due to both regulatory pressure and corporate ESG goals.

Geopolitical Risks

Expansion into international markets introduces exposure to global economic conditions and changes in international trade regulations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily influenced by environmental regulations and pollution control board norms that mandate wastewater treatment and zero liquid discharge for industrial units.

Environmental Compliance

The company is focused on environmental compliance as its core business; it spent INR 8.15 Lakhs on CSR obligations in F.Y. 2024-25, representing 2% of its average net profit of INR 407.34 Lakhs.

Legal Contingencies

The company is involved in material litigations as disclosed in Note 25 of the financial statements. These cases could lead to financial liabilities or operational disruptions, though specific case values were not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

Unforeseen economic conditions affecting demand and changes in government tax laws or environmental statutes could impact performance by more than 10-15% if projects are delayed.

Geographic Concentration Risk

The company has a presence in Pune and Delhi; however, specific revenue percentages per region are not disclosed.

Third Party Dependencies

Dependence on a limited number of industries for revenue creates a high risk of sector-specific downturns impacting the order book.

Technology Obsolescence Risk

The water treatment sector is subject to technological shifts; the company mitigates this by investing in advanced membrane technologies and energy-efficient systems.

Credit & Counterparty Risk

The company continues to face challenges related to receivables and working capital intensity, indicating a risk in the collection cycle from industrial clients.