AWHCL - Antony Waste han

📊 NSE: AWHCL 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 18:21

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 grew 13% YoY to INR 958.8 Cr. In Q2 FY26, MSW Collection and Transportation (C&T) contributed 61% of revenue, Processing accounted for 27%, and Contracts/Others comprised 12%. Revenue from C&T grew from 54% to 62% of total revenue between FY23 and FY24.

Geographic Revenue Split

Revenue is geographically diversified across India with a strong presence in major urban local bodies like Mumbai (Kanjurmarg site), Thane, and other municipalities. Specific regional percentage splits are not disclosed, but the company caters to large urban centers nationwide.

Profitability Margins

Consolidated PAT margin improved to 10.5% in FY25 from 8.0% in FY24. Net Profit Margin was reported at 10.78% for FY25 compared to 11.44% in FY24. Profit before Tax margin stood at 12.4% in FY25, up from 9.7% in FY24.

EBITDA Margin

EBITDA margin for FY25 was 23.0%, a slight expansion from 22.6% in FY24. In Q2 FY26, the EBITDA margin was 21.6% (INR 57.1 Cr) compared to 21.4% (INR 48.5 Cr) in Q2 FY25, reflecting steady core profitability.

Capital Expenditure

The company is expected to incur capex of approximately INR 120 Cr in FY26 towards new contracts. This follows ongoing investments in C&T and processing infrastructure, partly funded by incremental borrowings of INR 100 Cr.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE BBB; Stable (revised from CARE BBB-). Short-term facilities are rated CARE A3. Finance costs for FY25 were INR 55.8 Cr, reflecting interest on term loans and working capital limits.

⚙️ Operational Drivers

Raw Materials

Primary operational inputs include Fuel (Diesel) for the transport fleet and Labor (Employee costs). Employee costs represent approximately 30.3% of total revenue (INR 290.9 Cr in FY25).

Import Sources

Sourcing is primarily domestic within India for fuel and labor. Equipment like compactors and dumpers are traded, but specific import origins are not disclosed.

Key Suppliers

Not specifically disclosed in available documents, though the company engages in the trading of compactors and dumpers from various automotive and ancillary manufacturers.

Capacity Expansion

The Waste-to-Energy (WTE) plant became operational in FY24, projected to add INR 40 Cr in annual revenue. The Mumbai C&D waste project, operational from May 2024, is expected to contribute INR 35 Cr annually over 20 years.

Raw Material Costs

Employee costs rose 16% YoY to INR 290.9 Cr in FY25. Project expenses, which include fuel and site-specific costs, were INR 25.8 Cr in FY25. Escalation clauses in contracts help mitigate wage inflation and fuel price volatility.

Manufacturing Efficiency

The business model is asset-heavy. Efficiency is driven by increasing the quantity of waste handled YoY and improving project-level performance in processing segments.

Logistics & Distribution

Logistics is the core service; C&T operations involve the collection and transportation of MSW to dumping grounds or processing sites, representing 61% of total revenue.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is driven by a strong order book with a 7x revenue visibility ratio and an average contract tenure of 10 years. Strategy includes scaling high-margin segments like Waste-to-Energy and C&D waste management, alongside winning new municipal tenders through a 20-year established track record.

Products & Services

Municipal Solid Waste (MSW) Collection & Transportation, Mechanized Road Sweeping, Waste Processing & Treatment, Waste-to-Energy power generation, and Construction & Demolition (C&D) waste management.

Brand Portfolio

Antony Waste Handling Cell, AG Enviro Infra Projects, Antony Lara Enviro Solutions, KL Envitech, Antony Infrastructure and Waste Management Services, Antony Revive E-waste.

New Products/Services

Waste-to-Energy (WTE) plant (INR 40 Cr/year revenue) and Mumbai C&D waste project (INR 35 Cr/year revenue) are key new revenue contributors.

Market Expansion

Targeting new urban local bodies across India; the company demonstrated its ability to procure new contracts with a 15% YoY revenue growth in H1 FY26.

Market Share & Ranking

AWHCL is one of the leading players in the Indian Municipal Solid Waste (MSW) management industry with over two decades of experience.

Strategic Alliances

Antony Lara Enviro Solutions Private Limited (ALESPL) is a key 63% subsidiary managing the Kanjurmarg site under a concession agreement until 2036.

🌍 External Factors

Industry Trends

The industry is shifting from simple waste collection to integrated processing and energy recovery. Waste-to-Energy and C&D waste management are emerging as high-growth sub-sectors.

Competitive Landscape

The business is tender-based. AWHCL competes with other large infrastructure and waste management firms for municipal contracts.

Competitive Moat

Moat is sustained by 10-20 year long-term contracts and high capital intensity (INR 120 Cr annual capex), which creates significant entry barriers for new competitors. The 20-year track record with municipalities provides a strong bidding advantage.

Macro Economic Sensitivity

Highly sensitive to government spending on urban infrastructure and the Swachh Bharat Mission. Urbanization rates directly impact the volume of waste generated and handled.

Consumer Behavior

Not applicable as the primary customers are government entities (B2G model).

Geopolitical Risks

Low, as the company operates entirely within the Indian municipal framework, though it is exposed to local political changes in municipal regimes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are strictly governed by municipal concession agreements, pollution control board norms, and central government waste management policies.

Environmental Compliance

The company must comply with Solid Waste Management (SWM) Rules and environmental norms for landfills and WTE plants. Costs are integrated into project opex.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 15% (INR 17.8 Cr tax on INR 118.4 Cr PBT).

Legal Contingencies

The company recognized an exceptional gain of INR 23.89 Cr in FY25 from a favorable arbitration resolution. It faces ongoing collection risks and potential litigations with municipal authorities regarding payment delays and contract stipulations.