💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 46.3% YoY to INR 1,066 Cr in FY25 from INR 729 Cr in FY24. Standalone revenue increased 44% to INR 1,046 Cr. The wastewater treatment segment is the primary driver, contributing over 70% of the top line. Revenue is projected to grow by 15-35% in FY26 based on a robust order book.

Geographic Revenue Split

Not disclosed in available documents, though the company operates 22 diverse projects across multiple Indian states.

Profitability Margins

Operating Profit Margin improved to 25.12% in FY25 from 22.84% in FY24. Net Profit Margin increased to 16.62% from 14.60% YoY. Profit Before Tax (PBT) rose 63.6% to INR 241 Cr, driven by operational efficiency and a shift toward higher-margin wastewater projects.

EBITDA Margin

EBITDA margin stood at approximately 25.12% in FY25, a significant improvement from 22.84% in FY24. Management provides a sustainable guidance of 22-24% for future periods to remain conservative despite achieving 27.5% in H1 FY26.

Capital Expenditure

The company invested INR 50 Cr in EIE Renewable Private Limited as of May 2025 and plans to infuse an additional INR 40-50 Cr. Furthermore, INR 55 Cr has been invested in HAM project SPVs with a commitment for another INR 51 Cr over the next two years.

Credit Rating & Borrowing

CRISIL upgraded the rating to 'CRISIL A-/Stable/CRISIL A2+' from 'CRISIL BBB+/Stable/CRISIL A2'. Interest coverage ratio is healthy at 5.47x (Consolidated) and expected to remain above 9x over the medium term following debt repayment from IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Specific raw materials like cement, steel, and pipes are utilized for EPC turnkey projects, though their individual % of total cost is not disclosed. The company focuses on in-house execution to save subcontractor margins.

Capacity Expansion

Expansion is focused on the renewable energy segment via EIE Renewable Private Limited and the execution of three HAM projects (one operational, two under construction).

Raw Material Costs

Not disclosed as a specific percentage of revenue, but project-level cost controls and procurement planning improved PBT by 63.6% YoY.

Manufacturing Efficiency

Efficiency is reflected in a healthy Return on Capital Employed (ROCE) of 30-35% for FY25. In-house execution prevents margin leakage to third-party contractors.

📈 Strategic Growth

Expected Growth Rate

30-35%

Growth Strategy

Growth will be achieved through the execution of a total order book of ~INR 1,991 Cr (INR 1,185 Cr EPC + INR 806 Cr O&M). The company is diversifying into the renewable energy segment and scaling up its Hybrid Annuity Model (HAM) portfolio to ensure long-term annuity-style income.

Products & Services

Engineering Procurement and Construction (EPC) turnkey projects for Sewage Treatment Plants (STP), Water Treatment Plants (WTP), Common Effluent Treatment Plants (CETP), and Operation & Maintenance (O&M) services.

Brand Portfolio

Enviro Infra Engineers Limited (EIEL), EIE Renewable Private Limited.

New Products/Services

Entry into the renewable energy segment via EIE Renewable Private Limited and expansion of the O&M portfolio which currently stands at INR 806 Cr.

Market Expansion

Expansion into newer geographies across India to diversify the current 22-project portfolio.

Strategic Alliances

The company operates three HAM projects through Special Purpose Vehicles (SPVs), including EIEPL Bareilly Infra Engineers Pvt Ltd.

🌍 External Factors

Industry Trends

The water EPC industry is growing due to government mandates for wastewater treatment. The industry is shifting toward HAM and O&M models to ensure project sustainability, with EIEL positioning itself as a developer rather than just a contractor.

Competitive Landscape

Intense competition in tender-based bidding; competitors include other water-tech EPC players and diversified infrastructure firms.

Competitive Moat

Moat is built on a 'no-subcontracting' model and extensive promoter experience, leading to 25% EBITDA margins which are higher than typical EPC firms. This cost leadership is sustainable as long as in-house execution capabilities scale with the order book.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and environmental regulations. A shift in state or central policy regarding water treatment could impact the INR 1,300 Cr+ bidding pipeline.

Consumer Behavior

Not applicable as the primary customers are government and industrial entities.

Geopolitical Risks

Minimal direct impact as operations are domestic, but global commodity price fluctuations (steel/fuel) could impact EPC contract costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by environmental pollution norms and state-specific water treatment standards. Compliance with the Companies Act 2013 and IndAS is maintained.

Environmental Compliance

The company conducts climate-related risk assessments and adheres to environmental norms for STPs and CETPs; specific ESG spend in INR is not disclosed.

Taxation Policy Impact

Effective tax rate reflected in a current tax outgo of INR 63.24 Cr on a PBT of INR 240.55 Cr (~26.3%).

⚠️ Risk Analysis

Key Uncertainties

Working capital intensity is a major risk, with debtors at 107 days due to retention money. A 10% increase in the working capital cycle could reduce free cash flow significantly.

Geographic Concentration Risk

The company has 22 projects across multiple states, providing moderate geographic diversification.

Third Party Dependencies

Low dependency on subcontractors due to in-house execution strategy, but high dependency on government agencies for timely payments and tender releases.

Technology Obsolescence Risk

Low risk in civil construction, but evolving wastewater treatment technologies require continuous process adaptation.

Credit & Counterparty Risk

Exposure to government counterparties is generally considered low risk for default but high risk for payment delays (unbilled revenue and retention money).