URBAN - Urban Enviro

📊 NSE: URBAN 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 14:48

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew by 37.65% YoY, reaching INR 14,105.27 Lakhs in FY 2024-25 compared to INR 10,247.24 Lakhs in FY 2023-24. The company also reported revenue of INR 8,665.96 Lakhs for the half-year ended September 30, 2025.

Geographic Revenue Split

As of FY 2023-24, the revenue mix was dominated by Gujarat at 42%, followed by Maharashtra at 27%, Rajasthan at 18%, and Chhattisgarh at 13%. This represents a significant shift from FY 2019-20 when Maharashtra accounted for 70% of revenue.

Profitability Margins

Net profit margin improved to 7.27% in FY 2024-25 from 6.88% in FY 2023-24. Operating profit margin remained stable at 12.09% compared to 12.12% in the previous year. Return on Net Worth was 32.18%.

EBITDA Margin

EBITDA to sales turnover was 18.09% in FY 2024-25, showing consistency with the 18.11% reported in FY 2023-24. Core profitability is driven by a 5-year EBITDA CAGR of 84%.

Capital Expenditure

Property, Plant and Equipment stood at INR 2,832.63 Lakhs as of March 31, 2025, an increase from INR 2,544.04 Lakhs in the prior year, reflecting ongoing investment in waste management infrastructure.

Credit Rating & Borrowing

The Debt-Equity ratio improved to 1.29 in FY 2024-25 from 1.39 in FY 2023-24. Finance costs increased by 38.6% to INR 342.80 Lakhs, while the Interest Coverage Ratio remained healthy at 5.11.

⚙️ Operational Drivers

Raw Materials

Primary operational costs include Employee Benefits (40.8% of revenue at INR 5,759.42 Lakhs) and Other Expenses including fuel and vehicle maintenance (41.4% of revenue at INR 5,840.82 Lakhs).

Import Sources

Not disclosed in available documents; however, operations are concentrated in Maharashtra, Gujarat, Rajasthan, and Chhattisgarh.

Capacity Expansion

The company utilizes modern technologies and equipment for waste processing; however, specific installed capacity in MT or units is not disclosed. Expansion is focused on diversification into recycling and resource recovery.

Raw Material Costs

Total expenditure rose 37.6% to INR 12,742.10 Lakhs in FY 2024-25. Procurement strategies involve technology-driven solutions to enhance transparency and real-time oversight.

Manufacturing Efficiency

The company focuses on operational efficiency through a competent talent pool and technology-driven solutions to manage internal processes.

Logistics & Distribution

Logistics costs are integral to waste collection and transportation services; the company operates across multiple states using specialized waste handling equipment.

📈 Strategic Growth

Expected Growth Rate

69%

Growth Strategy

Growth will be achieved through diversification into related sectors such as recycling, renewable energy production from waste, and resource recovery. The company also plans to expand its geographical footprint beyond current states and leverage strategic partnerships with local municipalities.

Products & Services

Solid waste management services including collection, transportation, and processing for residential, commercial, and industrial sectors.

Brand Portfolio

URBAN (Urban Enviro Waste Management Limited).

New Products/Services

Exploration of recycling and renewable energy production from waste to enhance business resilience and competitiveness.

Market Expansion

Targeting expansion beyond Maharashtra, Gujarat, Rajasthan, and Chhattisgarh to increase market penetration.

Strategic Alliances

Collaborations with local municipalities, waste generators, and recycling facilities to strengthen market presence.

🌍 External Factors

Industry Trends

The industry is evolving toward sustainable waste management and eco-friendly practices. URBAN is positioning itself to capitalize on these trends through technological advancements and diversification into resource recovery.

Competitive Landscape

Characterized by intense competition from both established players and new entrants, threatening market share and profitability.

Competitive Moat

Moat is built on long-term strategic partnerships with municipalities and specialized infrastructure. Sustainability depends on maintaining regulatory compliance and adapting to rapid technological shifts in waste processing.

Macro Economic Sensitivity

Highly sensitive to urbanization rates and industrialization, which drive the volume of solid waste generation.

Consumer Behavior

Rising environmental concerns among the public and regulatory bodies are increasing demand for sustainable waste solutions.

Geopolitical Risks

Primarily domestic risks related to state-level environmental policies and regulatory changes in India.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by waste management regulations, environmental policies, and municipal contract terms. Compliance is critical to avoid operational constraints.

Environmental Compliance

The company must adhere to evolving waste management regulations and environmental policies, which may increase operational costs.

Taxation Policy Impact

Effective tax rate for FY 2024-25 was approximately 27.2% (INR 384.32 Lakhs tax on INR 1,410.17 Lakhs PBT).

Legal Contingencies

The company has disclosed pending litigations that could impact its financial position; however, specific case values were not detailed in the summary documents.

⚠️ Risk Analysis

Key Uncertainties

Key risks include regulatory compliance challenges, technological obsolescence, and high capital requirements for infrastructure, which could strain liquidity.