EMS Ltd Q4 FY26 Earnings Analysis

- Current order book stands at over Rs.2,200 crores as of December 2025. - Expected order inflow of around Rs.1,000 crores in the next 3-4 months, potentially increasing the order book to about Rs.3,000 crores by Q1 FY27. - Company targets a 40%-50% growth in order book during FY26. - Several large projects (totaling approx. Rs.1,100 crores) started in Q3, with revenues expected to ramp up in Q4 FY26 and Q1 FY27 as execution gains pace. - Revenue recovery delayed due to rain and natural disasters in Uttarakhand affecting Q2 and Q3, but a strong rebound is expected post Q4 FY26. - Long-term outlook suggests FY27 revenue will surpass FY25 levels. - The company is aggressively bidding, especially for Delhi Jal Board projects and others across states, maintaining a healthy bidding pipeline of Rs.4,000 crores.

- The company expects gradual recovery and growth starting Q4 FY26, with significant acceleration from Q1 FY27. - FY27 earnings are anticipated to be better than FY25, indicating a rebound beyond pre-challenging years. - Management targets FY26 PAT around 15%, with EBITDA margins above 22-23%. - Long-term, the company aims to maintain an average PAT of approximately 15% amid rising competitiveness. - Order book expected to grow significantly, targeting around Rs. 3,000 crores by Q1 FY27 from Rs. 2,200 crores currently, implying increased revenue visibility. - Margins under pressure in recent quarters but expected to improve as new orders progress from design to execution and billing phases. - No immediate financial distress; company plans aggressive bidding and business expansion to drive future growth and profitability.

- EMS Limited took over a factory near Kanpur (Fatehpur) from NCLT as collateral for non-fund based bank guarantees. - Initial plan was not to run the factory, but it is operational, producing about 800-900 tons with potential to scale to 1,100+ tons next financial year. - The factory is self-sufficient and not requiring further funding from the company. - The company purchased the land and factory for about Rs.60 crores; the market value is now almost double. - No plans for further investment in the factory unless profitability improves. - The company is aggressively bidding on new projects, including a bidding pipeline of around Rs.4,000 crores and expects Rs.1,000 crores in new order inflows in the next 3-4 months. - Borrowings are sufficient for current project execution; no plans for additional borrowing or expansion in debt.

- No plans to expand borrowings: CEO Harish Kumar Kansal stated that current banking facilities are sufficient for project execution. - Existing debt includes around Rs.700 crores exposure: Rs.650 crores non-fund-based bank guarantees, Rs.50 crores cash credit limit, and Rs.25 crores loan against a HAM project. - Promoter borrowing of Rs.210 crores taken against pledged shares; Rs.70 crores already repaid with plan to reduce to below Rs.100 crores by end of current financial year and clear next year. - No mention of any planned equity fundraising in the call transcript. - Focus remains on aggressive bidding and order book growth without additional borrowing.

- Current order book as of December 2025 stands at over Rs. 2,200 crores. - Approximately Rs. 1,100 crores (around 50%) of this order book started execution in Q3, involving major projects in Kolkata, Ayodhya, Agra, and Fatehpur. - The company is aggressively bidding, especially for Delhi Jal Board and other state projects under AMRUT 2.0, with a bidding pipeline of around Rs. 4,000 crores. - Expected order inflow over the next 3-4 months is around Rs. 1,000 crores, potentially increasing the order book to about Rs. 3,000 crores by Q1 of the next financial year (FY27). - The company aims for a winning ratio improvement from 10-15% to around 20% due to aggressive bidding. - Revenue recognition from new orders starts with some lag due to mobilization and site setup, typically about 90 days after expenditure.