Enviro Infra Q4 FY26 Earnings Analysis

- The company aims for a revenue growth of 30% to 35% CAGR. - For FY 2026, top-line guidance is around INR 1,350 crores, including INR 450 crores from water/wastewater and INR 200 crores from renewables. - FY 2027 growth expectation is maintained at 35% to 40%, contingent on new order book accrual in the coming months. - Execution in Q4 is expected to be strong with revenues in the range of INR 600-650 crores to support annual growth. - Order execution from the existing order book will cover about 75% of current projects next year. - Renewables contribute increasingly, expected INR 400-500 crores execution in FY 2027 and included in the consolidated growth. - The company is cautiously optimistic but confident in meeting its guidance based on order inflows and execution capabilities.

- Manish Jain expects PAT growth of around 30% for the current financial year (FY26), with PAT guidance in the range of INR230-250 crores. - Revenue growth guidance is maintained at 35%-40% CAGR, including renewable segment contributions. - EBITDA margins are expected to remain strong, around 22%-24%, with some quarters showing even higher margins (26%-27%). - For FY27, growth guidance of 35%-40% is maintained, contingent on order book accrual in the upcoming months. - Return on Equity (ROE) guidance is around 18%-19% based on expected PAT of approximately INR230 crores. - Management remains cautiously optimistic, aiming to grow sustainably and maintain healthy profitability despite revenue fluctuations. - Emphasis is on maintaining profit margins rather than just top-line growth, focusing on high-margin projects.

- Renewable segment capex: INR75 crores invested by Enviro Infra, with no further investment planned from Enviro. - Total capex expected: Around INR100 crores anticipated for renewable projects based on current order book. - HAM water-wastewater projects (Mathura and Saharanpur): Capex largely done, with minimal additional capex (~INR100 crores) expected. - Term loans for HAM projects forecasted around INR150 crores (Saharanpur) + INR40-45 crores (Mathura). - Total term loan increase expected: Approx. INR250 crores for next financial year from existing projects. - Overall capex (including renewables) for FY27 expected around INR100-150 crores. - Capital allocation strategy: Focus on operational cash flow positivity in water-wastewater; limited Enviro equity infusion in renewables to manage cash flow.

- Enviro Infra Engineers Limited plans to raise around INR75 crores investment internally for the renewable segment, with no further investment expected from Enviro going forward. - Additional funding includes debt for executing projects, with term loans expected to accrue around INR150 crores from HAM projects (INR120 crores from Saharanpur and INR40-45 crores from Mathura). - Total term loans could increase by approximately INR250 crores next financial year from ongoing projects. - Separate working capital lines and funding will be arranged distinctly for the renewable segment and the main water and wastewater business. - No mention of new equity fundraising; debt is the primary mode of additional funding.

- Current order book ex O&M stands at approx. INR 1,900 crores (Page 23). - About INR 450 crores expected to be executed soon, leaving around INR 1,450 crores as base for next year (Page 23). - Historically, around 75% of order book expected to be executed in next financial year (Page 23). - Bid pipeline worth INR 5,000 crores submitted, mainly wastewater treatment projects including STPs, sewerage infrastructure, EPC, HAM, and CETPs; no water projects included (Page 9). - Recent bids include INR 3,000 crores in Bihar with delayed evaluation; Delhi projects are in re-bidding phase (Page 15). - Order inflow for Q3 included one order of INR 248 crores; no fresh orders received in Q4 till now (Page 12). - Management expects good order book accrual in coming months to maintain revenue guidance and growth outlook for FY27 (Pages 23 and 15).