Any current/future new fundraising through debt or equity?

The company currently does not have any long-term borrowings except for one or two vehicle loans. There is no immediate requirement for fundraising through debt as working capital is sufficient. Regarding future fundraising, Ashish Tomar mentioned that it depends on how many projects get converted, but as of now, no requirement for additional funds. There was clarification that any borrowing increase mentioned may be a misunderstanding. For project guarantees, the company acquires properties as collateral rather than relying solely on fixed deposits. No mention of plans for raising equity or p

Any current/future capex/capital investment/strategic investment?

EMS Limited has acquired a significant asset in the manufacturing sector, specifically a paper pulp project (Brijbihari Pulp and Paper Private Limited), with a 75% stake for around Rs. 50-60 crores. This acquisition is primarily for collateral purposes to support banking facilities and performance guarantees rather than operational expansion. Manufacturing (flex paper) is still ongoing in that property but is expected to be shut down by December, with future use focused on collateral to secure bank guarantees. The company is also exploring entry into the real estate sector as an EPC deve

Future growth expectations in sales/revenue/volumes?

EMS Limited expects continued growth driven by infrastructure development, especially in water supply and sewage sectors. The company aims for around 30% to 35% top-line growth, targeting revenue near Rs. 1100 crores in FY25. Current order book stands at over Rs. 1800 crores, executable over the next 2 to 2.5 years. Long-term aspiration includes reaching Rs. 2000 crores in execution by FY28, depending on expanding into roads and building sectors without compromising margins. The company is actively bidding on projects worth over Rs. 4000 crores with a win rate of 10-15%, expecting significant

Future growth expectations in earnings/operating earnings/profits/EPS?

EMS Limited expects continued growth in infrastructure development, especially in water supply and sewage sectors, enhancing urban living and connectivity (Page 2). The company reported strong Q1 FY25 growth: 49.50% revenue increase, 63.12% net profit growth, and 57.13% EBITDA growth compared to last year (Page 2). Guidance is to achieve around 30% revenue growth for FY25, targeting approximately Rs. 1100 crores revenue (Page 11). Order book of Rs. 1800+ crores suggests execution over next 2-2.5 years, supporting sustained profit margins of 24%-26% (Page 5). EMS aims to grow to Rs. 1500-1600 c

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at over ₹1,800 crore of unexecuted work, expected to be executed over 2 to 2.5 years. The company has participated in bids valued at more than ₹4,000 crore recently. Considering a success ratio of 10% to 15%, these bids are expected to convert into orders within 1-2 months. Among recent orders won, a project from UP Jal Nigam was mentioned, with EMS’s share being ₹120 crore of the total order. The geographic mix indicates majority of work currently comes from Uttarakhand, followed by Rajasthan, Maharashtra, UP, and Bihar, with new orders potentially changing t

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EMS LtdQ2 FY25

EMS Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹417P/E: 13.7Market Cap: ₹1.8K Cr

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→EMS Limited expects continued growth driven by infrastructure development, especially in water supply and sewage sectors.
→The company aims for around 30% to 35% top-line growth, targeting revenue near Rs. 1100 crores in FY25.
→Current order book stands at over Rs. 1800 crores, executable over the next 2 to 2.5 years.
→Long-term aspiration includes reaching Rs. 2000 crores in execution by FY28, depending on expanding into roads and building sectors without compromising margins.
→The company is actively bidding on projects worth over Rs. 4000 crores with a win rate of 10-15%, expecting significant order inflow in 1-2 months.
→EMS plans to maintain a 70%-80% focus on the water sector in the order book while expanding footprint in real estate EPC and road projects for growth.
→Top-line growth in the current fiscal shows 49.5% rise in revenue and 63.12% increase in net profit for Q1 FY25, indicating strong momentum.

Margin guidance

Category 3

→EMS Limited expects continued growth in infrastructure development, especially in water supply and sewage sectors, enhancing urban living and connectivity (Page 2).
→The company reported strong Q1 FY25 growth: 49.50% revenue increase, 63.12% net profit growth, and 57.13% EBITDA growth compared to last year (Page 2).
→Guidance is to achieve around 30% revenue growth for FY25, targeting approximately Rs. 1100 crores revenue (Page 11).
→Order book of Rs. 1800+ crores suggests execution over next 2-2.5 years, supporting sustained profit margins of 24%-26% (Page 5).
→EMS aims to grow to Rs. 1500-1600 crores revenue focusing on water sector; with road and building segments growth, Rs. 2000+ crores possible by FY28 (Page 10).
→Margins are expected to be maintained at 25%-26% due to low overheads and strong engineering execution (Pages 6, 11).
→Cash flow from operations expected to improve going forward (Page 11).

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Fundraise plans

→The company currently does not have any long-term borrowings except for one or two vehicle loans.
→There is no immediate requirement for fundraising through debt as working capital is sufficient.
→Regarding future fundraising, Ashish Tomar mentioned that it depends on how many projects get converted, but as of now, no requirement for additional funds.
→There was clarification that any borrowing increase mentioned may be a misunderstanding.
→For project guarantees, the company acquires properties as collateral rather than relying solely on fixed deposits.
→No mention of plans for raising equity or preferential shares was made in the call.

Order book

Yes

→Current order book stands at over ₹1,800 crore of unexecuted work, expected to be executed over 2 to 2.5 years.
→The company has participated in bids valued at more than ₹4,000 crore recently.
→Considering a success ratio of 10% to 15%, these bids are expected to convert into orders within 1-2 months.
→Among recent orders won, a project from UP Jal Nigam was mentioned, with EMS’s share being ₹120 crore of the total order.
→The geographic mix indicates majority of work currently comes from Uttarakhand, followed by Rajasthan, Maharashtra, UP, and Bihar, with new orders potentially changing this mix.
→The company anticipates significant new water sector orders from government entities following recent elections and government budget comments.

Capex plans

Yes

→EMS Limited has acquired a significant asset in the manufacturing sector, specifically a paper pulp project (Brijbihari Pulp and Paper Private Limited), with a 75% stake for around Rs. 50-60 crores.
→This acquisition is primarily for collateral purposes to support banking facilities and performance guarantees rather than operational expansion.
→Manufacturing (flex paper) is still ongoing in that property but is expected to be shut down by December, with future use focused on collateral to secure bank guarantees.
→The company is also exploring entry into the real estate sector as an EPC developer, involved in joint development projects, such as a Rs. 325 crore housing colony project with the RBI in Mumbai.
→EMS plans to invest in property assets to serve as collateral to increase banking limits and performance guarantees for project financing.
→No long-term borrowings currently; capex is mostly strategic asset acquisition to support financial structuring rather than heavy operational capex.

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