Enviro Infra Engineers Ltd.

Revenue 4x & PAT 5x in last 4 years!!

Jul 13, 2025

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1. Key Highlights:

2. Company Chart Analysis:

*Comparison charts are Indexed*

Enviro Infra Engineers Ltd. Performance

Enviro Infra Engineers Ltd. vs. NSE Nifty

Enviro Infra Engineers Ltd. vs. NSE Smallcap

3. About the Company:

Enviro Infra Engineers Ltd (EIEL), founded in 2009 and headquartered in New Delhi, is a fast-growing infrastructure company focused on building sustainable water and wastewater solutions for public sector clients. The company primarily undertakes government contracts for designing, constructing, operating, and maintaining water supply and sewage treatment projects.

Business Segments:

Wastewater Treatment Projects (WWTPs):
- Includes Sewage Treatment Plants (STPs), Sewerage Schemes (SS), and Common Effluent Treatment Plants (CETPs).
- Focus on Zero Liquid Discharge (ZLD) systems to enable reuse of treated water.
Water Supply Scheme Projects (WSSPs):
- Covers Water Treatment Plants (WTPs), pumping stations, and pipeline networks for water distribution.

ABOUT THE COMPANY

COMPANY SNAPSHOT

COMPANY JOURNEY

CLIENTS

MAJOR PRODUCTS

4. Management Overview:

5. Business Breakdown:

6. Company’s Financial Analysis:

6.1 REVENUE:

Enviro Infra Engineers Ltd reported consolidated revenue from operations of ₹1,066 crores in FY25, registering a robust 46% year-on-year growth over ₹729 crores in FY24. Over the last five years, revenue has grown at a CAGR of ~58%.

Management attributed revenue scalability to disciplined execution, tight cost control, and in-house design and engineering capabilities, which helped maintain timelines and convert the order book efficiently into revenue.
The company recorded ₹393 crores in Q4 FY25, which accounted for nearly 37% of the full-year revenue. This indicates that multiple projects reached peak execution and billing milestones in the final quarter.
As of March 31, 2025, the company had ₹265 crores of unbilled revenue, which is already included in the FY25 total revenue. This means that a large part of the work was completed on projects, but the invoices were yet to be raised, showing strong on-ground execution during the year.

OUTLOOK

Management has guided for 35–40% revenue growth in FY26, supported by a healthy project pipeline and continued execution momentum.

Key growth drivers:

Solid order book base: The company ended FY25 with a pending order book of ₹1,185 crores (execution) and ₹806 crores (Operations and Maintenance contracts). This gives strong visibility for revenues over the next 12–18 months.
Strong bidding pipeline: The company has already submitted bids worth over ₹5,000 crores. Even with a modest success rate of 20–25%, this could lead to fresh order inflows of around ₹1,000–1,250 crores in FY26.

6.2 GROSS PROFIT:

The Gross Profit has grown at a CAGR of 39% over the past five years, increasing from ₹66 crores in FY20 to ₹341 crores in FY25.

Gross profit margin declined from 46.7% in FY23 to 29.2% in FY24 due to a shift in business mix, with the share of EPC projects rising to 86.2% from 63.9% in FY23. EPC projects, while offering better control, are more material-intensive, leading to higher raw material costs and a drop in gross margin.

6.3 EBITDA:

EBITDA has grown at a CAGR of ~93% over the past five years, increasing from ₹10 crores in FY20 to ₹268 crores in FY25. Going forward, EBITDA margins are expected to remain stable at ~25%, as guided by management.

EBITDA margin improved from 22.8% in FY24 to 25.1% in FY25 due to increase in gross profit margin and decrease in employee expenses (4.7% to 4.5%) while other expenses rose (1.8% to 2.4%), overall enabling better cost absorption and improved profitability.

6.4 Net Profit:

Net Profit has grown at a CAGR of ~96.7% over the past five years, increasing from ₹5 crores in FY20 to ₹177 crores in FY25.

Going forward, net profit is expected to expand in line with EBITDA, sustaining strong bottom-line momentum as the company continues to scale efficiently and maintain financial discipline.

6.5 Balance Sheet:

6.6 Common-Size Balance Sheet:

6.7 Cash Flow Analysis:

6.8 Cash Conversion Cycle:

7. KEY RATIOS:

8. Shareholding Pattern:

9. SWOT ANALYSIS:

10. ConCall Analysis (Q4 FY25)

10.1 Order Book and Future Inflow

Current Order Book
As of March 31, 2025, Enviro Infra Engineers holds a strong order book of ₹1,185 crores, comprising 22 projects spread across various states.
Operation & Maintenance (O&M) Orders
In addition to project EPC orders, the company has ₹806 crores worth of O&M contracts.
New Orders in FY26
In the initial weeks of FY26, the company secured fresh orders worth ₹200 crores.
Bidding Activity and Pipeline
Enviro Infra has submitted bids exceeding ₹5,000 crores. Given its historical success ratio of 40% to 60%, the company conservatively expects order inflows between ₹1,000 crores to ₹1,250 crores, assuming a 20–25% conversion rate.
Unbilled Revenue
At the close of FY25, unbilled revenue stood at ₹265 crores, which will be recognized in subsequent quarters, adding to top-line visibility.

10.2 Strategic Initiatives and New Businesses

Clean Energy Subsidiary – EIE Renewables
The company is setting up a new subsidiary, EIE Renewables, to focus on clean energy solutions, including solar, hydro power, green hydrogen, and 24x7 renewable offerings. This entity will handle both integrated installations within existing water infra projects and standalone solar EPC/PPA/IPP initiatives.
Sunaxis Renewable (Step-Down Subsidiary)
A step-down subsidiary, Sunaxis Renewable, will manage the acquisition and operation of solar or renewable assets.
Expected Margins in Renewables
EBITDA margins in the renewables business are estimated at 18% to 20%, slightly lower than the 22% to 24% margins in the water and wastewater segment but still healthy and scalable.
Revenue Outlook from Renewables
The renewable subsidiary is expected to start generating revenues in FY26. While initial contributions may be small, the focus remains on establishing a long-term presence before accelerating growth.
CAPEX Commitment
The company plans to invest ₹50 crores from IPO proceeds into EIE Renewables, with a total commitment capped at ₹75 crores. For large PPA projects, debt will be raised cautiously, maintaining a debt-to-equity ratio below 1 (currently at 0.24).
Waste-to-Energy & CBG Initiatives
Enviro is executing gas generation and compressed biogas (CBG) projects in three existing STPs in Jaipur and Jodhpur, and an upcoming 135 MLD plant in Saharanpur. Based on their performance, the company may expand into CBG projects from agricultural or municipal solid waste (MSW).

10.3 Operational and Project Execution

Project Execution Cycle
Typical EPC project cycles range from 18 to 24 months. Water supply schemes may extend up to 28 months.
Project Mix: EPC vs HAM
Enviro Infra maintains a project mix of around 75% EPC and 25% HAM (Hybrid Annuity Model), as HAM projects offer superior margins.
Geographical Diversification
The company is reducing its revenue dependence on Madhya Pradesh, which previously contributed ~50%. The remaining MP order book is now down to ₹170 crores, while revenue share from other states is increasing.
Project Scale-Up
Enviro Infra plans to increase STP capacities from 50 MLD to 200 MLD and CETPs from 20 MLD to 50 MLD, enabling them to bid for larger and more impactful projects.

10.4 Challenges and Mitigations

Payment Delays in JJM
The company faced payment delays in Jal Jeevan Mission (JJM) projects during FY24 due to elongated government payment cycles and near-zero central disbursements.
Improved Cash Flows
Post December 2024, cash flows improved significantly with the extension of JJM timelines to 2028. This has led to positive cash flow from operations before tax in FY25.
Regional Risk Diversification
To mitigate regional risk, the company is focusing on project wins across multiple states beyond MP, spreading execution and receivables risk.

10.5 Management Commentary and Outlook

Growth Outlook
Enviro Infra is targeting a strong annual growth rate of 35% to 40%, supported by its solid order book, expanding bidding pipeline, and foray into new business areas.
EBITDA Margins
The company expects to maintain stable EBITDA margins in the 22% to 24% range for its water and wastewater segment.
Bidding Strategy
Bidding volume is dynamically adjusted based on the current win ratio to maintain an optimal order book target of ₹2,500–₹3,000 crores for the ongoing fiscal.
Water Infra Expansion
The company is expanding its capabilities in advanced treatment solutions like reuse, ultrafiltration, reverse osmosis (RO), and Zero Liquid Discharge (ZLD). There’s a growing focus on bidding for more HAM projects and expanding WWTP and WSSP exposure.

11. Growth Drivers & Risks:

12. Competitors in the Market:

1. VA Tech Wabag Ltd

VA Tech Wabag is a Chennai-based multinational that specializes in water and wastewater treatment solutions. It designs, builds, and operates treatment plants for municipalities and industries globally. The company focuses on EPC (Engineering, Procurement, and Construction) and O&M (Operation & Maintenance) contracts, including large desalination plants, sewage treatment facilities, and zero liquid discharge systems. It has a strong international presence across Asia, the Middle East, and Africa.

2. Ion Exchange (India) Ltd

Ion Exchange is a pioneer in water and environment management, offering comprehensive solutions that include water treatment chemicals, ion-exchange resins, water purification systems, and turnkey EPC services. The company serves industries like pharmaceuticals, power, food & beverage, and municipal clients. It also exports to global markets and operates manufacturing plants for specialty chemicals and resins in India.

3. EMS Ltd

EMS Limited is an infrastructure company focused on executing and maintaining water and sewage treatment plants, primarily for government projects. It undertakes EPC and O&M contracts under urban development schemes such as AMRUT and Jal Jeevan Mission. The company works on projects involving sewage treatment plants (STPs), effluent treatment plants (ETPs), and water supply schemes in tier-2 and tier-3 cities across India.

4. SPML Infra Ltd

SPML Infra is a water-centric infrastructure developer engaged in executing large-scale water supply, sanitation, and sewerage projects. It plays a key role in implementing rural and urban water supply schemes under various state and central government initiatives. The company also works on smart city and urban infrastructure development, offering end-to-end services from design to commissioning.

5. Jash Engineering Ltd

Jash Engineering manufactures custom-made equipment used in water and wastewater management projects. Its product range includes sluice gates, penstocks, valves, and screening equipment, which are critical components in STPs, ETPs, and pumping stations. It supplies these products to major EPC contractors and exports to over 40 countries, making it a leading player in its niche.

Thank You So Much For Reading!!

Researched By- Naresh, Mayank and Vaibhav

All information is sourced from the company's annual reports, Press Release, News Articles, GoIndiastocks.in, Screener.in, industry reports, and Economy Outlook reports.

Disclaimer: We do not recommend buying or selling any stock. You should consult your financial advisor before buying or selling any financial instrument.

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