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Antony Waste Q1 FY27: Steady revenue, sharp margin pressure, and a major post-quarter disruption

Antony Waste Handling Cell Limited reported a mixed start to FY27. Consolidated revenue for Q1 FY27 rose 6 percent year on year to INR 268.8 crore. Operationally, volumes were stable to improving, with total tonnage managed at about 1.40 million tonnes.

But profitability fell sharply. EBITDA declined 27 percent year on year to INR 45.0 crore and EBITDA margin dropped to 16.8 percent from 24.4 percent in Q1 FY26. PAT for the quarter was INR 0.7 crore versus INR 23.0 crore last year.

The earnings call also carried an important, difficult context. Management addressed a force majeure event at the PCMC Waste-to-Energy facility in July 2026, after the quarter ended. The incident involved a legacy waste mound adjacent to the facility collapsing after extreme rainfall, causing fatalities and damage to the administrative building. The company temporarily suspended WtE operations pending safety and structural assessments, with a phased restart underway.

Revenue held up, driven by core municipal services

The revenue base remained resilient because the company’s core collection and transportation and processing contracts continued to run. In Q1 FY27, revenue from MSW Collection and Transportation was INR 166.3 crore, up 10 percent year on year. MSW Processing revenue was INR 74.7 crore, up 3 percent year on year.

Management highlighted that tonnage growth was supported by higher volumes across project sites and contractual escalation mechanisms. Collection and Transportation handled about 0.55 million tonnes and processing managed about 0.85 million tonnes, bringing total managed tonnage to about 1.4 million tonnes.

Operational metrics disclosed in the investor presentation included about 40,000 tonnes of RDF sales and about 6,000 tonnes of compost sales in the quarter. The company also reported power generation of over 20 million green units at the PCMC WtE plant in Q1 FY27, and emissions avoided of about 2,782 tCO2e.

Margin compression: costs, timing effects, and refinancing charge

Management was direct about the drivers behind the margin decline.

First, higher operating expenses affected the quarter. The CFO referenced vehicle hiring and transportation costs at the CIDCO plant, and also noted that certain waste disposal transformation activities that were planned earlier were deferred into Q1. The incremental expense from the deferral was quantified at about INR 10 crore.

Second, employee costs rose meaningfully. Employee cost increased to INR 91.1 crore in Q1 FY27 from INR 77.3 crore in Q1 FY26. On the call, management said employee cost rose 18 percent year on year and increased to 34 percent of revenue versus 30 percent a year ago. They attributed this to a labour code-related restatement of assumptions and higher headcount from new projects.

Third, finance costs increased. Finance cost rose to INR 21.4 crore from INR 15.9 crore year on year in Q1.

The quarter’s bottom line was also impacted by a one-time expense of about INR 7 crore related to prepayment of the term loan at Antony Lara Renewable Energy, the subsidiary operating the PCMC WtE facility. This cost was incurred as part of a refinancing that reduced the interest rate by 200 basis points.

Management positioned the quarter as transitional rather than structural, citing the largely non-recurring nature of the CIDCO-related transportation and disposal costs, the timing shift of certain activities, and the refinancing charge.

Post-quarter event at PCMC WtE: operational and accounting implications

In corporate updates and on the earnings call, the company described a severe rainfall event on July 8, 2026. The region reportedly received about 650 mm of rain. A legacy waste mound at the dumping site adjacent to the company’s facility collapsed onto the administrative building. Twenty three individuals were present at the time. Fourteen were rescued and nine died.

The company outlined support measures including medical and counselling expenses for injured employees, funeral-related expenses, and financial assistance to bereaved families. The call mentioned financial assistance of INR 40 lakh to each affected family. Earlier exchange communication referenced financial assistance of INR 25 lakh per deceased employee comprising ex-gratia and insurance and welfare benefits.

From a business continuity perspective, municipal waste collection and transportation were stated to be unaffected. However, WtE operations at PCMC were suspended as a precaution pending safety certification. Management said material recovery and composting resumed from July 28, with processing around 400 tonnes per day. The WtE plant was guided to restart by the first or second week of October.

During the shutdown period, management guided fixed costs of about INR 2.5 to 3 crore per month. They also indicated that the tipping fee may continue, while power generation and sale would be impacted during the downtime.

Importantly, the CFO highlighted a potential impairment charge in the range of INR 22 to 24 crore related to damage to a portion of project assets. This is expected to be treated as an exceptional item, with potential insurance recovery not yet included in the estimate. Management said more clarity would likely be provided in the Q2 results.

Growth pipeline: new contract win and project ramp-ups

Despite the near-term operational disruption at PCMC, management highlighted new business wins and upcoming ramp-ups.

A key win announced was a GNIDA contract for procurement and comprehensive O&M of electrical mechanical road sweeping machines in Greater Noida East zone. The contract value is INR 243 crore over five years, with a two-year extension option. It is expected to commence in Q3 FY27 and contribute about INR 46 crore of revenue in its first year. The project involves deploying 16 electric sweepers and covering around 640 kilometers of roads daily.

Management also discussed the company’s approach of balancing portfolio exposure between collection and transportation and processing and WtE. They described a target portfolio moving towards a 50-50 mix between collection and transportation and processing and WtE over time.

On the Andhra Pradesh WtE projects at Kadapa and Kurnool, management stated land possession has been received at both sites. The technology and EPC contractor JFE India has completed civil designs, civil contractors have been mobilized at Kadapa, and Kurnool mobilization was expected in the following weeks. Financial closure was said to be in the final stage.

The company also said it is evaluating compressed biogas as part of integrated waste projects, where wet waste can be routed to a CBG plant and the dry fraction to WtE.

What to watch from here

Q1 FY27 shows the underlying stability of Antony Waste’s revenue base, but also highlights sensitivity to cost swings and timing mismatches in escalation-linked contracts. Management expects some normalization as cost renegotiations progress and annual escalation mechanisms catch up.

In the near term, the biggest swing factor is the PCMC WtE restart timeline and the eventual exceptional accounting impact. Management guided that WtE revenue would resume on a full stream basis from the first or second week of October. They also flagged a possible impairment charge of INR 22 to 24 crore, with potential insurance recovery still to be assessed.

The refinancing at the PCMC WtE subsidiary, which reduced interest cost by 200 basis points, is a meaningful capital structure action. But investors will likely track how quickly interest savings show up in consolidated cash flows, especially while the facility is in a phased restart.

The combination of a new GNIDA sweeping contract, ramp-up of recently won contracts, and the longer-term push towards more processing and WtE exposure forms the company’s growth narrative for the rest of FY27 and beyond.