Apex Ecotech revenue nearly triples as first-half margin narrows

Apex Ecotech Limited reported revenue from operations of Rs 94.2679 crore for the six months ended 30 September 2026, up from Rs 32.5698 crore a year earlier, while profit after tax rose to Rs 4.003 crore but net profit margin narrowed to 4.25% from 7.91% as material and other costs increased faster than sales.

How fast did Apex Ecotech's first-half revenue and profit grow?

Apex Ecotech's revenue from operations increased 189.43% year on year to Rs 94.2679 crore in the six months ended 30 September 2026, compared with Rs 32.5698 crore in the six months ended 30 September 2025. Total income rose to Rs 95.06 crore from Rs 33.1067 crore, including other income of Rs 79.20 lakh against Rs 53.69 lakh.

Profit after tax increased 55.31% to Rs 4.003 crore from Rs 2.5775 crore, while profit before tax rose 57.56% to Rs 5.4299 crore from Rs 3.4463 crore. Basic and diluted earnings per share, or EPS, were Rs 3.04, compared with Rs 1.95 a year earlier; the filing reported no discontinuing operations in either half-year.

Apex Ecotech provides environmental engineering solutions comprising the design, manufacturing and installation of Effluent Treatment Plants, Sewage Treatment Plants and Zero Liquid Discharge Systems. It treats these activities as one reportable segment under Accounting Standard 17, so the 30 September 2026 filing provides no revenue or profit split among these products.

Why did Apex Ecotech's first-half profit margin decline?

Apex Ecotech's net profit margin declined to 4.25% of revenue from operations in the September 2026 half-year, from 7.91% in the September 2025 half-year. The calculation compares reported profit after tax of Rs 4.003 crore with revenue of Rs 94.2679 crore, against Rs 2.5775 crore of profit and Rs 32.5698 crore of revenue a year earlier.

Material consumption rose 219.27% to Rs 78.9805 crore from Rs 24.7378 crore, exceeding the 189.43% increase in revenue. Materials represented 83.78% of revenue in the latest half-year, compared with 75.93% a year earlier, changing the cost mix despite higher sales.

Other expenses increased to Rs 5.9769 crore from Rs 2.2781 crore, while employee benefit expense rose to Rs 4.0562 crore from Rs 2.5544 crore. Finance cost rose to Rs 29.13 lakh from Rs 51,000, and depreciation increased to Rs 32.52 lakh from Rs 8.49 lakh.

Total expenses increased 202.19% to Rs 89.6301 crore from Rs 29.6604 crore, faster than the 187.12% increase in total income. Current tax expense was Rs 1.5082 crore compared with Rs 87.18 lakh, while deferred tax was a credit of Rs 8.14 lakh against a credit of Rs 30,000; no exceptional items were reported in either period.

How did Apex Ecotech's September half compare with the preceding March half?

Apex Ecotech's revenue from operations was 18.79% lower than the Rs 116.0809 crore reported for the six months ended 31 March 2026, while profit after tax was 72.29% lower than Rs 14.4455 crore. The March 2026 half-year comparative was audited, whereas the September 2026 results were unaudited and subject to limited review.

Material consumption fell to Rs 78.9805 crore from Rs 87.591 crore between the two half-years, but other expenses increased to Rs 5.9769 crore from Rs 4.5937 crore. Finance cost rose to Rs 29.13 lakh from Rs 8.48 lakh and depreciation increased to Rs 32.52 lakh from Rs 11.87 lakh, while expenses fell by less than revenue.

For the year ended 31 March 2026, Apex Ecotech reported revenue from operations of Rs 148.6507 crore and profit after tax of Rs 17.023 crore. The September 2026 half-year therefore represented 63.42% of that full-year revenue and 23.52% of that full-year profit after tax, while EPS was Rs 3.04 against Rs 10.96 in the March half.

What do Apex Ecotech's balance sheet and cash flow show?

Apex Ecotech's cash and bank balances were Rs 29.493 crore at 30 September 2026, down from Rs 35.0594 crore at 31 March 2026, while trade receivables increased to Rs 22.6029 crore from Rs 16.7573 crore. Inventories rose to Rs 5.6195 crore from Rs 4.4193 crore, and short-term loans and advances increased to Rs 14.3438 crore from Rs 12.0077 crore.

The company reported net cash used in operating activities of Rs 7.7622 crore for the half-year ended 30 September 2026, compared with net cash generated of Rs 6.7668 crore for the year ended 31 March 2026. Operating profit before working-capital changes was Rs 5.5064 crore, but working-capital changes used Rs 11.7603 crore, including Rs 5.8456 crore in increased trade receivables and Rs 2.3361 crore in increased short-term loans and advances.

Cash and cash equivalents, which are narrower than balance-sheet cash and bank balances, ended the period at Rs 5.0691 crore versus Rs 11.5958 crore at the beginning of the year. Short-term borrowings rose to Rs 2.189 crore from Rs 24.89 lakh, while long-term borrowings declined to Rs 94.39 lakh from Rs 1.0592 crore.

What did Apex Ecotech disclose about review and employee options?

Apex Ecotech said its Audit Committee and board approved the unaudited results on 12 November 2026, and Raman Chawla & Associates issued an unmodified limited-review conclusion. The auditor said that nothing had come to its attention suggesting the statement failed to make disclosures required under Regulation 33 of the Securities and Exchange Board of India listing regulations.

Apex Ecotech said its shareholder-approved Employee Stock Option Plan 2026 received in-principle approval from the National Stock Exchange of India on 18 September 2026 for listing up to 2,20,000 equity shares. No options had been granted by the 12 November 2026 results approval date, so no plan expense was recognised for the half-year; the company said expense will be recognised from grant over the vesting period.

Conclusion

Apex Ecotech recorded substantially higher year-on-year first-half revenue and profit for the period ended 30 September 2026, but its profit margin contracted as material consumption rose 219.27%, faster than the 189.43% growth in revenue. The results also show cash conversion lagging profit, with Rs 7.7622 crore used in operating activities as receivables and advances increased.

The next disclosed matter to watch is implementation of the Employee Stock Option Plan 2026, which has approval for up to 2,20,000 shares but had no grants as of 12 November 2026. The filing also leaves the collection of the Rs 22.6029 crore trade-receivables balance unresolved after receivables increased by Rs 5.8456 crore during the half-year.