Effwa’s H1 revenue became 97.6% dependent on ZLD projects

Effwa reported that 97.6% of H1 FY27 revenue came from effluent treatment plant projects with Zero Liquid Discharge (ZLD), while export sales fell to 0.7% from 31.1% in H1 FY26. Revenue from operations rose 44.8% year on year to Rs 130.65 crore, making the half-year growth predominantly domestic and ZLD-led.

How concentrated was Effwa’s H1 FY27 service mix?

Effwa’s H1 FY27 service mix was concentrated in effluent treatment plants with ZLD, which accounted for 97.6% of revenue. Effluent treatment plants with recycling represented 1.6%, while Operation and Maintenance (O&M) represented 0.7%; the three disclosed shares total 99.9% because of rounding.

The concentration is more pronounced than the topline growth figure alone suggests. Revenue from operations rose to Rs 130.65 crore in H1 FY27 from Rs 90.21 crore in H1 FY26, an increase of 44.8%, but the service split indicates that nearly all of the latest half-year sales were tied to ZLD projects rather than recycling or O&M work.

The business-vertical disclosure reports Rs 127.56 crore of revenue from effluent treatment plants with ZLD in H1 FY27. That was the largest disclosed vertical and was close to the Rs 130.65 crore revenue total, while the reported ZLD service share of 97.6% also identifies it as the main source of sales.

What changed across Effwa’s business verticals?

Effwa’s ZLD vertical increased to Rs 127.56 crore in H1 FY27 from Rs 81.73 crore in H1 FY26. The Rs 45.83 crore increase in this vertical exceeded the Rs 40.44 crore rise in total revenue, showing that changes in smaller disclosed activities partly offset the expansion in ZLD work.

Revenue from effluent treatment plants with recycling fell to Rs 94.4 lakh in H1 FY27 from Rs 6.12 crore in H1 FY26. The sewage and wastewater treatment plant vertical reported Rs 1.02 crore in H1 FY26, whereas the H1 FY27 table shows a dash, with no amount reported for that category.

O&M revenue rose to Rs 2.14 crore in H1 FY27 from Rs 1.34 crore in H1 FY26. Management said it is developing O&M as a source of stable, high-visibility and perennial revenue, and expects the O&M portfolio to scale as the installed base of projects expands.

There is a difference between Effwa’s two H1 FY27 O&M disclosures. The business-vertical table reports Rs 2.14 crore, while the service-contribution chart assigns O&M 0.7% of revenue and recycling 1.6%; the reported vertical amounts instead account for about 1.6% and 0.7%, respectively, of Rs 130.65 crore. The presentation does not explain this apparent reversal, so the two disclosures cannot be treated as fully reconciled.

How far did Effwa’s sales shift toward the domestic market?

Effwa reported that domestic sales represented 99.3% of H1 FY27 revenue and export sales represented 0.7%. This compared with 68.9% domestic sales and 31.1% export sales in H1 FY26, a 30.4-percentage-point increase in the domestic share and an equal decline in the export share.

At the H1 FY27 revenue total of Rs 130.65 crore, the disclosed mix means that domestic work accounted for nearly all sales, while exports were below Rs 1 crore on an indicative calculation based on rounded percentages. In H1 FY26, the 31.1% export contribution meant international sales had a substantially larger role in the revenue base.

Effwa did not give a reason for the decline in export share in its H1 FY27 disclosure. Management nevertheless identified domestic and international markets in its stated asset-light operating approach, and said it is pursuing desalination, high-purity water treatment for data centres and compressed biogas (CBG) projects alongside wastewater treatment and resource-recovery work.

Which customer groups generated Effwa’s H1 FY27 sales?

Effwa reported that public sector undertakings contributed 56.0% of H1 FY27 revenue, private-sector customers contributed 44.0%, and government departments contributed 0.0%. Public sector undertakings therefore exceeded private-sector customers by 12 percentage points in the disclosed institutional mix.

The institutional disclosure covers H1 FY27 only, so it does not show whether customer-group dependence increased or decreased from H1 FY26. It does establish that Effwa’s Rs 130.65 crore half-year revenue was split between public sector undertakings and private-sector clients, rather than direct government-department sales.

Management cited completion of the Rourkela Steel Plant TS-II project for Steel Authority of India Limited as its first project valued above Rs 200 crore. It also said the ongoing JSW Steel project, valued at more than Rs 350 crore, is expected to support revenue growth in coming periods, although no revenue-recognition schedule was disclosed.

How did the concentrated mix coincide with earnings and cash flow?

Effwa’s ZLD-led revenue expansion coincided with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 37.1% to Rs 21.15 crore in H1 FY27 from Rs 15.43 crore in H1 FY26. Profit after tax increased 48.8% to Rs 15.10 crore from Rs 10.14 crore over the same period.

EBITDA margin, however, declined to 16.2% in H1 FY27 from 17.1% in H1 FY26, a fall of 90 basis points, where 100 basis points equal one percentage point. Profit-after-tax margin increased to 11.6% from 11.2%, while finance cost fell to Rs 88.5 lakh from Rs 1.76 crore.

Net cash from operating activities was an outflow of Rs 23.73 crore in H1 FY27, compared with an inflow of Rs 23.50 crore in H1 FY26. Management attributed the reversal to Rs 39.45 crore of working-capital changes, including supplier advances for anticipated second-half revenue and deferred recognition of completed deliveries pending customer compliance approvals and software validations.

Management said the required approvals were subsequently received, describing this as conversion of executed work into revenue. Inventory stood at Rs 8.97 crore at September 2026 versus Rs 5.99 crore at September 2025, while trade receivables were Rs 133.36 crore compared with Rs 95.47 crore.

Conclusion

Effwa’s H1 FY27 revenue profile became concentrated on two dimensions: ZLD projects supplied 97.6% of service revenue and domestic sales supplied 99.3% of geographic revenue. ZLD vertical revenue rose to Rs 127.56 crore from Rs 81.73 crore, underpinning total revenue growth to Rs 130.65 crore, while recycling activity and the export share both declined.

The next items to watch are revenue recognition from the JSW Steel project valued above Rs 350 crore, the expected scaling of the O&M portfolio, and the planned Innovation Centre, which management expects to be operational within 12 to 14 months. The reasons for the export-share decline and the apparent inconsistency between the O&M service-share and vertical disclosures remain unresolved in the H1 FY27 presentation.