Enviro Infra Engineers revenue rises 60%, PAT falls 20%

Enviro Infra Engineers Limited reported consolidated revenue from operations of Rs 363.17 crore for the quarter ended 30 September 2026, up 60% from Rs 227.35 crore a year earlier, while profit after tax fell 20% to Rs 39.49 crore from Rs 49.50 crore as total expenses increased 81%.

Why did Enviro Infra Engineers' September-quarter profit fall?

Enviro Infra Engineers' profit after tax declined because the increase in total expenses exceeded revenue growth in the quarter ended 30 September 2026. Revenue from operations rose by Rs 135.82 crore year on year, while total expenses increased by Rs 141.98 crore to Rs 316.74 crore from Rs 174.75 crore.

Profit before exceptional items and tax consequently declined to Rs 55.36 crore from Rs 66.64 crore. Profit before tax was Rs 55.40 crore, compared with Rs 61.08 crore in the quarter ended 30 September 2025, while profit after tax was Rs 39.49 crore against Rs 49.50 crore.

The latest quarter included an exceptional item of Rs 0.04 crore, whereas the prior-year quarter included a negative exceptional item of Rs 0.56 crore. Current tax expense was Rs 16.11 crore in the latest quarter and deferred tax was a credit of Rs 0.20 crore.

Which costs changed most for Enviro Infra Engineers?

Enviro Infra Engineers recorded its largest disclosed cost increase in other construction and operating expenses, which rose to Rs 178.66 crore in the September 2026 quarter from Rs 46.16 crore a year earlier. The Rs 132.51 crore increase in this line was close to the Rs 135.82 crore rise in revenue from operations.

Employee benefits expense increased to Rs 29.93 crore from Rs 14.69 crore, while finance cost rose to Rs 18.01 crore from Rs 7.37 crore. Depreciation and amortisation increased to Rs 9.82 crore from Rs 4.98 crore, and other expenses rose to Rs 10.65 crore from Rs 9.12 crore.

Cost of materials consumed moved in the opposite direction, declining to Rs 64.35 crore from Rs 89.04 crore year on year. Sequentially, September-quarter revenue was Rs 363.17 crore versus Rs 359.18 crore in the quarter ended 30 June 2026, while other construction and operating expenses increased from Rs 59.94 crore and materials consumed declined from Rs 181.56 crore.

How did Enviro Infra Engineers perform in the first half?

Enviro Infra Engineers reported revenue from operations of Rs 722.95 crore for the half year ended 30 September 2026, up 54% from Rs 468.27 crore in the corresponding 2025 period. Total income increased to Rs 731.22 crore from Rs 490.49 crore over the same comparison.

Despite the higher revenue base, profit after tax for the half year declined to Rs 84.70 crore from Rs 91.92 crore. Profit before tax was Rs 113.93 crore against Rs 120.32 crore, while finance cost more than doubled to Rs 32.47 crore from Rs 14.42 crore and depreciation and amortisation rose to Rs 18.52 crore from Rs 8.22 crore.

Profit after tax attributable to owners of the parent was Rs 81.24 crore for the half year, compared with Rs 90.61 crore a year earlier. Non-controlling interest accounted for Rs 3.46 crore of half-year profit, compared with Rs 1.36 crore in the corresponding prior-year period, and basic earnings per share were Rs 4.63 versus Rs 5.16; Enviro Infra Engineers said earnings per share was not annualised.

What do Enviro Infra Engineers' half-year cash flows show?

Enviro Infra Engineers used Rs 96.89 crore in operating activities during the half year ended 30 September 2026, compared with an outflow of Rs 105.30 crore in the prior-year half. Cash generated from operations before working-capital changes was Rs 159.18 crore, compared with Rs 123.68 crore a year earlier.

Working-capital movements included a Rs 98.57 crore increase in trade receivables, a Rs 57.39 crore increase in receivables from service concession arrangements and a Rs 106.03 crore increase in other financial assets. Trade payables declined by Rs 102.24 crore, while other current liabilities increased by Rs 137.17 crore.

After income tax paid of Rs 17.90 crore, net operating cash flow remained negative. Investing activities used Rs 130.69 crore in the latest half year against Rs 43.19 crore in the corresponding 2025 period, including Rs 63.33 crore spent on property, plant and equipment, capital work in progress and capital advances.

How did acquisitions and borrowings affect Enviro Infra Engineers?

Enviro Infra Engineers reported Rs 112.06 crore of consideration paid for acquisitions of subsidiaries, net of cash acquired, during the half year ended 30 September 2026. The amount comprised Rs 111.01 crore paid to acquire Suyog Urja Limited and Rs 1.05 crore of cash outflow for PRA Bihar BESS Private Limited.

The consolidated entity list included Varanasi DDU Nagar STP Private Limited and Varanasi Lohta STP Private Limited as subsidiaries from 16 June 2026. Wind Earth Private Limited was listed as a step-down subsidiary from 19 August 2026, alongside Suyog Urja Limited and PRA Bihar BESS Private Limited.

Financing activities generated Rs 242.70 crore in the half year, compared with an outflow of Rs 24.01 crore a year earlier. The latest period included Rs 199.75 crore of proceeds from non-current borrowings, Rs 57.43 crore of net short-term borrowing proceeds, Rs 6.75 crore of non-current borrowing repayments and Rs 7.74 crore of interest and financial charges paid.

Cash and cash equivalents rose by Rs 15.11 crore during the half year to Rs 67.08 crore at 30 September 2026. The balance sheet showed current borrowings of Rs 355.09 crore, up from Rs 175.02 crore at 31 March 2026, and non-current borrowings of Rs 348.77 crore, compared with Rs 247.28 crore.

Conclusion

Enviro Infra Engineers expanded consolidated revenue in both the September quarter and the first half, but expenses rose faster in the quarter and profit declined across both periods. The September-quarter comparison shows revenue rising 60% while total expenses increased 81%, with other construction and operating expenses, employee benefits, finance costs and depreciation all higher than a year earlier.

The next reported results will indicate whether revenue growth is accompanied by a different cost mix, particularly in construction and operating expenses and finance costs. Investors can also track the cash-flow effects of the Rs 112.06 crore acquisition outflow, Rs 63.33 crore of capital expenditure and the increase in current and non-current borrowings reported at 30 September 2026.