Enviro Infra Engineers Limited Q2 Revenue Rises 60%, PAT Falls 20%

Enviro Infra Engineers Limited reported Q2 FY27 revenue of ₹363.8 crore, up 60% year on year, while profit after tax fell 20% to ₹39.5 crore. The results show stronger project execution in water, wastewater and renewable-energy businesses, but also highlight pressure from costs, accounting adjustments and higher finance charges.

What did Enviro Infra Engineers report for Q2 FY27?

Enviro Infra Engineers reported consolidated revenue from operations of ₹363.8 crore for Q2 FY27, compared with ₹227.3 crore in the year-earlier quarter. The 60% increase was supported by execution in its water and wastewater infrastructure operations and renewable-energy projects. Management said renewables accounted for 29% of consolidated revenue during the first half of FY27.

The company's quarterly EBITDA, excluding other income, was ₹74.9 crore, with an EBITDA margin of 20.58%. This was lower than the 28.56% margin reported in Q2 FY26 and also below the 21.05% margin recorded in Q1 FY27. PAT fell to ₹39.5 crore from ₹49.5 crore a year earlier, taking the PAT margin to 10.62% from 20.51%.

For the first half of FY27, revenue from operations rose 54.39% year on year to ₹723.0 crore. EBITDA excluding other income increased 16.56% to ₹150.5 crore, while PAT stood at ₹84.7 crore. The difference between revenue growth and profit growth indicates that the higher scale of execution did not translate into similar expansion in earnings.

Why did Enviro Infra Engineers' profit and margins decline?

Enviro Infra Engineers attributed the moderation in profitability to project mix, input costs, acquisition-related accounting and higher depreciation and finance costs. Managing Director Manish Jain said the quarter included interest cost linked to the deferred ₹200 crore payment for the ₹311 crore acquisition of Suryo Bhurja Limited.

Management also cited the reversal of EPC profits related to independent power producer projects executed for group special-purpose vehicles. These items affected the reported profit comparison even as revenue increased. The company said the decline in margin should be viewed alongside these timing and accounting effects, rather than revenue performance alone.

On a standalone basis, Enviro Infra Engineers reported Q2 FY27 revenue of ₹267.1 crore, EBITDA of ₹65.1 crore and PAT of ₹36.9 crore. Standalone EBITDA margin was 24.38% and PAT margin was 13.8%. The gap between standalone and consolidated profitability reflects the importance of assessing acquisition and group-project effects in the consolidated accounts.

What is Enviro Infra Engineers' order book and FY27 guidance?

Enviro Infra Engineers ended the period with an order book of about ₹6,778 crore, split between water projects worth ₹3,439 crore and renewable-energy projects worth ₹3,340 crore. This provides execution visibility across its two main operating segments, with the renewable portfolio accounting for roughly half of the order book.

Management retained its FY27 revenue guidance of ₹2,000 crore and said it had met its first-half revenue objective. With first-half revenue from operations at ₹723.0 crore, the company expects about ₹1,300 crore of revenue in the second half to reach the stated annual target. It also maintained a consolidated EBITDA margin guidance range of 19% to 20%.

The company has indicated a FY27 water-sector order-inflow target of ₹2,500 crore. Management referred to government programmes including Namami Gange and the AMRUT pipeline as sources of water-infrastructure demand. Its stated FY27 PAT expectation is ₹240 crore to ₹250 crore.

How do debt and cash flow shape investor focus?

Enviro Infra Engineers reported borrowings of ₹703.9 crore, up 67% from the comparable earlier level cited during the earnings discussion. The increase in debt, alongside acquisition-related obligations and higher finance costs, is relevant because interest expense was one of the factors management identified behind the lower quarterly profitability.

The earnings summary also flagged negative operating cash flow and receivables of ₹321.8 crore. For an EPC business, cash conversion depends on project milestones, customer collections and payment cycles. These items do not change the reported revenue growth, but they are important for evaluating the funding requirement associated with a larger execution base.

MSME payable days were reported to have reduced to 63 days from 93 days. The shorter period indicates a change in payment timing to these vendors, while the negative operating cash flow and higher borrowings keep working capital a material point for investors to monitor during the second half of FY27.

Conclusion

Enviro Infra Engineers delivered strong Q2 FY27 revenue growth and maintained its FY27 sales target, supported by water, wastewater and renewable-energy project execution. However, EBITDA and PAT margins declined, while PAT fell year on year, as acquisition-related accounting, project-profit reversals, input costs, depreciation and finance costs weighed on earnings.

The next focus will be execution required to deliver the ₹1,300 crore of revenue expected in the second half, progress toward the ₹2,500 crore water order-inflow target, and the movement in borrowings, receivables and operating cash flow. Management has retained FY27 guidance of ₹2,000 crore in revenue, 19% to 20% EBITDA margin and ₹240 crore to ₹250 crore in PAT.