effwa infra & research reported a strong financial performance for the year ended March 31, 2026, with significant growth across key operational metrics. The company’s revenue from operations stood at INR253.29 crores, reflecting a year-on-year increase of 36.8%. This growth was driven by robust execution capabilities and a strategic focus on value engineering initiatives.

Profitability metrics improved considerably during the fiscal year. EBITDA for FY26 was recorded at INR42.11 crores, a rise of 40.3% compared to the previous year, with an EBITDA margin of 16.6%. Net profit after tax reached INR28.62 crores, registering a growth of 42.3% and resulting in a PAT margin of 11.3%. The company attributed this performance to continuous monitoring of control systems and sustained investments in workforce development.

Financial Highlights for FY26

The company’s financials for the full year and the second half of the fiscal demonstrate consistent momentum. In H2 FY26, the operating profit was INR163.09 crores, growing 31.2% year-on-year, while EBITDA stood at INR26.68 crores with a margin of 16.4%. The net profit for the half-year was INR18.47 crores.

Operational and Strategic Updates

Effwa Infra & Research Limited’s order book remains robust, currently standing at around INR750 crores, with a pipeline of opportunities exceeding INR2,600 crores. This provides solid revenue visibility for the coming years. The management indicated that they expect the order book to reach INR1,000 crores shortly, pending formal intimation for orders already declared in their favor.

In a move to reward shareholders, the board announced a dividend of 10% for the fiscal year. Additionally, the company has acquired new office premises measuring approximately 10,000 square feet in Thane to support its expanding operations and workforce.

Business Outlook and Guidance

Looking ahead, the company has provided a revenue growth guidance of 35% to 40% CAGR for the next three to four years. The management emphasized its focus on executing the current order book efficiently and converting the pipeline into profitable orders. The company is also preparing for the commercial launch of its Zero Material Discharge (ZMD) technology by July 2027, which is expected to enhance margins further.

Segmentally, the revenue for FY26 was predominantly driven by effluent treatment plants with Zero Liquid Discharge (ZLD), which accounted for 92.4% of the total revenue. Operation and maintenance (O&M) activities contributed 3%, while effluent treatment with recycling made up 4.6%. Geographically, 87.2% of the revenue was generated from domestic markets.

Effwa Infra & Research Limited has announced its audited standalone financial results for the half year and full year ended March 31, 2026, as approved by the Board of Directors at its meeting held on May 12, 2026. The company reported robust financial performance for FY26, driven by healthy execution momentum across ongoing projects and an increasing contribution from high-value Zero Liquid Discharge (ZLD) systems. The statutory auditor, M/s Jignesh Savla & Associates, Chartered Accountants, issued an audit report with an unmodified opinion on the results.

Financial Performance

Revenue from operations for FY26 stood at ₹25,329.38 lakhs, representing a year-on-year growth of 36.8% compared to ₹18,511.93 lakhs in FY25. Profit After Tax (PAT) increased by 42.3% YoY to ₹2,861.81 lakhs from ₹2,011.28 lakhs in the previous year. Profit Before Tax (PBT) rose to ₹3,822.64 lakhs from ₹2,725.21 lakhs in FY25. EBITDA grew by 40.3% YoY to ₹4,210.5 lakhs from ₹3,002.0 lakhs in FY25. The company also reported Basic and Diluted Earnings Per Share (EPS) of ₹12.36 for FY26, compared to ₹9.28 in FY25, calculated on a weighted average share base of 2,31,47,167 shares.

Expense Breakdown

Total expenses for FY26 stood at ₹21,506.75 lakhs compared to ₹15,786.71 lakhs in FY25. The cost of goods sold was the largest component at ₹18,184.67 lakhs, followed by employee benefits expenses of ₹1,576.00 lakhs and other expenses of ₹1,005.22 lakhs. Finance costs stood at ₹363.09 lakhs and depreciation and amortisation expenses at ₹24.75 lakhs for FY26.

Balance Sheet Highlights

As at March 31, 2026, total assets stood at ₹19,808.82 lakhs compared to ₹14,975.74 lakhs as at March 31, 2025. Shareholders' funds increased to ₹12,350.00 lakhs from ₹9,488.19 lakhs, reflecting the strong profit accretion during the year. Trade receivables stood at ₹12,871.06 lakhs, while cash and bank balances improved to ₹4,328.52 lakhs from ₹2,606.05 lakhs in the prior year. Capital Work-in-Progress (WIP) of ₹1,976.58 lakhs was recorded, reflecting the acquisition of new office premises.

Operational Highlights

Effwa Infra & Research delivered a healthy operating cash flow during FY26, generating net cash inflow from operating activities amounting to ₹2,942.62 lakhs, a significant turnaround from a net cash outflow of ₹3,123.55 lakhs in FY25. This reflects strengthened working capital management practices and efficient realization of receivables. In line with its growth vision, the company acquired new office premises measuring approximately 10,000 sq. ft. to support future expansion initiatives, reflected as Capital WIP of ₹1,976.58 lakhs on the balance sheet.

Dividend Declaration

The Board of Directors has recommended a dividend of 10%, or ₹1 per equity share of face value ₹10 each, for the financial year ended March 31, 2026. The payment is subject to the approval of shareholders at the ensuing Annual General Meeting.

IPO Proceeds Utilization

Pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company confirmed there is no deviation or variation in the use of proceeds from the objects stated in the prospectus for its Initial Public Offering. The total IPO proceeds of Rs. 51,27,29,600 (comprising Fresh Issue of INR 43,59,77,600 and OFS of INR 7,67,52,000) raised on July 12, 2024, have been fully utilized as stated in the company's prospectus. The Audit Committee reviewed the statement of deviations for the half year ended March 31, 2026, at its meeting held on May 12, 2026.

Management Outlook

Management indicated that ongoing execution of major projects, including the SAIL (RSP) project expected to be completed during the current financial year, will continue to strengthen the growth trajectory. The company remains focused on implementing ERP systems and operational excellence initiatives to enhance productivity. Additionally, Effwa Infra & Research is advancing its patent application for Zero Material Discharge (ZMD), with completion anticipated during the current financial year.

Investor Meet Update

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has confirmed that the audio recording of the earnings conference call for the quarter and year ended March 31, 2026, held on May 13, 2026, has been uploaded to the company's website.