EMS Limited reported a decline in its consolidated financial performance for the financial year ended March 31, 2026, with net profit falling to ₹91.19 crore compared to ₹183.78 crore in the previous year. Revenue from operations for the year decreased to ₹732.75 crore from ₹972.49 crore year-on-year. Management attributed the significant drop in Q4 revenue and overall annual performance to project delays caused by the West Bengal elections, government payment system changes via the SPARSH portal, and supply chain disruptions including bitumen shortages. The Board of Directors, at its meeting held on May 29, 2026, approved the standalone and consolidated audited financial results for the period.

FY26 Consolidated Financial Performance

The company's operational profitability also contracted, with EBITDA for the year declining to ₹129.22 crore from ₹248.98 crore in the year-ago period. The EBITDA margin stood at 17.34% for FY26. The statutory auditors, M/s Ajay K Kapoor & Company, provided an unmodified opinion on the annual audited standalone and consolidated financial results. The following table summarises EMS Limited's key FY26 consolidated financial metrics:

Management Commentary and Guidance

During the earnings conference call held on May 30, 2026, management clarified that the shortfall was largely due to external factors, including a ₹100 crore increase in inventory due to uncompleted milestones and work stoppages in West Bengal. The company stated that had these issues not occurred, Q4 standalone revenue could have been approximately ₹184 crore. Looking ahead, the unexecuted order book as of March 31, 2026, stood at ₹1,837 crore, with new orders of ₹209 crore received from UP Jal Nigam. The company targets a revenue of approximately ₹1,000 crore in FY27 and aims to restore PAT margins to 15% and EBITDA margins to 25% over the long term.

Dividend and Corporate Governance

The Board of Directors recommended a final dividend of ₹1.5 per equity share of ₹10 each, i.e., 15%, for the financial year 2025-26. This dividend is subject to approval by shareholders at the forthcoming Annual General Meeting. Additionally, Mr. Ramveer Singh, Chairman and Director, has voluntarily waived his entire remuneration of ₹50 lakh per month to serve in an honorary capacity, effective immediately, without any alteration to his terms of appointment other than the remuneration waiver.

Strategic Appointments and Corporate Guarantee

The Board approved the appointment of M/s. Rishi Kapoor & Co, Chartered Accountants, as Strategic Financial Consultant to advise on financial planning, capital structure evaluation, and potential corporate actions. Furthermore, the Board sanctioned a corporate guarantee to HDFC Bank for credit facilities amounting to ₹35 crore availed by EMS Industries Private Limited, a subsidiary. This includes ₹15 crore for working capital requirements and ₹20 crore for capital expenditure towards machinery purchase. The transaction was conducted at arm's length.

EMS Limited has received a Letter of Award (LOA) from UP Jal Nigam (Urban), Varanasi, for the laying of sewer network and house connection work in select wards of Nagar Nigam, Varanasi. The development was disclosed on May 06, 2026, under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. This follows the company's earlier intimation dated April 17, 2026, regarding its receipt of the lowest bidder (L1) status for the same tender.

Order Overview

The LOA pertains to the laying of sewer network and house connection work in 2 wards — Hukulganj and Naibasti — out of 18 problematic wards of Nagar Nigam, Varanasi. The estimated order value, excluding GST, is approximately Rs. 6484.93 Lakhs (Rupees Six Thousand Four Hundred and Eighty-Four Lakhs only). The contract has been awarded by a domestic entity and is to be executed over a period of 18 months.

The following table summarises the key details of the awarded contract:

Scope of Work

The contract is awarded on a turnkey basis and encompasses a comprehensive range of infrastructure activities. The scope includes surveying, soil investigation, design, and supply of all materials, labour, tools and plant required for the proper completion of the following works:

• Laying & Jointing of Sewer Network and Rising Main
• Providing Sewer House Connection
• Construction of 23 MLD SPS

The terms and conditions of the order are as per the contract, and the assignment is classified as a domestic entity engagement.

Regulatory Disclosure

The intimation was submitted to both BSE Limited and the National Stock Exchange of India Limited in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was signed by Ashish Tomar, Managing Director & CFO of EMS Limited (formerly known as EMS Infracom Pvt Ltd), confirming that neither the promoter/promoter group/group companies hold any interest in the awarding entity, nor does the order fall within the scope of related party transactions.