EMS Limited has secured the lowest bidder (L-1) status for a construction contract awarded by UP Jal Nigam (Urban), Varanasi. The estimated order value of the project is approximately Rs. 10,284.76 lakhs, excluding Goods and Services Tax (GST). This development was disclosed to the stock exchanges on June 06, 2026, under Regulation 30 of the SEBI Listing Regulations.

The contract entails surveying, soil investigation, design, and supply of all materials and labour required for the completion of sewer networks and house connection work. The scope specifically covers 18 problematic wards within Nagar Nigam, Varanasi, including Shivpurwa, Tulasipur, Birdopur, and Kajipura. The project will be executed on a turnkey basis.

Project Details

The awarded work focuses on laying and jointing of sewer networks and providing sewer house connections. The project is classified as a domestic entity order and must be executed within a period of 24 months. The company confirmed that the promoter, promoter group, or group companies hold no interest in the entity awarding the contract.

Contract Overview

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. EMS Limited stated that it would update the exchanges on further developments regarding the project.

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.