Concord Enviro Systems has announced a significant expansion in its water treatment operations through a strategic acquisition by its wholly-owned subsidiary. Rochem Separation Systems (India) Private Limited (RSSPL), a subsidiary of Concord Enviro, has completed the acquisition of 100% equity share capital in Pathak Utility Private Limited (PUPL), marking a notable development in the water and wastewater management sector.

Acquisition Details

The acquisition, valued at INR 1.01 crore, involves the purchase of 10,10,000 equity shares of PUPL at INR 10 each. This move transforms PUPL into a step-down subsidiary within the Concord Enviro Systems corporate structure, enhancing the group's capabilities in water treatment operations and maintenance.

Strategic Implications

Sudarshan Kamath, Chief Financial Officer of Concord Enviro Systems, stated that this acquisition is strategically aimed at strengthening and expanding RSSPL's presence in the water treatment sector, with a particular focus on third-party operations and maintenance (O&M) business. The integration of PUPL is expected to bolster the group's service offerings and market position in the water and wastewater management industry.

About Pathak Utility Private Limited

Pathak Utility, incorporated on 27th February 2024, specializes in the operation, maintenance, and rehabilitation of water treatment plants. For the fiscal year ending March 31, 2025, PUPL reported:

Industry Impact

This acquisition underscores the growing importance of water management solutions and the consolidation trend in the environmental services sector. As water scarcity and quality issues continue to be global concerns, companies like Concord Enviro Systems are positioning themselves to meet the increasing demand for efficient water treatment and management services.

Regulatory Compliance

The company has confirmed that the acquisition does not fall under related party transactions and did not require any governmental or regulatory approvals. This disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As the water and wastewater management industry continues to evolve, this strategic move by Concord Enviro Systems through its subsidiary RSSPL signifies a commitment to growth and expansion in the sector. The acquisition of Pathak Utility is expected to enhance the company's service portfolio and strengthen its market position in the rapidly growing environmental solutions market.

Concord Enviro Systems Limited , a leading provider of water and wastewater treatment solutions, has reported a mixed performance for the first quarter. The company maintained its revenue growth guidance of 18-20% for the full year, despite a flat top-line in Q1.

Q1 Financial Highlights

• Revenue remained stable at INR 1,024.00 million, comparable to the same period last year
• EBITDA increased to INR 107.00 million from INR 15.00 million in the same period last year
• Adjusted EBITDA, excluding one-off gains, stood at INR 27.50 million
• Profit After Tax (PAT) turned positive at INR 51.00 million, compared to a loss of INR 26.00 million in the same quarter last year

Order Book and Business Outlook

Concord Enviro's order book as of June 30 stood at INR 5,366.00 crores, slightly up from INR 5,327.00 crores at the end of March. The company is actively pursuing quotes worth approximately INR 2,500.00 crores, with an expected conversion rate of about 25%.

The order book composition is as follows:

Recent Order Wins and Project Updates

• Secured an INR 800.00 million O&M order from a large listed customer
• Received an INR 125.00 million O&M order from a customer in Mexico
• Obtained an INR 150.00 million order from an automobile client
• Successfully commissioned its first Mexico project in July

Management Commentary

Prayas Goel, Chairman and Managing Director, stated, "Q1 is typically focused on setting the strategic direction for the year and preparing execution strategies for large orders, including design completion. Our current order book has a second-half heavy delivery schedule, including exports and CBG projects."

The company expects 60-65% of its annual revenue to be generated in the second half, with Q3 and Q4 each projected to deliver around INR 200.00-215.00 crores in revenue.

Expansion into New Sectors

Concord Enviro is making early moves into high-potential domains such as:

• Solar and photovoltaics
• Green hydrogen
• Carbon capture technologies
• Semiconductors

The company is engaging with industry leaders in these spaces to co-develop future-ready solutions.

Operational Efficiency and Margin Outlook

Despite the flat revenue in Q1, management expects to maintain its historical EBITDA margin of around 16% for the full year. The company is investing in strengthening its leadership and onboarding senior talent across strategic functions to support future growth.

Conclusion

While Concord Enviro Systems faced a challenging first quarter, the management remains optimistic about achieving its full-year growth targets. The company's diverse order book, expansion into new sectors, and focus on operational efficiency position it well for the remainder of the year. Investors will be closely watching the execution of the order book in the second half to gauge the company's ability to meet its growth guidance.