Antony Waste Handling Cell Limited (AWHCL) has reported strong financial performance for the second quarter, with significant growth in revenue and profitability, while also addressing challenges related to outstanding receivables.

Financial Highlights

The company's consolidated financial results for Q2 show impressive year-over-year growth:

The EBITDA margin slightly improved to 19.38% from 19.30% in the same quarter last year.

Operational Performance

AWHCL's robust quarterly performance reflects its strong position in the waste management sector. The growth in revenue and profitability indicates effective operational management.

Outstanding Receivables

The company reported significant outstanding receivables from municipal corporations:

• Trade receivables: ₹3,766.00 lakhs
• Other current financial assets: ₹497.53 lakhs

Of the trade receivables, ₹1,500.00 lakhs is under dispute with one municipal authority, with the matter currently pending before the Supreme Court. AWHCL received a favorable ruling from the Bombay High Court, but the municipal corporation has appealed the decision. Management believes these receivables are recoverable based on legal advice and ongoing discussions with municipal authorities.

Legal and Regulatory Matters

The Income Tax Department conducted searches in October 2021, resulting in demand orders for multiple assessment years primarily related to expense disallowances. The company has filed appeals against these orders.

Corporate Actions

• AWHCL issued 6,770 equity shares under its ESOP scheme.
• The Board has approved a merger scheme with subsidiary AG Enviro Infra Projects Private Limited, with the final hearing scheduled for November 27, 2025.

Market Position

Antony Waste Handling Cell's consistent growth underscores the increasing demand for professional waste management services in India. The company's ability to maintain and slightly improve its EBITDA margin in a growing revenue environment suggests operational efficiency and cost management.

Investor Considerations

Investors may consider the following factors:

• Consistent growth in revenue and profitability
• Resolution of outstanding receivables and legal matters
• Long-term strategy and potential regulatory changes in the waste management sector
• Broader economic conditions that could impact future performance

The company's ability to sustain this growth trajectory, potentially improve margins further, and successfully resolve its receivables issues could be key areas to watch in the coming quarters.

Antony Waste Handling Cell Limited (AWHCL) has reported a robust operational performance for the second quarter and first half of fiscal year 2026, demonstrating strong growth across its business segments. The company's latest business update reveals significant progress in its core operations and strategic expansion initiatives.

Financial and Operational Highlights

AWHCL reported a substantial increase in its core operating revenue, with a year-on-year growth of approximately 13% for Q2 FY26 and 12% for H1 FY26. This growth was primarily driven by higher volumes and escalated contracts, showcasing the resilience and scalability of the company's business model.

The company's operational performance for Q2 and H1 FY26 is summarized in the following table:

The total tonnage managed during Q2 FY26 reached approximately 1.27 million tonnes, reflecting a 5.9% year-on-year growth. Collection & Transportation operations saw a significant increase of 10.4%, managing about 0.54 million tonnes, while Processing operations handled around 0.73 million tonnes, registering a 2.7% growth.

For the first half of FY26, AWHCL managed a total tonnage of approximately 2.60 million tonnes, representing a strong year-on-year growth of 8.9%.

Strategic Expansion and Contract Wins

In a significant development, Antony Lara Enviro Solutions Private Limited, a key subsidiary of AWHCL, secured two major Waste-to-Energy (WtE) projects in Andhra Pradesh. These projects, each with a capacity of approximately 15 MW, were awarded by the New & Renewable Energy Development Corporation of Andhra Pradesh Ltd. The combined value of these projects is estimated at around ₹3,200 crore for a concession period of 20 years.

Following this contract win, two new Special Purpose Vehicles (SPVs) were incorporated:

1. Kadapa Renew Energy Private Limited
2. Kurnool Renew Energy Private Limited

These SPVs will be responsible for the execution and operation of the newly acquired WtE projects.

Corporate Actions and Credit Rating Update

AWHCL is in the process of a significant corporate restructuring. The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted the Joint Company Scheme Petition for the merger of AG Enviro Infra Projects Private Limited with Antony Waste Handling Cell Limited. The final hearing for this merger is scheduled for November 27, 2025.

In light of this ongoing merger process, CARE Ratings Limited has placed the bank facility ratings of AG Enviro Infra Projects Private Limited, a material subsidiary of AWHCL, under "Rating Watch with Developing Implications (RWD)".

Conclusion

Antony Waste Handling Cell Limited's Q2 and H1 FY26 performance demonstrates the company's strong position in the sustainable urban waste solutions sector. With significant revenue growth, operational expansion, and strategic contract wins, AWHCL is well-positioned in the market. The ongoing corporate restructuring and new project acquisitions indicate the company's commitment to enhancing its market position and operational efficiency in the waste management industry.