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.

Concord Enviro Systems Limited has announced a strategic move in the water treatment sector through its wholly-owned subsidiary, Rochem Separation Systems (India) Private Limited (RSSPL). The company is set to acquire Pathak Utility Private Limited (PUPL) for INR 1.01 crore, marking a significant expansion in its water and wastewater management operations.

Acquisition Details

RSSPL has agreed to acquire 100% equity share capital of Pathak Utility Private Limited, which translates to 10,10,000 equity shares at INR 10 each. This all-cash transaction is expected to be completed within the next three months and does not require any governmental or regulatory approvals.

About Pathak Utility

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

Strategic Implications

The acquisition is strategically aimed at strengthening and expanding RSSPL's presence in the water treatment sector, with a particular focus on enhancing its third-party operations and maintenance business. Post-acquisition, Pathak Utility will become a step-down subsidiary of Concord Enviro Systems Limited.

Industry Impact

This move by Concord Enviro Systems, through its subsidiary, reflects the growing importance of water and wastewater management in India. As companies seek to expand their capabilities in this crucial sector, such acquisitions can lead to improved services and technologies in water treatment and management.

Disclosure and Compliance

The acquisition details were disclosed by Concord Enviro Systems Limited in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As the water treatment sector continues to evolve, this acquisition positions Concord Enviro Systems and its subsidiaries to play a more significant role in addressing India's water management challenges.