Concord Enviro Systems Reports Q2 FY26 Revenue Decline, Revises Growth Guidance

Concord Enviro Systems , a key player in the environmental solutions sector, has reported its financial results for the second quarter of fiscal year 2026, revealing a significant decline in revenue alongside revised growth projections for the full year.

Q2 FY26 Financial Highlights

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	1,248.45	1,618.94	-23%

The company experienced a 23% year-on-year decrease in revenue for Q2 FY26. This decline has been attributed to two primary factors:

Delays in approvals for projects in Africa
Absence of large project billing from Mexico, which was present in the previous year

Revised Guidance for FY26

In light of these challenges, Concord Enviro Systems has adjusted its financial outlook for the fiscal year 2026:

Metric	Previous Guidance	Revised Guidance
Revenue Growth	18-20%	12-15%
EBITDA	Not specified	Reduced by 1%

The company has lowered its revenue growth expectations for FY26 from the initial 18-20% to a more conservative 12-15%. Additionally, the EBITDA guidance has been revised downward by 1%, although the specific figures were not provided in the report.

Order Book and Future Projects

Despite the setbacks, Concord Enviro Systems maintains a robust order book:

Current order book value: ₹5,354 crore
Upcoming projects: Compressed Biogas (CBG) projects expected to commence in Q3

The stability in the order book value suggests that while current quarter performance has been impacted, the company still has a pipeline of projects that could potentially support future revenue streams.

Looking Ahead

The revised guidance and maintained order book indicate that Concord Enviro Systems is navigating through temporary challenges while still positioning itself for potential growth. The commencement of CBG projects in the third quarter could provide a boost to the company's performance in the latter part of the fiscal year.

Investors and stakeholders will likely be watching closely to see how the company manages these challenges and capitalizes on its project pipeline in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.00%	-1.67%	+12.04%	-21.26%	-45.67%	-45.67%

Concord Enviro Systems Limited , a leading player in water and wastewater treatment solutions, has announced a robust order book of ₹5,354 Million, with an additional pipeline worth ₹27,000 Million. The company's latest financial results and strategic initiatives highlight its commitment to growth and innovation in the environmental technology sector.

Financial Performance

Concord Enviro Systems reported the following financial results for the second quarter:

Metric (₹ in crore)	Q2 FY26	Q2 FY25	YoY Change
Revenue from Operations	124.85	161.89	-22.9%
Gross Profit	62.99	78.55	-19.8%
EBITDA	7.66	27.33	-72.0%
Net Profit	4.49	17.30	-74.0%

The company's revenue declined year-over-year, which management attributes to an exceptionally strong Q2 FY25 that included significant billing from a Mexico project. Additionally, a delay in approvals for an African project may defer its execution to FY27.

Strategic Initiatives and Growth Prospects

Concord Enviro Systems is actively expanding its presence in high-margin green sectors:

Carbon Capture: The company plans to commission India's first 7.5TPD CO₂ capture unit in FY26, positioning itself at the forefront of this emerging technology.
Green Hydrogen: Concord is pursuing projects with EPC solution providers to integrate its desalination products into green hydrogen plant systems.
Semiconductor Effluent Solutions: The company is poised to offer solutions for upcoming semiconductor fab units in India, focusing on process optimization and energy reduction.
Compressed Biogas (CBG): Leveraging its expertise in anaerobic digestion, Concord has started offering design and implementation services for CBG plants from organic waste.
Solar PV Manufacturing: The company is developing solutions for the complex wastewater generated in solar cell manufacturing, using technologies like WHE and UHPRO.

R&D and Innovation

Concord Enviro Systems continues to strengthen its technological edge:

Five new patents were granted, bringing the total to nine, with 21 additional applications filed.
Successful completion of pilot field trials for Raw Effluent Membranes (REM), which could substantially reduce wastewater treatment costs.
Development of heat exchangers using non-corrosive plastics for evaporation technology.
Creation of a proprietary chemical mix to reduce silica in wastewater treatment.

Global Expansion

The company is maintaining its focus on international markets:

Africa and North America remain key target regions.
Export revenues have tripled over the past three years, with export contribution nearly doubling to 38.76% in FY25.
The export order book stood at ₹1,820 crore in FY25, with the number of international customers growing from 21 in FY20 to 30 in FY25.

Management Commentary

Prayas Goel, Chairman & Managing Director, and Prerak Goel, Executive Director, commented on the results: "Q2 execution was in line with our order execution plan for the financial year 2026. The fundamentals of the business remain strong, baring a delay in an overseas project which may impact near term performance. Our healthy order book, growing presence across high-potential sectors, and continued investments in R&D and leadership give us confidence in our long-term growth trajectory."

Concord Enviro Systems' strategic focus on innovative environmental solutions and its expanding global footprint position the company to capitalize on the growing demand for sustainable water and wastewater management technologies. Despite short-term challenges, the company's robust order book and pipeline indicate strong potential for future growth.