EMS Limited , a leading player in the water and wastewater management sector, reported a 26-27% decline in revenue for the second quarter. The company attributed this decrease to pan-India heavy monsoon rains that disrupted underground sewerage and pipeline work across its operational states.

Impact of Monsoon on Operations

The unprecedented rainfall forced EMS Limited to suspend digging operations for safety reasons, significantly affecting project execution. CEO H.K. Kansal explained, "We couldn't continue the digging work at all. After digging, if it is raining even after 3 days, then we have to stop the work because of the collapsing of the earth and of the nearby civil structures like building and electrical structures."

Financial Performance

Despite the revenue decline, EMS Limited managed to maintain its margins with only a 2% drop. The company's PAT (Profit After Tax) margin remained relatively stable at around 18%, demonstrating resilience in challenging conditions.

Order Book and Future Outlook

EMS Limited reported a robust unexecuted order book of INR 2,388.00 crores. The company has tenders in the pipeline worth approximately INR 4,000.00 crores and expects to secure additional orders of at least INR 500.00-600.00 crores in the current financial year.

Managing Director Ashish Tomar reaffirmed the company's annual growth guidance of 18-20% compared to the previous fiscal year, stating, "We continue to focus on disciplined execution, timely delivery and restoring growth momentum in the coming quarters."

Recovery Strategy

To compensate for the Q2 slowdown, EMS Limited plans to ramp up progress in Q3 and Q4. The company utilized the monsoon period for planning, obtaining drawing approvals for EPC projects, and procuring critical materials, which are expected to contribute to revenue generation in the coming quarters.

Competitive Edge

EMS Limited differentiates itself through in-house capabilities in engineering, procurement, installation, and operation & maintenance. This integrated approach contributes to the company's higher profit margins compared to industry peers.

Market Position

In the listed space, EMS Limited faces limited direct competition in its specific market segment. The company's focus on urban water supply and wastewater projects, combined with its technical expertise and in-house capabilities, positions it uniquely in the sector.

As the water and wastewater management sector continues to grow, EMS Limited remains confident in its ability to capitalize on upcoming opportunities and maintain its growth trajectory.

EMS Limited , a Ghaziabad-based multi-disciplinary EPC company, has reported its financial results for the first half of fiscal year 2026, showing a decline in profits due to prolonged rainfall affecting operations.

H1 FY26 Performance

For the half-year ended September 30, 2025, EMS Limited reported:

• A 24.27% decrease in standalone net profit to Rs. 65.41 crore
• Revenue dropped by 18.20% to Rs. 355.68 crore

The decline in performance was primarily attributed to prolonged rainfall disrupting sewerage construction activities.

Impact of Monsoon on Operations

Mr. Ramveer Singh, Chairman of EMS Ltd, explained that heavy and continuous rainfall created significant disruptions and delays in project execution, resulting in lower revenue generation. The prolonged and intense precipitation severely affected on-ground construction activities, especially sewerage work. Excavation sites became waterlogged, and work progress was repeatedly interrupted.

New Project Awards

Despite the challenges, EMS Ltd announced receiving two significant Letter of Awards:

1. A project valued at Rs. 104.06 crore (excluding GST) from UP Jal Nigam (Urban) for the Agra Water Supply Reorganization Scheme, to be executed within 24 months.

2. A project valued at Rs. 183.81 crore (excluding GST) from UP Jal Nigam (Urban) for the construction of various components for the Fatehpur Sewerage and sewage treatment scheme, also to be executed within 24 months.

The total value of these new project awards amounts to Rs. 288.87 crore.

New CEO Appointment

In a significant management change, EMS Limited has appointed Harish Kumar Kansal as the new Chief Executive Officer (CEO) of the company.

Looking Ahead

With improved weather conditions, the company has resumed full-scale operations with its complete manpower at all sites. EMS Ltd expects to deliver progressive works on a continuous basis with satisfactory progress. The management anticipates improved performance as weather conditions normalize.

EMS Limited continues to focus on its core competencies in EPC and O&M services for sewerage solutions, water supply systems, and wastewater schemes, along with its interests in electricity transmission and distribution across various states in India.