EMS Limited , a prominent player in water and wastewater projects, has reported its financial results for the first quarter, showing modest growth despite challenges posed by an early monsoon season.

Financial Highlights

• Revenue for Q1 stood at Rs. 211.32 crores, up 3.73% from Rs. 203.72 crores in the same period last year.
• Profit After Tax (PAT) increased by 1.46% to Rs. 37.38 crores, compared to Rs. 36.84 crores in Q1 of the previous year.

Impact of Early Monsoon

The company attributed the lower-than-expected growth to early monsoon rains, which affected underground sewerage and water supply line work in the last 15 days of June. This impact was particularly significant as EMS Limited operates primarily in water and wastewater projects, which constitute about 75% of its business.

Management Commentary and Outlook

Despite the challenges, the management remains optimistic about the company's prospects:

• The company maintains its guidance of 20-25% revenue growth for the full year, expecting to reach Rs. 1,250.00 crores.
• EMS Limited holds an unexecuted order book of Rs. 2,500.00 crores, with an additional Rs. 4,000.00 crores in pipeline bids.
• The company expects stronger performance in the second half of the fiscal year as underground work resumes post-monsoon season.

Order Book and Project Pipeline

EMS Limited's strong order book position underscores its potential for future growth:

• Current unexecuted order book stands at Rs. 2,500.00 crores.
• The company has successfully secured two orders worth Rs. 200.00 crores in the current financial year.
• Bids in the pipeline amount to approximately Rs. 4,000.00 crores.

Financial Strategy

The company maintains a conservative financial approach:

• EMS Limited remains debt-free, focusing on organic growth through internal accruals.
• The management targets a consistent 25-30% annual revenue growth over the long term.

Operational Focus

• The company primarily operates in water and wastewater projects, which account for 75% of its business.
• EMS Limited is also involved in electrical transmission and building works, which complement its core operations and help in meeting eligibility criteria for certain projects.

Future Prospects

Looking ahead, EMS Limited sees significant opportunities in the water and wastewater sector:

• The management estimates a potential market of Rs. 15.00 lakh crores in urban areas for water and wastewater projects.
• The company is exploring opportunities in the reuse of wastewater, addressing growing water scarcity concerns.

EMS Limited's Q1 results, while showing modest growth, reflect the seasonal nature of its business and the impact of external factors like early monsoons. However, the company's strong order book, debt-free status, and focus on the growing water and wastewater sector position it well for future growth. As underground work resumes post-monsoon, EMS Limited expects to accelerate its performance in the latter half of the fiscal year, aiming to meet its full-year guidance.

EMS Limited , the Ghaziabad-based multi-disciplinary EPC company, has announced its financial results for the first quarter of fiscal year 2026, showcasing growth in both standalone and consolidated figures despite weather-related challenges.

Standalone Performance

EMS Limited reported a standalone net profit after tax of Rs 37.38 crore for Q1 FY26, marking a 1.46% increase from Rs 36.84 crore in the same period last year. The company's revenue from operations grew by 3.73% to Rs 211.32 crore, up from Rs 203.72 crore in Q1 FY25. EBITDA saw a 3.34% rise to Rs 53.53 crore, compared to Rs 51.80 crore in the corresponding quarter of the previous year.

Consolidated Results

On a consolidated basis, EMS Limited's performance was even more robust:

Weather Impact and Future Outlook

Mr. Ramveer Singh, Chairman of EMS Ltd, acknowledged that heavy rainfall in Uttarakhand during June 2025 led to delays in sewerage system progress, temporarily impacting operational efficiency. However, he expressed confidence in the company's ability to achieve its projected annual growth rate, citing the seasonal nature of these challenges.

Order Book and Government Initiatives

EMS Limited has secured several significant contracts, strengthening its order book:

1. A Rs 1,838.15 crore contract from UP Jal Nigam (Urban) for the Fatehpur Sewerage and sewage treatment scheme.
2. A Rs 1,040.55 crore contract for water supply infrastructure in Agra from UP Jal Nigam (Urban).
3. A Rs 7,819.79 crore contract for pollution abatement work in Kolkata's Adi Ganga river.
4. Two contracts in July 2025:
   • A Rs 194.61 crore electrical works project for a Multimodal Logistics Park in Nagpur.
   • A Rs 987.97 crore sewerage scheme contract in Ayodhya.

The company's management views these contracts as a testament to their expertise in sewerage solutions and water supply systems, positioning them for substantial growth in the coming quarters.

Strategic Acquisition

EMS Limited's Board of Directors has approved the acquisition of a 100% stake in EMS Realtech Private Limited, a move aimed at making the latter a wholly-owned subsidiary. This acquisition is expected to be completed within 90-120 days, pending further details and committee reports.

Auditor Resignation

The company announced the resignation of its statutory auditors, M/s Rishi Kapoor & Company, Chartered Accountants, effective August 12, 2025. The auditors cited pre-occupation with other assignments as the reason for their departure.

Conclusion

Despite facing weather-related challenges, EMS Limited has demonstrated growth across key financial metrics in Q1 FY26. With a strong order book and strategic moves like the acquisition of EMS Realtech Private Limited, the company appears well-positioned to capitalize on the government's infrastructure development initiatives, particularly in water supply and sewerage systems.