Techknowgreen Solutions Limited has announced its unaudited financial results for the half year ended September 30, 2025. The environmental and infrastructure planning solutions provider reported a net profit ratio of 17.66%, down from 25.95% in the comparable period of the previous year. This decline comes as the company navigates the commissioning costs and ramp-up expenses associated with its newly operational TRL-9 laboratory.

Financial Performance

The company's financial performance for H1 FY26 reflects both growth and challenges:

Despite a robust 23.9% year-on-year increase in revenue from operations, Techknowgreen Solutions' net profit saw a 22.0% decline. This reduction in profitability is primarily attributed to higher operational costs associated with the new TRL-9 laboratory.

Operational Highlights

The company's operational metrics showed mixed results:

• Current Ratio: Improved to 2.65 from 3.63, indicating enhanced liquidity due to increased current assets, particularly higher trade receivables and unbilled revenue from additional civil work orders.
• Return on Capital Employed (ROCE): Decreased to 11.98% from 16.21%, reflecting the substantial capital expenditure for commissioning the TRL laboratory.
• Trade Payables Turnover Ratio: Significantly increased to 351.37% from 63.09%, suggesting more efficient management of payables.

Strategic Developments

Techknowgreen Solutions has completed the utilization of IPO proceeds worth ₹1,671.84 lakhs, marking a significant milestone in its growth strategy. The newly operational TRL-9 laboratory, while currently impacting profitability, is positioned as a key asset for future growth and technological advancement in environmental solutions.

Management Commentary

While specific management quotes are not available, the financial results indicate that the company is in a transitional phase. The increased operational costs and depreciation charges are expected to stabilize as the TRL-9 laboratory reaches steady-state operations, potentially leading to improved ROCE in future periods.

Looking Ahead

As Techknowgreen Solutions navigates the short-term impact of its expansion, the company's focus appears to be on leveraging its enhanced capabilities to drive long-term growth. The increased revenue and strategic investments suggest a forward-looking approach, despite the temporary pressure on profit margins.

Investors and stakeholders will likely be watching closely to see how quickly the new laboratory can contribute positively to the company's bottom line and whether the expanded operational capacity translates into sustained revenue growth in the coming quarters.

Techknowgreen Solutions Limited (TSL) has entered into a strategic partnership with Sri Sri Rural Development Programme Trust (SSRDP), an initiative of The Art of Living Foundation, to collaborate on environmental projects across India. This collaboration, formalized through a Memorandum of Understanding (MOU), aims to combine TSL's technological expertise with SSRDP's community outreach capabilities for sustainable water management and environmental restoration initiatives.

Key Aspects of the Partnership

The MOU, signed on October 31, 2025, outlines a comprehensive collaboration between the two entities:

Objectives and Expected Benefits

The partnership between TSL and SSRDP is designed to:

1. Leverage TSL's technological solutions, particularly its Circular Economic Wetland Technology, for various environmental projects.
2. Utilize SSRDP's extensive community network to enhance project reach and implementation.
3. Enable participation in large-scale government and CSR initiatives.
4. Promote sustainable water management practices across India.
5. Strengthen TSL's presence in the environmental infrastructure sector.

Project Implementation

The collaboration encompasses a wide range of environmental projects:

• Design, development, and implementation of wastewater treatment systems.
• Lake and river rejuvenation initiatives.
• Pollution control and decentralized wastewater management through nallah management.
• Promotion of eco-friendly water management solutions and circular economy models.
• Execution of community-based environmental restoration projects.

Governance and Intellectual Property

The MOU stipulates that each party will retain its own intellectual property. Both entities have agreed to work exclusively with each other for projects utilizing TSL's CEWT technology. The agreement is governed by Indian law, with arbitration to be conducted in Pune and legal jurisdiction in Bengaluru.

This partnership marks a significant step for Techknowgreen Solutions Limited in expanding its environmental initiatives and showcases the company's commitment to sustainable development through innovative technological solutions and community engagement.