CMP: ₹175.05 | Market Cap: ₹150–180 Cr (Est.) | Sector: Solid Waste Management | Status: Hit 5% Lower Circuit
🚮 At a Glance
Urban Enviro Waste Management Ltd reported its FY25 earnings and the numbers look… well, a bit like their business — messy at first glance, cleaner when you sort them.
- Revenue: ₹141 Cr — up 37.65% YoY
- Net Profit: ₹10.26 Cr — up 45.41% YoY
- EBITDA: ₹25.52 Cr — up 37.54% YoY
- EPS: ₹11.85 — from ₹8.15 last year
- Half-Year Hiccups: H2 profit down 13.97% YoY, but still ₹2.62 Cr
But despite this, the stock hit a 5% lower circuit today. Why? We’ll get to that.
🏭 About the Company
| Metric | Details |
|---|---|
| Sector | Municipal Solid Waste (MSW) Services |
| Core Offerings | Waste collection, transport, segregation, disposal |
| Clientele | Municipal Corporations, Hospitals, PSUs, Institutions |
| Experience | 14+ years |
| Presence | Pan-India (Tier 2/3 city dominance) |
| Compliance & Listing | NSE SME listed, Symbol: URBAN |
Urban Enviro is the Swachh Bharat’s background operator — cleaning cities while staying out of the headlines.
💰 FY25 vs FY24 – Full Year Financials (₹ in Lakhs)
| Metric | FY25 | FY24 | Growth |
|---|---|---|---|
| Revenue | ₹14,105.27 | ₹10,241.17 | +37.65% |
| EBITDA | ₹2,552.03 | ₹1,855.24 | +37.54% |
| Net Profit | ₹1,025.85 | ₹705.38 | +45.41% |
| EPS (₹) | ₹11.85 | ₹8.15 | +45.41% |
📉 But What Happened in H2?
| Metric | H2 FY25 | H2 FY24 | YoY Change |
|---|---|---|---|
| Revenue | ₹6,911.28 | ₹5,600.00* | +23.39% |
| EBITDA | ₹1,025.29 | ₹926.11* | +10.71% |
| Net Profit | ₹262.75 | ₹305.31 | -13.97% |
| EPS (₹) | ₹3.03 | ₹3.52 | -13.97% |
🧠 *Assumed based on math, not explicitly provided.
The YoY profit decline in H2 spooked some investors — even though full-year profit jumped 45%.
🧠 EduInvesting Take
Urban Enviro just did what most listed SME companies can’t — they grew top-line, bottom-line, AND margin… and still got dumped on the exchange floor like mixed garbage.
Why?
- H2 profit dropped, and many punters only read the headline.
- SME stocks are sentiment-driven — no big anchors to hold the floor.
- The stock rallied 30% in May — profit booking + panic = lower circuit.
But look deeper:
- EBITDA margin steady, even with rising ops scale
- EPS of ₹11.85 means the stock trades at ~14.7x trailing PE — not crazy for a high-growth waste infra stock
- The company remains debt-light, contract-driven, and essential services-based
🔮 What’s Next?
Urban has:
- Clean cash flows
- Contractual income
- Sectoral tailwinds from municipal tenders, Swachh Bharat 2.0, and ESG adoption
The only thing they don’t have? Investor confidence in consistent profit visibility.
But that might change as:
- New cities/tenders come online
- Profit dips normalize and margins stabilize
🧨 Risks & Questions
- Can they maintain margins with rising fuel/labor costs?
- What explains the sharp 13.97% H2 profit dip?
- Any debt-funded expansion in the pipeline?
- No clear update on order book size or tender wins in this release
🧾 Final Word
Urban Enviro is doing serious work — not on social media, but in garbage trucks, landfill sites, and municipal back offices. It’s a sweat-and-steel business in a market that prefers tech buzzwords and clean cap tables.
If you can look past the stink of short-term H2 disappointment, you might just find a business that scales quietly — one municipal contract at a time.
🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe
Tags: Urban Enviro FY25, Waste Management Stocks, Solid Waste India, SME Lower Circuit, Swachh Bharat, Urban Infra, ESG, NSE SME, EduInvesting
